BS"D

DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning and a good week,

Friday's Pivot Level spacing, generated from Thursdays record plunge,
was extremely wide. All our efforts centered on the Close and Pivot.
ABS was so bloated that even SCRATCHing was profitable.

Expecting a follow-through Monday breaking out of Friday's day-long
Descending Triangle (lavender lines).

Enjoy and be well,

******************************
E-mini ES M0
Friday May 07, 2010

BEFORE WE GET STARTED, MAKE NOTE:
Thursday's epoch-huge plunge dramatically distorted the spacing of the
Pivot Level topology for Friday. Both the S1 and R1 are about 50 points
distant from the Close and Pivot, respectively. With Friday opening at
the Close, this will seriously impact our trading possibilities, and may
even ground us altogether.

1 = Friday opens with an Anomaly 2-bar off the Close (Overnight, bottom left chart). We are most hesitant
to enter on Anomaly Signals off the Close. Since this one is DVS-based (we don't trust DVS-based 2-bar
Signals for longevity) we are not even tempted.

Price Action blips above the 50% Fibonacci Retracement Level (Daily, bottom right chart, red line) and
reverses to test the Pivot.

2 = Powerful 123 Continuation through the Pivot pulls us in. Initial stop advances above the Pivot.

A = Giant red candle stretches to test the critical 62% Fibonacci Retracement Level (Daily, bottom right
chart, purple line). Our position is in Pivot Magic Trading Maximum Profit Giveback (MPG) violation.
Mental stop at Giveback Level.

B = DVS (pink arrow), late in the move signaling exhaustion of Momentum, pumps a gigantic red Bull
Dragonfly through the purple line.

As Price Action recoups >2+ points of profits (2+ since the ABS today is huge and we therefore expanded
our MPG and stop spacings), we exit briskly. +/- 18.75 points Nice way to start the day!

Exhausted, the Price Action reverses off the purple line (not a tradable PL) to retest the Pivot.

3 = Volume confirms aggressive entry on this 2-candle 123 through the Pivot. Though the Price Window is
large due to the wide PL spacing following Thursday's bomb, with lunchtime looming, think Pivot Scalp exit
technique at the Close. Initial stop advances under the Pivot, reducing At Risk.

C = DVS blasts a giant, white, inverted (Bear) Dragonfly tail to spike the Close, stretching to test the
Fib 50% (red line) before reversing to recoup >2+ points; whereupon, we exit with alacrity. Bummer
slippage on the exit. +/- 6.75 points

4 = Reversal off the Close into the Pivot. Even though the Volume is strong and the Price Action clears
the Pivot, the clock says "lunchtime", so we let it pass.

Even lunchtime Volume is substantial today, driving Price Action to retest the Close.

5 = Failed TTT of both the red line 50% Fib and the Close. Failed TTT Corollary, and hearty Volume (pink
arrow), make for aggressive entry as Price Action exits the "green fog" Ambush Zone. This is an odds-on
Pivot Scalp to the Pivot.

D = Large red candle. The elongated bottom wick re-asserts the likelihood of a Pivot Scalp exit. Though
normally we'd move the profit-locking stop above the MA, our Scalping rules encourage us to be more
aggressive. Place a (Mental) stop at "free trade" and a tik.

E = Large red candle punctures the Pivot. Although there it is still possible that our position will
convert to a PMT Scalp, place a mental stop tight above the Pivot. Taken out on the next candle.
+/- 6.50 points

6 = A lunchtime 123 of the Pivot doesn't interest us much.

7 = Just after the 1:30 Reversal Time, the tape presents a Lower-High 123 through the Pivot.

F = Rather hard to discern lunchtime today. As Volume perks up (pink arrow) some of us get pulled in on
this red Bear Dragonfly through the Pivot. Initial stop above the Pivot for reduced At Risk.

G = DVS (pink arrow) late in the move voids our premise. We place a mental stop at "free trade" plus a
tik. As the next (white) candle retraces >62% of = G we exit/SCRATCH. +/- 2.50 points

8 = Failed retest of the Pivot Reversal. Volume (pink arrow) is in a funk. We pass.

NOTE: Virtually the entire day taped a Large Descending Triangle(lavender lines)
against the 62% Fib. Pressure is extremely Bearish for a follow-through Monday!

PERSPECTIVE
(Daily, bottom right chart)

Friday taped a giant red Spinning Top day candle closing at the Fibonacci 62%
Retracement Level (purple line). Not often we see a 45-point breather day!

Overall, especially coupled with the day-long Descending Triangle on the 5-Min
tape (top chart, lavender lines), things look mighty Bearish for Monday.

REMEMBER: Trade the Tape, Not my Prognostics!

Asher
=] ;-)>

Pivot Point Daytrading Course
http://www.tradingthingys.com/PMTJ/Commodity%20Day%20Trading.html

Friday's PMT Chart: