BS"D

Good morning and welcome back,

Price Action is poised for a Third Time Through (TTT) attempt on Wednesday (see Daily, bottom chart). We took a small bite out of Tuesday and are now looking forward to taking a large bite out of today's Price Action!

Enjoy and be well,

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PIVOT MAGIC TRADING JOURNAL - EXCERPT
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E-mini
Tuesday July 07, 2009

Day session opens gap-down at the Pivot, and continues on through.

1 = Price Action tests the Pivot Support-turned-Resistance with a 123 continuation, "S" Signal.

A = DVS (pink arrow) drives a large red candle, pulling us in. Initial stop advances above the high of the candle.

B = Mid-air continuation 123 through the Mid. Per our stop rules, move the profit-locking stop above the Mid.
The Twin Towers Volume pattern (pink arrow) indicates a stall/sag/retest is coming. The next bar is a Doji/Black
Volume Bar of Death stall. Prepare to exit the instant the next candle shows white. +/- 2.50 points

Price Action eventually dribbles down to the S1.

2 = TTT of the S1 succeeds (blue arrow), and proves with a high-Volume (pink arrow) 123 off the underside of the S1.
The hour is a bit close to lunchtime for a move against the pull of both the Pivot and Close.

C = If you took the signal, as a PMT reader of the tape, this mid-air J-hook told you to SCRATCH!

3 = A small Head and Shoulders pattern through the S1 forms around the 1:30 Reversal Time. The extremely low
Volume (pink arrow) makes this sweet little signal very unlikely to pay off. We sit.

4 = Following a protracted stall, this 123 tap on the underside of the S1 opens our eyes, but the Volume is still
miniscule.

D = Hello! Trading interest awakens (pink arrow) with a DVS-driven breakaway gap and a large red candle, pulling us
in. The Price Action continues through the Low, and retracts, leaving a worrisome enlarged bottom wick. Per our
PMT stop rules, at the close of the candle move the profit-locking stop above the Low.

E = Large red candle. Normal PMT stop placement would leave the position in violation of Pivot Magic Trading
Maximum Profit Giveback (MPG) rules. Mental stop at Giveback level. The Twin Towers pattern (pink arrow),
indicating that a stall/sag is next, makes us glad for the extra exit flexibility afforded by a mental stop (no
need for Cancel-Replace to exit in a hurry).

Next candle is a large white Bull Dragonfly. That's a mid-air Reversal signal, and, as such, it is one of our PMT
Exit Now! Signals. +/- 4 points

EOD Hiccup, right on time, takes on the classic "V" check mark shape (plum line) and dips vigorously through the S2.

PERSPECTIVE
(Daily, bottom chart)

In our absence, the Daily trading Price Action has dropped below the 62%
Fibonacci Retracement level. That means that a reversal is in process.

The Price Action has already also exited the mirror trend channel (dotted
green line), and is set up just short of the Historical S/R (lavender
line), poised for a TTT attempt.

With the first minutes of Wednesday already showing red, be prepared for
TTT action at the lavender line tomorrow!

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

Pivot Point Day Trading Course
http://www.tradingthingys.com/PMTJ/Commodity%20Day%20Trading.html

Tuesday's PMT Chart: