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 (14 February 2006)
_____________________

Called that one!
"TTT . . . Might just rip on Tuesday!"

It sure did! TTT succeeds all the way to the
L-T Sideways Channel ceiling, and stops cold.

Probably get a rest today though.

**************************************
1 = Tuesday morning session opens with an Anomaly (double) Doji Sandwich beyond the
Pivot. This one had a "tell" for experienced/advanced traders, but the rest of us
looked at the Overnight (bottom left top chart) and jumped aboard above the Pivot,
with the large white candle, = A. This permitted moving profit-locking stop
instantly below the Pivot.

B = Red Bear Dragonfly spike. DVS Reversal. Two choices:

* Retest of Pivot coming. Go flat (scratch) instantly.

* Take a chance that the Pivot will hold.

Since the real objective was the dashed lavender line, NEW L-T Sideways Channel Floor,
the Pivot didn't hold and those making the second choice got stopped out for a loss.

THE "TELL"
(10-Minute, bottom center chart)

Whereas the Overnight taped a nice Bull reversal, the
10-Minute showed a 123 (without any preceding trend to
really reverse). Furthermore, the Volume is quite
undecided. This adds confusion/vagueness to the Anomaly
= let it pass and wait for Pivot retest. In retrospect,
this was the best choice.

2 = Red Bull Dragonfly stretches to the lavender dashes. Tap! and Price Action
reverses a clear current down trend. "P" signal. On the 10-Minute (bottom center chart)
it's a real wham bam reversal.

NOTE: Those who were bucked by the previous entry, = 1, must get
back on and ride. Don't let the periodic fall make you hesitate
to remount! Discipline!!!

C = Failed test of MA. Still just a little skittish from the = 1 fall? Apply the 3-5
Scalp rule here. "Free trade".

D = Breakaway gap and the second healthy white candle closes above the Close. Per our
rules, move profit-locking stop under the Close.

E = Large white candle through the R1/red line Historical S/R (60-Minute, bottom left
lower chart. Note that the first level of our projected (see yesterday's PMTJournal)
TTT has succeeded here, and that a short-term uptrend is established.) Per the rules
(aggressive choice), move profit-locking stop under the red line. Note: This is a nice
2-candled 123 continuation. Consider adding contracts.

F = Large white candle through R2/failed test of MA. Going into lunchtime drift, don't
be too aggressive. Move profit-locking stop under the MA.

G = Second healthy white candle closes above R2. DVS spike (middle chart). Price
Action could drift all the way back to the red line/R1. Move profit-locking stop
tight under the R2.

Lunchtime drifts sideways.

H = Failed test of MA. Move profit-locking stop under the MA.

J = DVS (middle chart). Volume bursts and reverses:

* Having traveled so far, this close to the lavender line
(L-T Sideways Channel ceiling) it is unlikely that the Bulls
will give up without at least a valiant effort.

* Although the red Volume reversal bars (middle chart) are
quite healthy, virtually no Price Action results.

Aggressively move profit-locking stop under HighW. Prepare to exit.

K = Price Action stabs through the lavender line and reverses. The pair of Bear
Dragonflies on the higher time frame (10-Minute, bottom center chart) shout,
"Exit Now!" +/-12.75 points

Minus the scratch/loss from the first trade. Sigh!

PERSPECTIVE
(Daily, bottom right chart)

Contrary to the shorter-term picture on the 60-Minute
(bottom left lower chart), although the L-T Sideways
Channel ceiling has been tested for a TTT (= L), the
ceiling has held, and the tape shows a L-T Bear trend
(green trend channel) across the Sideways Channel
(lavender channel lines).

After Tuesday's range-day trading, and slamming against
the lavender and green channel ceilings, Price Action
is quite probably exhausted and about to take a
breather, maybe even back down a bit.

From this Level, a charge at the Sideways Channel floor
is perhaps more likely than the continuation of the
assault north.

REMEMBER: Trade the Tape, Not my Prognostics!

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

Tuesday's PMT Chart: