BS"D

DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning,

Monday was indeed rather wild, dancing from Pivot Level to Pivot Level, but
mostly traveling sideways on truly confused Volume.

We squeaked out a couple of mini-trades, enough to cover the day's expenses
at least!

Once again, our Money Management rules kept us out of several losing trades.

Enjoy and be well,

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

E-mini ES U0
Monday August 23, 2010

Monday morning opens gap-up at the R1 and Price Action continues north.

1 = Astute Readers of the Tape let this 123 Continuation "S" Signal go. Why? A late-in-the-move
DVS (pink arrow, see long thin line trend on Overnight, bottom left chart) is a sign of exhausted
Momentum. This reading obviously precluded an aggressive entry.

The move promptly reversed as expected.

2 = In range, behind the R2, the tape presents a 2-bar Reversal completing on the 3rd candle.

A = We are pulled in below the R2 on a large red candle. Initial stop advances above the R2 for
well controlled At Risk.

Next (red Bear Dragonfly) candle tapes a 2-candle 123, which invites us to add contracts.

B = Large red candle. Per PMT stop rules, move the profit-locking stop above the high of the candle.

C = Powerful DVS (pink arrow) late in the move suggests exhaustion. Briskly move the profit-locking
stop above the R1, per our stop rules.

Oops.
We are taken out at our stop on the next candle.
Got slipped as well. Boo!
+/- 2.50 points

3 = Vigorous 123 through the R1. High Volume permits aggressive entry below the R1. At the close
of the candle, slide the stop to "free trade" plus a tik or two. Smile (no PMT rule for that)!

D = Large red candle barely through the Close. Per our rules, move the profit-locking stop above PL.
The DVS (pink arrow) suggests a Pivot Scalp exit on the next candle, so make that a mental stop.

E = Price Action stretches almost to the Pivot and retracts. Pivot Scalp exit! +/- 4.25 points

Volume now gets confused and drops off for a long lunchtime sideways drift in the Pivot-Close channel.

Even as Volume nominally perks up, it is still extremely confused. We don't even consider entry under
such "foul weather" conditions.

[SNIP]

CONTINUE TO BE PREPARED AND TO GUARD YOUR FUNDS!

REMEMBER: Trade the Tape, Not my Prognostics!

Asher
=] ;-)>

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

Monday's PMT Chart: