BS"D

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

Good morning,

Called it both right and wrong yesterday. The trap slammed shut, but it
was during the overnight trading, and it didn't make it to the Historical
S/R (top plum line). Also, the Fed surprised us with a serious (but futile
in the long run, IMHO) plan to boost the economy, driving Price Action
strongly northward. Only thing that I got totally right was my final
advice: "[I] Might well be wrong [about direction], but don't get caught
in front of the fast moving train, either way it's moving."

More importantly, we were blessed with one very nice (read: profitable)
trade, and only one ugly scratch.

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 Mar 18, 2009

Following the overnight closing of the trap we thought was in store for Wednesday day session, morning session
opens gap-down at the Pivot. There the battle rages until early lunchtime drift sets in.

1 = Nice Double bottom with a decent Price Window, but nobody's home (pink arrow).

A = In spite of the pre-FOMC stillness, the BBs have telegraphed their post-report intent. Not only are there
several Volume TELLs (blue arrows), but the drift steadily trends (green channel lines) to a TTT of the Historical
S/R (Daily, bottom chart, plum line), a closing of the opening gap, and a nominal crossing and re-crossing of the
Close. Thinking "Bullish" after the 2:15 degaussing.

B = Thar she blows! Traders were pretty exited by the FOMC (check out that Volume, pink arrow). Although the Fed
was overall pessimistic, in an attempt to bolster the economy, they committed to buy $300,000,000,000 of Treasuries.
(That's $300 billion, which of course is really only a computer entry for a debt that they can't possibly pay back
any more the BO can repay $398 B. Great, now the Fed can sink along with everybody else!)

2 = A little backswing, and the tape presents a 123 continuation off the R1. The Volume (pink arrow) is very
confirming and in line with our reading of the pre-report TELLs. Anxious to be in the market, some advanced traders,
may have relied on these signs for an aggressive entry on = C.

C = By the close of the candle, following aggressive entry, the position is in instant violation of Pivot Magic
Trading Maximum Profit Giveback (MPG) rules. Mental stop jumps to Giveback level, which becomes a SCRATCH!
as the next candle, = D, recoups >2.5 points. Sigh!

D = FOR EDUCATION PURPOSES ONLY: If you were very very slow to SCRATCH!, I've marked 3 good reasons to exit at
the R2.

3 = Just in time for entry, per our final PMT tradable entry criterion, 3:00 Reversal Time, the tape presents an
outstanding Doji Spike Sandwich off the R2. The signal gets a sling-shot boost from a red Bear Dragonfly kickoff
candle (blue arrow) before finally taking off.

E = Pulled in on a giant red candle/failed test of MA. Though our rules suggest to move the initial stop above the
MA, since most of the distance to the proven R1 has already been traversed, I'd personally feel better with the stop
at "free trade and a tik (good ole risk conservative me). Think Pivot Scalp exit.

F = Gigantic DVS (pink arrow) clearly exhausts the Bears, driving a giant red candle well through the R1.

Even before we can alter our thinking to PMT Scalp exit and move the profit-locking stop tighter, above the R1, the
Price Action takes back >2.5 points. We, of course, exit briskly per our rules. +/- 9.75 points

PERSPECTIVE
(Daily, bottom chart)

Nice Bull run underway. Seven white day candles in a row. PMT readers of
the tape know that the tape's got to show red Thursday or Friday. That
further implies a retest of the Historical S/R Resistance-turned-Support
(plum line) crossed on Wednesday.

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: