BS"D

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

Good morning,

In yesterday's Daily Pivot Magic Trading Journal analysis we projected:
"With the FOMC coming up today, anticipate a Bull morning, turning
sideways, volume waning to utter silence, a couple of TELLs in the
Volume histogram, and mayhem, in short, much ado about nothing!"

Not only did we call every turn correctly, but we also got a
gratifyingly large bite out of the morning pre-FOMC move to re-enter
the LT Trend Channel.

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
Wednesday August 12, 2009

1 = Morning session opens with an Anomaly (Overnight, bottom left chart, red arrow) off the Close.
As we have discussed, PMT traders are always hesitant to take an Anomaly trade off the Close.
Anyhow, by the time Price Action clears the "green fog" it enters into a prohibitively small Price
Window to the (always considered proven) Pivot.

Volume is very healthy, confirming a 2-candle 123 Continuation Signal (orange arrow, a PMT "S"
Signal) through the Pivot.

Criteria for application are met, so aggressive entry techniques apply.

Initial stop can advance under the Mid, for virtually "free trade".

Nice. Now let's see where it goes (and reveals of the "true" leanings of the BBs?), before Trading
Volume goes to sleep in anticipation of the FOMC at 2:15.

A = Acceptably large white candle to entice us to move our profit-locking stop under the low of
the candle.

B = DVS (unmarked, sorry) pumps a giant white candle easily through the R1 defense. Top wick is a bit
long. Per PMT stop rules, move the profit-locking stop under the R1.

NOTE: I might have to examine the 1-Minute chart to find it,
but with the Primary Objective (the green line) so attractive,
I'd exert the energy seeking an excuse to add contracts here.

C = Large, white, inverted (Bear) Dragonfly crosses the High and spikes through the semi-permeable
LT Trend Channel Floor and retracts.

The tape shows another DVS (pink arrow) completing a Twin Towers Volume pattern, certain indication of
stall/sag/retest. Top wick is fearfully elongated, also reading stall/sag/retest. Conclusion: Next
candle starts a stall/sag/retest. Per our rules, best we can do is a mental stop under the High.

D = Following the stall, a 2nd health white candle closes above the green line. Grab at straws! Per
our rules, move the profit-locking stop under the green line. I know the 123 is off the green line,
and that the green line is not a PMT Primary PL, but I'd still seriously consider adding contracts here.

E = Twin Towers propels a large white candle toward the next Objective, R2. Our rules say move
profit-locking stop under the low of the candle. Mental stop seems prudent!

Decision Time:
Weathering out a stall/sag/retest risks about 2 points vs. 3+ points
Reward potential. Not compellingly worth it, but the MA Support is
likely to be potent. Furthermore, this is the last chance before the
hypnotic effect of the upcoming FOMC.

Personally, I'd take the profits and run (good ole risk-conservative
me). +/- 9.25 points

The MA did hold (plum arrow), and the BBs did stretch to tap on the R2 (green arrow).

Lunchtime before FOMC. Is there something to add to that?

F = In light of the BBs expression of preference this morning, these two blips of impatience are
concurring TELLs.

G = FED has nothing to say, which at first glance (pink arrow) was initially depressing, then
exhilarating (white), then a steep fall (red, = 2) to the super-hard green line Support. This last
is a perfect trap set up for the Bull move (see = F, TELLs).

H = Impressive Slingshot of the MA proposes a mad TTT charge at the R2 Resistance. Sadly, we have
no provision for entry off an non-PMT PL, so we have to sit back and enjoy.

J = DVS blasts a gigantic white candle through the R2. A simple stop maneuver locks in a healthy
little profit.

K = Larger DVS (pink arrow, exhaustion sign) sends a large white candle into Pivot Magic Trading Maximum
Profit Giveback violation (MPG). Mental stop (very welcome) at Giveback level permits us to exit briskly
when the next candle tapes Higher-High-Turns-Red, a PMT Exit Now! Signal. Actually, a Price Action stall
gives plenty of second chances.

Interestingly, this candle, = K, is when we shut the monitor, knowing that our day was over.

EOD Price Action settles in the neighborhood of the LT Trend Channel Floor (green line).

PERSPECTIVE
(Daily, bottom right chart)

Price Action continues to steadily nudge in and out of the LT Trend Channel
(green channel lines). Till now, we considered the market to be moving
nervously sideways in anticipation of Wednesday's FOMC.

Not much of a Fed train on Wednesday, and we see trading again re-entering
the Long-term Trend Channel, and hugging the green line.

One rangy Bull day will break the tension nicely! Thursday would be fine!!!

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

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

Wednesday's PMT Chart: