BS"D

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

Good morning,

Missed some fun while I was gone, but Thursday wasn't a bad welcome back
at all! Our PMT Money Management rules set us up to score a fistful of
points, with very well controlled (no ulcers) At Risk all day.

TGIF!!!

The market has plunged over a very significant precipice, and is teetering.
A Red Flag warning remains in effect.

[SNIP]

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E-mini
Thursday Apr 16, 2009

Thursday morning opens gap-up near the HighW, and immediately heads back to close the opening gap.

1 = A long battle at the Close is finally resolved with a Doji spike Sandwich that completes below the
"green fog".

A = A very large red Marubozu (full-bodied candle without wicks) pulls us in for a Pivot Scalp (Price
Window to the always considered proven Pivot just meets our criterion). Initial stop may move down
above the MA (or, by the close of the candle, even to "free trade" plus a tik).

B = The troops rally into the hole punched by the sumo Marubozu with a large red candle. We execute our
Pivot Scalp exit as soon as Price Action taps on the Pivot and pulls back (surely by 2 candles later when
the Pivot is penetrated and Price Action retracts!) +/- 3.75 points

2 = Beautiful 2-bar "P" Signal off the Pivot. Volume confirms (pink arrow). You may have taken this Pivot
Scalp to the Close, but the Price Window to the proven Resistance at that PL (from entry placement level,
above the completion of the signal) makes me (overly) nervous (good ole risk-conservative me), especially
so close to lunchtime.

Price Action does cross above the Close for the entire lunchtime drift period.

3 = Volume perks a bit (pink arrow) with this 2-bar off the Close. The entry is safe above the open of the
red Bear Dragonfly, with the stop instantly jumped under the High for almost no initial At Risk.

In light of the only barely supportive Volume, by the close of the candle, personally, I'd defensively zip
the stop even tighter, under the MA. Locking in real profits on the opening candle of a move is very soothing!

C = Large white candle. Per PMT stop rules, move the profit-locking stop under the low of the candle. Long
top wick (2nd in a row) implies that we should probably be prepared for a Pivot Scalp exit when R1 is hit.

D = Small gap and a large white candle through the HighW. Per our stop rules, move the profit-locking stop
under the HighW; where we get stopped out. Boo! +/- 3.75 points

4 = Volume is very strong (pink arrow), supporting aggressive entry on this 2-candle 123 through the R1.
Initial stop advances under the R1 for well controlled At Risk.

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

F = Very large white candle. Per PMT stop rules, once again move the profit-locking stop under the low of
the candle.

G = Price Action stall, including a Black Volume Bar of Death (pink arrow). Prepare to exit on red.

H = DVS (pink arrow) and the Bulls surprisingly resume sente, with a large white candle whose top wick stretches
desperately to spike the R2 (and pulls back). The DVS and long top wick are certain signs of exhausted Momentum.
If you didn't Pivot Scalp exit immediately as Price Action retracted, surely you did as the next candle (small
Doji) repeated the PMT Exit Now! warning signal. +/- 5.50 points

5 = 123 "S" continuation signal through the R2. Right at the 3:00 Action/Reversal Time line, it is the last
opportunity for a PMT approved trade.

Entry above the R2 Extreme during the last half-hour before EOD Hiccup Danger Time is nerve-wracking in the best
of circumstances, and the Volume at this juncture looks like a zebra stampede. Time to shut down the monitor
early.

PERSPECTIVE
(Daily, bottom chart)

A nice, wide, Long-term Bull trend channel (green channel lines) has developed on the
Daily tape. Thursday's trading was limited by the LT Trend Channel ceiling line;
whereas, Friday seems about to encounter a double Resistance situation, with Historical
S/R (lavender line) coinciding with the Trend Channel ceiling.

Thinking Bearish for Friday. Bearish, AND full of traps!

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: