Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
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PIVOT MAGIC JOURNAL - EXCERPT

Good morning and a good week,

A couple of decent trades on Friday. The traps and swings may well have cut them short
(in the commentary today I let them play out, but you all know how good ole
risk-conservative me called them!). Friday's are notoriously full of surprises and this one
was no different.

Have fun today!

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E-mini
Friday June 27, 2008

Morning session opens at the Close, crosses below, and recrosses back above on substantial Volume. No acceptable PMT signals.

1 = Full-sized Double top completes in range of the Close. Double top is by definition a self-confirming pair, so we are looking to enter below the Close (on
high Volume), or as the Price Action exits the "green fog" ( on medium Volume).

A = Volume is high and growing (pink arrow), so we enter below the Close, advancing initial stop above the Close. We are extra glad to see that Momentum
carried Price Action all the way through the fog by the close of the candle.

B = Large red candle. Per PMT stop rules, move the profit-locking stop above the high of the candle.

NOTE: ABS is once again bloated today. To avoid getting stopped out at every Price adjustment
(and Friday trap), consider expanding the Maximum Profit Giveback and stop placement spacings.

C = Black Volume Bar of Death (blue arrow). Prepare to exit at first sign of white.

Hello, Bear DVS (pink arrow) drives a red candle. Being that it is a very large inverted (Bull) Dragonfly, prudent traders exit the instant the next candle shows
white, even before they had time to move the profit-locking stop into position. If you were very quick on the draw and got the stop order in, you immediately
were stopped out. +/- 2.25 points

2 = Double top (might even say a failed TTT). Entry on this pair of lower-high peaks was as soon as Price Action exited the "green fog", initial stop advanced
above the Close.

D = Large red candle. Per our Stop rules, move the profit-locking stop above the high of the candle.

We get a bit of a scare when the tape displays a mid-air reversal, but with our stop so nearby we dare not try a Cancel-Replace. We wait to get taken out at
the stop.

Hah! It turns out to be a Friday fake-out trap, and the stop holds as the Bears continued south!

E = Giant red candle puts our position in serious violation of the Pivot Magic Trading Maximum Profit Giveback rules. Mental stop at Giveback level.

F = Large red candle puts us once again in violation of Maximum Profit Giveback rules. Per our rules, however, we are enabled to move the profit-locking stop
above the high of the candle.

G = DVS (pink arrow) generates a huge red candle, putting our position in violation of the PMT Maximum Profit Giveback rules. Mental stop at Giveback.

H = The wild DVS (= G) followed by a white candle has us very wary. When the Bears fail to move Price Action (blue arrow), the more risk-adverse PMT
trader (like good ole risk-conservative me) assumed this was a good time to exit. No sense giving it all back! +/- 7 points

Advanced readers of the tape, on the other hand, may have held on, relying on the high probability that this close to the Primary Objective (S1) the Bears
would not give up without at least one desperate assault.

They were correct. Large red candle noses slightly through the S1. Per our stop rules, move the profit-locking stop above the high of the candle.

J = Second healthy red candle closes below the S1. Move the profit-locking stop above the S1.

3 = A 2-bar "S" Reversal behind the S1 was a classic Exit Now! +/- 8.25 points

[SNIP]

PERSPECTIVE
(Daily, bottom chart)

Wild Friday Price Action taped a red spinning-top day candle, a breather drooping well below the close
of Thursday's giant Bear candle. Looks rather like the Bears will continue to rule again on Monday.

REMEMBER: Trade the Tape, Not my Prognostics!

Asher
=] ;-)>
Pivot Magic Trading Course
http://www.tradingthingys.com/PMTJ/Commodity%20Day%20Trading.html

Friday's PMT Chart: