BS"D

This market dry spell has kept me holding back from posting.
I've been waiting for an interesting day full of things to
discuss and learn. Then I recalled Erich's Livermore quote:
"The money's made in the sitting and the waiting, not the
trading."Â So, I've remembered that demonstrating and
applying our Risk-conservative Money Management Rules (to
keep our powder dry for a better opportunity) is after all
quite an important lesson!

DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

Enjoy and be well,

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

E-mini ES Z0
Monday November 08, 2010

1 = Monday morning opens gap-down with a red Bear Dragonfly Anomaly (Overnight, bottom left chart) Signal
through the S1.

A = Pulled in on a large red candle easing through the Low.

B = Second healthy red candle closes below the Low. Per PMT stop rules, move the profit-locking stop
above the Low.

Twin Towers DVS pattern (pink arrow) indicates a stall/sag/retracement is coming next.

D = Yup! A Black Volume Bar of Death (pink arrow) Doji. Our Money Management rules warn, "Exit on first
sign of white on the next candle."

+/- 1.50 points Better known as a SCRATCH!

Here we go again!

Mid-air reversal for a retest of the S1 Resistance.

2 = Failed Third Time Through (TTT) 123 of the S1 (or is it a Double Top?).

D = DVS-driven (pink arrow) large red candle through the Low. Advance initial stop above the Low. The
DVS in this circumstance is not a good sign. Prepare to exit. Use mental stops for exit speed.

E = Twin Towers DVS pattern (pink arrow) advises Readers of the Tape that a stall/sag/retrace is next.

Next (white Bull Dragonfly) retraces >62% of = E. Exit Now! AKA: SCRATCH! +/- 1.50 points

Following the mid-air reversal, Price Action climbs to test the S1.

3 = This time, the tape presents a 123, which is a more clearly successful TTT. Too bad. Per our
Risk:Reward Criterion, the Price Window to the (always considered proven) Pivot is too tight for us to
enter.

4 = With the S1 proven, we can not even enter on a strong signal off the Pivot.

Is our trading day over?!?

5 = S1 Resistance-turned-Support is rock hard, giving us our answer. Might as well shut down early today
and use our free time to do some small thing to make the world a better place.

6 = EOD Hiccup (plum lines) is right on time. The classic "V" checkmark shaped pattern completes a failed
TTT attempt to close the opening gap. Price Action then drifts off to close EOD just about where the day
opened.

PERSPECTIVE
(Daily, bottom right chart)

A tiny Doji day candle was about all the range the BBs could
squeeze out on Monday. Two breather days in a row, following
a huge leap north to test the LT Trend Channel Ceiling (green
trend channel lines). The TA reading suggest that Price Action
may now dive back into the security of the Trend Channel.
Maybe not! LOL!

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: