BS"D

DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning,

As we tentatively predicted in yesterday's Pivot Magic Trading Journal,
"[Tuesday's] Price Action [dove] back into the security of the LT Trend
Channel."

Our money Management rules kept us on the sidelines through the tricky
part of the day. We did, however, get a nice bite in the early afternoon.
Expecting more Bear action Wednesday.

Enjoy and be well,

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

E-mini ES Z0
Tuesday November 09, 2010

Our trading session opens gap-up at the R1. Price Action first dips to close the gap and then bounces
back to retest the R1 Resistance.

1 = Nice clear Reversal Signal, but, per our criterion, the Price Window to the proven Close and
(always considered proven) Pivot is too small even for a Pivot Scalp entry.

Price Action stalls at the Close and turns sideways. Except for a sudden powerful DVS (blue arrow = X,
might be a TELL for later), lunchtime sideways drift continues below the Pivot.

2 = Failed Pivot retest gives way to a 2-bar Reversal. The hour is a bit early, but the Volume (pink
arrow) comes to life, making this an aggressive entry trade. At the close of the candle, advance the
stop above the Mid for seriously reduced At Risk.

A = Failed test of MA. Per PMT stop rules, move the profit-locking stop above the MA/Free Trade.

B = DVS (suggesting exhaustion) slams a healthy (ABS today is rather small) red candle to a halt at the
S1. The Doji candle following tells us to change to a mental stop in preparation for an emergency exit.

C = The Bears recover with a large (for today) red candle and strong Volume. Per our stop rules, move
the profit-locking stop above the S1. BTW, this is an "S" Signal, inviting us to add contracts.

D = Today, we can call this a "second healthy red candle closes below the Low". PMT stop rules say to
tighten the profit-locking stop, above the Low.

The next candle, red Bull Dragonfly, advises Readers of the Tape that the brakes have been applied.
Prepare to exit. Mid-air Reversal and we are out. +/- 4 points

Volume shrinks, and Price Action resumes sideways (slight upward) drift.

Y = DVS burst (blue arrow) leads to nothing, but once again, this might be a TELL.

3 = The 2-bar behind the S1 kicks off with a 123 and DVS drives a large red candle through the Low,
pulling us in. Advance the stop above the Low for virtually no At Risk. Nice.

E = Late-in-the-Move DVS (pink arrow) generates a small gap and a red inverted (Bull) Dragonfly. The
elongated bottom wick implies pending exhaustion. Prepare for a Pivot Scalp exit. This is a good
place to use my convention of putting the stop in the gap. Make that a mental stop!

Next candle retraces >62% of = E, which is a PMT Exit Now! Signal. SCRATCH! +/- 1.50 points

Price Action struggles with S2 Support for a while, but right at EOD Hiccup time (too late for a PMT
entry) dives for the S3, penetrates, and Hiccups back to close back at the S2 Resistance.

PERSPECTIVE
(Daily, bottom chart)

Tuesday trading heads into the LT Trend Channel (green trend channel lines)
with a healthy red day candle. Looks like the beginning of a more serious
retracement.

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: