BS"D

Good morning,

The tape seems set up for an imminent test of the Channel intersection
(LT SW and Trend Channel Floors).

Monday was only nominally profitable, but get ready to go to the bank
after the upcoming plunge!

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DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT
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E-mini
Monday December 07, 2009

[SNIP]

Price Action calms considerably, and turns sideways, testing both the Pivot and Close.

3 = Volume perks up (not enough for aggressive entry) with this red Bear Dragonfly completing a 123
retest of the Pivot Resistance.

C = We are pulled in on this red candle.

D = Breakaway gap, and DVS pumps a large red candle. The elongated bottom wick might mean trouble,
so I recommend my convention. Put the profit-locking stop in the gap.

E = Another DVS drives a giant red candle. Could this be a Twin Towers? Again a worrisome long bottom
wick. Since the position is now in violation of Pivot Magic Trading Maximum Profit Giveback rules as
well, gladly place a mental stop at Giveback Level.

F = High Bear Volume continues, generating a large red candle. Per PMT stop rules, move the
profit-locking stop above the high of the candle.

NOTE: That makes six red candles in a row - thin line trend.
Stall/sag is nigh at hand.

G = Late-in-the-move DVS (pink arrow) certainly exhausts Momentum. Large, red, inverted (Bull) Dragonfly
candle. The elongated bottom wick describes the Momentum skidding to a stop. Per our rules, move the
profit-locking stop above the high of the candle. This is surely the end (see NOTE, above), so use a
mental stop.

Next candle, small white Bull Dragonfly implies mid-air reversal. The instant the next candle shows
white, Exit Now! +/- 4.75 points

[SNIP]

PERSPECTIVE
(Daily, bottom right chart)

Monday taped a small-range red day candle. With Price Action still
breathing at the LT SW Channel Ceiling (blue channel lines), and the
Channel Floor about to coincide with the LT Trend Channel Floor
(green channel lines), it seems increasingly reasonable to expect
the anticipated Channel Floor test over the next couple of days.

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: