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 December 2004)
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Classic FOMC Report day. Yesterday we said:

"If that's not enough, got the FOMC today at 2:15.
Let's watch and see if the BBs do like they usually
do on a Fed day - trade meekly leading up to the
2:15 announcement, leaving us again moaning on the
sidelines.

Better moaning on the sidelines than bloody on the
tracks. Don't ever jump in front of a fast moving
train - that's the Fed!"

Doesn't make for much of a class today, but save this issue of the Pivot
Magic Journal, cause it really was a Classic FOMC Report day!

Maybe we'll get to trade today?!?

Following Overnight trading, morning session opens slightly gap-down, and
Price Action promptly trades back up to yesterday's Close. A couple of
mini-flip-flops and Volume dies. As we expected on an 2:15 FOMC Report day,
Price Action was sideways around the Close, and Volume was nil, as the BBs
(and PMT traders) awaited the FOMC announcement at 2:15.

A = There's the fast moving train! A quick zip up and a quick zip down,
ending with a giant red Bull Dragonfly. Blood on the tracks! Sure glad our
rules kept us out of the way.

REMEMBER: Per our rules, we of course don't count a red Bull Dragonfly as a
signal. So we wait.

NOTE: This is one of those circumstances we talked about when the Close is
clearly a Primary PL. In other words:

1 = 2-bar/DT Double-bottom off the Close. That's a "P" Signal folks. All
that's missing is Volume (for now!).

Giant white candle kick-off, and the move off the Close begins. Strong
Volume confirms (middle chart)!

B = Large white candle. Per our rules, move profit-locking stop under the
low of the candle. And we're in the money!

C = Another large white candle through the R1. That large top wick encourages
us to choose the more aggressive rule and move the profit-locking stop under
the R1.

D = Five mid-air hits on a current "Historical" S/R (lavender line). The
last one is and ominous red Bear Dragonfly. At best, this is a retest of R1
coming up. The EOD hiccup Danger Time Zone is nigh upon us. Exit briskly
and kill the stop! 3.75 points

Not much to add.

The day closed at R1. That's the top of the long-term trend channel
(Daily, bottom chart, green lines). Perhaps Wednesday we'll get a
Bear test of the channel floor to trade. Perhaps not! Hehehe!

REMEMBER: Trade the Tape, not my Prognostics!

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

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Tuesday's PMT chart:
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