BS"D
Good morning,
We were spot on with our call in yestedays Daily PMTJournal
PERSPECTIVE section, "Monday taped a massive white
bull-recovery day candle. Volume was not overwhelming, so
a breather seems likely for Tuesday."
Better yet, we scored a couple of decent bites and one
monster run. Not bad for day trading a Doji day in the
e-mini.
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 22 May 2012
Morning session opens with a bounce through the Close Support.
1 = Volume (pink arrow) is strong behind this Bull 123 retest of the Close. We enter aggressively
(above 1318).
A = DVS (pink arrow) pumps a large white candle through the MidW. Normal stop placement leaves
our position in Maximum Profit Giveback (MPG) violation. Mental stop at Giveback level.
B = Small exhaustion gap and Price Action taps on R1 and retracts, signaling a Pivot Scalp exit.
+/- 3.75 points
2 = Volume drops, and this 123 doesn't take of properly.
Lots of swinging atop R1, but nothing risk-conservatively tradable.
3 = Volume swells (pink arrow), and we enter aggressively below the R1 on a 123 breakout.
C = Large white candle promptly puts our position in MPG violation. Mental stop at Giveback Level.
D = A Late-in-the-Move DVS (pink arrow) exhaustion sign drives a giant red candle into MPG
violation. Mental stop at Giveback Level. Stay alert.
The next (white) candle tapes a mid-air 2-bar Reversal Signal. That's a PMT Exit Now! Signal.
We get positive slippage on the following Doji. +/- 3 points
The BBs head out to drink lunch, and lunchtime sideways drift runs till late afternoon.
4 = Two vague reversal attempts off the R1 Resistance are untradable, but the do give us a couple
of TELLS (blue arrows) about the BBs plans.
5 = A Powerful red Bear Dragonfly "P" off the MA qualifies as a PMT "S" Signal. Volume is still
asleep, however.
E = Yes! Volume jumps (pink arrow) just in time for this candle to meet our breakout criterion.
We are pulled in for what looks to be a Pivot Scalp to the Close.
F = Giant red candle puts us in MPG violation. Mental stop at Giveback Level.
G = A small exhaustion gap precedes a smallish red candle penetrating the Close. With Volume
continuing to build (blue line), suggesting a stall rather than end of move, this is a great
opportunity to employ my safety convention. Jump the profit-locking stop into the gap.
H = Large red candle completes a 2-candle 123 through the Close and exits the green fog (where
we add contracts).
J = Six red candles in a row. A Late-in-the-Move DVS (pink arrow) suggests exhaustion, as this
giant red candle puts our position in MPG violation. Mental stop at Giveback Level.
KWe almost exited early as the Bears recove with a large but wispy red Bear Dragonfly. Again
in MPG violation. Mental stop at Giveback Level.
L = DVS Volume jumps again, driving another large red Bear Dragonfly into MPG violation. Mental
stop at Giveback Level. This might be considered a Twin Towers, so, following 8 red candles in
a row, prepare for a stall and a Pivot Scalp exit.
N = This time it surely is a Twin Towers that pumps a monster red Dragonfly through the Pivot.
Per our PMT stop rules, happily (no rule for happily) move the profit-locking stop tight above
the Pivot.
There, we get stopped out, as Price Action violently rebounds. +/- 9.50 points Nice!
EOD Hiccup (plum lines) is a drop late, but tapes a classic "V", as Price Action bounces back
to the Close for an almost perfect Doji day.
PERSPECTIVE
(Daily, bottom chart)
Tuesday presented us with a large Doji breather day candle.
Not certain the Bulls will have what it takes to continue the
recovery effort on Wednesday though.
REMEMBER: Trade the Tape, Not my Prognostics!
BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!
Asher
=] ;-)>
Tuesday's PMT Chart:
