Good morning and a good week,
Albeit full of traps, a very aggravating day of trading,
Friday was nonetheless fairly profitable.
Expecting bears to come out early on Monday.
Enjoy and be well,
DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT
"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."
E-mini ES U1
Friday August 19, 2011
1 = Friday morning opens gap-down with an Anomaly Signal (Overnight, bottom left chart)
through the S1. Volume (pink arrow) is high, and we enter aggressively above the S1.
Initial stop advances under the S1.
A = Giant white candle puts our position in immediate Maximum Profit Giveback (MPG)
violation. Mental stop at Giveback Level.
B = Large white inverted (Bear) Dragonfly suggests flagging Momentum. PMT stop rules
suggest: move the stop under the low of the candle.
And there we are stopped out. +/- 5.25 points
2 = A 123 Continuation off the S1.
C = We are pulled in on a large white candle through the MA. Even advancing the stop to
Free Trade at the close of the candle leaves the position in MPG violation. Mental stop
at Giveback Level.
D = Failed test of MA. Normal stop placement (under the MA) once again leaves our position
in MPG violation. Mental stop at Giveback Level.
We promptly get stopped out on the next (red) candle. +/- 6.50 points
3 = A 123 retests the Pivot/Close Resistance.
E = We are pulled in as Price Action clears the green fog. Initial stop above the Close.
F = We are much relieved, as Volume resumes (pink arrow) driving a large red candle
putting our position in MPG violation. Mental stop at Giveback Level.
G = Another large white candle puts our position in MPG violation. Mental stop at Giveback
H = Red Spinning Top stall candle. Per our stop rules, move the profit-locking stop above
the high of the candle.
Stopped out on the next candle. +/-5.50 points
Lunchtime sideways drift ensues, with mid-afternoon Price Action drooping to test the
4 = Vigorous 123 through the S1.
J = Large red Spinning top pulls us in (and scares us with flagging Momentum). Initial
stop above the high of the candle.
K = Failed test of MA permits us to inch the stop tighter, above the high of the MA.
L&N = Same as = K above, twice more. All those Spinning Tops in a row tell us to take heed,
the Momentum is gone and the move is soon to end.
P = The bottom wick of the large red Bull Dragonfly Doji retracts >2 points, which we
recognize as a PMT Exit Now! Signal. +/- 5 points
Price Action drifts sideways along the underside of S1 to EOD.
(Daily, bottom right chart)
Friday's red day candle edged closer to the floor of the
very deep Sideways Stall Channel (lavender lines).
A floor test looks likely for Monday.
BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!
REMEMBER: Trade the Tape, Not my Prognostics!
Friday's PMT Chart: