BS"D

DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning,

Follow-through Monday was a bit tough to trade. We did manage to take a
couple of bites, but most of the run down was so full of swings and traps
that our Money Management rules bade us to let it go. Sigh!

Tuesday should be another fun day!

Enjoy and be well,

******************************

E-mini ES M0
Monday June 07, 2010

1 = Monday morning opens with an Anomaly Signal (2-day, 5-Min., bottom left chart) off the Close. We are
generally hesitant to enter on an Anomaly off the Close. The next candle, however, even though it just
barely peaks out from the fog, makes it a 2-candle 123, meeting our requirement for a self-confirming pair.

A = We are pulled in on this giant red candle. At the close of the candle, move the profit-locking stop to
"free trade" and a tik.

Next (white) candle is a Lower-Low-Turns-White, and we should exit immediately. It was a tough one to call
though, so at least when Price Action recoups >2 points, Exit Now! SCRATCH! +/- 2 points

2 = The 123 kickoff from a 2-candle 123 makes this into a self-confirming pair of Signals off the Close.

B = Pulled in on a red, inverted (Bull) Dragonfly. Initial stop advances above the high of the candle. The
elongated bottom wick is worrisome.

C = Giant red Spinning top. A worrisome/exhaustion candle. The late-in-the-move DVS (pink arrow) also warns
of Momentum exhaustion. Move the profit-locking stop to "free trade" and a tik.

D = Giant red candle puts our position in Pivot Magic Trading Maximum Profit Giveback (MPG) violation. Mental
stop at Giveback Level. The Twin Towers DVS pattern (pink arrow) indicates a stall/sag coming on the next
candle. Prepare to exit at 2 points (include the bottom wick of = D in the count) of profit recouping.
+/- 2.75 points (got slipped a bit on the exit)

3 = Doji Sandwich at the Close. Lunchtime sideways drift has set in, and the move never takes off.

4 = Failed TTT is most enticing. Will a Failed TTT Corollary follow?

E = It does, but by the time this move finally gets in the clear it seems too far removed from the Reversal to
chance, especially with just a hint of the BBs coming back from drinking lunch (pink arrow).

5 = Powerful "P" Signal off the MA, which PMTers accept as an "S" Signal.

F = Volume expands, and we are pulled in on a giant red candle. At the close of the candle, move the
profit-locking stop to "free trade" and a couple of tiks.

G = DVS generates a small gap and a healthy red candle spiking the S1. Just in case Price Action bounces, use
my convention, move the profit-locking stop into the gap.

H = Twin Towers (pink arrow) indicates a stall/sag/retest. Since the giant red Marubozu puts our position in
MPG violation, place a mental stop at Giveback Level.

The troops do not rally into the hole punched by the giant sumo candle, and the next candle tapes a high-Volume
white candle. We don't need to wait to give back the full amount, Exit briskly. +/- 5.25 points

EOD Hiccup (plum lines) is right on time with the classic "V" check mark pattern, plunging another half a dozen
points by the close.

PERSPECTIVE
(Daily, bottom right chart)
Monday followed through on Friday's massive Bear move with a breakaway
gap and a large red day candle.

The Bulls may fight back on Tuesday, but the tape looks ripe for a TTT
attempt at the contract low by mid week.

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: