BS"D

DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning and a good week,
Friday's Price Action was bounded by the Pivot Points, the Pivot at the
north, and the S3 Support at the south.

The "wild plunge" we were anticipating mostly took place on low TGIF-party
Volume, so prepare for a Follow-through Monday (or a breather, LOL!).

Enjoy and be well,

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

E-mini ES U0
Friday July 16, 2010

1 = Morning session opens with a violent plunge from the Pivot. No preceding trend, so no Anomaly
Signal. Drat!

2 = Price Action continues through the Fibonacci 62% (Bull) Retracement level (purple line), and
the test fails.

2-candle 123 through the S1 pulls us in aggressively. Hopefully, it's not too late in the move!
Initial stop advances above the S1.

A = DVS (pink arrow) drives a large red candle through the Low.

* Elongated bottom wick suggests an S-trap/stall coming.

* 6 red candles in a row suggests the same.

Per our stop rules, move the profit-locking stop above the Low.

Price Action stalls with a small red Spinning Top Doji. Our stop is safe.

B = Large red candle. Normal stop placement will leave the position in violation of Pivot Magic
Trading Maximum Profit Giveback (MPG) rules. Mental stop at Giveback Level. DVS Twin Towers (pink
arrow) indicates a stall/sag is next. Prepare for quick exit. +/- 3.75 points

3 = The MA holds, and the tape displays a Double Top "P" off that PL. That qualifies as an "S" Signal.

C = Small Marubozu breaks free from the MA, pulling us in with stop advancing above the MA.

D = Large red candle. Per PMT stop rules, move the profit-locking stop above the high of the candle,
"free trade" plus.

Stall/S-trap is just shy of our stop. You might have opted out calling this a >2 point retrace.
SCRATCH!

Advanced experienced traders, however, might have held, electing to rely on the MA Resistance and the
proximity of the Primary Objective. Since our stop is at "free trade" and a tik, the 1:1 R:R is
unthreatening, and the pull of a 50% Fib test (red line) makes follow-through a fair bet as well.

E = DVS (pink arrow) and a large (?) red Doji permit us to tighten the stop a bit, above the red candle.
Assumedly, the DVS will boost Momentum enough for that S2 tap.

F = Mini S-trap and a Failed test of MA. Per our stop rules, move the profit-locking stop above the MA.

G = In light of the lack of Volume, as Momentum alone sags this small red candle to tap on the S1 and
retract, Pivot Scalp exit. (No choice really. Since the position is now in MPG violation with no excuse
to move the stop, our MPG rules say to exit immediately.) +/- 3.75 points

Lunchtime sideways drift is bounded by the S2 and 50% Fib red line.

4 & 5 = Reversal Signals. The BBs never come back from the TGIF party. Volume is bleak, so no entries.

Double Drat! EOD dribbles down to fail at the S3.

PERSPECTIVE
(Daily, bottom chart)

Friday finally witnessed the "wild plunge" we've been anticipating.
The large red day candle penetrated both the 62% and 50% Fibonacci
Retracement Levels (purple and red lines, respectively). The Bull
Retracement seems to have failed. Double Dip Depression?

Although following such a large range day we might expect a breather
day or two, much of this plunge took place on low Volume, suggesting
a Follow-through Monday instead.

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: