BS"D

DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning,

A single, brisk, powerful, early morning move rocketing north accounted
for all our trading profits. We did OK, but the balance of the day was
dull, trading sideways, totally without Volume.

See PERSPECTIVE below.

Enjoy and be well,

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

E-mini ES U0
Wednesday September 01, 2010

1 = Morning opens gap-up, traveling north only to immediately slam into the R2 and reverse. Price
Action pulls back, the Bulls regroup, and punch through the R2 with a DVS-driven (pink arrow) 123.
Aggressive entry is permissible, but scary.

A = Those of us who are more wary (like good ole risk-conservative me) are pulled in on large white
candle (also a 2-candle 123 kickoff, so enter with multiple contracts). We advance the initial stop
under the R2.

B = A quick retest (another continuation signal, add contracts immediately), and a huge DVS (pink
arrow) blasts a gigantic white candle through the 50% Fibonacci Retracement Level (red line) and the
R3. The position is now in violation of Pivot Magic Trading Maximum Profit Giveback (MPG) rules.
Since the DVS likely fatally depleted Momentum, we are double glad to use a mental stop. Place it
at Giveback Level.

C = Small S-trap gives way to a large white candle. Normal stop placement leaves the position in
MPG violation. Mental stop at Giveback Level.

The next two (red) candles comprise a mid-air 2-bar Reversal completing on the 3rd candle. That is
a PMT Exit Now! Signal. (Too bad. We could have scored another 2-3 points and exited later
[blue arrow]) +/- 9.25 points

Price Action turns sideways and drifts along the MA, on permanent lunchtime Volume right up till the
final moments, when the BBs dumped their meager holdings.

PERSPECTIVE
(Daily, bottom chart)
Wednesday's monster white day candle zooms from the 62% Fib (purple line), through
the 50% Fib, and well beyond.

Don't be too impressed. Since, for almost the entire day there was no Volume to
support the Bull run, it is hollow, and most likely will collapse.

The expanded high just represents one more high of the reverse ascending triangle
(lavender line). As I mentioned earlier in the week, according to the TA textbooks,
this formation means an emotional, unstable market, probably bearish, but fraught
with false breakouts.

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

REMEMBER: Trade the Tape, Not my Prognostics!

Asher
=] ;-)>

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

Wednesday's PMT Chart: