BS"D

Good morning,

Pivot Point Magic
Not only was the Ultimate Objective (R3) clearly one of our PLs (objective achieved 1:30 PM EST)
on Tuesday, but the entire stairstepping trend up tread squarely upon and pushed off of PMT
Pivot Levels. First the day opens at S1, then Price Action pushes off the Pivot at 10:30
Reversal Time, then tapes a Bull slingshot at the R1, followed by an easy 123 crossing of the R2.
That's all Primary PMT Pivot Points, and that's why it's called Pivot MAGIC Trading. LOL!

Tuesday was somewhat rangier than Monday, but closed with little net change in Price. We watched
the morning joust from the sidelines, but did get a decent bite on the down swing.

Bears on Wednesday?

Enjoy and be well,

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

1 = After opening gap-down below the S1, Price Action struggles valiantly through the S1, closes the opening
gap through the Close, exits the "green fog", and overwhelms Resistance at the Pivot.

Of course the tape was spattered with entry Signals along the way (orange oval); however, our risk-conservative
entry rules forbid entry when the move must immediately thereafter enter into the "green fog" Ambush Zone.
Also, the (always considered proven) Pivot looms, Resisting, blocking exit from the "green fog".

NOTE: Even while the Bulls are running with strong Volume, the ABS is small.
We must adjust our expected move/time frame awareness.

2 = Now then, this is a perfect 123 "S" Signal off a retest of the Pivot Resistance-Turned-Support. In spite
of the 10:30 Reversal Time bounce, the low, striped, Volume (pink oval) hardly invites confidence. We pass,
and are spared a painful SCRATCH.

3 = A 123 "S" that is also a "P" off the MA (plunger pulled back). Nice for confirmation.

Lunchtime Volume is not enough to draw us in. In vain we watch the confused Volume for a sign of risk-reducing
decisiveness. We are sideline observers of the long climb (of what turns out to be the best run of the day).
Sigh!

4 = Not only is this Reversal within range of the R3, but it is also a "P" Signal off the MA (for extra
slingshot action). Price Window is open clear to the R1 Lookin good.

A = Volume increases (pink arrow) to combine with Gravity, and we are pulled in on a healthy red inverted
(Bull) Dragonfly. Initial stop advances above the MA for reduced At Risk.

B = Breakaway gap and healthy red candle to the R2. When the next candle stalls atop the PL, move the
profit-locking stop into the gap ("free trade" plus), per my convention.

DVS (pink arrow) converts the stall into a 123 Continuation through the R2. Per our stop rules, move the
profit-locking stop above the R2.

Mixed messages on the tape. Long bottom wick suggests exhaustion. Late in the move DVS suggests exhaustion.
Play safe and make that a mental stop.

C = Price Action stalls well-short of a 2 point retracement. To experienced Readers of the Tape, the feeble
Volume and wispy candles reveal this as bluff rather than a scare.

D = Giant red candle penetrates the potentially hard R1 support. Per our stop rules, move the profit-locking
stop above the R1.

E = DVS (pink arrow) drives a large red Spinning top to the Pivot. The candle body is isolated between top
and bottom gaps. As we have discussed before, this is a reliable sign of pending exhaustion. Apply my
convention and slip a (mental?) stop into the upper gap. Prepare to Pivot Scalp Exit on the least sign of
Support at the Pivot.

F = Surprisingly massive red candle pierces the Pivot, and slams to a halt at the Close. Per our stop rules,
move the profit-locking stop above the Pivot. Still wary from = E, use a mental stop.

The next (white) candle rebounds from the Close recouping >2 points. That is a PMT Exit Now! Signal.
+/- 5 points

In spite of high Bull Volume, Price Action is pretty lateral as the BBs offload their positions.

PERSPECTIVE
(Daily, bottom chart)

Tuesday's healthy white Spinning Top day candle remains stalled just short
of mid channel. The tape now sports 8 white candles in a row. Bulls are
surely exhausted.

The otherwise meaningless Fed report today may be just enough to precipitate
a little Bear range for Wednesday day trading.

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: