Thursday's stair stepping run down was pretty treacherous.
We scored nicely, but our ulcers were in an uproar. The
rest of the day was basically sideways, and we sat wisely
guarding our funds with our risk-conservative PMT Money
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
Thursday August 25, 2011
Thursday morning opens gap-up with a reversal at the R1.
1 = A 123 Continuation "S" Signal through the R1.
NOTE: Both overnight and at the open we spot very bloated ABS.
Expand exit, stop, and Maximum Profit Giveback (MPG) placements.
A = DVS (pink arrow) drives a large red candle pulling us in. Initial stop advances above the High.
B = S-trap almost gives us an ulcer, but it promptly breaks south on a large red candle. The Twin
Towers (pink arrow) indicates a stall/retrace on the next candle. When the candle spikes the Close
and retracts we are glad to Pivot Scalp exit. +/- 6.25 points
2 = Sure would like to enter this powerful 123 of the Close, but the Price Window to the (always
considered proven) Pivot is too small.
3 = The Pivot Support-turned-Resistance weathers a Pivot retest, and we enter aggressively on a
large red candle. Initial stop advances above the Mid.
C = We are a bit nervous from the stair stepping trend down. When this large red candle crosses
the MidW we are content to follow the PMT stop rules and to move our profit-locking stop above
D = Late-in-the-Move DVS (pink arrow, might even be a Twin Towers stall indicator) generates a
large red candle. When the candle taps on the S1 and retracts we Pivot Scalp exit.
+/- 6.75 points
4 = DVS-based 2-bar Reversal off the S1. We don't trust DVS-based 2-candle Reversal Signals for
5 = A 2-bar Reversal off the Pivot. Volume drops as the BBs head out to drink lunch. This is not
a good time to enter away from the Pivot/Close.
6 = Much though we love Doji Sandwich Reversals, Volume is still too non-confirming for us to risk
Sideways drift along the MA resumes till late in the afternoon.
7 = Just as the PMT entry clock runs out, the tape presents a 2-bar P" Reversal off the S1. No
confirming Volume, so we let it go and shut down our monitors.
Price Action drifts to EOD close atop the S1.
(Daily, bottom chart)
Mid-LT SW Channel (lavender line), Thursday taped a healthy red Bear
Dragonfly day candle. This can be read as either a breather or as
Anything is possible on a Friday, but one thing is for sure:
BEWARE OF TRAPS ON FRIDAY!
BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!
REMEMBER: Trade the Tape, Not my Prognostics!
Thursday's PMT Chart: