Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
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PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning,

In yesterday's Daily Pivot Magic Trading Journal, PERSPECTIVE section,
our analysis suggested:
". . . 3 breather days in a row and the long top wick on Wednesday
suggest that a test of the LT SW Channel Floor is scheduled for Thursday."

Right on schedule!

TGIF!!!

The market has plunged over a very significant precipice and is teetering.
A Red Flag warning remains in effect.

CAVEAT
Guard your funds. Although a dangerous time for beginning traders to
get wet, this is an excellent time for paper trading and practice.
[snip]

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E-mini
Thursday Feb 05, 2009

Thursday morning opens gap-down, and, just as we predicted, dips to test the LT SW Channel Floor (Daily, bottom
chart, lavender channel lines).

1 = 2-bar "P" Reversal through the lavender line. Price Action tapes a 123 continuation test of the Support at
the lavender line, and we are pulled in on a large white candle. Initial stop advances under the lavender line.

A = Large white Spinning Top through the S1. Per PMT stop rules, move the profit-locking stop under the S1.

2 = S1 Supports a 123 continuation, spiking to the lavender line, which takes us out at our stop. Aggressive
re-entry above the close of = A, with initial stop under S1.

B = Breakaway gap, and a large white Spinning Top. Per our stop rules, move the profit-locking stop under the
low of the candle.

C = Giant white candle through the Low. Per our rules, move the profit-locking stop under the Low.

D = Large (barely) white candle taps on the Close. Move the profit-locking stop under the low of the candle and
prepare for quick exit.

E = DVS (sorry no room for more arrows) pumps a giant white candle through the Close. Move profit-locking stop
under the Close. This completes a 2-candle 123, presenting us with an opportunity to add contracts.

F = DVS (pink arrow, possible Twin Towers Volume pattern) drives a large white inverted (Bear) Dragonfly to spike
through the Pivot and retracts. Exit as Price Action crosses back below the Pivot. +/- 12 points

[SNIP]

Price Action battle rages at the R1 until late afternoon.

7 = Multi-top mid-air Reversal (blue arrow) breaks through the R1, with a 2-candle 123. Volume jumps to life,
pulling us in, with the initial stop above the R1.

J = Large red candle/second healthy red candle closes below the MidW. Per our stop rules, move the profit-locking
stop above the MidW.

K = DVS (pink arrow, late in the move this is an indicator of probable Momentum exhaustion). Giant red candle to
the Mid puts our position in violation of Pivot Magic Trading Maximum Profit Giveback (MPG) rules. Mental stop at
Give back. (Good, the DVS exhaustion indicator makes us prefer the exit flexibility of a mental stop in case of
emergency exit.)

Price Action tapes a mid-air 2-bar, a PMT Exit Now! Signal. +/- 3.50 points

Price Action retests the very sticky R1, and there it closes EOD.

PERSPECTIVE
(Daily, bottom chart)
Thursday's large white day candle may initiate a Bull kickoff for Friday.
Meanwhile, the BBs continue to prefer to scalp while scooting safely
sideways inside the LT SW Channel.

BEWARE OF TRAPS ON FRIDAY!!!

REMEMBER: Trade the tape, not my prognosis!

Asher
=] ;-)>
Pivot Magic Trading Course
http://www.tradingthingys.com/PMTJ/Commodity%20Day%20Trading.html

Thursday's PMT Chart: