BS"D

Good morning,

Same Plan the BBs Use
Since we use the same methods they use, yesterday we joined the BBs for the ride
up and the ride down, both inside the LT Sideways (SW) Channel. Also, fell into
a couple of traps and had to SCRATCH, but all in all, not a bad PMT day.

Now Thursday?!? Unless the Jobless claims can generate some pre-opening hysteria,
probably fair to expect MOS (more of same), i.e. run-slide tapes.

Enjoy and be well,

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DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT
***************************************

E-mini
Wednesday October 21, 2009

Session opens gap-down with a white candle, and continues north to close the opening gap.

1 = 2-candle 123 Continuation the Pivot/Close pulls us in aggressively. (This call was a bit of a stretch,
so you may have let it go.)

A = DVS (pink arrow) generates a large white candle tapping on the LT SW Channel Ceiling (Daily, bottom chart,
red channel lines). Candle puts our position in Pivot Magic Trading Maximum Profit Giveback violation. Mental
stop at Giveback level (good for fast exit if R1 or red line hold).

R1 Resistance does hold, and two candles later when a Bear Dragonfly spikes through the R1 and retracts, we
recognize a PMT Exit Now! Signal. +/- 5.75 points

2 = Double top vaguely through the R1.

C = Only when Volume surges (DVS, pink arrow) are we pulled into the trap. Initial stop above the red line,
only to get stopped out three candles later for a loss. Not nice!

3 = Double 123 continuation off the R1.

D = Volume picks up with what we perceive to be sufficient push to combine with Gravity and the rubber bands to
achieve the Pivot, even during lunchtime. Wrong.

One more Bear candle, then a mid-air reversal completes with 2 white candles, and we are forced to SCRATCH!
+/- 1 point

Lunchtime sideways drift slides across the underside of the red line with particularly low Volume.

4 = Double Top off the R1, through the red line. Already twice fooled (Fool us once, shame on them. Fool us
twice, shame on us. Never thrice!!!), this time the minimal upsurge in Volume (pink line) is not enough to
entice us.

5 = Interesting pattern. DT Multiple Top off the LT SW Channel Ceiling (promoted to a Primary PL, per PMT SW
Channel topography rules).

E = Volume starts to pick up just in time for the final entry of the day. The candle pulls us in with a failed
test of MA, permitting initial stop to advance above the MA. Thinking Pivot Scalp possibilities.

F = DVS (pink arrow) drives a giant red candle through the Close and Pivot. We move the profit-locking stop
above the Close, converting our strategy to a PMT Scalp. The long bottom wick is worrisome though, so use a
mental stop for exit flexibility and speed (no slow Cancel-Replace orders).

G = Large red candle. Inch the stop down a drop, above the Pivot. BTW, this is a 2-candle 123 Continuation,
so though it is too late to enter a new trade, we add contracts to our ongoing one.

H = DVS (pink arrow, possible Twin Towers so continue to use mental stops) generates a giant red candle to the
(demoted per our rules) S1.

J = Next candle stretches on DVS to tap on the LT SW Channel Floor. As Price Action retracts we exit briskly.
+/- 11.25 points

If you missed the first exit, the candle eventually becomes a Lower-Low-Turns-White, one of our Exit Now!
Signals, and you gave back almost 2 points, but got out.

As it turns out, Price Action continues to plunge, stabbing violently through the S2 and retracting just
before EOD.

PERSPECTIVE
(Daily, bottom chart)

Wednesday's large red Day candle, remained inside the LT SW Channel (red channel lines).
The day session, comprised of a surge-slide-dive, taped a large Bear Dragonfly, pattern,
as the BBs again drove the market around in the SW Channel in order to squeeze out a few
bucks in a lull market. Aren't you glad we use the same plan they use?!?

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: