BS"D

RULES AND CAVEATS

First rule:
"...Any time you don't know what is happening, get out!"
Pivot Magic Trading Course
http://www.supportandresistance.com/Asher/index.html

MARKET IN REVIEW - LITE
Thursday (27 May 2004)
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Following overnight trading, Thursday's morning session opens
gap-up above R1, and rapidly continues north through R2,
almost to the R3.

1 = 10:00 Reversal Time Zone. Green (Bull) desperation Volume
spike (middle chart), followed by a red Bear Dragonfly, "P"
Signal off the Extreme R3. R2 showed no Resistance on the
way up, so the Price Window is pretty much open to R1, with
the ultimate objective being the Pivot.

Immediately after the move proves itself (per our placement
criteria) and draws us in, Price Action stalls at the R2,
making me very nervous indeed. Did we take the R2 too lightly?

A = Breakaway gap. Good sign, as Price Action begins
stair-stepping toward the Pivot.

B = Large red candle through R2. Briskly move profit-locking
stop above R2, "free trade" position, and sigh!

C = Exhaustion gap. Not much momentum left here.

D = Giant red candle through R1. Desperation Volume spike
(middle chart. Per our rules, move profit-locking stop above
high of candle.

E = Price Action stalls, but does not reverse, forming a
123-continuation pattern through R1. Move profit-locking stop
above the peak of the formation.

F = Second healthy red candle closes below R1. In accordance
with our rules, move profit-locking stop above R1.

Price action stalls and bounces gently off the Close.

G = Failed test of MA. This meets our criteria, so move
profit-locking stop above MA.

H = Second healthy close below High. Move profit-locking stop
above High.

2 = Desperation Volume spike reversal. As a signal this
doesn't complete, but as Volume drops back to Lunch Time
levels (we can't reverse here), take the opportunity to Exit.
6.75 points

3 = Higher low, 2-bar/DT Double-bottom through the Close.
Not enough Volume to enter.

4 = White Dragonfly through the Close. "P" Signal.

J = The Signal proves itself on expanding Volume (middle chart).
We enter as this candle clears the High AND move profit-locking
stop under the High, reducing Undefended At Risk.

K = Test of R1, Resistance-turned-Support, fails. Move
profit-locking stop under the lows of the candles.

L = Giant white candle traverses the R1-R2 Price Window. Move
profit-locking stop under R1.

M = It's EOD hiccup Reversal Time. J-hook Reversal through R2.
Exit briskly. 4.25 points.

Following the EOD check-mark type hiccup, Thursday's day session
closes just above R2.

Hard gut-wrenching work, but a profitable day.

PERSPECTIVE
(Daily, bottom left chart)

Note that Price Action is now nose-up against
Historical S/R (powder blue line). Friday's
battle will likely be over this objective!

(Weekly, bottom right chart)

N = The Weekly tape has completed a Double-Doji
sandwich. Two might wispy Dojis at that.
Fair number of hits on the Historical S/R
(pink line). Are we witnessing a retracement or
a reversal?

Stay tuned!

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

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