BS"D

DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning and a good week,

As expected, Friday was full of traps and SCRATCHES. In spite of the
recurring pain, our PMT Money Management rules saved us from any serious
losses. We did manage one decent (read: profitable) trade in the early
afternoon.

Let's hope for some range on a Follow-through Monday!

Enjoy and be well,

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

E-mini ES U0
Friday July 23, 2010

1 = Morning session opens with a 2-bar Anomaly through the Pivot (Overnight, bottom left chart).

A = We are pulled in as the breakout candle exits the "green fog". Initial stop advances under the
Close. Top wick retraces a full point, and, per our rules, we exit as the next candle retraces another
one. SCRATCH!

2 = Doji Sandwich "P" Signal through the Pivot. Price Action stalls in the "green fog" Ambush Zone.

3 = 123 "S" Signal kicks off the close. The completing candle pulls us in above the fog.

B = DVS (pink arrow) suggests that the small gap preceding the large white candle is an exhaustion gap.
Use my convention and slip the profit-locking stop into the gap.

C = Mild Black Volume Bar of Death (pink arrow) generates an average sized Doji Spike. Prepare to exit
on red. SCRATCH! +/- 1 point

Price Action turns sideways stitching across the MA.

4 = Volume is insufficient to tempt us in on this Pivot retest/2-bar completing on 3rd candle through
the Close.

5 = 123 Continuation "S" Signal makes it a self-confirming pair off the Close.

D = When Volume comes to life (pink arrow), we are pulled in on large white candle. Initial stop
advances below the low of the candle.

E = Small breakaway gap, and a large white candle. Position is in Pivot Magic Trading Maximum Profit
Giveback (MPG) violation. Mental stop either in the gap or at Giveback Level.

F = DVS (pink arrow) late in the move implies Momentum expenditure. Large white candle overruns the R1
Resistance. Per PMT stop rules, move the profit-locking stop under the R1.

G = Hearty Black Volume Bar of Death drives a large Doji Spike. Prepare to exit on first sign of red
(if you have a hard stop from = F, convert the hard stop to a mental stop, i.e. cancel it).

Red it is! +/- 5.25 points

6 = Aggressive entry on this 123-looking 2-bar failed test of the R1 Resistance-turned-Support. Initial
stop under the low of the white candle.

H = Large white candle, and our position is marginally in MPG violation. Use a mental stop at Giveback
Level.

J = Black Volume Bar of Death Doji. Prepare to exit on first sign of red. SCRATCH! +/- 1 point

7 = Absolutely no Volume behind this R1 Support retest. No entry considered.

EOD Hiccup (plum lines) is right on time, and tapes the classic "V" check mark pattern for a failed TTT
(Third Time Through) of the R1.

PERSPECTIVE
(Daily, bottom right chart)

Friday taped a healthy white day candle as the Bull retracement
continues to ease north.

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: