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,

Our PERSECTIVE forecast was spot on:
" . . .Lots of wild Price Action, but net of it all, the Daily tape displays a rather weak
red Bull Dragonfly day candle, barely, but none too gently, re-entering the LT SW
Channel (lavender channel lines). The extreme EOD Bear effort leads one to
anticipate MOS (more of same) on Friday . . ."

Not that we gained much from it. A classic stair-stepping day, Friday was only good
for a few hard-earned points out of a more than 20-point range day.

Monday?!?

Be well,

=] ;-)>
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BS"D

Pivot Magic Trading
First rule:
"...Any time you don't know what is happening, get out!"
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E-mini
Friday March 28, 2008

Friday opens slightly gap-up, and trades back into the fog, testing Support at the close.

1 = Reversal off the Close. No supporting Volume, and no self-confirming signal. Besides, we don't enter into the
(always considered proven) Pivot! Nothing here for us.

2 = Sound "P" signal through the Pivot/Long-term Sideways Channel ceiling (Daily, bottom chart, lavender channel
lines). No PMT-worthy entry into the "green fog".

3 = Second failed test of the Pivot/lavender line. Again, no entry into the "green fog".

4 = Failed TTT (Third Time Through) attempt at the Pivot/LT SW Channel ceiling. Price Action just barely leaves the
fog, but without enough conviction to entice a lunchtime-drift entry, against the rubber-band to the Pivot.

5 = Multiple-hit (self-confirming) 123 off the underside of the Close.

A = DVS-generated (middle chart) large red Bear Dragonfly pulls us in.

B = Got a bit of a scare, but in the end, the Bull Volume (middle chart) resulted in a very small elevation in Price.
Clearly going to be a Bear day!

C = Large red candle. Gladly use this opportunity to tighten the profit-locking stop above the high of the candle.

D = Giant red candle through the Low puts our position in violation of the Maximum profit Giveback rules. Mental stop
at Giveback level.

NOTE: The Bear trend is obvious today, as is its stair-stepping character (red lines).
Notice that prior to each plateau the Price Action turns slightly bullish. Reading the
tape thus tells us to give the position a bit of extra room for swinging. Consider
expanding Maximum Profit Giveback and stop placement just a tad.

E = Red DVS followed by a Black Volume Bar of Death (middle chart). A couple of very serious Momentum exhaustion
signs. The next, small, spinning top candle on DVS clinches it. Most of us would exit here (like good ole risk-conservative
me). +/- 4 points

On the other hand, since there has actually not been any sign of Bull pressure per se, one might have legitimately
elected to wait for such a sign before jumping ship. This is a tough call. You may have gone either way with it, especially
when the reasonably strong Bull Volume response barely influenced Price.

F = If you held, you can now exhale, as this failed test of MA presents a call to move the profit-locking stop above the MA.

G = Price Action stops cold at the S1 Support. Twin Towers (middle chart) with the second DVS larger than the first. A
stall is coming. As soon as the next candle shows white those still holding on Exit Now! +/- 6.25 points

. . . [SNIP] . . .

PERSPECTIVE
(Daily, bottom chart)

Price Action is now soundly back inside the LT SW Channel (lavender channel lines).
Friday's healthy red Bear Dragonfly candle (second red Bear Dragonfly day in a row)
suggests that another test of the Channel floor may be in the offing. It sure looks
like the roller coaster is poised to plunge vigorously downward! Be prepared!

REMEMBER: Trade the Tape, Not my Prognostics!

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

Friday's PMT Chart: