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
Friday (03 February 2006)
_____________________

Another in a series of out-of-character Friday's.
Nice tradable little- net- movement parabola though!

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

1 = Thursday, from lunchtime on until the late morning, Overnight, Price Action fluttered
against the underside of Thursday's S3 (See 10-Minute Overnight, bottom left chart). In
response to something, (probably the Jobless rate report at 8:30) things took a dive. Day
session opens gap-down around the S1.

10:00 Reversal time and the tape shows a large white Bull Dragonfly completing a 2-bar
beyond the S1, off what is now the provisional floor of the L-T Sideways Channel (lavender
dashes).

Massive Pair of DVS bars (middle chart), but no real Reversal Volume presents. Signal
fails to cross above the S1 sufficiently.

2 = White Bull Doji/Full double-bottom pattern/ Sling-shot off the MA with plunger pulled
way back!

Kathunk, and then the assault is on. (See the sling-shot on the Volume bars too, middle
chart)

3 = 123 "S"/2-bar spike/DT Bottom with a red Bull Dragonfly kickoff candle to boot.
Completes a mite far north to be called an entry, but is a good place to add on contracts.

A = Second healthy white candle closes above the S1. Per the rules, gladly, move profit-
locking stop under S1.

B = Large white candle/Failed test of MA. Move profit-locking stop to whichever yields
"free trade".

Finally, everybody goes out to drink TGIF and the market turns listlessly sideways.

C = Classic Friday trick. 13:10 and Volume jumps to life with what turns out to be a Bull
trap.

D = Volume yields exhaustion gap through the Low, into the "green fog".

E = DVS. Momentum is over. At a minimum, move profit-locking stop under the Close.

As soon as the next candle shows blood, Exit Now as the BBs head south with the money!
5.25 points

4 = Spike-smokestack "P" signal formation, almost identical to the one Tuesday afternoon.
Not enough power left to really retest Thursday's S3 (10-Minute Overnight, bottom left
chart) so Reversal is realistic.

Be prepared to convert tactically to Pivot Scalp rules if Price Action stalls at S1.

F = Massive red candle slams south through the Low. Move profit locking stop above the Low
for virtually no Undefended At Risk.

Almost an hour of sweating, but with so little at risk... The R:R is clearly skewed in
our favor.

G = Quick bull trap retest of the Low and the slide continues.

H = Failed test of MA. Getting late in the day. At any sign of hesitation at the S1 jump!

J = So much for hesitation at the S1!!!! Huge red candle easily overruns the S1, dipping
to tap on the new L-T Sideways Channel floor (dashed lines. See Daily, bottom right chart
too.)

DVS and it's EOD hiccup Danger Time. First sign of white on the next candle, grab your
profits and run. If you didn't already! +/- 4.75 points

PERSPECTIVE
(Daily, bottom right chart)

Looks like a new L-T Sideways Channel floor has been
defined (lavender dashes). Might securely anticipate
a bit of a breather/wrestling match with the lavender
dashes here before a try for the Channel ceiling, but
the Friday's daily candle is a red Bull Dragonfly so:

REMEMBER: Trade the Tape, Not my Prognostics!

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

Friday's PMT Chart: