BS"D

Good morning,

Thursday morning taped a nice rangy stair-stepping
trend. Stair-steps are notoriously nerve wracking,
but we scored nicely.

TGIF!!!

Enjoy and be well,

DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

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"Don't gamble; take all your savings and buy some
good stock and hold it till it goes up, then sell it.
If it don't go up, don't buy it."
Will Rogers

******************************

E-mini ES U1
Thursday July 21, 2011

1 = Morning session opens gap-up with an Anomaly (Overnight, bottom left chart) off the R1.

A = DVS (pink arrow) blasts giant a white candle, pulling us in above the R2. BTW, multiple
contracts are invited on this 2-candle 123 breakout.

By the close of the candle we are already in Pivot Magic Trading Maximum Profit Giveback
(MPG) violation. Mental stop at Giveback Level.

S-trap stall at the R3. Many of us exit rather than weathering the trap. +/- 2.25 points

B = Re-entry for those who exited, add contracts for those who braved the trap. Our position
is again in violation of MPG rules. Mental stop at Giveback Level.

C = Twin Towers (pink arrow) indicates that stall/sag/retest is coming on the next candle.
This inverted white Dragonfly qualifies for us to move the profit-locking stop under the low
of the candle. Exhale.

D = This red candle completes a mid-air Reversal Signal. With our stop only 0.25 away there
is nothing for us to do by suck it up.

Ha! The next (white) candle is a Bull recovery. The stair-stepping trend continues, and we
are still safe. Take your Maalox.

E = Late-in-the-Move DVS (pink arrow) suggest the Momentum is exhausted. Giant white candle
through the HighW. Stop under the HighW leaves the position in MPG violation. Mental stop
at Giveback Level serves us better.

F = The day's stair-stepping trend may well have lulled us into keeping this trade a bit too
long. This small white candle however, tells experienced readers of the tape that the Bulls
don't have enough to recover. Exit Now! +/- 4.75 points OR +/- 8.50 points if you held
from = 1.

2 = Weak Reversal off the R3. During lunchtime, with no Volume, entry beyond the R3 is too
high risk for good ole risk-conservative me.

3 = Second 2-bar off the R3 convert = 2 into a Double Bottom. Much more interesting, but
without Volume, we sit.

G = Slight increase in Volume, and Price Action breaks out above the MA. Even though once
the peak of the Double Bottom "W" is cleared, making this a low At Risk entry, the Volume
just isn't sufficient.

Too bad. The move runs up another 4 points on a giant Marubozu candle.

After the brief mid-lunch drive, Volume dies completely, and Price Action drifts lazily
sideways atop the HighW to EOD.

PERSPECTIVE
(Daily, bottom right chart)

In spite of the terrible Jobless Claims report, Thursday
easily blasted through the LT SW Channel Ceiling
(lavender line), taping a giant white candle.
Friday's are always hard to predict. Normally, following
such a large candle we tend to expect a stall, but on a
Friday the Momentum may just as likely carry through.

BEWARE OF TRAPS ON FRIDAY!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

REMEMBER: Trade the Tape, Not my Prognostics!

Asher
=] ;-)>

Thursday's PMT Chart: