BS"D

Good morning,

Decent trading range day Thursday! Too much stair stepping and
swinging for anything but taking moderate bites. We did OK
overall.

TGIF!!!

Enjoy and be well,

*********************************************
DAILY
PIVOT MAGIC TRADING JOURNAL - EXCERPT
*********************************************
E-mini ES H0
Thursday January 28, 2009

Morning opens with an Anomaly (unmarked) of the LT Trend Channel Floor (Daily, bottom chart, green
channel lines)/Close. We are never overly anxious for an Anomaly entry off the Close, and this time
the (always considered proven) Pivot makes the Price Window untradable.

1 = Powerful 123 Continuation rips through the Pivot. Aggressive entry is permissible, with initial stop
above the Pivot.

A = Large red candle. Per PMT stop rules, move the profit-locking stop above the high of the candle.

B = No! Black Volume Bar of Death (pink arrow) Doji. Prepare to exit on first show of white.

The next two Bear candles cannot regain the Momentum. When the next candle shows red Exit Now!
+/- 3.50 points

2 = A 2-bar Reversal off the Pivot. The "P" Signal completes on the 3rd candle, = C, (it is also failed
retest of the Pivot), pulling us in. By the close of the candle, PMT stop rules suggest to move the
profit-locking stop above the LowW, for instant, locked-in profit.

D = DVS (pink arrow, exhaustion?) blasts a red candle through the S1. Our position is in Pivot Magic
Trading Maximum Profit Giveback (MPG) violation. Mental stop at Giveback Level.

Two candles later, as soon as the candle shows white, since the obvious upcoming retest of S1 will hit
our stop in any event, Exit Now! +/-4.25 points

3 = One last pre-lunch whopper of a 123 "S" Signal/failed test off the underside of the S1.

We are actually pulled in on a white candle. Oddity.

E = Giant DVS (pink arrow) obviously depletes the Momentum driving a giant red candle through the Low.
Normal stop placement leaves the position in MPG violation. Mental stop at Giveback Level is double
welcome in light of the DVS exhaustion sign.

When the next candle retraces >2+ points (ABS is large today, so all our limits may have been expanded
slightly.)

Lunchtime Volume sets in and continues almost all the way to EOD Hiccup. Price Action drifts sideways
(with a gentle upward aspect) testing and retesting the S1 Resistance.

Right on time, EOD Hiccup (plum lines) takes on the classic "V" check mark formation with the day
closing at Wednesday's Low.

PERSPECTIVE
(Daily, bottom chart)

Thursday's large red day candle tests, but primarily stayed outside
the LT Trend Channel (green channel lines). Obviously neither Obama's
speech nor the Fed announcement has done much to slake the economic
recession. Sigh. Still praying for the best.

BEWARE 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: