BS"D

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

Good morning and a good week,

Once again, our Money Management rules helps us avoid Friday traps. Yes, just
as we predicted in Friday's Pivot Magic Trading Journal, the LT Trend Channel
held and Friday, full of traps, but Price Action closed safely back inside the
Trend Channel lines (green channel lines).

We even scored a few point, in between SCRATCHES!

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
Friday August 07, 2009

Friday morning opens gap-up at the R1, and promptly runs a trap (good morning!)

1 = No preceding trend, but for an early trade in the direction of the Pivot and Close, it is usually (no this
time, sigh) a good assumption that a Bear 123 continuation off the R1 may continue south. Aggressive entry at
breakout is a possible, but not mandatory choice (again, too bad).

A = Pulled in on a DVS-generated (pink arrow, again, not a good symptom), large, red, inverted (Bull) Dragonfly
(long bottom wick implies skidding to a stop, also not good).

Two candles later, first sign of white, fear a mid-air Reversal/retest of R1. Exit Now! SCRATCH!

2 = Good supporting Volume (pink arrow) to enter aggressively on this "S" Signal, 2-candle 123 continuation.

B = DVS (beware) pumps a breakaway gap and a large white candle. Our position is in violation of Pivot Magic
Trading Maximum Profit Giveback (MPG) rules. Mental stop at giveback level.

C = Got a bit of a scare, but the bulls recovered with a large white candle. Per PMT stop rules, move the
profit-locking stop under the low of the candle. The elongated top wick is a bit worrisome, so use a soft stop.

D = Another DVS (unmarked) pumps another gap and large white candle. Again, the elongated top wick is worrisome.
Apply my convention and jump the profit-locking stop (mental) into the gap/Giveback level.

E = Gap and large white candle taps on R2. Twin Towers (pink arrow) indicates a stall/sag is next. Thus, jump
the mental stop into the gap, but prepare to Pivot Scalp exit as soon as R2 is hit. Hoping for positive slippage;
got none. +/- 7.50 points

Considered Reversal, but the Volume and the move both died off.

TGIF lunchtime party left Price Action drifting sideways under the S1.

3 = At 1:30 some of the BBs wander in and spring an elaborate trap. First a push upward, followed by a Reversal
(blue arrow, see Higher time frame, 10-Minute, bottom left chart, for Doji Sandwich and completing the Reversal
with a 123 continuation, orange arrow). Small Volume bulge (pink arrow) is just not enough to entrap PMT traders,
but is just might be a TELL.

4 = Late in the afternoon, Volume perks up (pink arrow), as the BBs return to execute their last scheme of the
week. Especially in light of the TELL (= 3), gotta call this a 123 off the R2. With high Volume, it is even a
candidate for aggressive entry.

F = Large red Spinning Top. Not such a great sign, but per our stop rules, it is an opportunity to tighten the
stop. Move the profit-locking stop above the high of the candle.

F = Lower-Low-Turns-White. That is one of our PMT Exit Now! Signals. +/- 1.75 points

Never mind. The move didn't ever even achieve the R1, First Objective.

PERSPECTIVE
(Daily, bottom right chart)

Last week (Friday's PMTJournal) we thought it was "still too early
to abandon the LT Trend Channel Floor . . ."

Got that right. Filled with traps, Friday day session remained,
and closed, back in the LT Trend Channel (green channel lines).

Prepare for a Bull assault Monday.

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

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

Friday's PMT Chart: