BS"D

Good morning,

Price Action centered around the Pivot Monday, taping, as we
projected in yesterday's PMTJournal, PERSPECTIVE section,
" . . . Friday's large Bear candle soundly tested the LT Trend
Channel Floor. Two giant candles in a row suggests a breather
day and a bounce north for Monday . . . "

Overall, as you can see from the chart it was a Maalox Monday
(mostly ulcers).

Sorry, but we must defer from predicting about Tuesday.
Just be ready for anything (or nothing!).

Enjoy and be well,
*************************************
DAILY
PIVOT MAGIC TRADING JOURNAL - EXCERPT
*************************************
E-mini ES H0
Monday January 25, 2009

Monday morning opens gap-up above the Pivot and struggles for the next half hour to cross below.

1 = Strong Volume surge (pink arrow), and a wild, giant, red, Spinning Top gives way to a breakaway gap and
a powerful 2-candle 123 through the Pivot. We enter aggressively below the MA. Initial stop advances above
the MA.

A = Small gap (probably exhaustion) and the tape reveals a large red candle exiting the LT Trend Channel Floor
(Daily, bottom chart, green channel lines). Per our stop rules, move the profit-locking stop above the green
line.

Stopped out, +/- 2.75 points, and aggressive position Reversal (beyond 62% retrace) on strong Volume
(pink arrow).

B = Large white Bull Dragonfly overlaps the preceding giant candle. Normal stop placement leaves the position
in violation of Pivot Magic Trading Maximum Profit Giveback (MPG) rules. Mental stop at Giveback level. Volume
is descending. Take this a warning and prepare for Pivot Scalp exit.

C = Inverted (Bear) white Dragonfly spikes the Pivot and retracts. Pivot Scalp exit. +/- 3 points

NOTE: Volume continues to decrease, and the reversal signal
here completes with insufficient Price Window to warrant PMT
entry.

3 = Reversal off the Close. No self-confirming pair, and the Volume (pink arrow) is discouraging. Pass.

4 = This 2-bar completing on the third candle makes for a self-confirming pair. Still not much Volume.

D = DVS (pink arrow) might suggest enough updraft for lunchtime drift to pump Price Action to re-enter the LT
Trend Channel and to achieve the Pivot. Personally, I'm wary, but this IS discretionary trading, so, just for
something to discuss, let's take the trade. Initial stop under the green line.

E = Price Action stall almost retraces 2 points, but the more stalwart and experienced traders change to a
mental stop and hang on.

E = Low-volume, medium-sized, white Marubozu (full-bodied candle without wicks). Though there is no rule,
ulcers suggest this as a good time to apply the PMT Scalp pre-emptive 3-5 stop rule. Jump the profit-locking
to "free trade" and a tik. Consider using a mental stop.

F = Prepare to exit as a Black Volume Bar of Death (pink arrow) Doji tapes. Exit as the next candle shows red.
+/- 2 points

The move continues without us to ultimately achieve the Pivot and for sideways lunchtime drift to stall at the
Pivot Resistance.

5 = Price Action breaks out for the Ascending Triangle at the Pivot (lavender lines). As is often the case, the
Triangle base is retested; this time resulting in a strong 123 Continuation "S" Signal through the Pivot.

G = Volume is vaguely up, and some might enter on this small inverted (Bear) white Dragonfly (not good ole risk-
conservative me, however).

H = DVS (pink arrow) pumps a larger white candle above the MA. Hungry for a trade, most of us would have taken
this trade (again, not good ole risk-conservative me), with initial stop advancing under the MA.

J = Exhaustion (the instant drop in Volume is the giveaway) gap and small white candle. Experienced traders
wisely employ my convention and move the profit-locking stop into the gap, only to be taken out on the next
candle. +/- 1.50 points

EOD Hiccup is the smoothest move of the day. Right on time, the Hiccup (plum lines) tapes a classic "V" check
mark pattern and rips through the Pivot, slamming to a halt at the LT Trend Channel Floor.

PERSPECTIVE
(Daily, bottom chart)

Although the day candle was red, Monday was a mostly Bullish breather
at the LT Trend Channel Floor (green channel lines).

Tuesday could go either way, or just continue to gasp for air. Be prepared.

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: