BS"D

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

Good morning,

Once again we called it, but I'd really rather reap profits than be right!
In Friday's Pivot Magic Trading Journal, PERSPECTIVE section, we projected:
". . . On Friday the plum line (Historical S/R), Resistance-turned-Support,
will likely get tested. Expect a day full of traps, as the BBs catch their
breath." And so it was - a truly miserable day in the trenches!

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
Friday Mar 16, 2009

[SNIP]

NOTE: The primary lesson today is about risk-conservative trading when the market is
full of false starts, traps, and swinging retracements.

As you can clearly observe, even though the Price Action tapes a stair stepping Bearish
trend all morning (green channel lines), the steps themselves swing vigorously northward,
only bounded by the MA Resistance. Thus, unless you wish to increase your At Risk limits,
mental stops (for fast exits - no time for Cancel-Replace orders in such a market) and
small bites is the only safe option.

The afternoon pattern is pretty much a mirror of the morning; this time, with a Bullish
stair stepping trend (lavender channel lines), and with the MA Support forming the lower
swing boundary. Once again, either increase the At Risk (not good ole risk-conservative me!
No sir!), use mental stops and take small bites, or simply sit it out (this is of course the
best choice, especially if you are under funded, or if you have ulcers).

[SNIP]

5 = 2-bar behind the Close. A large white Bull Dragonfly kickoff clears the fog, pulling us in. Remember, we are
using only mental stops, and are constantly prepared to bail out on short notice.

B = Large, white, inverted (Bear) Dragonfly through the High. Per our PMT stop rules, move the profit-locking stop
under the High/"free trade". The long top wick on this candle implies the move is already slowing, and that the move
will soon swing back. Prepare to exit in an instant.

Medium-sized white Spinning Top. Another lackluster candle.

C = DVS (Desperation Volume Spike, pink arrow) late in the move is definitely a sign of Momentum exhaustion.

Once the Price Action recoups 2 points of profits, surmise that an MA retest swing is coming and SCRATCH!!!
Again! +/- 1.50 points

Thus ends a pointless [sic] and ulcer-filled Friday.

[SNIP]

PERSPECTIVE
(Daily, bottom chart)

Friday taped a white, Bull Dragonfly, breather candle. Monday is likely to
dip to test the plum line (Historical S/R), but overall to follow through
and to continue the brave charge north.

Hopefully, we will witness/profit from a large-range trading day, with very
few swings or traps!

REMEMBER: Trade the tape, not my prognosis!

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

Friday's PMT Chart: