BS"D

DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning,

As usual, Pivot Points defined the Price Action on Thursday.

We caught one, nice, "wild plunge" trade, but it wasn't the
monster ride we've been expecting. Overall the day was a Doji.

TGIF!!!

Enjoy and be well,

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

E-mini ES U0
Thursday July 15, 2010

Day session opens at the Close, trades down through the Pivot, and returns for a Pivot retest.

1 = 123 Pivot retest fails. Volume is huge, permitting us to enter aggressively. At the close of
the candle, move the stop above the S1, approximately at Giveback Level.

A = Large red candle through the Low. Per our stop rules, move the profit-locking stop above the Low.

B = Large red inverted (Bull) Dragonfly candle. Normal stop placement leaves the position in MPG
violation.

Surprise: Place the stop at 1080.75 (that's > 2 points retraced including the elongated bottom wick).

C = Large red candle spikes the S2 and retracts to the PL. Normal stop placement leaves the position
in Pivot Magic Trading Maximum Profit Giveback (MPG) violation. Mental stop at Giveback Level.

2 = Lower-Low-Turns-White. Exit Now! +/- 9 points (Yay!)

White Bull Dragonfly through the S2 is a PMT "P" entry Signal. Volume confirms (pink arrow).

D = Pulled in on large white candle. Initial stop advances under the S2.

E = Large white candle. Ease the stop up, under the low of the candle. Use a mental stop cause this
move already looks kinda shakey.

F = Failed test of MA. Per PMT stop rules, move the profit-locking stop under the MA, "free trade" plus.

Exit Now! 2 candles later, as tape displays a mid-air reversal.

3 = "P" Reversal Signal off the MA is a PMT "S" Signal. Volume is already at lunchtime levels.
Let it pass.

Lunchtime sideways drift, boosted by several Bull TELLs (blue arrows, = X), wafts north through the S1.
Looks like the BBs may have a Bull plan for late in the afternoon.

4 = Discretionary trading time!

It's a bit late according to the PMT clock, but Volume (pink arrow) more than confirms this Double Doji
Sandwich through the S1. In light of the TELLs, Advanced traders are sorely tempted to enter this
powerful move.

NOT FOR PMT BEGINNERS - DISCUSSION ONLY

Entry: Aggressive, above the S1, with initial stop advanced under the PL for well-controlled At Risk.

G = Large white candle. Warned by the elongated top wick, move the profit-locking stop to "free trade"
and a tik rather than under the low of the candle.

H = Giant white candle puts our position in MPG violation as it slams against the Pivot. Mental stop at
Giveback Level. Prepare to exit if the Pivot Resistance holds.

J = Inside the EOD Hiccup Time Zone, we exit briskly (and early, sigh) when the first minutes of this
candle show red. +/-4.0 points (positive slippage as Price Action turns around)

PERSPECTIVE
(Daily, bottom chart)

Thursday taped yet another Doji breather candle atop the 62% Fibonacci
Retracement Level (purple line).

Now it's up for grabs! Friday is never very predicable, and this reading
could go either way. One thing's for sure:
BEWARE OF TRAPS ON FRIDAY!

REMEMBER: Trade the Tape, Not my Prognostics!

Asher
=] ;-)>

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

Thursday's PMT Chart: