BS"D

Good morning and a good week,

As we projected in Friday's Daily Pivot Magic Journal:
" . . . we are expecting a test of the new LT Trend Floor
(green dashed channel lines). . . ", Friday was a nice
rangy day testing the green dashed line.

Notice that the Pivot Points define Friday Price Action,
not only from High to Low, but every pause along the way
as well!

******************************

E-mini ES H0
Friday January 15, 2009

1 = Morning session opens with a large Anomaly (Overnight, bottom left chart) Doji Sandwich off the Pivot.

A = Pulled in below the S1 on a large red candle through the Low. In light of our experience over the last few
weeks, we are wary of swings and retests. Aggressively advance the initial stop above the Low, opting for the
immediate security of "free trade" plus.

B = Large red candle spikes the S1 and retracts. Volume is constantly increasing (plum line), implying continued
Momentum. Per our stop rules, move the profit-locking stop above the high of the candle.

However, the tape displays 5-6 red candles in a row, so use a mental stop and prepare to exit if Price Action
bounces.

C = Large red candle through the S2. Per PMT stop rules, move the profit-locking stop above the S2. The run of
red candles continues to grow; make that a mental stop.

BTW, this is a 2-candle 123 continuation. As = C clears the low of = B, add contracts.

D = Small exhaustion gap, and a large red candle slams to a halt at the S3. Volume pattern looks suspiciously
like a Twin Towers (pink arrow). That indicates a stall on the next candle. Use a mental stop.

E = Doji spikes through the S3 and retracts 2 points. Most of us Exit Now! +/- 6 points

The rest of us exit on the Lower-Low-Turns-White Exit Now! Signal, for an extra point. +/- 7 points

Volume drops off, and Price Action drifts sideways and down, eventually tapping on the Floor of the new LT Trend
Channel (Daily, bottom right chart, green dashed channel lines).

Trading interest never really resumes, and the tape does not present us with any meaningful entry possibilities
to (Hiccupless) EOD.

PERSPECTIVE
(Daily, bottom right chart)

Friday taped a large red day candle, gently testing the new LT Trend Floor
(green dashed channel lines). Overall, Price Action remains securely in
the middle of the larger LT Trend Channel (solid green channel lines).

Trading Volume was low through most of the day, so, unless the Funnymentals
shake things up, a breather/bounce is likely on Monday.

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: