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Pivot Point to Pivot Point and beyond! *PIC*



Good morning and a good week,

Pivot Point to Pivot Point and beyond!

As we predicted, the bears finally came out of hibernation Friday!
We managed a couple of nice bites out of the day's large Price Range.

Follow-through Monday? Here's hoping!

Enjoy and be well,


E-mini ES H1
Friday January 28, 2011

Friday opens at the Close and heads north to test the R1.

1 = A clean 2-bar "P" Signal off the R1. We don't enter into the "green fog" Ambush Zone, AND the Pivot
closes our Price Window.

There it is! A 123 "S" Signal off the Pivot (blue arrow).

A = DVS (pink arrow) blasts a giant red candle through the S1, pulling us in below. The initial stop
advances above the S1.

B = Large white candle slams into the S2. Per PMT stop rules, move the profit-locking stop above the
high of the candle.

The S2 Support holds, but the Bulls are drowsy. Price Action does not retrace >2 points nor >62%. Alter
the stop to a mental stop, nonetheless.

C = Large red Bull Dragonfly spikes the S2. Again we have a choice. Exit or move the stop above the
high of the candle. Since the Bulls have really not come out in force, move the stop.

D = Another large red Bull Dragonfly through the S2. The paired long bottom wicks suggest that the move
won't continue for long. Per our stop rules, move the profit-locking stop above the S2.

Four bounces off the S2. The Support seems pretty certain, and we exit. +/- 6.50 points

2 = Wide 123 at the S3. It is getting close to lunchtime, so we aren't very interested, especially beyond
the S3 extreme.

E = Sudden DVS (pink arrow), and the more daring among us get pulled in. Brave, but not stupid! By the
close of the large red candle, jump the stop to free trade and a tik.

F = Large red candle invites us to move the profit-locking stop above the high of the candle.

NOTE: ABS is bloated today, so entry and stop placement might
be expanded, as well is Maximum Profit Giveback (MPG) Level.
Be aggressive however!

G = DVS (pink arrow) generates a large red Bull Dragonfly. Don't care for the implications of the
elongated bottom wick. Per our stop rules, move the profit-locking stop above the high of the candle.

H = Large red Spinning Top. Yet another end-of-the-move warning. Per PMT stop rules, move the
profit-locking stop briskly above the high of the candle.

J = A very Late-in-the-Move DVS (pink arrow) makes it a Twin Towers DVS pattern. The Momentum is clearly
expended, and a stall is coming on the next candle. The position is in MPG violation and the long bottom
wick has already retraced 2 points. There exists no R:R advantage to holding the position under these
circumstances. Exit Now! +/- 8.50 points

Lunchtime sideways drift leaves Price Action floundering way far from any PL. At 1:00, when the Bears
push below the MA, we already know to shut down our monitors, count our cash, and head out to find someone
in need of our assistance.

(Daily, bottom chart)
Yay! A giant red Bear day candle, and the Price Action finally dives below
mid-LT Trend Channel (green channel lines) as predicted. This is the most
excitement we've seen in ages, so expect a follow-through Monday!


REMEMBER: Trade the Tape, Not my Prognostics!

=] ;-)>

Friday's PMT Chart: