BS"D

Wednesday morning taped a snappy round trip run up and down between Pivot Points.
We got a nice bite out of both moves before the Volume was used up and Price Action
turned sideways to EOD.

Once again, even with the public disinterested (witness the very low Trading
Volume), the BBs still managed to drive some vigorous Price Action in order to
squeeze out their daily bread.

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DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT
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E-mini
Wednesday November 11, 2009

Morning session opens gap-up, but headed south from the Overnight, dips to test the R1.

1 = Massive-Volume (pink arrow) bounce off the R1 permits us an aggressive entry. Initial stop advances under
the white candle low.

A = Large white candle spikes through the R2. Per our stop rules, move the profit-locking stop under the low of
the candle.

B = No stop movement per our rules, but this is a 2-candle 123 continuation through the R2, which presents an
opportunity to add contracts.

C = Large white candle. Normal stop placement per PMT stop rules (under the low of the candle) leaves the position
in violation of Pivot Magic Trading Maximum Profit Giveback (MPG) rules. Mental stop at Giveback level. Late in
the move DVS (pink arrow) likely exhausts the forward Momentum, so we're double glad for a mental stop.

Small exhaustion gap, and a Doji stretches to the R3. The Black Volume Bar of Death is nasty confirmation of the
Momentum exhaustion.

2 = One final white candle, and the tape presents a DT Multi-top within range of the R3. Reverse! (+/- 4.75 points)

D = We are pulled in either aggressively, or normally on this (average sized) red candle.

E = DVS (pink arrow) pumps a large red candle through the R2. Per PMT stop rules, move the profit-locking stop
above the R2.

F = Large red candle. Per our rules, move the profit-locking stop above the high of the candle.

G = Large white candle blasts through the R1, stretches to tap on the High, and retracts. Per our stop rules, move
the profit-locking stop above the R1. The extremely long bottom wick suggests we use a mental stop in case a quick
exit is called for.

Now here's where it gets tricky (read discretionary). The next (white) candle (or two candles) completes a
retracement of 2 points.

Though our mental stop may have made this feel like a hot potato (+/- 6 points), the R1 Resistance actually stops
the retrace short of our > 2 points rule. Though we may have gotten nervous, if we hold on we are promptly
rewarded for our bravery.

H = The 123 test completes with a giant red Marubozu (full-bodied candle without wicks), which dives south through
the High, almost closing the opening gap. (BTW, when the 2nd white candle is cleared, quick on the trigger traders
added contracts.) Per our rules, move the profit-locking stop above the High. As always with a Marubozu, we need
to worry if the troops will rally into the hole punched by the sumo candle. Use a mental stop.

When the next candle fails to achieve the Close and turns white, the R:R becomes unfavorably skewed. Surely when
the next candle tapes a higher low before retracing we recognize this R:R skew and Exit Now! +/- 8.25 points
(worst case, our stop is hit, +/- 7 points)

Although the Reversal Signal is in range of the Close, the proven R1 Resistance effectively closes the Price
Window. Pass.

3 = Early lunchtime Reversal spiking through the Close. The Signal is DVS-based (pink arrow) and we don't trust
DVS-based Signals for longevity. Not that it matters, as there is no PMT-acceptable Price Window to the R1 in any
event.

4 = Several potential Bear Signals off the R1. The hour is wrong and the Volume unreliable.

Less crowded by the "green fog" than were the previous Bull Signals, the first lunchtime signal (red Bear
Dragonfly competing a Double Doji Sandwich, blue arrow) is tight enough to the R1 to present a decent Pivot Scalp
Price Window. Volume is even strong (pink arrow), but disappears before the move (almost) takes off. Good thing,
because our stop would have been hit at around 1:25, just BEFORE the final plunge through the Close!

5 = Reversal in range of the Pivot with decent Volume support (pink arrow). Once again, by the time entry placement
Price is hit (above the "green fog") the Price Window to the thoroughly proven R1 does not meet our criterion. A
bit depressing as this is a Failed TTT Corollary reversal into what might arguably be called a TTT attempt at the R1.
The R1 Resistance proves rock hard and sideways Price Action dribbles out EOD at the R1.

PERSPECTIVE
(Daily, bottom chart)

In spite of the morning surge, overall, Wednesday's Trading Volume continues to be thin.
Once again the day candle was a Doji type (small white inverted Dragonfly) breather candle.

Price Action is still hovering mid LT Trend Channel (green channel lines).

Although the tape looks increasingly ready for a Channel Floor test, the market could
easily go either way. Remain prepared and alert.

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: