DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT
The Bears nighttime snoring apparently woke up the Bulls!
We lucked into one OK trade, but once again we spent most of our
day sitting, with PMT Money Management rules protecting our funds.
Commentary is short and sweet today!
Enjoy and be well,
E-mini ES H1
Wednesday January 12, 2011
NOTE: The trading ranges are consistently small and interest (Volume is
minimal). Best advice is to sit it out till after the 15th of January.
Overnight Bull trading led to a gap-up morning. Trading opens at the R2.
1 = It is already clear the ABS is going to be small today, as the tape presents a small Doji Sandwich
behind the R2. The move doesn't prove in time anyway.
2 = Volume jumps to life (pink arrow), permitting an aggressive entry on a 123 through the R2. Initial
stop advances under the R2.
Volume drops off and Price Action stalls.
A = A Failed test of MA at least lets us move our profit-locking stop a bit tighter, under the MA.
We're always glad to reduce At Risk.
B = DVS (pink arrow) blasts a large (especially for today!) white candle to the R3. Normal stop placement
leaves the position in PMT Maximum Profit Giveback (MPG) violation. The DVS may have exhausted the
Momentum, so we have 2 strong reasons to use a mental stop at Giveback Level.
C = Twin Towers DVS pattern (pink arrow) indicates a stall/retest is next. The position is again in MPG
jeopardy, this time without any excuse to advance the stop. Under the circumstances, our MPG rules say
to exit. +/- 3.75 points
Lunchtime sideways drift skittles along the R3 till late afternoon.
Although the highs are getting lower and lower (lavender line), there is no trend to reverse. Shut down
the monitor, and go find someone in need of a kindness.
(Daily, bottom chart)
Surprise! Wednesday taped a healthy white candle stretching
to test the LT Trend Channel Ceiling (green channel lines). No
real Volume behind any of these bursts, so we're still expecting
a dip back into mid-channel.
BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!
REMEMBER: Trade the Tape, Not my Prognostics!
Wednesday's PMT Chart: