BS"D

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

Good morning,

As we predicted, Monday was a toughie too. Were you prepared to
daytrade Pit Pivot Points
?!? Hah!!!

Enjoy and be well,

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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
Monday June 22, 2009

1 = Monday morning session opens (blue arrow) gap-down, with a slow, overnight, mid-air Reversal
(Overnight, bottom left chart), under the 50% Fib Retracement level (dotted pink line).
Mid-air is not an acceptable PMT entry signal topography.

The high-energy, 2-candle 123 (orange arrow), however, warrants an aggressive entry below the S2.
By the close of the candle, readjust the stop above LowW/"free trade". Breakeven is a nice place
from which to take a risk!

A = Sudden DVS (pink arrow), and a large red candle plunges, slamming to a halt at the critical
62% Fib Retracement level (dashed pink line). Per PMT stop rules, we would move the
profit-locking stop above the high of the candle. This placement however leaves the position
in violation of Pivot Magic Trading Maximum Profit Giveback (MPG) rules. Mental stop to Giveback l
evel.

B = What to do now:

* Small Spinning Top (indicator of Momentum stall)
hovers below the 62% Fib.

* Twin Towers DVS pair (pink arrow) indicates
stall/sag.

And finally

* Our position is in violation of MPG rules with
no excuse to advance the stop. The MPG rule thus is,
"exit Now!". (At a minimum discipline and maximum
greed, at least you exit when the next candle shows
white.) +/- 3.50 points

2 = A lovely, minimal but qualifying, "P" Reversal off the MA, which is? A PMT tradable "S" signal!
(The S3 Support is as yet unproven, so the Price Window is wide open.) A bit risky, but aggressive
entry gets some traders in below the 62%.

C = A small head and shoulders (red oval) breakout.

NOTE: On the Daily chart, this breakout was also a LT Head and
Shoulders (gray oval, a small right shoulder) breakout, at the
62% Fib Support, = C!

10:30 Reversal time, and Volume is up. The rest of the class might aggressively enter here.

D = Large red candle through the S3. Neither the candle nor the Volume is very encouraging. Per our
stop rules, move the profit-locking stop above the S3.

E = Depending on where you put it (= D), and whether it was a hard or soft stop, you move the stop farther
south, above the MidM, and get promptly stopped out (blue arrow). +/- 4 points

[SNIP]

Immediately proven, the mid-air Reversal is a PMT Exit Now! Signal. +/- 4.25 points, 1 ulcer, and 2T Maalox

EOD Hiccup (plum lines) is the next push off the concrete MA Resistance. Right on time, and in classic
"V" checkmark shaped form!

PERSPECTIVE
(Daily, bottom right chart)

Notice, as we mentioned above, the day-candle Price Action has just broken
out of a LT Head and Shoulders pattern (gray oval).

X = Long-term (LT) TTT attempt (red oval) at the Historical S/R (pink line).
The S/R level is re-enforced by an interesting TA projection:

After a long trend (inside the green trend channel
lines), breakout Price Action often adjusts to travel
in a parallel trend channel (a mirror channel, above
or below the previous trend channel, dotted green
lines). On our tape, this projected channel
intersects with the pink line, re-enforcing it.
Should the re-enforced Support hold, price action
will TTT Corollary bounce to struggle, first with
the dashed pink line, then with the LT Trend Channel
Floor turned Ceiling.

Top that off with the Fed in 2 days (making Tuesday's chances almost zero),
and you will be glad you are agile, reader of the tape, day traders, and not investors.

REMEMBER: Trade the tape, not my prognosis!

Asher
=] ;-)>

Daytrade Pit Pivot Points
http://www.tradingthingys.com/PMTJ/Commodity%20Day%20Trading.html

Monday's PMT Chart: