BS"D

DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning,

From Pivot Point to Pivot Point, on Monday we got the range we predicted,
but it sure wasn't bearish! We harvested one nice (read: profitable) trade
before Price Action turned sideways and our Money Management
rules kept our funds safe to EOD.

Expecting more on Tuesday.

Enjoy and be well,

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

E-mini ES Z0
Monday September 20, 2010

Our week opens gap-up, almost at the R1, and heads south for a Pivot test.

1 = Counting the reversing candle to get a preceding trend, the tape offers us a 2-bar "P" Reversal
Signal off the Pivot.

A = We are pulled in on a large white candle. Initial stop advances under the low of the candle for
nicely controlled At Risk.

B = DVS (pink arrow) generates a scary spike/failed retest of MA, which converts into a giant white
Bull Dragonfly through the R1. Per PMT stop rules, move the profit-locking stop under the R1.

C = Large DVS (pink arrow) makes it a Twin Towers Volume pattern. A stall/sag is coming next.
Large white candle through the HighM. Per our stop rules, move the profit-locking stop under the
HighM.

D = The stall was minimal. Bull Price Action resumes with a large white candle. Per our stop rules,
move the profit-locking stop under the low of the candle.

E = Small (for today's ABS) white spinning top gently spikes the R2. This is a pre-stall/sag candle.
The Volume pattern is Twin Towers (pink arrow), which is also a stall/sag indicator. Together, this
calls for an immediate Pivot Scalp exit strategy. +/- 8 points

NOTE: Not to worry. If we are wrong, we will automatically get a
123 Continuation opportunity to rejoin the move.

2 = The stall in fact becomes a 123 "S" Signal through the R2.

F = Volume is (deceptively) strong (pink arrow), and we let ourselves be pulled in on what turns out
to be a rather weak white candle with an elongated top wick. Initial stop under the R2. Nervous!
Prepare to go flat.

G = Assuming we don't SCRATCH this trade a 11:05, this pair of Black Volume Bars of Death (pink
arrow) surely warn us out. Either way, we just barely pay our fees on this one.

Lunchtime Volume drops, and Sideways drift atop the R2 runs into the afternoon trading session.
There were some mid-lunch signal-like bounces, but all without any accompanying trading interest.

3 = At the last possible minute for a PMT-acceptable entry, the tape presents a 123 off the R3.
Although there is theoretically enough Volume (pink arrow) to enter aggressively, we always hesitate
to enter beyond the R3 Extreme, especially so close to EOD Hiccup Time. Pass.

EOD Hiccup tapes the classic "V" checkmark shape (plum lines), and vigorously returns to rest atop
the R3 at EOD.

PERSPECTIVE
(Daily, bottom chart)
Much to our surprise, Monday taped a large white day candle, well through
the contract summer high (red line).

For now, the TA reading suggests more of the same for Tuesday.

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

Monday's PMT Chart: