BS"D

Good morning,

Resistance-turned-Support Retest on Friday?

Following a substantial penetration of the LT SW Channel ceiling,
most frequently a breather day is necessary. The light-headed
breather day is very likely to "settle" to a retest of the S/R.

Normally, that is; which of course, excludes Fridays.
On a Friday, it could be anything, Bull, Bear, or sideways.
Only certainty is: Beware of Traps on Friday!

TGIF!!!

Enjoy and be well,

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PIVOT MAGIC TRADING JOURNAL - EXCERPT
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E-mini
Thursday July 23, 2009

1 = Giant white Bull Dragonfly completes an Anomaly Double Bottom Signal (Overnight, bottom left chart) off
the Pivot. Aggressive entry above the "green fog" was a maybe.

A = If you were more risk-conservative (like good ole risk-conservative me), you were first pulled in on this
2-point, white, Bull Dragonfly, advancing stop under the low of the candle to reduce undefended At Risk.

B = Second white candle closes above the Historical S/R (plum line). Per our stop rules, move the
profit-locking stop under the plum line.

C = Large, white, inverted (Bear) Dragonfly. Per PMT stop rules, move the profit-locking stop under the low
of the candle.

The long top wick is a mite worrisome (following a Spinning top, yikes!), but happily, the Bears barely manage
to stall the Bulls forward progress on the next candle.

D = Gigantic Marubozu (full-bodied candle without any wicks) blasts through the R1, High, and HighM, putting
our position in Pivot Magic Trading Maximum Profit Giveback (MPG) violation. Stop under HighM still leaves
the position in MPG violation, so our rules say to place a mental stop at Giveback level.

As usual with a Marubozu, we remain concerned whether the troops will rally into the gaping hole punched by
this sumo candle.

This time they didn't immediately rally behind the Marubozu. When the next candle (red) retraces >2 points,
go instantly flat! +/- 4 points

2 = Although I lost the pixel war with R1, this 123 Continuation is definitely in range of the R1. High Volume
confirmation. This warrants aggressive entry consideration.

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

NOTE: Worry a bit about the elongated top candle,
and use a mental stop.

F = Large white candle through the R2. PMT stop rules advise us to move the profit-locking stop under the R2.

NOTE: This is a 2-candle 123 through the R2, so
PMT students and traders recognize an opportunity
to add contracts.

G = Large white candle puts our position in MPG violation. Mental stop at Giveback level.

NOTE: This is a lovely 123 continuation signal off
the R2. If you are not in the trade yet, consider
entry. If you are already holding a position,
recognize this as an opportunity to add contracts.

H = Twin Towers DVS (pink arrow) drives a large white candle to tap on R3 and Retract. Since the Twin Towers
indicates a stall/sag, assume the R3 has held and Pivot Scalp exit. +/- 6.75 points

NOTE: A successful stall/sag will most likely
tape a 123 "S" Signal permitting re entry for
those brave/foolish enough to enter beyond R3.

3 = Almost perfect entry?

RECONNOITER

Most noteworthy:
* A "P" Signal off the MA is a tradable PMT "S" Signal.
* Problem is, that the Extreme PL, R3, is already proven;
thereby, effectively closing the Price Window to PMT traders.

Followed and supercharged by:
* Huge DVS energy (pink arrow).
* Powerful breakout of the abovementioned "S" Signal off
the MA, sets up a full-sized, 123, ripping THROUGH the R3.

But then:
* We look at the clock.
* Just about lunchtime.

Alas, PMT rules encourage us:
* Hesitate to enter beyond the R3 Extreme.
* Do NOT enter, going into lunchtime drift,
without extra-ordinary supportive
circumstances. (For certain with a Bull move!)
* DVS/ exhaustion of Momentum. Volume pattern
is hardly even ordinary supportive circumstances.

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CONCLUSION
Opt to watch.
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K = One last surge to push the lunchtime drift aloft.

We are not interested.

As long as Price Action is out of range above the R3, we will have no acceptable PMT entry.

We have lunch too.

At 1:30, the slightly up trending MA held strong through a sustained assault. By 2:15, we know to shut down
our monitors, and to go find a "good deed" to do for someone.

PERSPECTIVE
(Daily, bottom right chart)

Overall, Thursday displayed a successful bull effort to exit the
Long-term (LT) Sideways (SW) Channel (plum lines). I tend to
expect a retest of the Resistance-turned-Support, but Friday is
Friday! BEWARE OF TRAPS ON FRIDAY!!!

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

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

Thursday's PMT Chart: