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

Good morning,

Yesterday we warned:
"Expecting Thursday to be a bomb!"
The day candle was about 35 points from Open to Close.
I'd call that a bomb.

There was a fair amount of drift and swing Thursday, and fully a third of the massive plunge
occurred overnight. As a result, we only managed to pull out about a dozen points.
(Minus, of course the initial losing scratches for the more intrepid and fearless traders
amongst us.) Not really all that shabby.

TGIF!!!

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Pivot Magic Trading
First rule:
"Any time you don't know what is happening, get out!"
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E-mini
Thursday June 26, 2008

[SNIP]

A = Note that neither of these powerful DVS attempts (pink arrow) managed to generate very substantial Bull Price Action. Conclusion: This is a sort of TELL
that it's going to be a Bear morning/day.

3 = Failed Third Time Through (TTT), 123 "S", off the S2. Failed TTT generally resolves with a strike at the next PL in the opposite direction.

The heretofore confused Volume steadily gains strength, as the tape displays a large red candle, (finally) pulling us in. Initial stop may be advanced above
the high of the candle, per our stop rules.

C = Failed test of MA. Move the profit-locking stop above the MA, further reducing the Undefended At Risk. The next candle (blue arrow) is a large one, so, in
accordance with our PMT stop rules, move the profit-locking stop above the high of the candle.

NOTE: ABS today is a bit large. To avoid getting stopped out at every Price adjustment,
consider expanding the Maximum Profit Giveback and stop placement spacings.

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

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

The next candle is (sadly) a reversal signal. Exit Now! +/- 5.75

Rather high-Volume lunchtime drift ensues, with Price Action moving sideways, repeatedly testing the S3.

4 = TTT of the S3 tries to take off with a 123 through the S3. The next lower Historical S/R (aqua line) seems to interfere, but all of this is of little interest to us.
No way we will enter beyond the Extreme PL S3 during lunchtime.

F = A series of red DVSs (pink arrows) comprise a rather transparent TELL. Once the BBs come back from drinking lunch, expect a Bear assault.

5 = BBs are back (pink arrow), and a Double-top/Failed TTT blasts off from the under side of the S3, through the aqua line! Considered aggressive entry below
the aqua line.

G = Large red candle pulls in the rest of us risk-adverse (like good ole risk-conservative me) PMTers. Stop above the MA. Per usual, the Price Action immediately
turns sideways!

On a happier note, the Bull DVS (pink arrow) once again effected virtually no meaningful advance in Price. The Bulls just aren't strong enough today to rally.

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

J = Large red candle drives a Bear Dragonfly, putting our position in violation of Maximum Profit Giveback rules. Mental stop at Giveback level.

L = Possible mid-air reversal. When the Bears are unable to recover on the next candle (blue arrow), it is clear that the Momentum is exhausted. Exit Now!
+/- 5.50 points

Price Action is confused for the next hour, and then Price Action etches the classic V of the checkmark shaped EOD Hiccup on the tape (lavender line).

[SNIP]

BEWARE OF TRAPS ON FRIDAY!
right
REMEMBER: Trade the Tape, Not my Prognostics!

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

Thursday's PMT Chart: