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

In Monday's Daily Pivot Magic Trading Journal we suggested:
" . . . Buckle up for Monday!"

With Monday's monster gap open, sure hope you took that advice!
Fishing wasn't bad, but the water was exceedingly choppy!

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E-mini
Monday Sept 08, 2008

1 = As a result of aggressive overnight trading, Monday opens with a giant gap-up. Actually the opening candle is the breakaway candle of a clean reversal in the
final minutes before the day session open (Overnight, bottom left chart). Whether such a Bear reversal at the R3 extreme is eligible as a tradable Anomaly signal
is not clear (good ole risk-conservative me).

2 = Second chance. 2-candle 123-continuation "S" signal off the R3. In light of the pressure exerted by the passed-over Anomaly, aggressive entry technique is
the obvious choice here.

A = Giant red candle blasts through the Historical S/R (dotted aqua line). Good opportunity to tighten the stop above the aqua dotted line and lock in profits.

B = Long-tailed, red, Bear Dragonfly puts our position in Pivot Magic Trading Maximum Profit Giveback (MPG) violation. Mental stop at Giveback level.

NOTE: Once again today, the ABS is engorged (most of the candles are >3 points). To avoid getting stopped
out at every Price adjustment, consider seriously expanding the MPG and stop placement spacings.

3 = After taping on the R2, the next candle tapes a Lower-Low-Turns-White. That's one of our Exit Now! signals. +/- 5.50 points
Flip side: Large white Bull Dragonfly "P" off the R2. Volume is supportive (pink arrow).

C = Pulled in on large white candle. Initial stop advances under the dotted aqua line, where it is promptly hit for +/- a breakeven trade. Nuts!

4 = Giant, red, Bear Dragonfly completes a 123 continuation "S" of the R2. Once again aggressive entry technique is the apparent preference. Initial stop may
advance above the aqua line (Historical S/R).

NOTE: Our protracted interaction with the series of Historical S/R levels (Daily, bottom right chart, aqua lines
and dotted lines) has made us a bit shy of calling this a LT SW Channel re-entry. For the time being, address
them as highly influential S/R levels only.

E = Humongous DVS (pink arrow) drives a most desperate stretch to tap on the R1. Late in the move, this screams "Exhausted Momentum". Surely as soon as
the Price Action rebounds 2 point, Exit Now! +/- 7 points

NOTE: The action is extremely fast and slippery today. Always have your exit and stop movement orders
ready for instantaneous transmission.

4 = The clock is a bit worrisome, as this 2-bar through the R2 appears on the tape. The minimal Bull response on the next candle is most encouraging however.

F = Giant red candle through the aqua line pulls us in. Advance initial stop above the aqua line.

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

H = Large, red, inverted (Bull) Dragonfly. PMT stop rules advise to move the profit-locking stop above the high of the candle.

J = Large red Bear Dragonfly. Moving our stop above the high of the candle still leaves the position in Maximum Profit Giveback jeopardy. Mental stop at
Giveback level.

K = DVS (pink arrow) and Price Action stretches to spike through the R1 and retract. This looks like a Pivot Scalp exit. If not, it surely is a Lower-Low-Turns-White,
Exit Now! +/- 5.25 points

6 = Nice Reversal at the R1, but no supporting Volume as we move into lunchtime drift.

[SNIP]

PERSPECTIVE
(Daily, bottom right chart)

No particularly meaningful (or even clever) comments to explain the giant gap and white spinning top day candle.
Makes us somewhat fearful of wild Price swings on Tuesday!

REMEMBER: Trade the tape, not my prognosis!
Asher
=] ;-)>
Pivot Magic Trading Course
http://www.tradingthingys.com/PMTJ/Commodity%20Day%20Trading.html

Monday's PMT Chart: