BS"D

Good morning,

Yay! Let Profits Run! Exactly at the 10:00 Time the BBs staged
a half-hour long, wild, bull run, and we were aboard for most of
it! Our patient waiting paid off nicely on Tuesday.

"The money's made in the sitting and the waiting, not the trading."
Jesse Livermore

Though a breather is just as likely, let's hope for another jolt
on Wednesday.

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 H2
Tuesday 01 May 2012

1 = Tuesday opens with an Anomaly (Overnight, bottom left chart) Doji Sandwich through the
Close/at the Pivot.

A = Volume isn't really opening-range-high, but we enter as this red Bear Dragonfly crosses
the Pivot. Initial stop above the Pivot.

B = Large red candle. Per our stop rules, move the profit-locking stop above the high of
the candle.

Noting the elongated bottom wick skid marks, advanced Readers of the Tape might
alternatively jumped the stop to Free Trade.

2 = It's 10:00 Reversal Time.

When Price Action suddenly and violently 2-bar reverses, we get taken out at the stop.

When Price Action exits the green fog Ambush Zone, we enter aggressively.
The Deperation Volume Spike (DVS, unmarked)
blasts a gigantic white candle through the R1. We got slipped a bit on our entry.

At the close of the candle, we want to move our stop under the R1, but this leaves the
position in Pivot Magic Trading Maximum Profit Giveback (MPG) violation (My kind of
dilemma!). Mental stop at Giveback Level.

NOTE: If you acted in light of our observation in yesterday's
Daily Pivot Magic Trading Journal opening letter, you entered
with multiple contracts, and you are now grinning from ear to
ear!

C = Small gap (breakaway or exhaustion?), and a large white candle closes just through the
R2. The elongated top wick and the possibly exhaustion gap make good ole risk-conservative
me a mite nervous. This is a good time to employ my convention and to move the
profit-locking stop into the gap.

D = Turned out to be worried for nothing. A second healthy white candle closes above the R2.
Per PMT stop rules, move the profit-locking stop under the R2.

Furthermore, this candle completes a 2-candle 123, which encourages us to add more contracts.

E = Giant white candle through the HighW comes to a halt at the R3. Per our stop rules, move
the profit-locking stop under the R3.

This too is a 2-candle 123; however, in light of the Twin Towers (pink arrow) stall/sag/retest
indicator, coupled with the elongated top wick failing Momentum symptom, it seems ill advised
to add more contracts beyond the R3 Extreme PL. Up to you; this IS discretionary trading!

G = Small/average (for today's ABS) white candle puts our position in MPG violation. With no
real excuse to move or stop, observing our MPG rules, we properly exit our position.
+/- 10.50 points (we get a bit of positive slippage as the next, red, reversing candle spikes
north.)

Volume drops way off for an early lunchtime, and Price Action begins to drift sideways.

H = Sudden mid-lunch DVS (pink arrow) gooses Price Action, but the BBs haven't actually
returned (in fact, they never do for the rest of the day), and Price Action goes back to
sideways drift mode, arcing back to R3 by EOD Hiccup Time.

On time, EOD Hiccup (plum lines) tapes a classic "V" checkmark pattern, and runs down to
close dully at the R2.

PERSPECTIVE
(Daily, bottom right chart)

A 123 off the recently exited LT SW Channel Ceiling (light
blue channel lines) spikes well north, but the day candle
actually closes as an inverted (Bear) white Dragonfly.
This ultimately is a rather bearish close, again suggesting
that the BBs still may head back into the relative safety
of the Channel.

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Tuesday's PMT Chart: