BS"D

RULES AND CAVEATS

Pivot Magic Trading Course
First rule:
"...Any time you don't know what is happening, get out!"

http://www.TradingThingys.com

MARKET IN REVIEW - LITE
Monday (22 August 2005)
_____________________

A bit more range Monday made for some nice trading.
In the end the Daily tape only displayed a Doji
spinning top candle.

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1 = Monday morning opens with an instant Anomaly Reversal Signal off the
Pivot/Close (Overnight, bottom left chart). Volume is very supportive
(middle chart).

A = Second healthy white candle above R1. Per our rules, move
profit-locking stop under R1.

B = Exhaustion gap tells us that this almost vertical Bull run is about
to end.

C = Large white candle/DVS through the R2. Momentum is now exhausted as
this candle turns into a Doji Sandwich. Exit briskly. +/-3.75 points

2 = The Doji Sandwich doesn't prove, but converts to a Double top pattern
off the R2.

3 = Retest of R2, and the Double top proves true. Volume is up for the
reversal (middle chart). Retest of Pivot coming up!

D = Giant red candle through the R1. Per our rules (aggressive choice -
very safe this far through the PL), move profit-locking stop above R1.

E = Volume is strangely strong mid-lunchtime (middle chart). Another
giant red candle through the Pivot. Move profit-locking stop above the
Pivot (aggressive choice).

NOTE: It is our rule to not choke trades with
aggressive stop choices during lunchtime. In
this case however, the Volume is pounding so
we feel safe to move stops aggressively.

F = Volume (middle chart) is rather DVS-like. Large red candle through S1.
Red Bull Dragonfly. Looks like second shift just went to lunch. Move
profit-locking stop above the high of the Dragonfly to avoid lunchtime drift.

G = Failed test of MA. Per our stop movement rules, move profit-locking
stop above the MA, or more aggressively above S1.

4 = Red DVS followed by Doji spike DVS (middle chart). Classic "Exit Now"
pattern stabbing through the 50% Retracement level (blue dashes). When Doji
spike tapped on the S2 was the ideal time to exit, but those of us with
normal reflexes hesitated until the third candle turned white. 8.5 points

NOTE: No reversal possible due to the proximity
of the "green fog" ambush zone and the "always
proven" Pivot. Just as well, since Volume and
Price Action suddenly died (except for a little
EOD hiccup back to the Close).

PERSPECTIVE

(Daily, bottom right chart)
A bit more range Monday, but Price Action is still taking a breather atop the
50% retracement line (blue dashed line). All attempts have thus far been
Bullish. Tuesday and Wednesday will tell. (How long can they pause to breathe
after all?)

REMEMBER: Trade the Tape, not my Prognosis!

Asher
=] ;-)>
Pivot Magic Trading Course
http://www.TradingThingys.com

Monday's PMT chart: