BS"D

Good morning,

Thursday was full of fun. A couple of SCRATCHES,
a couple of decent scores, and one really nice
trade. The whole afternoon just slid sideways,
with no tradable entry signals.

TGIF!!! and have an easy fast!

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
Thursday October 06, 2011

Morning opens at the Close, bounces a bit, and plunges through the PL, heading for the Pivot.

1 = Large white Bull Dragonfly off the Pivot. We don't like to enter into the green fog. A
second large white Bull Dragonfly (blue arrow) extends our breakout time limit and re-enforces
the strength of the Reversal Signal.

A = DVS (pink arrow) drives a giant white candle, pulling us in. The candle also completes a
2-candle 123, so we enter with multiple contracts. At the close of the candle, our position
is already in Maximum Profit Giveback (MPG) violation. Mental stop at Giveback Level.

NOTE: The ABS to day is very engorged. Expanded stop,
exit, and MPG placements will help avoid getting stopped
out prematurely on every Price Action swing.

B = S-trap, and a DVS (unmarked) blasts a large white candle through the High. Per our stop
rules, move the profit-locking stop under the High/MPG.

C = Another S-trap, and DVS (unmarked) blasts a large white candle toward the Primary
Objective, R1. Triple Towers DVSs pattern surely represents imminent Momentum exhaustion.
Prepare for Pivot Scalp exit. Meanwhile, the position is in violation of MPG rules. Using a
mental stop at Giveback Level also afford the us greater speed (no Cancel-Replace order to
exit) if the R1 holds.

Price Action (red) stretches to tap on the R1 and retract. Pivot Scalp Exit. +/- 11 points

That's how I like to start the day!

2 = Red Bear Dragonfly off the R1, for a Reversal "P" Signal.

D = Pulled in on a relatively small red Spinning Top. No rule, but I'd like to see the stop
advance above the high of the entry candle (good ole risk-conservative me!)

E = Large red candle. At the close of the candle, move the profit-locking stop to Free Trade
and a tik or two.

The MA and High Support hold. When two candles later the Bears cannot recover sente, exit on
white/SCRATCH!

3 = Volume is strong (pink arrow) behind a Double Bottom "P" at the MA. This qualifies as an
"S" entry Signal. The Price Window to R1 is just large enough for a PMT Pivot Scalp trade.
Trade accordingly/aggressively.

F = Pulled in on large white candle. Advance initial stop under the MA.

G = Late-in-the-Move DVS pumps a large white candle gently through the R1. Little to lose,
and much to gain (next objective is R2), by advancing the profit-locking stop tight under
the R1. Oops. +/- 3 points

4 = Very strong 123 retest for a TTT attempt at the R1.

H = Volume is massive (pink arrow) behind this 2-candle 123 TTT of the R1. We are pulled in
with multiple contracts. Stop advances under the R1.

J = Volume (unmarked), still pounding, drives a large white candle north into MPG violation.
Mental stop at Giveback Level.

K = Average-sized white candle through the MidW puts us back in MPG violation. Volume is
still supportive, so creatively move the profit-locking stop under the MidW.

Stopped out on the next candle. +/- 3.25 points

Volume drops off, and lunchtime sideways drift slides in the MidW-R1 Channel to late
afternoon.

5 = This Doji Sandwich would be intriguing if the dagger weren't so deep into the heart of
the Signal. Plus, of course, the already low Volume is dropping steadily (lavender line).

EOD Hiccup is a drop early, but after 4 hours of nothing, I guess they couldn't wait.
Classic "V" check mark pattern (plum lines) bounces off the R1, and, with little hesitation,
runs north all the way to R2.

PERSPECTIVE
(Daily, bottom chart)
Thursday's healthy white day candle, eased even
deeper into the safety of the LT SW Channel
(lavender channel lines). This is the "one more
Bull day" that we required to "officially call it
a failed test of the LT SW Channel Floor."

It's official.

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

REMEMBER: Trade the Tape, Not my Prognostics!

Asher
=] ;-)>

Thursday's PMT Chart: