BS"D

Good morning,

Well into the afternoon, Tuesday remained a stormy, hard to trade, day.
Then, we jumped aboard a 10 white candle in a row run up, for a super
trade! >38 points WOW!

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
Tuesday October 04, 2011

Session opens with a small gap down. Price Action dives to test S1 Support.

1 = S1 Support holds, taping a DT multi-bottom/a (real) Double Bottom off the S1. Volume (pink
arrow) is strong, confirming.

A = Pulled in on large white candle/failed test of MA. Even though ABS is once again roaring,
expanding our stop, exit, and Maximum Profit Giveback (MPG) placements, the extremely elongated
top wick warns us out of the position. SCRATCH!!!

2 = Counting the Doji to get a preceding trend, this could be a "P" Signal. Not a bit of Volume,
and the move only vaguely proves. We sit.

3 = A 2-bar at the Close.

B = Volume is up (pink arrow). We are pulled in as Price Action leaves the fog.

C = Small Late-in-the-Move DVS (pink arrow) surely exhausts Momentum. The large white candle
puts our position in violation of MPG rules. Mental stop at Giveback Level, but since the end
of move has been signaled don't insist on giving it all back.

Black Volume Bar of Death Doji (blue arrow) warns of reversal. Don't even wait for a red candle,
Exit Now! +/- 5.25 points

Lunchtime resumes, and Price Action rides the Close, drifting sideways and down, into mid
afternoon.

4 = Red Bear Dragonfly is a bit small for today's ABS. No trading interest/Volume. We wait.

5 = MA Slingshot qualifies as a PMT "S" Signal as Volume comes to life. Achieving the Primary
Objective (the Close) seems almost certain. We may even get to piggy-back on the EOD Hiccup.

D = We are a bit nervous to be pulled in just as the PMT entry clock winds down. Per our stop
rules, stop advances under the MA.

E = Large white candle stretches to the Close and pulls slightly back. The Volume is still
increasing so we want to hold. Move the mental profit-locking stop to MPG Giveback Level.
Prepare to exit early, below the green fog.

F = Large white candle tapes a 2-candle 123 through the Close. Move the profit-locking stop
under the Close. The elongated top wick discourages the adding of contracts.

G = Large white candle kicks off the Close for another 2-candle 123. The Volume continues
to build (red arrow). This time add contracts.

H = Huge white candle stretches to the Pivot. MPG violation. Mental stop at Giveback Level.

J = The tail (also the down stroke of the EOD Hiccup "V" pattern) of this Large white Bull
Dragonfly threatens our MPG stop, but reverses and rips through the Pivot and LowM, reaching
the LT SW Channel Floor (lavender line). Per our stop rules, move the profit-locking stop
under the LowM. Hopefully, the selectively-permeable lavender line will permit re-entry
into the safety of the Channel.

K = 2-candle 123 (add contracts) through the lavender line. PMT stop rules say to move the
profit-locking stop under the lavender line.

L = Extreme Late-in-the-Move DVS (pink arrow) drives an extreme white candle, which stretches
to tap on the R1 and retract. Pivot Scalp Exit Now! +/- 38.50 points

Yes!!!

PERSPECTIVE
(Daily, bottom chart)

Before reversing and re-crossing the LT SW Channel Floor
(lavender channel lines), back into the safety of the
Channel, the tail of Tuesday's giant white day candle
dips to a new contract low.

Overall, this monster Bull candle effects little more
than a breather following Monday's dive. We need another
serious Bull follow-through effort to turn things around.

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

REMEMBER: Trade the Tape, Not my Prognostics!

Asher
=] ;-)>

Tuesday's PMT Chart: