BS"D

DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning,

In yesterday's Daily Pivot Magic Trading Journal we posited
a "Bear Plunge Tuesday". Sure called that one! We also predicted,
" . . . should be fun (read: profitable)!" Did all right
there too!

Since the giant red day candle (Daily, bottom chart) resulted
from little more than a few Bear Volume spurts, imagine what
will be when the bears actually rally!

So much for Fed. announcements supporting the market!

Enjoy and be well,

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

E-mini ES Z0
Tuesday November 16, 2010

Morning session opens gap-down at the S2. S2 Resistance holds the Bulls in check.
The gap remains open.

1 = This 2-bar "P" Signal off the S2 completes and breaks free on the 3rd candle. Entry is
possible below the MA, but trading Volume is extraordinarily low for an aggressive entry.

A = DVS (pink arrow) blasts a giant red candle to the Historical S/R (blue line). We are pulled
in immediately below the MA, with initial stop advancing above the MA. The candle closes in Pivot
Magic Trading Maximum Profit Giveback (MPG) violation. Mental stop at Giveback Level locks in
profits. Nice.

B = Small-average (ABS is rather bloated today) red candle slows to a halt at the S3:

* S3 Support, re-enforced by the blue line would suggest
serious stall potential.

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

* With = B somewhat smaller than ABS today, a normal
stop (above the high of the candle/approx. Giveback
Level) will almost certainly get hit.

Exit Now! (we even got a bit of positive slippage) +/- 6.25 points

2 = Double 123 above breaks through the S3 with a 2-candle 123. Gigantic DVS (pink arrow), and we are
pulled in below the S3. The candle closes in MPG violation. Mental stop at Giveback Level, locking in
instant profits.

D = S-trap stall yields to large red candle stopped by the LT Trend Channel Floor (Daily, bottom chart,
green channel lines). Position is in MPG violation with a normal stop. Mental stop at Giveback Level.

The Late-in-the-Move DVS (pink arrow) is also a Twin Towers. The Tape Reads: The green line will hold,
and Price Action will stall or bounce for an S3 retest. If our assessment is correct, exit on white
with alacrity. +/- 4.25 points

E = One more violent DVS blast (pink arrow), and a giant red Marubozu rips through the LT Trend Channel
Floor. The troops do not rally into the hole punched by this massive sumo candle. Instead, strong,
steady, Bull Volume returns Price Action to the green line, where lunchtime drift battles all the way
up to EOD close.

PERSPECTIVE
(Daily, bottom chart)

The Bears taped a very large red day candle, testing the LT Trend Channel Floor
(green channel lines) on Tuesday.

So much for the Fed promises. Words apparently won't suffice to buoy up the
markets. (Personally, I doubt if actions fulfilling the promises will have a
much more lasting effect.)

The Bears didn't even have to apply much steady pressure as the Bulls barely
fought back; permitting this massive plunge to occur on a few brief Volume
bursts. Thus, we tend to doubt LT Trend Channel Floor Support will hold should
the Bears actually decide to mount a real assault.

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: