BS"D

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

Good morning,

Readers of the tape may be wondering, "Have we returned to the hover-dive
or dive-hove mode again? Is it going to be one good move a day (enabling
the BBs to pay the bills), and the rest of the session is going to be
BORING, and full of traps?"

One thing's for certain, a Moveout Monday it wasn't. Perhaps we should
prepare for a Takeoff Tuesday?!?

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 29, 2009

Monday morning opens gap-up, and Price Action immediately heads back to (successfully) close the gap.

1 = Doji Sandwich of the Pivot. Per our criterion, move must promptly clear the Close and "green fog" for a
proven entry.

A = It does, on this large white candle. By the close of the candle, consider advancing the stop to "free
trade", for an instantly secure trade.

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

C = DVS (pink arrow) blasts a giant white candle through the R1 and HighW. PMT stop rules say to move the
profit-locking stop under the HighW.

Noticing that this is a 2-candle 123 through the R1, those on the sidelines may enter aggressively, and the
rest of us recognize the opportunity to add contracts.

D = Large white candle. Per our stop rules, move the profit-locking stop under the low of the candle.
Twin Towers Volume pattern (pink arrow) indicates that a stall/sag is next. Consider using a soft stop.

Although the next 2 candles constitute a very small mid-air reversal signal, we know from our reading of the
tape skills that a stall/sag is under way, and with the Primary Objective, R2, so nearby, favorable R:R
suggests that we hold (unless of course >62% of = D is retraced). However, be prepared to exit with alacrity.

E = Desperation Volume Spike (DVS, pink arrow) drives a large white candle to stretch, and to tap on the R2.
DVS late in a move implies exhaustion. The instant that the Price Action retracts from the R2, we recognize
one of our Exit Now! Signals. +/- 7.50 points

2 = Repeated false-start Bear Reversal Signals off the R2. There were early lunchtime signals, with a bit of
Volume (orange oval), and later lunchtime signals without (blue oval), but none was tradable.

F = Finally, around 2:00 The Volume comes to life (DVS, pink arrow). A huge sumo Marubozu (full-bodied candle
without wicks) punches through the MA Support. As is always the question with a Marubozu, will the troops
rally into the gap?

Not this time. No matter really, because there was no tradable signal in the neighborhood.

The balance of the day is more of the same. Exasperated, at 3:10 we welcomed the opportunity to shut down
early, sipped a brew, and went to help the holy wife.

PERSPECTIVE
(Daily, bottom chart)
Not a lot to add. Price Action is still in the middle of the
LT Trend Channel mirror channel (dotted green line), a drop
above the Fib 50% Retracement level.

Monday was little more than a breather day. Anything can
happen on Tuesday. We will continue to hope for a large,
range day, from PL to PL, from which to take a nice large bite!

REMEMBER: Trade the Tape, Not my Prognostics!
Asher
=] ;-)>

Learn to Read the Tape
http://www.tradingthingys.com/PMTJ/Commodity%20Day%20Trading.html

Monday's PMT Chart: