BS"D

Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
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PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning,

On Thursday, once again, day trading turned out to be a hard
way to make an easy living. Got a few interesting/profitable
bites out of the morning Price Action.

TGIF!!!

Enjoy and be well,

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Pivot Magic Trading
First rule:
"Any time you don't know what is happening, get out!"
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E-mini
Thursday August 06, 2009

The Overnight closed Wednesday's opening gap, and Thursday opens gap-up, almost at the R1, and heads south
for closure.

1 = First leg of 2-candle 123 "S" Signal through the Pivot. Volume suggests aggressive entry.

A = Large, red, inverted (Bull) Dragonfly tests the LT Trend Channel Floor (green line). Per PMT stop rules,
move the profit-locking stop above the high of the candle.

B = Support at the green line offers additional obstruction, but is over run by a large red candle. PMT stop
rules say to move the profit-locking stop above the green line.

C = Sudden, late in the move, DVS (pink arrow). This is a sign of complete Momentum exhaustion. When the
lower tail of the large red candle spikes through the S1 and retracts is the ideal time to EXIT! (Got 2 more
chances, BTW.) +/- 4.25 points

2 = Multiple bottom off the S1. Strong Volume (pink arrow) confirms aggressive entry consideration.

D = Not sure whether to assume the semi-permeable green line will yield to upward pressure, or to assume that
so close to lunchtime an S1 retest is coming. I'd stretch it and call this a large white candle, and move the
profit-locking stop under the low of the candle, effectively reducing the At Risk.

E = Large white candle blasts through the green line, re-entering the LT Trend Channel. Assault on the Pivot
is on! Per our stop rules, move the profit-locking stop under the green line.

F = Green line retest holds, and 123 bounces toward the Pivot. No gain in stop placement advantage here.

G = Failed test of MA. Opportunity to apply our stop rules. Move the profit-locking stop under the MA. As
we enter lunchtime on mixed Volume, prepare for a Pivot Scalp exit.
H = Healthy white candle spikes through the Pivot, backs off, and slams to a halt at the PL. Pivot Scalp exit!
(Got 2 more chances, BTW.) +/- 3.25 points

3 = Double top 2-bar completes on the 3rd candle (which is also a top hit, making it a Triple top).

J = Pulled in on large red candle. Initial stop advances above the high of the candle.

Bulls run into immediate interference at the green line, and Price Action stalls.

K = Just as we were about to pull the plug, the tape presents a failed test of MA, an invitation to move the
profit-locking stop above the MA (I'd go for "free trade" myself).

L = Large red candle slams through the green line. Per our stop rules, move the profit-locking stop above the
green line.

Since it is lunchtime, and since the S1 Support is proven, we are not surprised as the next small red candle
indicates Momentum slow down.
N = Black Volume Bar of Death, two of them in a row, as a pair of small Dojis gently settle atop the S1. Pivot
Scalp exit signaled. +/- 3.75 points

4 = Sudden massive DVS (pink arrow) pumps a TTT 123 through the S1. I tend to doubt the explosiveness of this
opening, but one may well have been pulled in on an aggressive entry. Just to make an old man less nervous, at
the close of the candle, move the stop to "free trade".

P = Large, red, inverted (Bull) Dragonfly. The elongated bottom wick increases my nervousness. Twin Towers
Volume pattern (pink arrow) clinches it. A stall/sag is coming. Place a mental stop above the high of the
candle, but exit if 62% of the body is retraced.
Just what we need, a Black Volume Bare of Death. The instant the next candle shows white recognize one of
our Exit Now! Signals. SCRATCH!!! +/-1.50 points

5 = Volume (pink arrow) seems to perk up to support this 123 Continuation "S" Signal through the S1.

NO ENTRY
The next Objective is the Pivot, and on just OK Volume,
that's way to far to travel before the EOD Hiccup Danger
Time Zone. As it turns out, the green line Resistance
held, and Price Action dwindled sideways to a close.

PERSPECTIVE
(Daily, bottom chart)

Not as bullish as I expected, but, except for "anything goes Friday", it is
still too early to abandon the LT Trend Channel Floor; however,

BEWARE OF TRAPS ON FRIDAY!

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

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

Thursday's PMT Chart: