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
Tuesday (23 August 2005)
_____________________

1 = Right at the opening bell, perfect low-risk Anomaly signal off the Pivot
(Overnight, bottom left chart). Entry as Price Action exits the "green fog".

A = Second red candle closes below the Close. Use this opportunity to move
profit-locking stop above the Close, reducing Undefended At Risk.

B = Mid-air bounce and reverse. Large red candle. Per the rules, move
profit-locking stop above the high of the candle/"free trade". Breathe out!

C = Failed test of MA. Move profit-locking stop above the MA. The trade is
now profitable. Breathe again!

D = Finally some consistent Bear Volume! Red Bear Dragonfly off the MA/failed
test of MA. Move profit-locking stop above the MA.

E = DVS (middle chart)/Large red Bull Dragonfly at the S1. Two choices:

* Exit immediately. Positive slippage
+/- 5.5 points

* Aggressively move profit-locking stop
above the high of the candle and hold.

F = S1, Support-turned-Resistance holds. Giant red candle DVS (middle chart)
through LowW. This might be the end of Bear Momentum. Move profit-locking
stop
above the LowW.

As soon as the Volume reverses/next candle turns white, Exit.
*/- 7 points

Either choice made for a nice profitable trade.

2 = DT Double-bottom behind the S1. No Volume so no entry. Too bad because even
though there we other possible entries on the return bounce, there was never
confirming Volume.

G = Note the classic "Exit Now" pattern. Bull DVS, Doji spike, and a Doji
Sandwich completes with a red Bear Dragonfly. All three DVSs (middle chart).

PERSPECTIVE

(Daily, bottom right chart)
Once again the day closes just above the 50% Retracement level (blue dashes).
That's an awful lot of breather candles in a row. A bounce is overdue. Watch
out for Wacky Wednesday!!!

REMEMBER: Trade the Tape, not my Prognosis!

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

Tuesday's PMT chart: