BS"D

Good morning,

In yesterday's Daily Pivot Magic Trading Journal, PERSPECTIVE section,
we predicted: ". . . a reversal is in process. The Price Action . . .
is . . . poised for a TTT attempt . . ." The TTT wasn't exactly
overwhelming, but it was definitely initiated on Wednesday.

We manged to take a couple of juicy bites out of Wednesday
(see commentary below).

Enjoy and be well,

******************************************
PIVOT MAGIC TRADING JOURNAL - EXCERPT
******************************************

E-mini
Wednesday July 08, 2009

Morning session opens at the Close, and spends the next hour bouncing in the Close-Pivot channel.

1 = Counting the red Spinning top to get a preceding trend, this is a reversal off the Pivot. See the 2-day
5-Min tape (middle left chart) for a better picture of the preceding trend and Reversal. The 2-day 10-Min
tape (middle right chart) reveals a continuing down trend with = 1 as a bounce off the upper trend channel
line. Personally, I am too risk-conservative to enter directly into the "green fog" without stronger
confirmation.

2 = The move south continues with a 123 continuation "S" Signal through the close.

A = Volume builds, and we are pulled in below the fog on this large red candle. Initial stop advances above
the Close.

B = Giant red candle through the Low. Per our PMT stop rules, move the profit-locking stop above the Low.

C = Large, red, inverted (Bull) Dragonfly spikes through the Historical S/R (lavender line). The long bottom
wick is worrisome, so aggressively move the stop above the lavender line.

D = Very late in the move DVS (an exhaustion sign) blasts a giant red candle through the S1. The long bottom
wick once again advises that the move is skidding to a stop. Per our stop rules, move the profit-locking stop
above the S1.

Next two candles form a Doji Sandwich at the S1. This is an Exit Now! +/- 6 points

NOTE: With the Doji dagger stabbing into the heart of
the signal (instead of spiking south), the Reversal
signal is much weakened. That, plus the lack of Bull
Volume make this another no entry situation.

3 = Giant red candle completes a 123 continuation of the S1. The clock reads "lunchtime", and even though the
Volume temporarily spikes (pink arrow), entry away from the Close/Pivot is low probability. We prefer to wait
(sadly, as the move picked up an easy 5+ points, sigh).

4 = It's 1:30 Reversal time and the tape displays a 2-bar "P" off the lavender line/behind the S1 (blue arrow).
We however do not trust DVS-based (pink arrow) 2-bar signals for longevity. Once again, wait.

Price Action tapes a 123 through the S1. Volume is low, and the next two candles are Dojis. Nothing here.

E = Hello! Volume perks up, and the move takes off with a giant red candle, pulling us in. By the close of the
candle it is appropriate to move the stop to "free trade" and a tik. Good way to enter a trade, with no risk!

F = This candle puts our position in violation of Pivot Magic Trading Maximum Profit Giveback (MPG) rules. The
candle is just barely larger than ABS, but that's enough under the circumstances. Move the profit-locking stop
above the high of the candle.

G = Large, red, inverted (Bull) Dragonfly. The long bottom wick warns of failing Momentum. Move the
profit-locking stop above the high of the candle and prepare to apply Pivot Scalp exit techniques.

H = Giant red candle puts our position in MPG violation. Mental stop at Giveback level.

When the next candle retraces > 2 points, Exit Now! +/- 4.25 points

5 = Within range of the S2, this 2-bar hasn't sufficient Volume to warrant aggressive entry, even though the
white candle more than retraces the red one.

We most likely enter on the next candle (Doji spike), and almost get an ulcer.

J = Sudden DVS (pink arrow) generates a huge white candle. By candle's end our position is already in MPG
violation (NICE!). Mental stop at Giveback level.

K = Almost jumped ship on the skinny red Dragonfly, but Bull Price Action recovers, spiking to tap on the S1
and retracting. To PMT readers of the tape, this combination is a clear Exit Now! order. +/- 3 points

L = If by some chance you missed the exit at = K, take your pick of these Exit Now! signals.

Too late for PMT traders, the Bulls overrun Resistance at S1 and head back, crossing above the lavender line. On
the 10-Minute (middle right chart, = N) this presents as a Double Bottom pattern at the end of a long Bear trend
(green trend channel lines).

PERSPECTIVE
(Daily, bottom chart)
The Historical S/R (lavender line) TTT attempt that we anticipated was not
overwhelming, to say the least. It is not necessarily over yet however.
Expecting a lot of activity around the lavender line through the end of
the week. Have a plan prepared.

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

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

Wednesday's PMT Chart: