BS"D

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

Good morning,

Now I get it. We misunderstood! Bailout (as in Bailout Plan)
means bail out of your long term investments!!!!

Just as we predicted in yesterday's Pivot Magic Trading Journal:
". . . Don't really expect much from a northward incursion on Wednesday.
Probably a zigzagging breather day . . . Wednesday is likely to be a
breather overall, but with wild swings throughout the day. Keep your
powder dry! . . . "

We called that one right! The swinging Price Action left us dangling
with small profits throughout the entire day.

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
Wednesday Feb 25, 2009

1 = Morning session opens with an Anomaly Signal (Overnight, bottom left chart) off the Close. We normally hesitate
to enter on an Anomaly off the Close, but this one is well outside the "green fog", and Volume is nice to boot.

By the time Price Action hits the entry point the Price Window to the (always considered proven) Pivot is only large
enough for a Pivot Scalp. If you take this trade, stay alert and be aggressive.

A = Entry on large red candle. By the close of the candle, aggressively jump the stop to "free trade". Exhale.

B = Pivot Scalp Exit, briskly, the instant Price Action spikes through the Pivot and retracts. +/- 3 points

2 = Clean "S" signal, a 123 continuation through the Pivot.

C = Giant DVS (pink arrow) plunges a giant red candle through the Mid, pulling us in, and permitting us to advance
the stop above the Mid.

NOTE: The stop above the Mid is also at Pivot Magic Trading Maximum
Profit Giveback (MPG) level, so a mental stop, giving extra exit
flexibility, is appropriate.

D = Large red candle with a long bottom wick (implying failing Momentum). Per PMT stop rules, move the profit-locking
stop above the high of the candle.

Large white Spinning Top and Lower-Low-Turns-White combine to make this a mid-air Reversal. Exit as the next candle
shows white. +/- 4.75 points

[SNIP]

5 = Volume builds (pink arrow), as we get pulled in aggressively on a 2-candle 123 continuation through the Pivot.
Initial stop advances under the Pivot for reduced At Risk.

H = Giant white candle puts our position in MPG violation. Mental stop at Giveback level ("free trade" plus).

J = Exhaustion gap, and large white candle slams into very hard Resistance at the Close. Per my convention, move
the profit-locking stop into the gap and prepare to exit.

K = Black Volume Bar of Death/Doji candle, and Price Action returns to the Close. If you are still holding, the
instant the next candle crosses below the Close Exit Now! +/- 5.25 points

6 = Massive Volume (pink arrow) drives a giant red candle south for a Pivot retest. This signal is so strong that
it overcomes our hesitance to enter off the Close. In anticipation of a Pivot Scalp Exit, move the profit-locking
stop to "free trade" and a tik.

L = Giant red candle through the Pivot. Per our stop rules, move the profit-locking stop above the Pivot.

M = Large red Spinning top spikes through the Mid and retracts. By the time Price Action recoups >2 points of
profits, doubt this move and Exit Now! +/- 6.25 points

[SNIP]

Classic "V" check mark shaped EOD Hiccup (plum lines) dives through the Close to the Pivot.
Best trade of the day and we got to WATCH it!

PERSPECTIVE
(Daily, bottom right chart)
The net bearish nature of Wednesday's breather candle implies that another
attempt at the contract low (plum line) is probable on Thursday.

Be prepared.

REMEMBER: Trade the tape, not my prognosis!

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

Wednesday's PMT Chart: