BS"D

DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning,

Little bites (bites are nice; they add up!) and SCRATCHES (less nice)
throughout the day on Thursday.

Would really appreciate a nice large-range trending day without S-traps!

TGIF!!!

Enjoy and be well,

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

E-mini ES U0
Thursday August 12, 2010

1 = Day opens with an Anomaly Double Bottom (Overnight, bottom left chart). Huge Volume (pink arrow)
blasts a monster white candle through the S2, pulling us in. At the close of the candle our position
is already in violation of Pivot Magic Trading Maximum Profit Giveback (MPG) rules. Mental stop at
Giveback Level.

A = Very black Doji gives way to a large white candle (blue arrow). Normal PMT stop placement leaves
the position in MPG violation. Mental stop at Giveback Level.

B = Large white candle spikes the S1 and pulls back.

Having traveled so far to get to the S1, Momentum exhaustion is a serious possibility, which would make
this a Pivot Scalp exit. Alternately, our position is, once again in MPG jeopardy and a mental stop at
Giveback Level also serves well if the S1 Resistance holds.

It does, and we exit on red. +/- 4 points

2 = Price Action tapes a 123 against the S1.

C = Probably we are pulled in above the S1 on this breakout candle. By the time the candle closes, we
note late-in-the-move DVS (pink arrow), and know it was a mistake to enter. However, as readers of the
tape, we must allow for this prognostic to be incorrect; seasoned traders instantly jump the stop to
"free trade".

Either way, when the next candle recoups >62% (more or less "free trade") we bail. SCRATCH!!!

3 = Right at the 10:30 Reversal/Action Time, the tape displays a large 123 through the S1. The candle
turns out to be a large white Marubozu (full-bodied candle with no wicks) on a DVS (pink).

The situation is similar to = C, above. This time, farther from the PL, we are safe to be even more
aggressive. Move the profit-locking stop to "free trade" and a couple of tiks.

Black Volume Bar of Death (blue arrow) Doji. Change to a mental stop in preparation to exit on red.

The next candle shows red and reverses, so we got positive slippage on our bailout. +/- 1.50 points

4 = Large white Bull Dragonfly bounces cleanly off the S1. Volume (pink arrow) is healthy and there
is just enough time before lunch for a Pivot Scalp to the Close.

We are pulled in on the next white candle.

REMINDER: Scalpers trade and move stops aggressively.

E = Large white candle. Per our stop rules, move the profit-locking stop under the low of the candle.
The long tail of this inverted (white Bear) Dragonfly reminds readers of the tape to be ready for a
Pivot Scalp exit.

F = large white candle. Normal stop placement is approximately at MPG Giveback Level. Use a mental
stop under the MA. Since the next candle will likely end the trade, this will also set us up with
quick-exit flexibility (no Cancel-Replace needed).

5 = DVS-driven spike-taps and retracts at the Close. This is a "P" Reversal. Pivot Scalp exit now!
+/- 2.25 points

It is too late (lunchtime begins) for entry away from the Close. Pass, as Volume drops off.

6 = Small Doji Sandwich off the Close. Lunchtime Volume precludes entry.

Volume does burble a bit and Price Action plummets to the S1, where Support holds.

7 = Full-sized Double Bottom off the S1. Volume jumps, and we are pulled in heading for a Pivot Scalp
at the Close. Consider initial stop at "free trade".

G = One-candle S-trap, and it's 3:00 Action Time. High Volume pumps a giant white candle into MPG
violation. Briskly place a mental stop at Giveback Level.

H = Large white Bull Dragonfly. Per PMT stop rules, move the profit-locking stop under the low of the
candle. The next candle is likely to be a Pivot Scalp exit candle, so make that a mental stop.

J = DVS (pink arrow, actually it is a Twin Towers indicating a stall/sag/retracement) generates a
spike, tap, and bounce at the Close. Pivot Scalp Exit. +/- 4.75 points

EOD Hiccup (plum lines) is right on time, tracing the classic "V" check mark pattern for a Double Top
off the Close.

Sorry, we still haven't been able to formulate risk-conservative Money Management rules to permit us
to trade the Hiccup.

Mini closes atop the S1.

PERSPECTIVE
(Daily, bottom right chart)

The LT 62% Fibonacci Retracement Level (which, of course, is just
shy of a very normal 38% collapse/adjustment/retracement) was
tested by Wednesday's red Bull Dragonfly day candle. Price
Action spiked through the plum line and trading halted EOD.

Though it will most likely be a breather day (net, with some
darting around), BE PREPARED FOR 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: