BS"D

Good morning,

Massive Channel breakout, bouncing from Pivot Point to Pivot Point.
Just as we projected in yesterday's Daily Pivot Magic Trading Journal,
PERSPECTIVE section:
"The BBs are poised . . . Bullish or bearish, we are soon going to be
trading a breakout!"

It was a doozy! We profited nicely, making up for the long run of
small-profit days.

TGIF!!

*************************************
DAILY
PIVOT MAGIC TRADING JOURNAL - EXCERPT
*************************************
E-mini ES H0
Thursday January 21, 2009

1 = Morning session opens with an Anomaly (Overnight, bottom left chart) off the new LT Trend Channel
Floor/Close. Not only don't we particularly like Anomaly trades off the Close, but this move doesn't
prove either.

The follow-up 123 Continuation Signal (blue arrow) off the Close and Pivot, on the other hand . . .

A = Volume surges to life (pink arrow), and Price Action breaks out, plunging south. We are pulled in
(with nasty slippage) on this giant red candle as it crosses below the Pivot.

By the close of the candle, at the S1, we move the profit-locking stop above the LT SW Channel Floor
(Daily, bottom right chart, light blue line), playing safe AND locking in a very nice profit right out
the gate!

B = The LT SW Channel breakout continues through the S1 support with a 2-candle 123. We add contracts.

Even should we place our profit-locking stop above the Low, the position remains in Pivot Magic Trading
Maximum Profit Giveback (MPG) violation. Mental stop at Giveback level.

C = DVS (pink arrow, possible exhaustion) drives a large, red, inverted (Bull) Dragonfly to tap on the S2
and retract. Greed probably kept us from a Pivot Scalp Exit, but a retrace of >2 points (a PMT Exit Now!
Signal) warned us out. +/- 10.25 points

Now that makes up for the long dry spell of late!

2 = Entry on either the 123 above or the 123 below (below) the S2, puts our initial stop above the S2.

D = DVS (pink arrow, exhausting Momentum?) pumps a giant red candle through the S3/LT Trend Floor (Daily,
bottom right chart, dark green lines). Per PMT stop rules, move the profit-locking stop above the S3.
The stop is hit on the next (white) candle. +/- 2.75 points Ugh!

3 = The 2-bar Reversal only completes on the 3rd candle, which leaves the Price Window to the proven S2
too small to enter.

Lunchtime sideways drift slithers atop the S3.

4 = This bounce is tight enough to the S3 that the Price Window permits a Pivot Scalp to the proven S2.
The Volume is still too weak, however to meet PMT Bull entry criterion. Pass.

5 = This little 2-bar too is tight enough to our PL to permit an aggressive Pivot Scalp. We don't
require Volume confirmation for a Bear entry here.

F = Pulled in on large (not that large for today's ABS, BTW) red candle, advance initial stop above the
high of the candle.

Scalp trading demands aggressive stop movement. Inch the profit-locking stop down above the high of the
next "large" red candle (green arrow).

G = Large red candle with miniscule wicks, puts our position in MPG violation (even if we moved the stop
above the MA per our normal stop placement rules.) Mental stop at Giveback Level serves us well,
especially as we approach the Scalp Trade Target. Prepare to Pivot Scalp exit unless the next candle
blasts wildly through the S3.

It didn't. +/- 4 points.

Thus ends the PMT day atop the S3.

Even the EOD Hiccup assault, though on time, and with the classic "V" check mark shape (plum lines),
doesn't really achieve whole lot.

PERSPECTIVE
(Daily, bottom right chart)

Thursday's large red day candle broke out from the new LT Trend Channel
(green dashed channel lines) and the LT SW Channel (light blue channel
lines). The monster charge also seriously tested the Large LT Trend
Channel Floor (dark green channel lines).

Friday may well follow through on this assault, but more likely it will
stall/breathe and even re-enter above the LT Trend Channel Floor, trapping
the unwary at every turn.

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: