BS"D

DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning,

Seems that Follow-through Monday was only a breather day after all.

We rode the down leg of the Doji for a decent profit, but due to lack
of Volume confirmation, we missed the run back up.

Tuesday: Breather or Plunge?

Enjoy and be well,

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

E-mini ES U0
Monday July 19, 2010

Monday morning session opens slightly gap-up, crosses above the 50% Fib Retracement (Daily, bottom chart,
red line), and continues north to test the Pivot.

1 = 2-bar "P" Reversal off the Pivot.

BTW: The second (red) candle actually clears the previous (white Bear Dragonfly) candle
by enough to execute entry.

A = Large red Spinning Top pulls us in. Advance stop above high of candle.

B = Large red candle through the red line puts the position in violation of Pivot Magic Trading Maximum
Profit Giveback (MPG) rules. Mental stop at Giveback Level.

C = Black Volume Bar of Death (pink arrow) Doji spikes the Close. First sign of white is an Exit Now!
No real rule, but it is logical to place a mental stop above the high of the candle, gut agrees.

D = No white! Large red candle stabs through the Close. Don't like hovering in the "green fog" Ambush
Zone! Per our rules, inch the profit-locking stop down, above the high of the candle.

E = DVS pumps a giant red candle through the Close and out of the fog. Position is in MPG violation.
Mental stop at Giveback Level.

BTW: The tape presents a 123 through the Close, which is an opportunity to add contracts (as soon as
Price Action leaves the fog).

F = Large red candle. Normal stop placement leaves the position in MPG violation. Twin Towers (pink
arrow) indicates a stall is coming. ABS is large today:

· Place a hard stop at >62% Retracement of = F. +/- 6.50 points
OR
· Place a Mental stop at Giveback Level, but exit on first sign of white. +/- 7.50 points
OR
· Calculate the odds, factor in ABS, and Exit Now! +/- 8 points (positive slippage on exit)

2 = Decent Reversals, but with lunchtime Volume driving them, they only yield sideways drift, and are not
enterable.

3 = Series of Higher Highs (lavender line) culminates with this Double Bottom (orange circle). Though
Volume is slightly aroused (pink arrow), it does not surpass mid-lunch Bull Volume. Pass.

Volume finally comes to life (blue arrow), as Price Action climbs through the red line. No entry for us
however. Boo!

4 = Doji Spike off the Pivot. Entry below the Pivot, with initial stop advancing above that PL.

G = DVS (pink arrow) blasts a giant red candle, putting our position in MPG violation. Mental stop at
Giveback Level.

H = Large white Spinning Top S-trap gives way to a large red candle through the red line. Creatively,
move the profit-locking stop above the red line.

Exit Now! as the next (white candle) recoups > 62% of = H. +/- 2.25 points

Day closes below the 50% Fib, at the Close for a Doji day.

PERSPECTIVE
(Daily, bottom chart)

Monday taped a small white Spinning Top Doji breather day candle.
Most of the Price Action was below the 50% Fibonacci Retracement
Level, so expect the plunge to continue.

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: