BS"D

Good morning,

Tuesday was sort of a Surge-Slide maneuver day. We got one hardy
bite and a couple of nibbles. Overall, our funds we well protected
from havoc by our risk-conservative PMT Money Management rules.

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 05 June 2012

1 = Tuesday morning opens with an Anomaly (Overnight, bottom left chart) Double Bottom off the Close.
Price Action exits the fog, and easily crosses above the Pivot, where we get pulled in. At the close
of the candle, move the stop under the MA, reducing At Risk.

A = Unappealing large white inverted (Bear) Dragonfly. Volume is strong, so move the profit-locking
stop under the low of the candle.

B = Black Volume Bar of Death(?) Doji (pink arrow). We will exit if the next candle is red.
Meanwhile, move the stop to Free Trade and a tik.

C = The bulls recover with a giant white candle. Our position is in PMT Maximum Profit Giveback
(MPG) violation. Mental stop at Giveback Level.

We got seriously close to bailing out on the next (red Bull Dragonfly). Gladly, the candle closed
near it's top.

D = Large white Bull Dragonfly. Per our rules, move the profit-locking stop under the low of the
candle/Giveback Level.

E = DVS (pink arrow) exhausts Momentum with a giant white candle spiking the R1 and retracting.
That's a Pivot Scalp Exit Now! Signal. +/- 7.25 points

2 = Rather compressed Head and Shoulders breaks out on a 123 through the R1. Enter with multiple
contracts.

The next (Doji) candle stall gives us reason to doubt. Move the stop to Free Trade and a tik.

F = DVS (pink arrow, Twin Towers?) generates a nasty spike and an inverted red Dragonfly. The tail
of this candle retraces 1.75 points. Since we want to exit if >2 points are recouped, and since
tape clearly reads "exhaustion/stall/retrace", we exit. Gained some positive slippage.
+/-1.50 points

3 = A 2-bar Reversal at the R1. Accompanying Volume is way down.

G = A 123 breakout off the underside of R1. Volume jumps to life and we are pulled in with multiple
contracts. At the close of the candle, move the stop to Free Trade and a couple of tiks.

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

J = Small red candle puts our position in MPG violation. Low Volume does not encourage us to get
creative. Following our MPG rules strictly, exit briskly. +/- 3.75 points

4 = Full scale Double Bottom at the R1.

K = Lunchtime Volume (pink arrow) is slightly elevated, but not sufficiently elevated to confirm
entry on this otherwise powerful breakout candle. Pass.

Price Action wafts up gently, but remains sideway to EOD close.

PERSPECTIVE
(Daily, bottom right chart)

Tuesday's healthy white day candle took a bounce
off the Historical S/R (light blue dashed line).

Still got quite a way to go to turn this market
around!

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Tuesday's PMT Chart: