BS"D

Good morning,

A LT SW Channel top breather day, Wednesday yielded a few small
(+/-3 point) trades and some SCRATCHES. Actually, not too bad for
such a small-range day.

Still expecting some Bear action and an assault on the LT Channel
floor real soon. Thursday?

Enjoy and be well,

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

E-mini
Wednesday July 22, 2009

1 = Morning session opens gap-down with an Anomaly Signal (Overnight, bottom left chart) off the S1. Volume is
very strong, encouraging an aggressive entry. By the close of the candle, move the stop to "free trade" and a
couple of tiks.

NOTE: Otherwise, there is not sufficient Price Window to the
always considered proven Pivot, even for a Pivot Scalp trade.

A = Large white Bull Dragonfly through the Mid. Per PMT stop rules, move the profit-locking stop under the Mid.

Twin Towers Volume warns that the next candle will be a stall at the Pivot. When the Price Action taps on the
Pivot and retracts, we are prepared and Pivot Scalp exit. +/- 3 points

2 = High Volume drives a 2-candle 123 of the Pivot. Aggressive entry above the Pivot. Initial stop advances
under the Pivot.

B = Large white candle puts our position in Pivot Magic Trading Maximum Profit Giveback (MPG) violation. Mental
stop at Giveback level.

Considered exiting on the next candle, but just as quickly as it dipped, that's how quickly it reversed to climb
back north.

C = DVS (pink arrow) pumps a giant white candle through the Historical S/R (plum line) and Close. When Price
Action crosses back below the Close, apply Pivot Scalp logic, Exit Now! +/- 3.75 points

{SNIP}

4 = Bull Reversal at the Pivot. Volume is still decent, confirming. Proximity of Primary Objective
(plum line/Close), and lunchtime suggest that we may need to employ Pivot Scalp exit techniques on this trade.

E = Large, white, inverted (Bear) Dragonfly. Per our stop rules, move the profit-locking stop under the low of
the candle/Pivot.

F = At the open of = F, = E retroactively becomes a failed test of MA. Adjust the profit-locking stop up under
the MA.

F itself is a large white candle. Normal stop placement leaves our position in MPG violation; thus, place a
mental stop at Giveback level.

G = Large white Bull Dragonfly. Again our position is in MPG violation. Mental stop at Giveback level.

H = Black Volume Bar of Death (pink arrow)/Doji. The instant the next candle spikes through, is also halted by
the plum line, and then shows red, we recognize a PMT Exit Now! Signal. +/- 3 points

5 = Doji Sandwich is within range of the Close.

* We prefer self-confirming signals off the Close.
* It is almost lunchtime.
* Volume is already dropping off.
* The Doji dagger is stabbing into the heart of the signal, weakening it.

Let it go.

{SNIP}

7 = Clean Reversal off the Close at 3:00 Reversal Time. The candle's Price Action leaves the "green fog" and
crosses the plum line on strong Volume (pink arrow). Aggressive entry below the MA seems right.

By candle's end, it is clear that this is a failed test of MA, permitting us to further tighten the stop, above
the MA.

J = Large red candle. PMT stop rules suggest moving the profit-locking stop above the high of the candle.

NOTE: A Third Time Through (TTT) attempt at the Pivot is coming
next. Since the day has been mostly sideways in the Close-Pivot
channel, this close to EOD Hiccup it is fair to assume that the
Pivot will be hard. Prepare for a Pivot Scalp exit in the event
the likely Support holds.

K = DVS (pink arrow, implying exhaustion of Momentum) drives a stab through the Pivot. The instant that Price
Action retracts above the PL, Pivot Scalp Exit Now! +/- 3 points

{SNIP}

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

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

Wednesday's PMT Chart: