BS"D

Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
******************************

PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning,

In yesterday's Daily Pivot Magic Trading Journal, PERSPECTIVE section, we
commented: " . . . Supposedly, the gov't approval of the bailout, besides
officially signaling the end of laissez faire capitalism, will stimulate
Bull trading Thursday. Don't bet on it being much more than bait in the
BB's trap!" Called it again.

All the swinging and traps kept most of our trades to small profits,
except for a nice 5-pointer and a nicer 11-pointer!

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]

*********************************************************

E-mini
Thursday Feb 12, 2009

Morning session opens gap-down, below and outside the LT SW Channel (Daily, lavender channel lines).

[SNIP]

2 = Spinning Top/vaguely Bull Dragonfly reversal. Personally, I'd wait till it becomes a 2-bar completing on
the 3rd candle, and then let that candle pull us in (good ole risk-conservative me).

D = Large white candle. Per PMT stop rules, move the profit-locking stop under the low of the candle.

E = DVS (pink arrow) and Price Action finally overcomes the (theoretically non-existent) Resistance at the
lavender line, re-entering the LT SW Channel. Per our stop rules, move the profit-locking stop under the
lavender line.

F = Three hits fail to penetrate the S1 defenses. When the red Bear Dragonfly tail spikes nominally through
and retracts, Exit Now! +/- 5.50 points

3 = Lunchtime Volume tapes a pair of ineffective reversal attempts. No Price Window to the lavender line anyhow.

[SNIP]

7 = Massive 2-bar off the S3, as the trading clock moves into the last acceptable moments for a PMT entry.
Aggressive entry possible option.

P = DVS (pink arrow) drives a large, white, failed test of MA candle through the S2. Long top wick is a mite
scary, as we advance the profit-locking stop under the MA.

8 = Second white candle closes above the S2. Per our stop rules, move the profit-locking stop under the S2.
BTW, the tape now displays a 2-candle 123 "S" through the S2. Good opportunity to enter if you haven't, or to
add contracts if you have.

Q = DVS (no room for a label) propels a Giant white Spinning Top north to tap on the lavender line (we are still
assuming the BBs want entry to the LT SW Channel by EOD, so we also still assume that this is semi-permeable S/R)
and to retract. This candle also put our position in MPG violation. Mental stop at Giveback level. The top wick
retraction was very close to an Exit Now! Prepare to exit briskly if the next candle shows red.

S = Super DVS (pink arrow, surely exhausting Bull Momentum) completes a Twin Towers pattern. The Twin Towers
indicator advises that a stall/sag is next. Price Action blasts through the lavender line and the S1. Per our
rules, jump the profit-locking stop under the S1 where we get stopped out on the next candle. +/- 11 points
Finally!!!

Price Action tapes a 123, setting up the first leg of a classic "V" checkmark shaped EOD Hiccup right on time
(plum lines). Notice the second Hiccup-boost at the second Hiccup Danger Timeline (dotted plum line). Price
Action crosses the Pivot and Close, closing EOD at Wednesday's High.

PERSPECTIVE
(Daily, bottom chart)

Thursday, the LT SW Channel Floor was repeatedly tested by a long-tailed
Bull Dragonfly (member of the Doji, zero-change, family) candle.

Throughout the morning I was preparing to puff about how the TTT had
succeeded, proving that bailout decision had in fact produced the
opposite effect from what was expected. However, by the end of the day,
the BBs returned to the security of the Channel for what seems to be a
failed TTT.

Now, I can puff about how the bailout had NO EFFECT AT ALL!!!

Is that better news or worse news?

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: