BS"D

Good morning,

Good morning,

Just as we anticipated in Yesterday's Pivot Magic Trading Journal,
PERSPECTIVE section, "...The tape appears ready to breathe/retest
a bit..." Tuesday was indeed a little red breather day, with the
day candle's long wick stretching to tap on the LT Trend Channel
floor [retest].

We even squeezed out a few point with PMT Money Management rules
adequately protecting our funds!

Enjoy and be well,

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

E-mini
Tuesday July 28, 2009

Session opens gap-down with an Anomaly Double bottom, finishing with a 2-bar off the S1
(Overnight, bottom left chart).

A = Breakaway gap and a large white candle through the Mid pulls us in. At the close of the candle, move the
stop under the Mid, for instant, locked-in profit.

First possibility:
Pivot Scalp exit as Doji spikes through the Pivot and retracts.

Second possibility:
With profits locked in with the stop nearby, wait for the next candle to show red
or to halt at the Pivot Resistance.

Get pleasantly surprised as Pivot Scalp converts to PMT Scalp situation.

B = Giant white candle blasts through the Pivot and MA, putting our position in violation of Pivot Magic
Trading Maximum Profit Giveback (MPG) rules. Mental stop at Giveback level.

When the next (red Dragonfly) crosses under the MA, anticipate a Maximum Profit Giveback Pivot test and exit
briskly. +/- 3.75 points

2 = This reversal in range of the Close became a no-brainer as Price Action crosses below the Pivot (becoming
a 2-bar, in range of the Pivot). Aggressive entry on high Volume (which becomes a worrisome DVS, pink arrow).

Play it safe. As the candle closes, move the stop to "free trade" plus a tik.

C = Giant red candle gave us a bit of a scare at first, but then plunged wildly though the S1. Per PMT stop
rules, move the profit-locking stop above the S1.

D = Twin Towers (pink arrow) means stall/sag/retest. Giant, long-tailed, red, inverted (Bull) Dragonfly
indicates exhausted/reversing Momentum.

* Best, would have been to exit as 2 points are recouped. +/- 4 points

* Next best is to exit as the next candle shows white above the high of = D. +/- 3.25 points

3 = Interesting but unmistakable, sort of Doji Sandwich/Multiple top completing in range of (through is surely
in range!) the S1. Aggressively pulled in on giant Marubozu.

E = Large red candle. Per our stop rules, move the profit-locking stop above the high of the candle.

F = Most unfortunate it turns out, but:

* Twin Towers Volume pattern (pink arrow) indicates stall/sag is next.

* Average sized red candle with elongated wick (sign of failing Momentum)
puts our position in MPG violation. With no PMT approved stop move.
The MPG rules say, "Exit Now!"

* Not sure? The next candle, a white Bull Dragonfly forced our hand.

Most unfortunately.

4 = Slingshot of the MA, with plunger pulled back, with in range of the S2. What more could you ask for?
Well, the clock says "lunchtime" and that's a long (read: ulcers) way to travel on sideways drift.

G = Lunchtime drift was wafted north by a series of TELLs (blue arrows), suggesting that the Bulls have a push
set for later in the day.

5 = Volume is stirring (pink arrow); the BBs are back from sipping lunch. Nice 123 continuation kicks off the
S1, with just enough open Price Window and push for a Pivot Scalp.

K = Large white candle nominally through the Mid pulls us in, just in time for a scare and possible SCRATCH.

L = Trusting the TELLs you held? Good choice. DVS (pink arrow) rams Price Action through the Pivot. Long
top wick underscores our Desperation reading. First sign of red, Exit Now!

BTW, called the small white candle, blue arrow, a second close above the Mid and finally move the top under
the Mid.

6 = Powerful reversal at the Pivot.

N = Pulled in on large red candle through the Pivot.
After the fact, noticing that we got pulled in is a Twin Towers (pink arrow), it seems good Money Management
to scoot the stop to "free trade".

O = MA holds. Large red candle though the Mid. Per our stop rules, move the profit-locking stop above the Mid.

P = Somewhere in this mess is a Pivot Scalp exit. +/- 3 points

Price Action eases up EOD to close at the Pivot.

PERSPECTIVE
(Daily, bottom right chart)

Tuesday was a little red breather day, with a long wick stretching
to tap on the LT Trend Channel floor.
Still expecting the near Gann-perfect 45 degree trend to continue,
as trends are wont to do!

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

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

Tuesday's PMT Chart: