BS"D

Good morning,

Luckily, we picked up some change on the morning Surge
portion of Friday's Surge-Slide day (See discussion in
PERSPECTIVE, below). Mostly the day's Price Action slid
sideways, trapping the unwary (non-PMT) day traders.

WARNING:
This maneuver is likely to reverse and repeat tomorrow,
and so on for some time.

Enjoy and be well,

DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

******************************
Pivot Magic Trading
First rule:
"Any time you don't know what is happening, get out!"
******************************

E-mini ES Z1
Friday November 11, 2011

Friday opens gap-up under the R2, crosses above, and stops to test the Resistance-turned-Support.

1 = Large white Bull Dragonfly completes a 123 off the R2.

A = Volume swells, and we are pulled in on a violent burst north. Price Action immediately
reverses, and dives violently, recouping >2 points. Clearly a bad entry; We SCRATCH!

2 = Doji Sandwich "P" Signal off the MA qualifies as a PMT "S" Signal.

The following low-Volume Spinning Top is not enough to pull us in.

B = Yes! DVS (pink arrow) blasts a giant white candle, pulling us in. At the close of the
candle, jump the stop to Free Trade and a couple of tiks.

C = Large white inverted (Bear) Dragonfly. The elongated top wick gives us cause to worry.
Briskly move the profit-locking stop under the low of the candle.

D = Strong Volume continues, driving a large white candle. As we approach the Primary Objective,
R3, our position is now in Pivot Magic Trading Maximum Profit Giveback (MPG) violation. Mental
stop at Giveback Level.

E = Black Volume Bar of Death (pink arrow) Doji. The current R:R is also shaky, so be prepared.
If the next candle shows red, Exit Now! is signaled.

Though the next candle closes white, mostly is was a red Bear. We exited early. +/- 3 points

Even before lunchtime sideways drift officially starts, Volume droops, and Price Action turns
sideways sliding along the R3 to EOD close.

PERSPECTIVE
(Daily, bottom chart)

Friday taped a moderately large white day candle,
pushing into the middle of the new LT SW Channel
(dotted purple lines).

Let's review an old discussion from last year.

MAKING RANGE:
PLUNGE (OR SURGE)-SLIDE AND SLIDE-SURGE (OR PLUNGE)

Once again the market is overall sliding sideways in a LT SW
Channel, depressed, in the doldrums. Even the strong Volume
parts of the day are only relatively strong.

As we have observed often before, there is no day trading profit
for the BBs in an economically wary, sleepy (small-range)
[LT SW Channel] trading period.

To expand tradable range from which to cull profit, the market
makers like to employ an early morning or late afternoon
Plunge/Surge-Slide or Slide-Surge/Plunge rhythm. Hoping to
wrong-foot as many traders as possible, the Slide portion of the
maneuver is often peppered with traps.

In Summation: The Plunge/Surge-Slide and Slide-Plunge/Surge
pattern represents an attempt to make some trading range (profit)
in a lackluster market.

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

REMEMBER: Trade the Tape, Not my Prognostics!

Asher
=] ;-)>

Friday's PMT Chart: