BS"D

DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning,

Tuesday was yet another Doji daytrading session. Most of our profits
resulted from the somewhat bloated ABS (Average Bar Size).

The day closed below the Historical S/R (Daily, bottom chart, light
blue line), and we suspect tough Resistance, implying another Bear
plunge. Some tradable range would be nice too.

Enjoy and be well,

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

E-mini ES Z0
Tuesday October 19, 2010

Morning session opens gap-down at the LT SW Channel floor/Historical Support (light blue line), bounces,
and returns to retest.

1 = Early morning 2-bar at the S2. Volume confirms (pink arrow).

A = Pulled in on a large white candle through the S2 and MidW. Advance initial stop under the S2, for
well-controlled At Risk.

BTW, this is a 2-candle 123, so consider entering with multiple contracts.

C = Second healthy white candle closes above the MidW. Per PMT stop rules, move the profit-locking stop
under the MidW.

The next candle (blue arrow) is large enough to invite us to move the profit-locking stop under the low
of the candle. The position is now locked-in profitable. The elongated top wick makes us think, "Pivot
Scalp exit is coming."

C = Late-in-the-move DVS pumps a large white candle to tap on the S1 and retract. Pivot Scalp exit it is.
+/- 6.25 points

Price Action turns sideways at the S1, well before lunchtime, and glides along the PL underside until the
early afternoon hours.

2 = Not only is this 123 reversal a bit early, but the Volume is also too low to trade, yet. There does
seem to be a series of Bear TELLs however (blue arrows), so readers of the tape are watching for breakout
signs.

3 = The breakout finally takes on tradable form with a 2-candle 123 at the S2. Ripping through the LT SW
Channel Floor (light blue line), the candle pulls us in aggressively (since the move was already well under
way). Initial stop advances above the light blue line.

D = Giant late-in-the-move DVS (pink arrow), blasts Price Action through the S3. The position is in Pivot
magic Trading Maximum Profit Giveback (MPG) violation, and we are glad to be forced to use a mental stop
(faster exit, if necessary) at the Giveback Level. Exit briskly on the next candle. +/- 4 points

Price Action again turns sideways on high Volume, this time at the S3.

4 = Calling this a Failed TTT, some are prepared to enter on a Failed TTT Corollary trade.
E = Some of us were pulled in below the S3. Some even called it a 2-candle 123 and entered with multiple
contracts. Personally, I'd be more wary (good ole risk-conservative me) of entry beyond the S3 extreme,
especially so late in the day.

F = If you entered, the late-in-the-move DVS (pink arrow) should have warned you that the move is about to
abort. Prepare to SCRATCH!

EOD Hiccup is on time. It tapes a classic "V" checkmark shaped pattern (plum lines), bouncing vigorously
back north to the light blue line of Historical S/R.

PERSPECTIVE
(Daily, bottom chart)
Tuesday's large red candle spiked the floor of the LT Sideways Channel
(light blue line), but nevertheless closed at or within the Channel
confines.

Is this the start of something big?

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

Tuesday's PMT Chart: