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 correct:
"... 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."

The lavender line in fact did hold, and Thursday taped a Zero Sum Day, i.e. no
net Price change. TGIF!!!

[SNIP]

E-mini
Thursday Apr 30, 2009

Morning session opens gap-up at the R1 and struggles to break through for a moderate charge north. After
hovering at the peak for over an hour, Price Action tapes a mid-air Reversal, and heads back to retest
the R1.

1 = 123 continuation "S" Signal off the underside of R1.

Normally the lunchtime Volume burst (pink arrow) would be sufficient for us to enter (relying on the combined
forces of Gravity, compulsion to close the opening gap, and the double rubber bands to the Close and Pivot).

This time however, the pair of DVSs is a Twin Towers, warning of a stall/sag/retest, and, as expected, the
move doesn't take off.

2 = Massive DVS (pink arrow) boosts Price Action more than enough off a full-sized 123 "S" to pull us in,
optimistically, and aggressively. Initial stop advances above the MA.

By the close of the candle we note that our position is in serious violation of Pivot Magic Trading Maximum
Profit Giveback (MPG) rules. Jump mental stop to Giveback level, locking in instant profits to boot. Nice!

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

The elongated bottom wick is a sign of waning Momentum. Advisable to use only mental stops henceforth, and,
prepare to employ our Pivot Scalp exit techniques.

B = Large red candle. Normal PMT stop placement leaves the position in MPG violation. Mental stop at Giveback.

The next candle retraces >62% of = B, taping a mid-air Reversal. That is one of our PMT Exit Now! Signals.
+/- 5.25 points

3 = The opening gap is closed. It is 1:30 Action/Reversal Time. By the time this 2-bar "P" finally clears the
"green fog" Ambush Danger Zone adequately, per our criterion, the Volume (pink arrow) is not sufficient to
confirm a Bull entry off the reinforced PL maze.

The remainder of the day does not present us with any acceptable trading opportunities either. In spite of the
opening gap, EOD Price Action closes below the Historical S/R (Daily, bottom chart, lavender line) for a zero net
Price change day.

PERSPECTIVE
(Daily, bottom chart)

Thursday's day candle is more like a Doji spike than an inverted (Bear)
white Dragonfly. Either way, the top wick/tail spiked through the
Historical S/R (lavender line) at mid-Trend Channel.

If it weren't Friday, we could be almost certain of yet another assault
on the LT Trend Channel Floor (green channel lines) today. However, on
a Friday, anything is possible!

BEWARE OF TRAPS ON FRIDAY!

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: