BS"D

Good morning,

Pivot Point Trading Bloated ABS is pretty tricky. Except that the wild
Price swings made the day less than fully tradable, we did OK following
PMT rules.

The tape displayed pretty much what we hoped for in yesterday's Daily
Pivot Magic Journal PERSPECTIVE section:
" . . . 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. Perhaps Price Action will bounce above the line on Tuesday.
Hopefully, a nice, large-range, daytradable [?] bounce!"

No great expectations for Wednesday though.

Enjoy and be well,

*********************************************
DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT
*********************************************
E-mini ES H0
Tuesday February 09,2010

1 = Morning session opens gap-up with an Anomaly (Overnight, bottom left chart) at the R1. The move
never proves.

2 = Enough Price Window to the Pivot to enter aggressively (Volume is very strong, pink arrow) on
this 123 test of the R1 Support-turned-Resistance.

NOTE: Average Bar Size (ABS) is bloated today. Even the tiniest
candles are 2-pointers. Consider expanding the stop placement
and Maximum Profit Giveback (MPG) Levels.

A = Large, red, inverted (Bull) Dragonfly. Per PMT stop rules, move the profit-locking stop above the
high of the candle. The elongated bottom wick suggests a short move. Think Pivot Scalp exit at the
Pivot.

B = Giant red candle through the Historical S/R that has been influencing Price Action for a week now
(Daily, bottom right chart, light blue line), spiking just through the PL before slamming to a halt at
the Pivot.

Possible Pivot Scalp Exit, but the Volume suggests that Bear Momentum may still prevail. (Mental)
profit-locking stop above the light blue line.

When the Pivot Support holds, with the next (white) candle spiking through and bouncing, Pivot Scalp Exit
is in order. +/- 4 points

3 = Nice Double Bottom off the Pivot. The takeoff candle couples with a DVS (pink arrow), so we enter
aggressively above the light blue line. The candle rips through the R1, so, per PMT stop rules, at the
close of the candle move the profit-locking stop under the R1.

C = Large white candle through the LowM. Per our rules, move the profit-locking stop under the LowM.
Twin Towers (pink arrow) DVSs indicates that a stall/retest is next.

Depending on your stop placement (see above NOTE on ABS), you either got stopped out (+/- 4.50 points),
or your nerve held, and you continued the ride.

4 = For those who were taken out, this 123 "S" Signal is a re-entry Signal.

D = DVS (pink arrow) pumps a large white candle, putting our position (from = 3, or = 4) in Pivot Magic
Trading MPG violation. Mental stop at MPG.

The next candle (red) is a mid-air Reversal retracing >62% of = D. This is a PMT Exit Now! Signal.
+/- 8 points from = 3, or a breakeven SCRATCH from = 4

Sadly (how sad can you really be with 8 points in your pocket?!?), it turns out, that after shaking us out,
Price Action continues on to the Primary Objective, R2 without us.

5 = Double Top breaks out (blue arrow) on DVS (pink arrow) and a giant red candle. The more alert traders
entered aggressively (with slippage) and rode the candle down, exiting as the bottom wick retraced > 2.5
points (also expanded for the ABS). +/- 7.25 points Not at all bad for a single candle ride!

Volume finally goes flat for a late lunchtime and trading never really resumes.

6 = Although there is no trading interest at this time, it is worth mentioning that this "P" Signal off the
MA qualifies as an "S" Signal. No trade, of course, ensues.

V-shaped EOD Hiccup is right on time, and Price Action plunges back to the day's open at R1. We just had
a zero change, round trip day, artistically generated solely to make range wherefrom the BB's might profit.

PERSPECTIVE
(Daily, bottom right chart)

Tuesday's day candle was a large white inverted (Bear) Dragonfly bouncing
off the Historical S/R (light blue line). Pretty much what we hoped for
in yesterday's commentary.

The long top wick suggests that Wednesday may again test the Support at the
light blue line. Probably only a small-range breather day test.

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: