BS"D

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

Good morning,

Nice rangy day, and lots of profit for PMT traders. Bears obviously ruled
all morning, but it might be a set up to take advantage of FOMC hysteria Wed.

FOMC today!!!

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
Tuesday September 01, 2009

Morning session opens gap-down at the S1, with Price Action charging north to close the gap.

1 = A 2-candle 123 of the Pivot. No aggressive entry, as Price Action heads into the fog.

A = Pulled in on large white candle as it exits the fog. Late-in-the-move DVS (pink arrow) warns that this
halt at the R1 may be the end of the move.

Next candle is a Higher-High-Turns-Red. The fact that it is a spike through and retracts back below could
make it an Exit Now! When the next candle (white Bear Dragonfly) does the same, we surely exit briskly, for
a slightly positive SCRATCH!

2 = DVS (pink arrow) and we enter aggressively on the "S" Signal (123 continuation).

B = The tap on R2 (= 2) and retraction may have caused you to SCRATCH! Otherwise, The DVS (pink arrow,
exhaustion indication) driving a second candle (white Bear Dragonfly again) to pierce and retract signals a
Pivot Scalp exit, for SCRATCH! number two of the day.

3 = Enter this 2-bar "P" Signal aggressively, and ride immediately through the R1. Advance the initial stop
above R1. Only to exit 2 candles later on a reversal at the Close?

With the stop at "free trade" plus, behind a Primary PL, it is an equally valid decision to hold through the
upcoming 123 retest.

4 = If you exited, this 123 entry is a no-no. Too small a Price Window to the (always considered proven)
Pivot. If you held, move the stop above the MA (it's also a failed test of MA), and add contracts.

The green arrow points at another "S" Signal, a 2-candle of the Close. Price Window is too small, but if you
are still in from = 3, move the profit-locking stop above the Close.

5 = Tradable 2-candle 123 Continuation through the re-enforced Pivot. Add contracts if you are already in
the trade.

NOTE: Although the opening candle, a proof of S1 Support from the Overnight
(Anomaly test of PL?), may be warning, the Price Window is still sufficient
for a Pivot Scalp.

C = Large red candle easing through the S1. Per our stop rules, move the profit-locking stop above the Mid.

D = Giant red candle through the Low. Per PMT stop rules, move the profit-locking stop above the Low.

Price Action has now exited both the LT SW Channel (Daily, bottom chart, red channel lines) and the LT Mirror
Trend Channel (brite green channel lines).

BTW, this was also a 2-bar 123 opportunity to add contracts. Long bottom wick implies a slow down or halt at
S2 though. Prepare for Pivot Scalp exit.

E = Large, red, inverted (Bull) Dragonfly spikes through the S2 and retracts. Pivot Scalp Exit triggered.
+/- 14.25 points YES!

NOTE: With Volume still booming, and lots of profit locked in, some traders
would have moved the profit-locking stop above the high of the candle instead
of exiting. Valid discretionary decision.

6 = Aggressive entry below the S2 on this "S" Signal. Initial stop advances above the S2.

F = Giant red candle overruns defensive Support at the S3. Per our stop rules, move the profit-locking stop
above the S3.

G = DVS (pink arrow) generates a large red Bull Dragonfly. PMTers exit as the bottom wick retraces >2 points.
Got slipped a bit. +/- 7.25 points

Volume slowly drops off, as lunchtime Price Action drifts sideways at the MA.

H = Since we prefer not to enter below the S3 Extreme, it looks like the end of our PMT trading day. These
DVS bursts (blue arrows) are Bear TELLs, confirming our suspicion.

The large red candle driving Price Action yet farther from the S3, makes even an entry signal off the S3 Extreme
most unlikely. It is time to shut the monitor and count our profits, before finding a something charitable to
do with our afternoon.

PERSPECTIVE
(Daily, bottom chart)

Huge red day candle exits both the LT SW Channel (red channel lines) and the LT Mirror Trend Channel
(brite green channel lines). Clearly, on the day before the FOMC (and near the end of a pre-Holiday
week, Labor Day) this is an indication of something.

What?

Probably the BBs are anticipating bad news from the Fed. This could either be early response, or much
more likely, after the Fed scares the plebes into selling, it is a set up for a monster run back up,
back to the security of the Channels.

Again, heed this warning:
BEWARE THE FED AND DON'T GET CAUGHT STANDING IN
FRONT OF A FAST MOVING TRAIN ON WEDNESDAY AFTERNOON.

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

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

Tuesday's PMT Chart: