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
Thursday (09 December 2004)
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Following overnight trading, morning session opens gap-down below S1.
Bearish Price Action assaults the S2, which is also the new Sideways
Channel floor (light blue line. See also the Daily chart, bottom right,
light blue lines).

1 = 2-bar/DT Double-bottom completes a Double-bottom pattern off the
Channel floor/S2 (light blue line). Primary objective is the Pivot.
Nice big Price Window! Volume reversal (middle chart) confirms.

A = Failed test of MA. Per our rules, move profit-locking stop under MA,
reducing Undefended At Risk to virtually "free trade".

Price Action stalls at the tertiary PL/Low (remember all the PLs except
the Pivot get demoted once a channel forms), and over the next couple of
hours forms an Ascending Triangle continuation pattern. Most encouraging.

B = Price Action breaks above the Low on an enormous Volume surge (middle
chart). This is also a failed (finally!) test of the MA. Move
profit-locking stop under the Low/MA.

C = Giant white candle through S1 (demoted to Secondary PL because of the
Sideways channel). Since this leaves a lot of points on the table
unprotected, per our rules, elect the more aggressive option and move
profit-locking stop under the S1.

D = Price Action stalls at the Primary objective/Pivot. Call this a
second healthy white candle closing above the Mid. Move profit-locking
stop under the Mid.

E = Super Volume surge (middle chart) and this large white Marubozo
(candle without wicks) slams through the defenses at the Pivot. Move
profit-locking stop under the Pivot.

F = Large white candle through the Close. Fearful that this is a
Desperation Volume spike (middle chart), choose the more aggressive option
and move the profit-locking stop under the Close.

G = Large white candle. Per our rules, move profit-locking stop under the
low of the candle.

2 = Price Action reverses off the R1 (which has been demoted to a secondary
PL = not a signal). As the Volume (middle chart) continues, low, but
Bearish, be wary of a retest of the Pivot. Such a retest will take us out
at our stop. Cancel the stop and EXIT, scoring an extra point.
+/-10 points

Two massive red Marubozu candles slam toward the Pivot where Price Action
stalls.

3 = 5-candle DT Multiple-bottom reversal off the Pivot. Personally, the
proven S/R at R1, along with the diminished Volume (middle chart), caused
me to hold back. Boo Hoo!

H = The series of large white candles would have made for perfect,
step-by-step, constant protection of accumulated profits all the way to the
ultimate reversal off the channel ceiling/R3 (light blue line). Sigh!

PERSPECTIVE
(60-Minute, bottom left chart)

Hardly a lazy sideways day, but there remains no doubt
any longer about the closure of the old gap, = G, and
the Daily tape (bottom right chart) definitely shows
Price Action testing of the trend channel floor (green
lines) as expected. Notice that Thursday was a large
white Bull Dragonfly-candle day, nose up against the
Sideways channel ceiling (light blue line).

REMEMBER: Trade the Tape, not my Prognostics!

TGIF!!!

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

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Thursday's PMT chart:
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