BS"D

Good morning,

Again we called it in yesterday's PMTJournal PERSPECTIVE,
" . . . the market makers still have their sights on the
Historical S/R (bright green line) . . . ". The final
EOD push achieved that goal.

We scored very nicely Tuesday in spite of all the stalls.

Kinda expecting Bears to try to recover the ball on
Wednesday/Thursday.

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 U2
Tuesday 17 July 2012

1 = Session opens gap-up with an Anomaly (Overnight, bottom left chart) 2-bar at
the R2.

A = We are pulled in on a large red candle.

B = Large red candle through the R1. Per PMT stop rules, move the profit-locking
stop above the R1.

C = A small 123 retest of the R1 breaks free with a DVS-driven (pink arrow) gigantic
red candle through both the Pivot and the Close. Add contracts as Price Action dips
below the MA. Per our stop rules, move the profit-locking stop above the Close.

D = Black Volume Bar of Death (pink arrow) Doji. Change to a mental stop. The next
candle shows white and we exit briskly. +/- 7.25 points
Pleasant way to start the day!

2 = A 123 under and a 123 above/through the Pivot for a self-confirming signal.

E = DVS (pink arrow) blasts a giant red candle (virtually a Marubozu) pulling us in.
The candle closes through the S1, and we tighten our stop above the PL, locking in
early profits.

F = Large red candle makes it a 2-candle 123 of the S1. The long bottom wick and
the Twin Towers (pink arrow) stall/sag indicator discourage us from adding contracts.
Convert the stop to a mental stop to facilitate a quick exit (no slow Cancel-Replace).

3 = Next candle, a white Bull Dragonfly, is a Reversal signal, which constitutes a
PMT Exit Now! Signal. 4.0 +/- points

Volume is reasonably strong, and we enter with multiple contracts on a 123 through
the S1 (blue arrow). Initial stop advances under the S1.

G = Large white failed test of MA puts our position in Pivot Magic Trading Maximum
Profit Giveback (MPG) violation. Mental stop at Giveback Level.

Price Action stalls, swinging narrowly on very reduced Volume. Some of us get
nervous and exit on the inverted white Dragonfly when the Bulls don't recover.

The Bears however are clearly not interested in gaining sente, which further implies
that the pull of the Close/Pivot will rule and the rest of us hold tight.

H = White candle Failed test of MA inches north and lets us tighten our stop under
the MA.

J = DVS (pink arrow) pumps a large white candle through the Close, vaguely nosing
through the Pivot as well. Per our stop rules, move the profit-locking stop under
the Close.

K = Second healthy white candle closes above the Pivot. Per our stop rules, move
the profit-locking stop under the Pivot. Note that this is a 2-candle 123, inviting
us to add contracts.

L = Giant white candle almost to the R1. The position is in MPG violation. Mental
stop at Giveback Level also affords protection should the (proven) R1 hold.

N = A 2-candle 123 through the R1. Add contracts and move the profit-locking stop
under the R1.

Price Action stalls, but remains above the R1.

P = Large white candle, and again our position is in MPG violation. Mental stop at
Giveback Level.

S = Large white candle. Normal stop placement leaves our position in MPG violation.
Mental stop at Giveback Level doubly protects our position from the stall/sag
indicated by the Twin Towers (pink arrow).

Two (red) candles later, >62% of = S is recouped and we exit. +/- 11.25 points

4 = A 2-bar "P" at the MA qualifies as a PMT "S" Signal. Volume is nil and the Price
Window (starting above the MA) to the nominally proven R2 is too small to risk during
lunchtime. Pass.

The move does take off and runs through the R2 before Price Action turns sideways and
slides atop the R2 (gently testing the Historical S/R, bright green line) to EOD close.

PERSPECTIVE
(Daily, bottom right chart)

Tuesday taped a large white day candle, closing nose up against
the Historical S/R (bright green line). The force behind this
move was insufficient to convince us of penetration on Wednesday,
but maybe!

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Tuesday's PMT Chart: