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

Good morning,

First off, let me apologize for not advising you of the 2:15 FOMC yesterday.

Of course, if you studied the detailed discussion Annex of illustrative examples of FOMC report days in the
Pivot Magic Trading course book, by 12:20 or so you spotted the obvious classic FOMC symptoms.
(We'll discuss this a bit in today's commentary section of the daily Pivot Magic Trading Journal.)
Hopefully, you became suspicious and franticly started searching alternate Economic Calendars to confirm.

ANNOUNCEMENT
I am currently looking for a new, reliable, online Calendar of Economic Reports and Events.
For some reason the one I refer to now overlooked Wednesday's FOMC. This is not the first
time, BTW. Anyone who knows of a reliable and detailed calendar on line, is kindly requested
to please drop me an e-letter post haste. Thanks.

Expecting Thursday to be a bomb!

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E-mini
Wednesday June 25, 2008

[SNIP]

Following somewhat vigorous early morning Price Activity, the market suddenly turns sideways and the Volume goes flat, flatter, flattest!
(See bright blue line.) Ever hear/read that description of the tape before?

Pivot Magic Trading course book Volume II., page 138:
"FOMC is most often at 2:15 EST. Except for an early burst, generally ending before 11:15,
all trading comes to a halt, and Volume dies . . ."

C = Even during the deafening silence leading up to the FOMC intermittent Bull (green) mini-DVS TELLs were apparent. Once the hysteria from the report
settles down, the BBs want to go north (perhaps to test the Historical S/R at the aqua line?)

The Volume "leakage" (pink arrow) immediately preceding the Fed (probably resulting from the handing out of written notes before 2:15) warns that the
TELLs may well combine with the knee-jerk response to the Fed for a massive Bull surge.

More from Pivot Magic Trading course book Volume II., page 138:
" . . . immediately preceding the oral presentation, minutes of the announcements are
normally distributed to the floor and the press, etc. Thus, . . . even a few minutes before
the scheduled time, the tape starts to respond . . . "

D = Thar she blows! Volume explodes (pink arrow) and a Bull spike ensues.

Some more from Pivot Magic Trading course book Volume II., page 138:
"Price Action oftimes responds very vigorously and instantaneously to the Fed. Typically,
the first, preemptive response reflexively drives the market wildly . . ."

Not surprisingly, the Price Action rapidly plunges, returning to retest the R1, (with a very messy combination of long-tailed Dragonflies) before resuming
the quest north.

Yet more from Pivot Magic Trading course book Volume II., page 138:
"Price Action can whiplash back in the reverse direction just as wildly as it plunged at the
time of the report, only to instantly and powerfully reverse yet again . . ."

2 = Wispy, long-tailed giant white Dragonflies form a Double bottom "P" off the R1. Volume is supportive (pink arrow).

E = As the Price Action crosses the MA, enter on this large white inverted (Bear) Dragonfly. Initial stop advanced under the LowW. As we have noted before,
inverted Dragonflies imply that the long-term Momentum prospects are not good. Stay alert.

F = Failed test of MA. Per our rules, move the profit-locking stop under the MA.

H = DVS (pink arrow, indicating that this a possibly a desperate final Momentum surge) generates a monster white candle, (stretching and) slamming to a halt
at the aqua line. Our position is in violation of Pivot Magic Trading Maximum Profit Giveback rules. Mental stop at Giveback level.

Let's review the combined Vital Signs reading:

* Inverted Dragonfly at take off = poor long-term prognosis

* DVS = Desperate assault exhausting Momentum

* Candle slams to a halt (after minimal penetration) at a serious S/R level
= failed Momentum/End of move

The tape has distinctly advised us that Momentum is failing (R2, next potential objective, is not far to the north), or has already failed (the Bulls have
now achieved their Primary Objective).

H = Red Bear Dragonfly. We immediately recognize that as one of our PMT classic Exit Now! signal. As soon as Price Action crosses back under the aqua line
(or the instant the candle shows red) Exit Now! +/- 5.75 points

[SNIP]

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: