BS"D

Fortuitously in terms of Price-Time Convergence, our PL took a stand
smack at the defensive red line [SIC], at the Fibonacci 62% Retracement
Level, crushing the market reversal rebels. Bears are deflected off
the rock-hard Pivot Support.

In effect ($), however, Thursday pretty much made it three in a row,
with minimal profits, and only our risk-conservative Money Management
rules keeping us from disaster.

Friday? Don't trust the quiet Bear retreat. TGIF!!!

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

E-mini
Thursday October 29, 2009

1 = Morning session opens with an Anomaly (Overnight, bottom left chart) Double Bottom/DT Multi-bottom. The
Bears are halted and repelled by the Pivot Support, solidly defending the Fib 62% Retracement Level.

A = Pulled in on a DVS-driven (pink arrow) giant white candle through the Mid. The candle closes with our
position in violation of Pivot Magic Trading Maximum Profit Giveback (MPG) rules. Mental stop a Giveback Level.

B = Twin Towers (pink arrow) indicates a stall/sag next. The candle's elongated top wick gives the same
reading. Furthermore, the position is again in MPG violation. The natural move is to tighten the
profit-locking stop under the low of the candle. On deeper examination, however, the likelihood of such a stop
being taken out by a random spike in a stall/sag phase, which we KNOW is coming next, are quite high. Assuming
R1 (the only Primary PL for miles) to be the Primary Objective, the R:R ratio is 50:50. Not worth the risk.
Take the profits and run. Exit Now! +/- 2.75 points

C = It is possible that some of us overlooked the MPG violation, or perhaps extended the criterion due to bloated
ABS. Those traders hopefully exit as Price Action spikes through the Primary Objective (R1) and retracts. Even
the last of the hangers on finds it hard to ignore the huge Black Volume Bar of Death (pink arrow) and knows to
Exit Now! the instant the next candle shows red.

The tape records Bull pressure building at the R1, Price Action tracing a large Ascending Triangle (lavender
lines) at that PL.

2 = First breakout from the Triangle (blue arrow) returns to retest the R1. Price Action tapes a PMT tradable (the
lower line of the triangle and the parallel plum line attest to ongoing Bull trend) 123 Continuation off the R1.
It is lunchtime. Without something special in the Volume confirmation, we let this pass.

D = Hello. Move crosses above the 50% Fibonacci Retracement Level on high Volume (pink arrow). Per our criterion,
the distance (time) from the signal is acceptable. Really hungry, advanced/experienced PMTers may be pulled in.

NOTE: The R2 is obviously too far away to achieve on a mid-lunch raid.
Thus, advanced PMTers must be alert, and manage their tactics based on
Pivot Scalp preparedness rules. Start by advancing the initial stop
under the red line (50% Fib).

E = Large white candle. Elongated top wick speaks of waning Momentum early in the move. Nuts. DVS (pink arrow)
is a further implication of Momentum sag. Per PMT stop rules, move the profit-locking stop under the low of the
candle, or perhaps to "free trade".

F = Price Action breathes, a tiny Doji, and surges, again taping a large white candle with an elongated top wick.
Per our rules, move the profit-locking stop under the low of the candle.

What looked line a Twin Towers Volume pattern (pink arrow), continues with strong Bull Volume, and two more white
candles in a row with elongated top wicks. End of move is nigh.

G = Our position is in MPG violation. On some other day (smaller ABS) this might be a large white candle (albeit
and inverted Dragonfly); stretch it and place a profit-locking stop (mental for expedient abandonment of the
position) under the low of the candle.

Next candle retraces >62% of = G, Exit Now! +/- 2.25 points

Price Action drifts sideways for the next 2 hours, and then struggles vaguely northward to EOD.

PERSPECTIVE
(Daily, bottom right chart)

Thursday taped a large white day candle, completely retracing Wednesday's plunge
to the 62% Fib Retracement Level.

On the 5-Minute tape (top chart, the trading tape) we observe the Bears passively
retreat atop the gently sloping MA. Since this was hardly a rout, anticipate a
regrouping and retest assault on the 50% Fib.

BEWARE OF TRAPS ON FRIDAY!

REMEMBER: Trade the Tape, Not my Prognostics!

Asher
=] ;-)>

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

Thursday's PMT Chart: