BS"D

DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning and a good week,

Finally! Friday we took a nice long ride day trade in the E-mini.

Bear Price Action plunged without a million S-traps to shake us out along
the way. The ride back up was a bit more shaky, but still profitable.

Hard to know what's coming from the tape formations, but Monday may well
be another rangy day. Hope so!

Enjoy and be well,

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

E-mini ES U0
Friday August 06, 2010

1 = Friday morning opens gap-down with an Anomaly (Overnight, bottom left chart) off the S2. We enter
aggressively on high Volume.

By the close of the (white) reversing candle, the position is already in Pivot Magic Trading Maximum Profit
Giveback (MPG) violation. Jump a mental stop to Giveback Level.

A = Red Spinning Top S-trap, and DVS (pink arrow) blasts a large white candle through the Low.

Normal stop placement (below the Low) will leave the position in MPG violation. The spike through the S1
and retract could easily have been a Pivot Scalp exit; Otherwise, place a mental stop at Giveback Level and
prepare to exit on first sign of red.

Pretty much the same results, as the next candle (white Spinning Top Doji) dips below the S1 and shows red.
At least we got positive slippage! +/- 5 points

2 = A 2-bar off the Pivot stalls momentarily at the S1 and tapes a 123 (blue arrow) through the PL. Volume
is oddly low. Aggressive entry is not appropriate.

C = The S1 and MA Resistance hold, and Price Action breaks free with a large red candle through the Low.
We are pulled in, and gladily advance the initial stop above the Low.

D = DVS (pink arrow) generates a giant red candle through the S2. Per our PMT stop rules, move the
profit-locking stop above the S2.

E = Another DVS plunges a giant red candle through the S3. Per our PMT stop rules, tighten the profit-locking
stop, moving it above the S3.

F = Price Action retests the S3 Support-turned-Resistance with a large red Spinning Top. No opportunity to
tighten the stop.

G = Price Action kicks off the S3 Resistance and tapes a large red candle. This is a 123 "S" Signal. Add
contracts.

Our position is in MPG violation, so place a mental stop at Giveback Level. Note that this candle has most of
the characteristics of a Spinning Top. That's two in a row, which implies failing Momentum. Be prepared for
a quick exit.

H = Yet another Spinning Top. This one is surely a Doji. Volume is dropping as well. The move will soon end.
Per our stop rules, move the profit-locking stop above the high of the candle.

J = Volume continues to diminish (pink arrow). Per our stop rules, move the stop above the large red inverted
(Bull) Dragonfly.

The brakes have been applied. The skid mark bottom tail of the candle recoups over a point of the profits.
Use a mental stop and prepare to exit if the next candle recoups >0.75 points. It does. +/- 10.25 points

Finally, a tradable run with some decent range!!! Nice ride.

Volume drops, and lunchtime sideways drift ensues below the S3.

[SNIP]

Asher
=] ;-)>

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

Friday's PMT Chart: