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 (02 December 2004)
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Thursday's tape was mucho complex! Can't hardly see the chart
today for all the annotations!

1 = Morning session opens with an Anomaly off the Pivot
(See Overnight, bottom left chart).

Volume (middle chart) is quite decent. PMT entry rules require us
to wait till the move proves itself - beyond the "green fog". It
doesn't so we don't!

S/R at the Close seriously slows Price Action.

2 = Strong Bull Volume (middle chart) as Price Action tapes a 123,
"S" Second chance through the Close. Our judgment confirmed by the
increasing Bull Volume, we enter on the breakaway gap.

A = Large white candle through the HighM. Per our stop placement
rules, take the moderately aggressive choice. Move profit-locking
stop under the HighM. "Free trade" plus a bit.

B = Very large white candle well through the High. Our rules guide
us to move profit-locking stop under the High.

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

3 = Reversal off R1. This "P" Signal off a Primary PL (completing on
the third candle) is a judgment call. Normally, at this time of the
day (lunch time) we would just exit. However, the Bear Volume is
quite strong. With probability of a Pivot retest, I chose to Reverse
here. Either option is a valid PMT choice. 3.5 points

D = Large red Marubozu (candle without wicks). Per our rules, move
profit-locking stop above the high of the candle.

BONUS TRADE

4 = Classic Head and shoulders off R1. For those
who opted to not reverse on = 3, this is a second
chance. Actually, the rather small Price Window to
the proven S/R at the Close makes this an advanced
PMT Scalping entry.

Experienced traders who entered on = 3 might consider
adding to their position here.

E = Large red candle with high Volume (middle chart). Move profit-
locking stop above the high of the candle.

F = Large red Marubozu. Move profit-locking stop above the high
of the candle.

G = Giant red candle, 123 through HighM. Since this is accompanied
by a Desperation Volume spike (middle chart), implying drop in Bear
Momentum, move profit-locking stop aggressively, above HighM. Watch
for end of move as Price Action slows at the proven S/R of the Close.

H = Giant Red Bull Dragonfly. Very bad sign. Again, select the
aggressive option and, per our rules, move profit-locking stop tight
against the Close.

J = Another red Bull Dragonfly. A higher low. The tiny white candle
following tapes another higher low. Also note the Volume
(middle chart = H/J). Volume spikes indicating desperate, exhausted
Momentum. EXIT! 5 points

Notice how large the next white candle is relative to the virtually
non-existent Volume. For those of us slower on the draw, this confirms
the end. If you exited here, don't' forget to kill the stop!

PERSPECTIVE

(60-Minute, bottom center chart)
K = Wednesday's opening gap is still unclosed,
fairly begging for a bit of upcoming Bear action.

(Daily, bottom right chart)
Price Action seems to have stalled (lavender line)
near the top of the trend channel (green lines).

POINT OF INFORMATION: Wednesday's unclosed gap
open is just about where the bottom trend line
will cross mid-day Friday.

Eyes wide open for a retracement!

TGIF!!!

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

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Thursday's PMT chart:
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