BS"D

Good morning,

We scored nicely Wednesday, both on the slight morning
upswing setting up the Slide, and on the massive late
afternoon Plunge portion.

Even a slight fluctuation in Jobless claims tomorrow
will result in a tap on the new LT SW Channel Floor
(dotted purple lines). Stay alert.

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
Wednesday November 16, 2011

Wednesday morning's session opens gap-down at the S1, bounces, and returns
to retest.

1 = Rather weak 2-bar off the S1. Volume drops on the next candle, but some
of us may enter anyhow as Price Action crosses above the MA, only to SCRATCH!
immediately on the next, large, red candle.

2 = A large white Bull Dragonfly 123 converts = 1 to a Double Bottom pattern
(orange oval).

A = Volume increases, and we are pulled in on a large white Bull Dragonfly.

By the close of the candle, Price Action rips through the MidW, and we
advance our stop under that PL/Free Trade.

NOTE: ABS is still bloated and we expand our exit,
stop, and Maximum Profit Giveback (MPG) placements.

B = Late-in-the-Move DVS (pink arrow, an exhaustion indicator) drives a large
white candle putting our position in MPG violation. Normal stop placement
under the low of the candle does not alleviate this violation. Mental stop
at Giveback Level does. Prepare to exit.

C = Small Doji stall increases our alertness to exit. Next, a DVS blasts a
giant white candle to gently spike the Pivot and retract, signaling a Pivot
Scalp exit. +/- 6 points

Twin Towers (pink arrows, =B & =C) indicates a stall is in store next. Glad
we got out.

3 = DT Multi-top "P" Signal (orange oval) off the Pivot includes a spike to
close the opening gap.

D = Volume is up (pink arrow), and we enter below the MA on a large red candle.
Initial stop above the MA. The elongated bottom wick of this candle worries
us that this move is going to be short lived.

E = Large red Doji Spinning Top. Another warning that the move won't
carry-through during lunchtime drift. The position is in MPG violation, so
a mental stop at Giveback Level is called for. A mental stop has the added
advantage of allowing brisk exit (no Cancel-Replace order needed) should the
move suddenly end.

F = Our position is again in MPG violation. This time we have no excuse to
move the stop, so our rules say to exit immediately. +/- 3.25 points

Sideways lunchtime drift ensues.

X = Mid-lunch Volume bursts seem to be Bull TELLs. Dunno, the Pivot/Close
Resistance seems insurmountable.

4 = Double Top at the Pivot (orange oval). Trading interest/Volume remains
at lunchtime levels.

The top wick of the small white Spinning Top turns this stall into a 123 (blue
arrow). Volume jumps to life (pink arrow), and we enter aggressively on a
giant red Marubozu. At the close of the candle, move the stop to Free trade
and a couple of tiks.

G = DVS (pink arrow) drives a very large red candle through the MidW. Per PMT
stop rules, move the profit-locking stop above the MidW. The elongated bottom
wick, coupled with the DVS, suggests failing Momentum.

H = Large red Doji also suggests exhaustion. The Volume remains strong however.
Prepare for either a Pivot Scalp exit, or a brisk mid-air exit if Price Action
reverses (convert to a mental stop).

J = No such! Volume continues strong, and pumps a large red (almost one of our
Marubozus) candle through the S1. Per our stop rules, move the profit-locking
stop above the S1. A nice secure position for any eventuality.

D = Late-in-the-Move DVS (pink arrow) surely depletes remaining Momentum driving
a humongous red candle (again, almost one of our Marubozus) south. Position is
well in violation of MPG rules. Mental stop at Giveback Level.

When the next (white Bull Dragonfly) dips and then recoups >2.50 points we have
an Exit Now! situation. +/- 12 points (gave up a bit to slippage)

EOD Hiccup (plum lines) is right on time. The classic "V" check mark pattern
resumes the Bear drive to/through the S2 at EOD. [Still looking for a safe set
of controlled-risk rules to permit PMT trading of this almost daily phenomenon!]

PERSPECTIVE
(Daily, bottom chart)

Wednesday's Slide-Plunge taped a large red day
candle, almost stretching to the Floor of the
new LT SW Channel (dotted purple lines).

The Channel Floor will surely be tested; even
of Thursday is only a small breather day
(Slide-Surge?).

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

REMEMBER: Trade the Tape, Not my Prognostics!

Asher
=] ;-)>

Wednesday's PMT Chart: