BS"D

DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning,

Interesting day in the e-mini, Wednesday.
We caught the morning run up for a nice bite. From then on, our Money
Management rules protected us from the mid-day zigzag and we held
strong through the long, sideways trading in and out of the "green fog"
Ambush Zone.

Without sufficient Volume confirmation to enter, we missed out on the
late afternoon surprise run up. All in all, not a bad day.

Enjoy and be well,

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

E-mini ES Z0
Wednesday September 15, 2010

1 = Session opens gap-down with a high-Volume Anomaly Signal (Overnight, bottom left chart) off the S1.

A = Pulled in on a giant white Bull Dragonfly kickoff candle, with the initial stop advancing under the
Low for reduced At Risk.

B = Large white candle through the HighW. Per PMT stop rules, move the profit-locking stop under the
HighW, "free trade" plus.

C = Failed test of MA. Per our stop rules, move the profit-locking stop under the MA. The very long
top wick on this candle is a bit disconcerting. Make that a mental stop.

D = Large white Bull Dragonfly slams into the Close. Per the stop rules, move the profit-locking stop
under the low of the candle. This has been a long run up, so think Pivot Scalp. Use a mental stop in
case of hard Resistance at the Close or nearby Pivot.

E = Large white candle closes the opening gap and punches through the Pivot. Per our stop rules, move
the profit-locking stop under the Pivot.

Not only does the tape present eight white candles in a row, implying that it's time for a pause, but
the late-in-the-move DVS, exhausting Momentum (pink arrow), confirms. Thus, use a mental stop.

The next candle doesn't really stretch far enough to call it a Higher-High-Turns-Red (a PMT Exit Now!
Signal), but it does give a blatant warning that a more serious Pivot retest is coming. Don't wait
till the stop is hit; if the next candle shows red, bail out briskly. It does. +/- 4.25 points

Volume now becomes confused, and slowly diminishes, and Price Action goes into lunchtime sideways
drift a bit early.

F = These two Bear DVSs (blue arrows) wind up being false TELLs. Good for us, our Money Management
Rules keep us from entering into the "green fog".

2 = Double Bottom/DT Multiple Bottom off the Close-Pivot. The Volume (pink arrow) is low, and without
support we do not enter.

Price Action turns oddly bullish and climbs almost to yesterdays low be stalling out EOD. Without us,
of course.

PERSPECTIVE
(Daily, bottom right chart)

The Overnight and early morning portion of Wednesday's small white Bull
Dragonfly day candle accounted for the tail, i.e. possibly the dip we
predicted for Tues./Wed.

It wasn't a very severe dip, so I'm not convinced. Watch for another
dip, and lots of traps on both Thursday and Friday (always on Friday).

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: