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, our projection in yesterday's PMTJ, PERSPECTIVE section, was
spot on: "... The tape now look pretty well set for another Bull assault
on the Historical S/R (lavender line)."

That assault made for an interesting morning trade, that is, until the
FOMC fear cut the trading period short.

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

CAVEAT
Guard your funds. Now is a good time for paper trading and practice.

[SNIP]

E-mini
Wedneesday Apr 29, 2009

1 = Morning session opens gap-up with a full-scale Double Bottom through the R1 (Overnight, bottom left chart).
The Price Action pumps well beyond the R1 Resistance, so one might have entered aggressively.

A = Unusual red Bull Dragonfly kickoff followed by a Doji makes for a very confusing take off, but the large
white candle pulls us in. Initial stop advances under the low of the candle for controlled At Risk.

B = Price Action sags ominously sideways. Call this white Spinning top a large candle, and use the excuse to
move the profit-locking stop under the low of the candle, or better yet, to "free trade".

C = MA holds, and Volume finally comes to life (pink arrow). Large white candle puts our position in violation
of Pivot magic Trading Maximum Profit Giveback (MPG) rules. Mental stop at Giveback level.

D = Large white candle. Per PMT stop rules, move the profit-locking stop under the low of the candle. The
elongated top wick warns that the Momentum is flagging.

E = Exhaustion gap, and an (almost) large white candle comes to an abrupt halt at the Historical S/R (Daily,
bottom right chart, lavender line). Our position is in MPG violation so call it "large" and move the
profit-locking stop into the gap.

F = DVS pumps a Higher-High-Turns-Red spike through the lavender line and retracts. As soon as the candle
shows red, Exit Now! +/- 4.50 points

NOTE: This candle is alive with information. In spite of DVS support,
the Bears did not put up much of a fight. The Higher-High-Turns-Red,
= F, was just barely sufficiently "Higher" to call it an Exit Now!
Were it not for the surrounding circumstances, we might well have held
the position till the completion of the R2 assault:

* The exhaustion gap, = E.

* Price Action stalls at the recurring Historical
S/R, mid-trend channel Resistance
(lavender line).

Price Action now turns sideways, and throughout a very long lunchtime, trades primarily in the lavender
line-R2 channel.

G = In spite of a Bull Volume burst TELL around 1:30 (blue arrow), things were very still leading up to the FOMC.

H = Volume jumps to life, and Price Action swings erratically. FOMC hysteria response was primarily bearish.
Then, as per the TELL, Price Action swings vigorously back to test the R3 (plum arrow). All this without us!
Whew!!! Glad we were not standing in front of that train!

2 = Strong Bear Volume (pink arrow) generates a large 2-bar completing on the 3rd candle, which pulls us in
aggressively beyond the 62% retracement level. Initial stop advances above the high of the 2nd red candle.

J = Giant red candle. Normal stop placement will leave the position in MPG violation.
Mental stop at Giveback level.

K = Large red candle. Per our stop rules, move the profit-locking stop above the high of the candle.

When the next candle (white) retraces >62% (or >2 points, if we are slow on the trigger) we recognize an Exit Now!
+/- 3.75 points

EOD Price Action closes atop the lavender line.

PERSPECTIVE
(Daily, bottom right chart)

Wednesday's day candle was quite healthy, but the Historical S/R
Resistance was even more robust. The elongated top wick, failed
spike through the lavender line, implies that even should the
Bulls continue to push north on Thursday, the assault is unlikely
to be immediately successful.

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: