BS"D

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

Good morning,

Back from Memorial Day. Two Head and Shoulders trades, and we
took a couple of nice bites out of Wednesday's move. Paid for
the holiday break.

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Pivot Magic Trading
First rule:
"Any time you don't know what is happening, get out!"
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E-mini
Wednesday May 27, 2009

Wednesday opens at the Close, and trades sideways in the "green fog" (on very confused Volume, BTW), from the open,
all the way through lunchtime drift. PAIN!

1 = Yes! Nice large Head and Shoulders at the Close.

A = Volume comes to life (pink arrow), and we are pulled in as the right-shoulder breakout candle leaves the "green
fog". Initial stop advances above the Close for reduced At Risk.

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

C = Slight breather, and a giant red candle, as the Bears continue toward the Primary Objective, the Pivot. Our
position is in violation of Pivot Magic Trading Maximum Profit Giveback (MPG) rules. Mental stop to Giveback level.

D = Huge DVS (pink arrow) desperately plunges a large red candle to stretch and spike though the Pivot. The instant
Price Action crosses back above the Pivot we have a Pivot Scalp Exit Now! Signal. +/- 7.50 points

2 = A bit of a struggle at the Pivot, including a Double Bottom (orange circle). Volume is not supportive (pink
arrow).

3 = Head and Shoulders (TTT) at the Pivot.

E = Volume is up, but not really enough for an aggressive entry though. This 123 retest candle however pulls us in,
with initial stop advancing above the Pivot.

F = DVS (pink arrow) blasts a giant red candle though the Mid. Per our stop rules, move the profit-locking stop
above the Mid.

As we approach the LT Trend Channel Floor (Daily, bottom chart, green line), prepare for probable Pivot Scalp exit.

G = Large red candle through the green line. Per PMT stop rules, move the profit-locking stop above the green line.

Notice that the Volume presents a Twin Towers pattern, indicating a stall/retest next. And that is what we get,
taking us out at our stop. +/- 6 points

No really meaningful EOD Hiccup Wednesday as the day closes just barely atop the LT Trend Channel Floor.

PERSPECTIVE
(Daily, bottom chart)

Not much to add. Price Action is once again inside the LT Trend Channel
(green channel lines). Trend remains Bullish. Rather hard to decide if
a TTT Floor attempt is more likely than a Bull drive for mid-channel.

Wait and see!

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: