BS"D

DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning,

Consumer sentiment IS the e-mini, so today's report is already factored into the market.
Should be smooth sailing (for a Friday, LOL!).

As hoped for, Thursday did offer us a bit of tradable range. Due to S-traps, we only took
a couple of decent bites out of the run down. Afternoon Volume was very sketchy, so we sat
and watched the entire run back up. Overall, however, not a bad day in the e-mini!

TGIF!!!

Enjoy and be well,

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

E-mini ES U0
Thursday July 29, 2010

1 = Morning session opens gap-up with an Anomaly (see your Overnight for preceding trend) just out of
range of the R1 (blue arrow).

Shortly thereafter, the tape presents an enticing 2-candle 123 through the R1 (orange arrow).

A = Pulled in on the large red candle through the MA. Nervous from all the swinging lately, advance the
initial stop above the MA, for almost "free trade". Nice!

The immediate stall suggests to readers of the tape that a Pivot Scalp exit at Pivot may be in store.
Use mental stops till we pass that obstacle.

B = Large red candle with long bottom wick (Bears are pumping the brakes already). Per PMT stop rules,
move the profit-locking stop (mental) above the high of the candle.

C = Large red candle taps on Pivot and retracts. Pivot Scalp exit. +/- 3.50 points

If you held on, when the next (white) candle spikes the Pivot and retracts (and reveals that = C was
actually a Twin Towers, pink arrow), pull the trigger. +/- 3.75 points

2 = Double bounce 123 "S" Signal, and Volume is increasing.

D = Pulled in on large red candle. Somewhat alarmed as the candle slams to a halt at the Close,
aggressively move the stop down to "free trade".

E = DVS (pink arrow) late in the move (an exhaustion warning! Prepare for Pivot Scalp exit) blasts a giant
Red candle through the Low. Per our stop rules, at the close of the candle move the stop down, above the
Low.

When the next (white, Lower-Low-Turns-White) candle taps on the S1 and retracts, most of us Pivot Scalp
exit. +/- 3 points

3 = In fact, advanced traders will note that huge Bull Volume only generated a small white candle. They
re-enter aggressively below the S1, as the tape presents this 2-candle 123. The rest of us (like good ole
risk-conservative me) conclude that it is too close to lunchtime and let it pass.

F = DVS (pink arrow) screams exhausted Momentum.

As the large, red, inverted (Bull) Dragonfly's tail retraces 2 points, and the next candle makes that >2
points, our advanced traders go flat, taking a quick 2 points of profit.

Turns out to be a stall. Volume resumes, and Price Action plunges another 4+ points, also without us.
Sigh!

4 & 5 = A couple of mid-air, mid-lunchtime reversals combine to tape a Double Bottom at the MA. Nothing
here for us.

6 = Clean 2-bar Signal at the S1. It is DVS-based, and we don't trust DVS-based 2-bars for longevity.
Anyhow, the Volume is only so-so.

Price Action does waft up to test the Close before reversing. The EOD Hiccup is a drop early, but it
still tapes the classic "V" check mark (plum lines), as Price Action plunges back to a halt at the S1
Support.

PERSPECTIVE
(Daily, bottom chart)

Thursday continued the move south with a large red Spinning Top day candle.

Rather expecting a dip-and-tap Friday morning, and lots of traps thereafter.

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: