BS"D

DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning,

HELIUM EFFECT WARNING TEMPORARILY LIFTED

E-mini tanks. As the gas escaped, Price Action dove more than 20 points Tuesday.
As payment for our patience, we got a nice big bite of the LT Trend Channel
Midline retest. PMT Students nicely compounded Profits by prudently multiplying
contracts at the PMT-recommended opportunities.

Let's get to the commentary.

Enjoy and be well,

******************************
E-mini ES M0
Tuesday April 27, 2010

Tuesday opens gap-down at the S1.

1 = Painstakingly, on low Volume, Price Action plods north to close the opening gap. The Multi-top
"P" Reversal Signal (blue arrow) is by definition a self-confirming pair, per our PMT preference.
Nevertheless, entry below the "green fog" Ambush Zone is flush against the S1. Our rules say entry
placement is below the S1.

Price Action stalls at S1 Support, taping a rather dense 123 "S" Signal. This refreshes our "P"
Signal, which finally breaks below the S1 just in time per our criteria, pulling us in. Great
opportunity, might even enter with multiple contracts! Initial stop advances above the S1, for
well-controlled At Risk. Very exciting trade setup.

A = Volume jumps to life, and a giant red candle spikes the S2. Normal PMT stop placement, above
the high of the candle, leaves our position in violation of Pivot Magic Trading Maximum Profit
Giveback (MPG) rules. Mental stop at Giveback Level locks in at "free trade" and a few tiks.

B = Large, red, inverted (Bull) Dragonfly. Per our stop rules, move the profit-locking stop above
the high of the candle/S2.

For those slow on the trigger, this is a Second Chance to enter the fray, 2-candle 123 Continuation,
"S" Signal. All others add contracts.

C = Giant red candle continues the dive to test the LT Trend Channel mid-line (Daily, bottom chart,
dotted green line).

With all these giant candles, the position is again in violation of our MPG rules. Mental stop at
Giveback Level.

D = DVS (pink arrow) this late in the move portends stall or end of move. Meanwhile, the DVS drives
a humongous red candle through the S3. MPG violation advises us to place a mental stop at Giveback
Level.

E = Price Action retraces > 2points and that's an Exit Now! +/- 13.75 points

Lunchtime drift is due any time now.

Achievement of the Primary Objective, the anticipated assault on the dotted line, still leaves quite
a lot of real estate to traverse. Trading is way beyond the S3 Extreme PL already. Additionally,
the pull of the rubberband to the Close and Pivot is weaker this far out, but during lunchtime drift
may well exert its influence.

At this point, risk-conservative readers of the tape deduce that this leg of the assault on the green
dotted line has failed.

Price Action lunchtime drift eases north to retest the S3.

2 = A Double top pair of reversals off the S3. BBs are still out drinking lunch, so we pass, missing
out on the final leg of the LT Trend Channel Midline (dotted green line) at EOD.

PERSPECTIVE
(Daily, bottom chart)
Whoosh! Bang! Someone let the helium out on Tuesday. Price Action taped a giant
red day candle slamming headlong into the LT Trend Channel Midline (dotted green
line).

That makes it a 50% Fibonacci retracement (duh!), mostly in one day. Usually, a
breather day follows a large day candle, but this plunge was so mighty that it
invites follow through. Though the Volume still stinks, I vote for another bomb
on Wednesday.

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: