E-mini Looks Ominous *PIC*


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E-mini Looks Ominous *PIC*

Posted By: Asher
Date: Tuesday, 3 November 2009, at 10:11 a.m.

BS"D
E-mini looks ominous, but meanwhile, we got a really nice bite of the plunge Monday.
Guess the BBs still read our Daily PMYJournals. In yesterday's PERSPECTIVE section
we ruminated: " . . . A particularly large, red, day candle closes outside the LT
SW Trend Channel . . . below the 62% Fibonacci Retracement level. This warns . . .
more serious Reversal may be in the works. The BBs will probably hold back, waiting
to ride Wednesday's FOMC announcement hysteria . . . overall bearish, with breather
candles for both Monday and Tuesday."
Also mentioned, "Monday is likely to be like treading treacherous shifting sands.
Security and alacrity are our key words for the next couple of days!"
Read on, in today's discussion.
***********************************************
DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT
***********************************************
E-mini
Monday November 02, 2009
Monday opens slightly gap-up. Price Action stretches for the Pivot before swiveling to attempt a closing of the gap.
MA Support intervenes, and Price Action reverses.
1 = Ten o'clock Action Time Zone and the tape presents a 123 Continuation of the Pivot. We are pulled in aggressively
on a DVS-driven (pink arrow) giant white candle through the 62% Fib (red line).
By the close of the candle, the position is already in violation of PMT Maximum Profit Giveback (MPG) rules. Mental
stop to Giveback level.
Ouch! Next (red) candle is a J-hook and our stop is hit. +/- 3.25 points
A whole trade in a single candle. Forewarned, we trade with alacrity!
2 = Volume is back up so we prepare to enter. White Bull Dragonfly looks small compared to Monday's ABS, but it is
a 2-pointer "P" Signal off the Pivot.
A = Large white candle pulls us in. Initial stop advances under the low of the candle per our stop rules.
B = Very large candle puts our position in MPG violation. Mental stop at Giveback level.
C = Large candle through the 62% Fib Retracement level (red line). Take the opportunity to move the profit-locking
stop under the famed, hypothetical S/R (red line).
Vague J-hook, and, like lightening, we're out, with slippage. +/- 1.50 points
NOTE: The three Lower Highs and Lows (plum channel lines, excluding the as yet not
having occurred Pivot crossing) not only define a trend, but also represent a strong
(green arrow), moderate (black arrow), and feeble (blue arrow) TTT attempt to reverse
the depressed trading atmosphere (below the 62% Fib Reversal level. The PMT Failed
TTT Corollary phenomenon ensues.
We are without PMT or TA permission or encouragement to enter during lunchtime, even
though a Pivot Scalp is a sure bet, with Gravity and the Pivot rubber band both
pulling against a depressed background and in conjunction with the powerful need to
close the opening gap. The pain!
3 = Pivot Support fails! With a 123 Continuation offering us an "S" Signal, we find zero Volume. Not yet.
D = Large red breakaway candle. With the gap yawning below, one might wisely get micro and call this a DVS
(pink arrow), as the tape offers an entry opportunity. Always security/Money Management conscious, the entry
(joyously) turns out to be coupled with the easy chance to slide the initial stop to "free trade" at candle's
end. Nice!
E = Disinterested, the Bulls barely make a show. The Bull Volume again surges and Price Action plunges toward the
Close. Very large red candle puts our position in MPG violation. Mental stop at Giveback Level.
F = Giant DVS (pink arrow, exhausting) slams a gigantic red candle through the Close. Opening gap is closed (duh!),
and the Momentum carries down through the Low. Exhausted, the spike reverses > 2 points. That is a PMT Exit Now!
Signal. +/- 10.75 points
4 = Full-sized Double Bottom though the Close. No clear Volume encouragement to suggest attempting a ride to the
Pivot. Move turns into a dud, along with the rest of the day.
PERSPECTIVE
(Daily, bottom chart)
Large white Bear Dragonfly day candle tentatively inched lower. Not only
does this candle amplify our reading that a serious Reversal may be in the
works, but it definitely is just about the only white candle that fits our
earlier projection of "overall bearish, with breather candles for both
Monday and Tuesday."
Large range day, but the lack of net Price change makes it a breather, and
the long upper wick, representing a failed Bull push back Overnight, convert
this to an overall bearish candle and formation - A Tinderbox waiting to be
ignited by the Fed. Hope that makes you feel better. Hehehe!
DAYTRADERS: Make hay while you may!
REMEMBER: Trade the Tape, Not my Prognostics!
Asher
=] ;-)>
Monday's PMT Chart:

Pivot Point Daytrading Course

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