BS"D

Good morning,

Pivot Points Define Price Action. Although the trading range was decent
Tuesday, the R2 and R3 PLs slowed Momentum, seriously handicapping our
trading. One decent trade, and a couple of nasty SCRATCHES. At least
our PMT Money Management rules protected us from any losses.

Enjoy and be well,

*********************************************
DAILY
PIVOT MAGIC TRADING JOURNAL - EXCERPT
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E-mini ES H0
Tuesday Febrnuary 02,2010

Morning session opens at the Close with a difficult struggle to continue the overnight run up.

1 = A 2-bar Reversal at the Close couples with a large white Bull Dragonfly kickoff (blue arrow) for a swell
10:00 Reversal Time entry.

A = Pulled in on a DVS-driven (pink arrow) giant white candle through the R1. As the candle closes, with
the position already in violation of Pivot magic Trading Maximum Profit Giveback (MPG) rules, move the
profit-locking stop under the R1.

B = Large white candle. Per PMT stop rules, move the profit-locking stop under the low of the candle.

C = DVS (pink arrow, late in the move means exhaustion of Momentum) generates an exhaustion gap and a large
white candle just through the R2. Use my convention and move the profit-locking stop into the gap.

The elongated top wick is another sign of exhaustion, and it is 10:30 Reversal Time, so use a mental stop.

When the tape next displays a Black Volume Bar of Death and a Doji, we are prepared to exit the instant the
next candle shows red. +/- 5.50 points

2 = The Volume perks up mid-lunchtime (pink arrow) at this 123 Continuation "S" Signal. Once the burst
completes, lunchtime drift Momentum is almost certainly not enough (especially against the pull of the Close)
to overrun the nearby R3 Resistance. During lunchtime drift this entry is too risky for too little return.
Pass.

3 = A Third Time Through (TTT) 123 Continuation is a very tempting tape reading, even above the R3.
Normally, we hesitate to enter above the R3, but the Volume comes to life as well, making this eligible for
an aggressive entry with a low initial At Risk.

D = Double Drat! A Twin Towers pattern (pink arrow), and a tiny white candle with an elongated top wick.
The move is a dud. Stall/sag/retest is next. SCRATCH! for about 1 point

4 = Double Bottom formation off the R3 completes with a 123 Continuation kickoff (blue arrow).

E = Volume comes to life (DVS, pink arrow) pulling us in.

F = Arrrgggghhhh! Twin Towers (pink arrow) drives a large white candle to slam into the recently exited LT
Trend Channel Floor (Daily, bottom chart, green channel lines). Stall/sag is next.

Resistance at the Floor (green line) holds, and before we can even move the stop, the next candle shows red.
That's one of our Exit Now! Signals +/- 2.50 points

EOD Price Action droops, and the day closes atop the R3.

PERSPECTIVE
(Daily, bottom chart)

Tuesday's large white day candle retests the recently exited
LT Trend Channel Floor (green channel lines). Resistance
at this line has proven to be pretty strong, and that's two
large white candles in a row. Anticipating a breather day
or two before any serious assault can be undertaken.

REMEMBER: Trade the Tape, Not my Prognostics!

Asher
=] ;-)>

Pivot Point Daytrading Course
http://www.tradingthingys.com/PMTJ/Commodity%20Day%20Trading.html

Tuesday's PMT Chart: