BS"D

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

Good morning,

Tuesday was a Bear dive-bomber of a day. The TTT assault halted abruptly
at the LT SW Channel Floor (Daily, bottom right chart). Although we did
score a couple of nice trades in the morning, but got stuck on the
sidelines all afternoon.

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
Tuesday Feb 10, 2009

A = Tuesday opens gap-down at the S1/Historical S/R (Daily, bottom right chart, aqua line, mid-LT SW Channel) and
heads back to close the gap.

NOTE A: There is no Anomaly signal (Overnight, bottom left chart)
and S1 remains unproven.

1 = Aggressive entry as Price Action exits the "green fog" on a 2-bar (PMT "P" Signal) off the Pivot/Close.
Initial stop advances above the Close, reducing Undefended At Risk.

B = Large red candle/Failed test of MA. Per PMT stop rules, move the profit-locking stop above the MA.

C = Large red candle through the aqua line. Per our stop rules, move the profit-locking stop above the aqua line.

D = DVS (pink arrow, suggests failing Momentum) drives a large red candle. Normal stop placement leaves our position
in violation of Pivot Magic Trading Maximum Profit Giveback (MPG) rules. Mental stop at Giveback level.

BTW, this candle completes a 2-candle 123 continuation signal through the S1. Add contracts (early in the candle,
at about 856.5).

E = Twin Towers Volume pattern (pink arrow) is a PMT Readers of the Tape indicator, warning that a stall/sag/retest
is next. Per our stop rules, move the profit-locking stop above the high of this (barely) large candle.

NOTE B: With ABS very bloated today, even a stall here (let alone
an S1 retest, which is very likely) will almost surely get hit our
stop before we can Cancel -Replace. Thus, it is wise to use a
mental stop for added flexibility.

Mid-air reversal is one of our Exit Now! Signals. Alerted by our reading, NOTE B, jump ship well before the candle completes. +/- 7.50 points

2 = A giant spike through the S1 and aqua line converts to a massive reversal. Aggressive entry below the MA. At
the completion of the giant red candle, move the profit-locking stop briskly above the S2 (or to Giveback level),
locking in nice instant profits.

F = Twin Towers (pink arrow) indicates a stall/sag/retest coming. We, however, exit as soon a Price Action spikes
through the S3 and retracts. +/- 9.75 points

[SNIP]

And thus ends our day. Turn off the monitor early and go help your spouse!

PERSPECTIVE
(Daily, bottom right chart)

Monday was a red Spinning top breather day, with Price Action mainly above the aqua line (Mid-channel S/R);
however it definitely did NOT follow through on Friday's Bull burst. In fact, the daily tape shows a 2-bar
Reversal completing on the 3rd candle (Tuesday).

Monday's reversal developed into a massive Bear assault on Tuesday, driving to the LT SW Channel Floor
(lavender channel lines). Since the Floor Support temporarily held back the Third Time Through (TTT),
a breather day is quite likely on Wednesday.

REMEMBER: Trade the tape, not my prognosis!

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

Tuesday's PMT Chart: