BS"D

Good morning and a good week,

Monday's bloated ABS yielded several short but profitable
trades, as Price Action exited the LT SW Trend Channel
(Daily, bottom chart, lavender channel lines).

If the market doesn't stop to breathe on Tuesday, buy gold.
LOL!

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

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E-mini ES Z1
Monday October 03, 2011

After opening just below the Close, Price Action tests the PL, bounces, and re-tests, spiking
way through and retracting with extremely massive Volume.

1 = Volume is still massive (pink arrow), and we enter aggressively as this 2-candle 123
blasts free of the green fog. At the close of the candle, move the stop to Free Trade and a
few tiks.

The next (white) candle spikes the Pivot and retracts, which is a Pivot Scalp Exit Now!
Combination signal. +/- 6.75 points

NOTE: The ABS is enormous today. To avoid getting stopped out on every swing, seriously
expand the exit, stop, and Maximum Profit Giveback (MPG) placements.

2 = Strong-Volume 2-bar "P" off the Pivot permits us to enter aggressively. Initial stop
advances above the HighM.

A = Large red candle puts our position in violation of (expanded) MPG. Mental stop at
Giveback Level.

Volume (Bull) drops way off, generating a healthy white Spinning Top.

Two choices:

* Call this a mid-air Reversal and exit (with positive slippage).
+/- 2.25 points

* Read the Tape/Volume as no more than an S-trap and rely on
the MPG stop.

B = Giant red candle through the Close. Per our stop rules, aggressively move the
profit-locking stop above the Close.

C = Two not-too-impressive red Bull Dragonflies suggest the Momentum is gone. Playing it
safe, call it a second red candle closes below the Low and move the stop tighter, above the
Low.

D = Huge Black Volume Bar of Death (pink arrow) Doji. Convert to mental stop and prepare
to exit on fist sign of white.

Although it closes Bear, the next candle starts out white; therefore, we exit briskly.
+/- 7.75 points

Price Action turns sideways in the green fog Ambush Zone.

3 = The Volume leaps back to life, and this qualifies as a Failed Third Time Through (TTT)
2-bar at the Close.

E = Volume is strong as this red candle exits the fog, pulling us in. Just in case, at the
close of the candle move the stop to Free Trade and a tik.

F = S-trap gives way to a red candle that bounces off the S1 for a Pivot Scalp exit.
+/- 5.50 points

4 = Doji Sandwich 123 eases through the S1.

TRICKY CALL FOR ADVANCED TRADERS ONLY

G = Volume surges (pink arrow), and Price Action breaks south. Even during lunchtime, the
LT SW Channel Floor (lavender line) test is too inviting for the BBs to pass up. On that
assumption, we enter on what turns out to be an average-size red candle. As it is also a
2-candle 123, might as well be brave all the way and enter with multiple contracts!

H = Large(ish) red candle. Move the profit-locking stop above the high of the
candle/approx. Giveback Level.

J = S-trap resolves with a Late-in-the-Move DVS (pink arrow, definite Momentum exhaustion
signal) blasting a large red candle to spike through the LT SW Floor (lavender line) and
retract. Pivot Scalp Exit Now! Signal. +/- 6.75 points

Volume becomes very confused, and Price Action turns sideways, testing and retesting the
underside of the lavender line.

Just a few minutes late, a Failed TTT Corollary EOD Hiccup (plum lines) tapes a classic
"V" checkmark pattern and Price Action plunges to a new low for the quarter. Sure wish
we had a reliable set of EOD Hiccup trading rules!

PERSPECTIVE
(Daily, bottom chart)

Monday's giant red candle dipped well below the
LT SW Channel Floor (lavender channel lines).

Is the double-dip under way? Hope not.

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

REMEMBER: Trade the Tape, Not my Prognostics!

Asher
=] ;-)>

Monday's PMT Chart: