BS"D

Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
******************************

DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning,

Monday was not the bear hunt we were hoping for. It was only a
Bear-oriented Doji day, but we did eke out a bit of profit, both
on the way down, and on the way back up.

FOMC today.

BEWARE THE FED. Avalanche projected.

Enjoy and be well,

******************************
Pivot Magic Trading
First rule:
"Any time you don't know what is happening, get out!"
******************************

E-mini ES H0
Monday March 15, 2010

Session opens gap-down in easy range of at the re-enforced S1 (Daily, bottom chart, dotted green line,
mid LT Trend Channel).

1 = After a few bounces and tests, a nice 123 Continuation Signal sets up at the S1 (blue arrow). Volume
has been decreasing (lavender line) and inconsistent. Not too intriguing to enter away from the opening
gap and Pivot without some sort of confirmation.

Tape now shows a promising 123 retest of the S1 Support-turned-Resistance (orange arrow).

A = Volume blossoms (pink arrow), and we are in a Bear trade with initial stop advanced above the high of
the candle.

B = Volume remains strong driving a large red candle to puncture the S2. Per our stop rules, move a
profit-locking stop above the high of the candle. The vague spike-through of the S2 suggests to experienced
PMT readers of the tape (like good ole risk-conservative me) that we address the risk and make that a mental
stop to allow for faster (no Cancel-Replace orders) emergency exit.

C = Small gap-through, and a red Bull Dragonfly completes a 2-candle 123 of the S2.

Our position is in violation of Pivot Magic Trading Maximum Profit Giveback (MPG) rules. The candle is not
overly large, but the tape displays nothing (other than the elongated bottom wick!) to indicate the end of
Momentum. Stretching it, we might call the red Bull Dragonfly a "large" candle through the S2, or even better,
apply my "gap well into the move" convention. Put the stop in the gap.

Definitely too close to lunchtime to enter a new position, but we might add contracts.

D = Large red Spinning Top retests the S2. Not a Momentum-positive indicator. A more serious retest of S2
is likely, AND look at the clock. Lunchtime, and with it, lunchtime sideways drift. The drift will surely be
affected bullishly by the pull of the Pivot, Close, and opening gap. Either exit on first sign of white, or,
in case the ride continues yet a bit, put the profit-locking stop in the gap, per my convention.
+/- 3.25 points

2 = Finally, at 2:30 the Volume comes to life, and the BBs set a trap with a large red Marubozu (full-bodied
candle without wicks). The question following any forceful sumo (Marubozu, candle) assault is, "will the
troops rally into the breach?"

This time it was thump-thump, a powerful 2-bar Reversal Signal heading north, "NO!"

Combined with the pull of the rubber bands and gap from above, the Volume is marginally acceptable for a
Bull entry.

E = Large white candle crosses above the MA and pulls us in. Initial stop advances under the MA, for
well-controlled At Risk.

Volume expands generating a breakaway gap and a weak inverted white Dragonfly candle.

F = Another gap. The previous candle is now sandwiched by gaps. A not overly threatening Twin Towers pattern
in the Volume (pink arrow).

Though just barely far enough along in the move, the wisest choice might be to again apply my convention. A
stop in the gap will best protect against the mild-stall/sag coming next (per Twin Towers Volume pattern, an
almost infallible indicator).

Weathering the mild stall/sag, we read the notable lack of Bear interference, or even interest, as a Bull sign.

G = Bull Volume reasserts, driving a large (Average Bar Size [ABS], for today is clearly diminished, permitting
us to call "large" whatever appears large) white candle overruns defenses at the S1.

Per PMT stop rules, move the profit-locking stop under the re-enforced S1. BTW, the 2-candle 123 through the S1
on increasing Volume is an "S", Second Chance Entry Signal, with aggressive entry potential. We take the
opportunity to add contracts.

H = Desperation Volume Spike (DVS, pink arrow) pumps a white candle closer to the Primary Objective,
Pivot-Close complex. Mid-candle we note that this too is a 2-candle 123, failed test of Resistance-turned-Support.
Additional contracts are warranted.

J = Average white candle. The assault continues cautiously. Getting nervous about our inability to tighten the
protective stop.

Next candle makes it a mid-air Reversal. Just as we are about to Exit Now! (+/- 3 points for those quicker on
the draw), the Bulls resume the drive back to the Primary Objective with a large white candle. Per our stop
rules, move the profit-locking stop under the low of the candle.

NOTE: The EOD Hiccup was right on time. Thankfully, we weren't
shaken out, because the Hiccup continued in the direction of our
position. As usual, the Hiccup taped the classic "V" checkmark
shape (plum lines). It's interesting to note that the pattern
move was accomplished with only a single red candle down stroke.

K = DVS (pink arrow) surely exhausts Momentum driving a desperate white candle through the HighW and Pivot,
stretching out to close the opening gap, and fainting. This classic slam-dunk should have signaled a Pivot
Scalp Exit. +/- 5.75 points

Missed it? First sign of red, Exit Now! +/- 5 points

Missed it completely, and moved the profit-locking stop under the HighW? Notice the tiny white candles stalled
by the Pivot Resistance? Now notice the enormous Volume spikes (= L), which generate no Price Action.
Get a grip! It's over. Exit Now! +/- 5.25 points

PERSPECTIVE
(Daily, bottom chart)
Monday taped a small, blood-red Doji dagger day candle, stabbing through the
LT Trend Channel (green channel lines) mid line (dotted green line). Not
exactly the Bear rout we anticipated following a record run of eleven (11)
white day candles in a row.

The stall is excruciating leading into Tuesday's FOMC. Tape's set for perfectly
for that meeting to let loose a massive pending avalanche!

Fearlessly, once again I venture:
Bulls are surely exhausted. Keep your eyes open for TELLs to confirm the BBs
preference, but I'm definitely expecting the FOMC to Funnymental first some
hysteria, and then some expansive Bear range to trade on Tuesday/Wednesday.

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: