BS"D

Good morning,

Friday morning Price Action taped a large-range, profitable, Pivot Point to Pivot Point
plunge. We got a rather large bite of the move. The rest of the day was tedious,
without Volume, and, with Price Action swinging up and down inside the Pivot-Close
Channel, untradable.

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

E-mini
Friday December 04, 2009

Session opens gap-up, spiking outside the LT SW Channel (Daily, bottom chart, blue channel lines). The tape
displays what appears to be a smashing 2-bar Anomaly. Sadly, no preceding Overnight trend. (In fact this
is a 123 retest of the R1.)

1 = Finally, Price Action engages one of our PLs. (Trading is inside the Channel. Thus, per PMT rules, the
R1 is demoted, so I'm referring to the blue line.) Volume surges (pink arrow), which, combined with Gravity,
the pull of the Pivot, and the urge to close the opening gap, pulls us in on giant red candle (with a bit of
slippage). At the close of the candle jump the stop to "free trade" and a tik. Smile! (No PMT rule for that!)

A = Large red candle through the Mid. Per PMT stop rules, move the profit-locking stop above the Mid. The
elongated bottom wick is potentially a disappointing warning of exhaustion, so a mental stop is preferable
(for greater exit flexibility).

B = Large red candle taps on the Pivot and starts to retract. Normal stop placement leaves the position in
violation of Pivot Magic Trading Maximum Profit Giveback (MPG) rules. Mental stop at Giveback Level.

In light of the potential bounce warning, we are glad to be forced into a mental stop and are prepared to exit
on the first sign of white.

C = Yes! Volume again surges, driving a giant red candle, which blasts through the Pivot. The position is in
MPG violation. Mental stop at Give back Level.

BTW, about a point below the Pivot we can feel comfortable to call this a 2-candle 123 and add contracts.

D = Large DVS (pink arrow) late in the move warns of exhaustion. Giant, red, inverted (Bull) Dragonfly spikes
through the Close and retracts. As soon as Price Action recoups > 2 points, even before it recrosses the Close,
we recognize one of our PMT Exit Now! Signals. +/- 12.50 points

Now that makes up for a few days of pain!

2 = Large white Bull Dragonfly off the Close. So close to TGIF lunchtime, and with only minimal Price Window
open to the (always considered proven) Pivot, we are not surprised when Volume dies off.

On virtually no Volume, lunchtime Price Action first drifts up to test the Pivot Resistance and then drifts back
down to the Close.

3 = A 2-bar through the Close remains in the "green fog" Ambush Zone.

E = Notice that this signal (= 3) also completes a very large Double Bottom, with the "W" pattern bridging the
Close to Pivot. Although that is confirmation, by itself it would of course not help, but rather would make
breakout above the Pivot.

Even as Price Action exits the fog and crosses the MA, the BBs remain at the TGIF party and Volume in no way
supports a Bull entry.

4 = Rare "P" reversal off the MA qualifying as a PMT-acceptable "S" Signal. With no supporting Volume
(long party!), no Price Window, and no more time, this reversal becomes a "shut down early" signal.

Right on time, the EOD Hiccup (plum lines) bounces off the Pivot with the classic "V" checkmark shape pattern.
EOD closes above the Mid, for a slightly red Doji/Spinning top day session.

PERSPECTIVE
(Daily, bottom chart)

In spite of the fact that Friday's day candle was white, it was more importantly
a large, spiking, Bear Dragonfly, amounting to a large-range Bear breather.

The LT SW Channel Ceiling again held strong, so the Channel Floor test prediction
is still in effect.

REMEMBER: Trade the Tape, Not my Prognostics!

Asher
=] ;-)>

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

Friday's PMT Chart: