BS"D

DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning,

Well, Wednesday was not exactly the "wild plunge" we were expecting.

It was however a particularly difficult sine wave trading day, full of traps and ulcers.

Enjoy and be well,

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

E-mini ES U0
Wednesday July 14, 2010

Morning session opens just under the Close, retests, and heads for the S1.

1 = 2-bar "P" Signal is in range of the S1. Volume is down, so no excuse for aggressive entry.

On the next candle volume resumes, but entry is too close to the "green fog", AND the (always considered
proven) Pivot closes the Price Window. Waiting.

2 = 123 below the Pivot is followed by a 123 "S" Signal above the PL.

A = Pulled in on large white kickoff candle.

SCRATCH! 2 candles later as >62% of = A is retraced. Nuts!

3 = Nice large white Bull Dragonfly tapes a 123 off the Pivot.

B = Large white candle pulls us in. Stop advances under the low of the candle for reduced At Risk.

C = Large white candle. Per PMT stop rules, move the profit-locking stop under the low of the candle.
Price Action stalls for a mini-S-trap. Prepare to exit.

D = Failed test of MA. Per our stop rules, move the profit-locking stop under the MA.

E = DVS (pink arrow, exhaustion symptom) drives a healthy white Spinning Top candle (another exhaustion
symptom) to tap on the R1. As Price Action retracts from the R1, Exit Now! +/- 4 points

4 = Doji Sandwich. We have entered lunchtime and the Volume is diminished. Thinking that the pull of
Gravity and the rubberbands to the Pivot/Close will be enough, you may have considered entry below the MA.

Actually, that's a long way to travel based solely on theory without something more substantiation from
reading the tape. If you took this trade you were asking for an ulcer and you got one! You might have
accidentally scored a couple of points though.

It's 1:45 and the BBs start to come back from lunch, driving Price Action to the Pivot-Close.

5 = 123 off the Pivot-Close exits the "green fog" Ambush Zone on DVS (pink arrow) Volume, pulling us in
aggressively. Long bottom wick is a bit worrisome.

F = Large, red, inverted (Bull) Dragonfly. The tail retraces almost 2 points. Prepare to exit if the
next candle continues north another 0.50 point. It does (= G), and we jump ship with a point.

Price Action now tapes a large S-trap and dives (without us, sigh) to slam into the rock-hard S1 Support.

6 = 2-bar "P" Signal off the S1 completes on the 3rd candle.

J = Just in time per our rules, the move takes off, with a failed test of the MA. Advance the stop under
the MA.

K = Looking to reduce risk, call this a large white candle and advance the profit-locking stop under the
low of the candle.

L = Large white candle stretches to tap on the Close and retract. When the next candle shows red, Exit Now!
+/- 2.50 points

EOD Hiccup (plum lines). Right on time, Hiccup Action tapes the classic "V" check mark shaped pattern.
EOD closes just atop the Pivot/Close for a Doji day.

PERSPECTIVE
(Daily, bottom chart)
Wednesday taped a small red breather candle, slightly bullish relative to
the preceding trend of 6 white candles. Not hardly the massive dive we
anticipated, and not even necessarily a foretaste. All it will take to
precipitate a plunge is a bad jobless claims report, or some such, but . . .

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: