Tuesday was a wide-ranged Doji day. The bulk of mid-day
was sideways, but we did score a couple of nice trades,
one in the AM and one in the PM.
Bears on Wednesday?
BEWARE THE FOMC AT 2:15!
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 Z1
Tuesday September 20, 2011
After opening gap-up, Tuesday's day session Price Action immediately returned to close the gap.
1 = DT Multi-bottomed Reversal off the Close actually stretched into a 2-bar Reversal off the
Pivot. We hesitate to enter into the selectively permeable LT SW Channel Ceiling (lavender line).
The Ceiling Resistance holds.
2 = White Bull Dragonfly kickoff makes this a true Double Bottom off the Close. We are still
daunted by the LT SW Channel Ceiling.
A = Volume is strong (pink arrow) as this large white candle breaks through the lavender line,
pulling us in. Initial stop under the Channel Ceiling.
NOTE: ABS today is bloated, so we expand our stop, exit,
and Maximum Profit Giveback (MPG) placements.
B = Large white candle. Even expanded stop placement leaves the position in MPG violation.
Mental stop at Giveback Level.
C = Healthy white candle through the High. Per PMT stop rules, move the profit-locking stop under
D = DVS Volume (pink arrow) and a gentle S-trap stall give way to a giant white candle through the
R1. Per our stop rules, we move the profit-locking stop under the R1.
NOTE: Even though the final penetration is not that deep,
the Late-in-the-Move DVS suggests possible Momentum exhaustion,
so we elect to move the stop aggressively.
E = We added extra contracts as this 2-candle 123 escapes the pull of the R1. The position is
again in MPG violation. Mental stop at Giveback.
F = Some of us exit as the next candle (red Doji) retraces 2.50 points, but more experienced
traders hold tight. Didn't gain much from the extra risk. The following candle tapes a Black
Volume Bar of Death Doji, setting us up to exit as the next candle initially shows red.
+/- 7.50 points
Suckers! The bull move recovers, and we leave an additional 5 points or so on the table.
Even before lunchtime, Price Action begins the long drift sideways.
3 = We enter aggressively on this 123 through the R1. At the close of the candle, advance the
stop to Free Trade and a couple of tiks.
G = DVS (pink arrow) generates a very large red candle through the High. Move the profit-locking
stop above the High.
The next (white Bear Dragonfly/Doji) spikes north almost to our stop. The preceding DVS may have
warned us out, but in the last minute of the candle, just before we call it a mid-air reversal,
the Bears recoup, making it no more than a nasty S-trap.
H = Large red candle almost to the lavender line. Per our rules, either move the profit-locking
stop above the high of the candle, or place a mental stop at Giveback level.
J = This candle is only average size for today, but it puts our position in MPG violation.
Although strictly speaking our rules say to exit promptly, the penetration of the lavender line
does afford a safe alternative. Move the stop above the lavender line.
K = Black Volume Bar of Death Doji takes us out at the stop. +/-5.25 points Just as well,
because the next candle is white, which makes it an Exit Now! Signal, for less profit.
EOD Hiccup (plum lines) is right in the Zone, taping the classic "V" check mark pattern. The
day closes back at yesterday's Close.
(Daily, bottom chart)
Again on Tuesday, the LT SW Channel Ceiling (lavender line)
was tested and held strong. The tape displays a small Doji
breather day candle, just barely nudging through the lavender
The tape still looks set for a dip to test the Channel Floor.
BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!
REMEMBER: Trade the Tape, Not my Prognostics!
Tuesday's PMT Chart: