BS"D

DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning,

As we anticipated in yesterday's Pivot Magic Journal, PERSPECTIVE section:
"Lack of Volume behind Monday's large white candle suggests that Tuesday
will sag, or at least stall."

Pivot Point trading did manage to take one good bite out of the Doji day
session, but mostly we sat and watched, with our Money Management rules
guarding our funds.

Weatherman says: Good chance of range Wednesday.

Enjoy and be well,

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

E-mini ES U0
Tuesday August 03, 2010

Morning session opens gap-down with a massive 123 through the Pivot. Sorry, we don't trade Anomaly "S" Signals.
Price Action plummets, with a nasty S-trap in the middle to shake out those who do trade 123 Anomalies, ultimately
to tap on the S1.

1 = Double Bottom off the S1. Volume is strong (pink arrow). Were this a simple 2-bar (blue arrow), the DVS pair
would have kept us out. Instead, we enter aggressively.

A = S-trap gives way to a large white candle through the Mid. Per PMT stop rules, move the profit-locking stop
under the Mid.

C = DVS (pink arrow, exhaustion sign) drives a small gap (exhaustion gap) and a large white candle through the
Pivot. Per our stop rules, move the profit-locking stop under the Pivot. The DVS, gap, and elongated top wick,
combine to a tape reading of "stall/Pivot retest". Our stop is safely nearby and ABS is average. Thus, with the
opening gap beckoning, odds are in favor of a continuation of the trend, with R:R (safely) in our favor.

D = MA holds, and the stall/retest just misses our stop, resolving as a 123 Continuation off the Pivot. This is
an opportunity to add contracts, BTW.

E = DVS-driven (pink arrow) inverted (Bear) white Dragonfly suggests that a retest of the Pivot is coming, and
that means >2 points profit will be recouped, a PMT Exit Now! Convert to a mental stop.

The Dragonfly tail combines with the following (red) candle for a 2-point retracement. Just one more tik and we
would have bailed.

F = Large white Marubozu (full-bodied candle without wicks). The Sumo candle drives for a last ditch/pre-lunch
attempt to close the gap.

Failed test of MA. Per our rules, move the stop under the MA. Might want to make that a mental stop just in case.

G = Large white candle closes the gap and slams to a halt at the Close. Per our rules, move the profit-locking
stop under the low of the candle. Make that a mental stop and plan to exit on first sign of retrace.

2 = Higher-High-Turns-White, which in this case is also a red Bear Dragonfly, "P" Signal. Exit Now!
+/- 5.50 points (Multiple contracts)

With no acceptable Price Window to the Pivot, reversal is unacceptable.

3 = Following a violent DVS-trap (pink arrow), lunchtime trading settles sideways under the Pivot.

4 = Volume remains at lunchtime levels well into the late afternoon, until EOD Hiccup (plum lines). A bit late,
the Hiccup tapes the classic "V" check mark pattern, and the day closes back at the Pivot, for a Doji day session.

PERSPECTIVE
(Daily, bottom chart)

Tuesday taped a small red breather candle, not necessarily indicating anything
in regards to direction. Not much for us to learn today from the Daily.

REMEMBER: Trade the Tape, Not my Prognostics!

Asher
=] ;-)>

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

Tuesday's PMT Chart: