BS"D

Good morning,

Even Pivot Point trading on Maalox Monday yielded little profit
and lots of ulcers. Hopefully, Tuesday will be better.

Enjoy and be well,

*********************************************
DAILY
PIVOT MAGIC TRADING JOURNAL - EXCERPT
*********************************************
E-mini ES H0
Monday February 08,2010

1 = After opening at the Close, Price Action reverses (need to count the reversing candle for a preceding trend)
at the PL. Although the reversal is strong, we would never enter, except for the self-confirmation resulting
from the 123 kickoff above (blue arrow). Volume is strong, confirming.

A = Pulled in on large white candle. DVS (pink arrow) late in the move immediately puts a scare in us. The
elongated top wick of the candle makes it double worrisome. Jump the stop (mental) to "free trade" and prepare
to SCRATCH.

Next candle is a red Bear Dragonfly. Not at all encouraging. When the candle following continues the dive,
Exit Now! SCRATCH! Nice way to start the day.

2 = Reversal off the Historical S/R (light blue line) is within range of the Close as well.

B = Pulled in (warily) on large white Bull Dragonfly. Per our stop rules, advance the initial stop nicely under
the MA.

C = Got worried needlessly by the next candle (Doji), but the move does resume with a white candle through the
High. Even though the candle is just barely "large", there is no sign of Momentum failure, so, for Money
Management and Risk Control sake, per our stop rules move the profit-locking stop under the High.

D = DVS (pink arrow) drives a large white candle to spike the LowM. Per PMT stop rules, move the profit-locking
stop under the low of the candle. DVS late in the move and an elongated top wick! No PMT rule here, but I
recommend Maalox. LOL!

E = Small gap (exhaustion) and a large white Bull Dragonfly. Normal stop placement leaves the position in Pivot
Magic Trading Maximum Profit Giveback violation. Use my convention and slip the stop (mental?) into the gap.
Think Pivot Scalp Exit if the R1 holds, which is very likely.

Doji spikes to tap the R1 and retracts. Pivot Scalp Exit as soon as it pulls back. +/- 5.25 points

[SNIP]

7 = Price Action droops to test the Historical S/R and Close, finally taping a "P" Signal off the MA and a 123
through the light blue line. By the time the next 123 through the Close breaks free of the "green fog" Ambush
Zone (large red candle), the PMT entry clock has run out. Threfore, we sit. Good!

EOD Hiccup (plum lines) is right on time, and tapes the classic "V" checkmark shape as it dives to assault the
Pivot. There the day closes.

PERSPECTIVE
(Daily, bottom chart)

For some reason, Quote.com didn't include Monday's day candle on the Daily chart.
After trying all night (that's why you see the white candle for the early Tuesday
Overnight) I gave up and drew it in myself.

As you can see on the tape, much of the day's battle included the Historical S/R
(light blue line). The nub of Tuesday's white Overnight candle suggests that the
struggle is not over yet. High likelihood that Price Action will bounce above the
light blue line on Tuesday. Hopefully, a nice, large-range, daytradable bounce!

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: