BS"D

Good morning and a good week,

Some Profit and Lots of Ulcers from the e-Mini.

Though Monday morning was painful, we did eke out a few points
of profit in the afternoon plunge. Read on!

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DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT
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E-mini
Monday October 12, 2009

1 = Monday morning opens gap-up with a large white Bull Dragonfly kickoff Anomaly Signal (Overnight, bottom
left chart) off the R1. Aggressive entry above the high of the preceding white Marubozu reversing candle
is inviting.

A = Large white candle spikes through the R2 and retracts 2 points. Somewhere in there, Exit Now! SCRATCH!!!
Nice way to start the day (NOT).

2 = A 123 Continuation "S" Signal pulls us in above the R2.

B= Second white candle closes above the contract high (Daily, bottom right chart, red line). DVS (pink arrow)
indicates expended Momentum. Use this opportunity to lock in profits. Move the profit-locking stop under the
red line, and promptly get stopped out. +/-1.50 points Ugghh!

This is going to be (another) one of those days?!?

3 = Doji Sandwich and breakaway gap. In light of our previous experiences this morning, especially so far north
(R2 Extreme PL), the lack of Volume (pink arrow) warns us to spare our funds (and ulcers).

The Resistance at contract high (red line) holds strong, as Volume dwindles. Lunchtime sideways drift ensues.
Price Action scoots feebly sideways at the R2 for several hours.

4 = A keen eye here recognizes a double top, or at least a reversal and a 123 continuation. Price Action 2-bar
123 tests the R2 Resistance, but so far nothing appears on the tape sufficient to entice PMTers.

C = Whoa! Advanced traders hop the train as Volume comes to life (pink arrow) following a failed test of the MA.
Got lousy slippage, but between the Volume, the pull of the opening gap and the rubber band/gravitational pull,
this is well worth the creative thinking necessary to enter!

By the close of the candle, our position is already in violation of Pivot Magic Trading Maximum Profit Giveback
(MPG) rules. Mental stop at Giveback level.

D = large red candle through the R1. Per PMT stop rules, move the profit-locking stop above R1. Finally, a
worthwhile trade is underway!

5 = For late bloomers, this 2-candle 123 Continuation "S" Signal presents a second chance to join the move.

E = Giant red candle. Those in the move from = 4 should see = 5, above, and add contracts early in the candle.

NOTE: The Price Action recouped about 2 points of profit by candle's end,
and most of us jumped ship (+/-3.25 points). After considering the booming
Volume and the proximity of the Primary Objective (closing the opening gap),
skilled readers of the tape may well have overridden that rule. If so,
the position is in MPG violation, so jump the mental stop to Giveback level.

F = Large red inverted (Bull) Dragonfly). Move the profit-locking stop above the high of the candle. Even
though the Volume is still raging, the pair of long bottom wicks (potentially signs of Price Action skidding
to a halt) leaves us wondering if the Volume will wind up a Twin Towers. Not desirous of being trapped into
giving back yet more profits, use a mental stop and keep your finger on the mouse, cursor over the SEND button
of your trading platform.

G = Nice surprise, as massive Volume continues, driving Price Action to slam against Support at the Close. The
opening gap is officially closed.

Once again, our position is in MPG violation. Mental stop at Giveback level (or more aggressively, just above
the "green fog").

6 = Low-Volume (pink arrow) Reversal off the Close. Hating to dawdle in the "green fog" Ambush Zone, although
we can't justify reversal, this is definitely a Pivot Magic Trading Exit Now! Signal. We respond with alacrity.
+/- 4.50 points (from = 4, less entry slippage)

7 = Plenty of Volume behind this 123 kickoff from the Close (making this our preferred self-confirming pair of
signals required for entry off the Close). The R1 Resistance was vaguely tested/proven at = 5, but since it is
our last PMT permissible time for entry, we might give it a go. The elongated top wick makes us wary of a stall,
so use mental stops to facilitate brisk exit if necessary (i.e., no need for time-consuming Cancel-Replace orders).

H = Twin Towers (pink arrow) indicate a stall/sag on the next candle. When the Price Action taps on the R1 and
retracts, fire off the exit order. Another small-profit SCRATCH to end our day like it started.

EOD Hiccup (plum lines) tapes the usual "V" check mark shaped pattern, and the day closes at the R1.

PERSPECTIVE
(Daily, bottom right chart)

While I was sitting in my succah singing songs with my family last week,
Price Action bounce off the 62% Fibonacci Reversal level (red dashed line)
and proceeded to tape a nice long Bull run back up to contract high.

* Six white candles in a row, so we expect a retracement.

* The Bull trend has slowed and has started to lean to the
horizontal, so we expect a retracement.

* The contract high (red line) displayed strong Resistance
all day Monday, so we expect a retracement.

Expect a retracement!
Hehehe

REMEMBER: Trade the Tape, Not my Prognostics!

Asher
=] ;-)>

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

Monday's PMT Chart: