BS"D

DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning,

Wednesday was pretty much a Doji day (Daily, bottom chart), and we profited nicely.
Depending on how you weathered the marginally "Exit Now!" S-traps, you may have even
done exceedingly well, especially on the late afternoon dive to close the opening gap
and test the Pivot.

Preparing for a contract low TTT test on Thursday. Have fun!

REMINDER: Thursday is rollover day. Use the Wednesday data from the
new forward contract (ES U0) to calculate PLs for Thursday trading.

Enjoy and be well,

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

E-mini ES M0
Wednesday June 09, 2010

Overnight follow through of the Bull effort leads to a Wednesday morning gap-up open at the R1.

1 = Very weak reversal off the R1, accompanied by oddly low Volume. Not very inviting.

2 = Reversal resembling a full-sized Double Bottom at the R1 (orange oval) takes off with a 2-candle 123
(blue arrow). Volume (pink arrow) perks up, confirming (and even perhaps pulling us in aggressively).

A = The rest of us are pulled in on a large white Bull Dragonfly kickoff.

B = Large white candle. Per PMT stop rules, move the profit-locking stop under the low of the candle.

C = Late-in-the-move DVS (pink arrow) generates an exhaustion gap and a large white candle. Use my
convention and place the stop in the gap. Make that a mental stop just in case we need to make a speedy
exit (no need for Cancel-Replace).

D = Price Action tapes an S-trap. The sag is enough to take most of us out (following 6 white candles in a
row, that includes good ole risk-conservative me). +/- 2.75 points

The more experienced advanced (braver) traders rode out the trap, waiting for one more tik due to the low
Volume and the bloated ABS.

D = For an excuse to tighten the stop, I'd call this a failed test of MA.
E = Giant DVS (pink arrow) represents a last ditch effort to achieve the Primary Objective, R2. Small
exhaustion gap and a giant white candle spiking the R2. Pivot Scalp exit. +/- 6.75 points Worth waiting!

3 = If we count the reversing candle this is a Reversal. If not, it is a Volumeless 123 Continuation (blue
arrow).

The BBs come back in force (pink arrow), and we enter aggressively on the 2-candle 123. Initial stop
advances above the R1.

F = Large red candle, and our position is in violation of Pivot Magic Trading Maximum Profit Giveback (MPG)
rules. Mental stop at Giveback Level.

G = DVS drives a very large red candle through the High. Though this might mean exhaustion, this close to
closing the opening gap it is fair to assume a stall/S-trap is coming. Per our rules, move the profit-locking
stop above the High.

H = If you exit with Price Action retracing >2 points +/- 4 points

If you anticipated and relied on the high probability of the pull of the opening gap and held through the very
weak Bull S-trap (aqua oval) effort, you are well rewarded. (P.S. The R:R is >1:4, so, trading with well
protected profits, even I'd hold here.)

Giant red candle slams into the Close. MPG violation. Mental stop at Giveback Level. No reason to give it
all back, so if Price Action bounces above the fog, Exit briskly.

K = 2-candle 123 is an opportunity to add contracts. With the (likely to be rock hard) Pivot nearby, add them
quickly, and prepare for a Pivot Scalp exit. Position is in MPG violation. Mental stop at Giveback.

Next (white Bull Dragonfly) candle taps on the Pivot and retracts. Pivot Scalp exit. +/- 12 points

Price Action tapes a failed retest of the Close, and dives to rest atop the concrete Pivot Support to EOD.

PERSPECTIVE
(Daily, bottom chart)

Early continuation of the "Bulls fighting" back finally yielded, taping a long-tailed,
red Bear Dragonfly day candle. Now the tape " . . . looks [even] ripe[r] for a TTT
attempt at the contract low [blue line] . . . ".

Stay tuned for Thursday at the submarine races!

REMEMBER: Trade the Tape, Not my Prognostics!

Asher
=] ;-)>

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

Wednesday's PMT Chart: