BS"D

PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning,

New Contract High. Price ACtion was nicely delineated by our Pivot Points
and we took a couple of chewably large bites out of Thursday's run up to
above the contract high (Daily, bottom right chart, red line).

TGIF!!!

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E-mini
Thursday September 10, 2009

Morning session opens at the Close. Bear Price Action slams through the Pivot, but was unable to pull free.

1 = Skidding to a halt, Price Action reverses, and the large white Bull Dragonfly kicks, to make this an Anomaly
Reversal behind the Pivot (Overnight, bottom left chart, preceding trend is also apparent on 2-day charts, See
10-Min., bottom center chart).

The tape shows us also a powerful slingshot of the MA, with plungers pulled way back. It might be a good bet,
except for our discomfort about entering directly into the "green fog" Ambush Zone. Additionally, the open
itself may well have proven the Close Support, leaving a very small Price Window open. To make things even worse,
rather than raging, the Volume is drooping.

2 = Large 123 Continuation, a PMT "S" Signal, breaks free of the "green fog", pulling us in. Initial stop advances
under the Close.

A = Ulcer irritating stall, and a DVS (pink arrow) blasts a large white candle skyward. Although our rules say to
move the profit-locking stop under the low of the candle, personally feel urged to zip it up a bit to "free trade".

B = Oh no!

A Black Volume Bar of Death (pink arrow) and a small Doji candle at High Resistance. Dangerous Price Action stall.
Prepare to exit on red.

C = DVS (pink arrow) definitely depletes the Momentum, driving Price Action, stretching to tap on the R1 and pull
back. We Pivot Scalp exit. +/- 3 points

Lunchtime sideways drift ensues.

D = At 1:00 sharp we get a TELL (blue arrow). Proven R1 Resistance, so PMT Money Management rules keep us from
being trapped as the PL's Resistance pauses the advance.

3 = Rounded bottom 123 through the R1.

E = As our TELL (= D) implied it would, Volume comes to life, confirming support of the breakout. We are pulled in
on a large white candle. Initial stop advances under the HighM.

F = DVS (pink arrow) generates a small breakaway gap and a large white candle. The elongated top wick is a bit
worrisome, so from now on prepare for an emergency exit (use mental stops). The Primary Objective still being a
probable Pivot Scalp exit at the R2. Per PMT stop placement rules, move the profit-locking stop under the low of
the candle.

G = Another gap (now = F is sandwiched by gaps, making the first gap retroactively an exhaustion gap, Momentum
failure is near) and an almost large white candle tapes. Nervously apply my convention and place the stop in the
gap.

Next candle stretches to tap on R2 and retract, finally turning into a red Bear Dragonfly off the R2. We, of
course, applied our Pivot Scalp exit techniques. +/- 4.50 points

Volume dies and becomes quite confused, so we are not enticed to join the ensuing sideways battle.

4 = Could call this a Double bottom off the HighM, in range of the R1, but:

* Volume support is not clear (pink arrow).

* The move takes of at/after the last acceptable PMT entry time.
The EOD Hiccup Zone is too nearby for low-risk entry. Too bad,
as it turns out.

PERSPECTIVE
(Daily, bottom right chart)

Five trending white day candles in a row (green trend channel lines) is unusual,
so continue to expect a breather, likely retesting the HighM (red line).

BEWARE OF TRAPS ON FRIDAY

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

Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
******************************

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

Thursday's PMT Chart: