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

Good morning,

[SNIP]

Wednesday was a large-range day, from which we took only a couple of relatively small bites.
A bit disappointing. Read on.
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E-mini
Wednesday July 16, 2008

Morning session opens gap-up at the Pivot, and reverses to almost close the opening gap.

1 = Off the Close and through the Pivot, aggressive entry (above the Pivot, of course) on this 2-bar was warranted. With Price Action nosing slightly
through the Mid, initial stop advances under the Pivot for reduced At Risk. A very acceptable Money Management alternative, at the close of the candle,
is to immediately jump the stop to "free trade".

A = Large white candle through the LowW. Giant Twin Towers (pink arrow) tells us that a stall/sag or Pivot retest is coming. With the position in violation
of Pivot Magic Trading Maximum Profit Giveback rules, the trade is in serious danger. Per PMT stop rules, move profit-locking under the LowW.

B = Higher-High-Turns-Red. Although the Higher-High is not that much higher, following a Twin Towers warning, any red on the next candle is an Exit Now!
Signal. All the more so here! +/- 7.50 points

We don't trade mid-air reversals. This time, with the Primary objective so obvious (Pivot retest, duh), it is a real moaner and groaner to have to sit and
watch the move play out!

2 = Pivot holds. 2-bar/J-hook. Volume is not overwhelming, but plenty strong to confirm.

C = Pulled in on large white candle through the Mid. Jump profit-locking stop under the Mid for instant "free trade".

D = Huge DVS drives a huge white Marubozu (full-bodied candle with no wicks) candle through the LowW. Almost definitely this will exhaust Momentum,
so briskly move profit-locking stop under the LowW and be ready to exit.

E = The troops do not rally into the hole punched Marubozu sumo candle. Higher-High-Turns-Red. Exit Now! Cancel-Replace as soon as the candle shows
red. +/- 7.50 points

[SNIP]

NOTE B: A slew of TELLs (blue arrows. = F) nervously punctuate the pre-report "silence", edging Price Action
northward, and revealing distinctive Bullish leanings/plans for the post-FOMC trading.

NOTE C: In classic fashion, Volume dies and you can hear a pin drop in the last minutes before the 2:00 FOMC minutes.

G = That's it? Moderate 2:00 DVS Volume burst (pink arrow) makes a full round-trip Price Action swing within a single 5-minute candle. One more red
candle, on normal Volume, and the train has passed!

[SNIP]

PERSPECTIVE
(Daily, bottom right chart)

Very large-range day tapes a beautiful white candle traversing the entire Long-term Trend Channel (green channel lines),
closing just shy of the Channel ceiling. Even though Price Action has closed above the Historical S/R (dotted aqua line,
seemingly re-entering the recently exited LT SW Channel, the dotted line should be just a drop lower, but I lost the pixel
war with that one), with the S/R and LT Trend Channel ceiling coinciding, it is reasonable to expect a bearish day on
Thursday, perhaps a breather.

REMEMBER: Trade the Tape, Not my Prognostics!

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

Wednesday's PMT Chart: