BS"D

Good morning,

Finally! Thursday's Price Action broke free and the tape
presented us with some nice range. Although the remainder
of the day wound up drifting sideways, far from our PLs,
we scored a very decent AM trade!

We are quite content.

TGIF!!!

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
Thursday 06 September 2012

Morning session opens gap-up with an Anomaly (Overnight, bottom left chart) off the R2.
Volume is massive, permitting us to enter aggressively.

A = Add contracts as this large white candle 2-candle 123 rips through R3. Per our
stop rules, move the profit-locking stop under the R3.

B = Large red candle Reversal (without a preceding trend) eases through the R3. With
our stop so nearby, there little to do but wait and see.

2 = Actually, this 123 completion white candle misses our stop, but if you exited, re
enter on one of the next 2 candles (blue arrow). If you are still holding the original
position, add contracts.

C = DVS (pink arrow) pumps a large white candle north, putting our position in Maximum
Profit Giveback (MPG) violation. Mental stop at Giveback Level.

Oddly, though Volume is strong, Price Action stalls.

D = Small gap and a white Spinning Top. Our position is again in MPG violation.
Since Volume is still extremely supportive, use my convention and place the locking
stop in the gap for safety.

E = Large white candle. Per our PMT stop rules, move the profit-locking stop below the
low of the candle.

F = Late-in-the-Move DVS (pink arrow) pumps a very large white candle north. Again, our
position is in MPG violation. Mental stop at Giveback Level.

Has the DVS exhausted forward Momentum? Stay alert.

G = Another Late-in-the-Move DVS (pink arrow) generates a hefty white Spinning Top candle.
The Spinning Top and the Late-in-the-Move DVS both read, "End of move". Prepare to exit.

A small red Bear Dragonfly is followed by a tiny Doji. When the next (white) candle
clearly cannot recover, Exit. +/- 14.25 points

Volume now starts to diminish and get confused.

3 = The MA holds, and Price Action tapes a small Doji Sandwich "P", which qualifies as
a PMT "S" Signal. With weakened Volume support, and lunchtime due, we surely don't want
to enter a trade miles north of the R3 Extreme.

Lunchtime sideways drift runs out the day, drifting lazily along the MA without any
decent Volume.

PERSPECTIVE
(Daily, bottom right chart)

Whoopee kaiyay!

Thursday taped a giant white candle running almost all
the way back up to the LT Trend Channel Ceiling (blue
trend channel lines).

Will Friday pause to breathe following Thursday's
monster day candle, or will the Bulls try to follow
through?

BEWARE OF TRAPS ON FRIDAY!

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Thursday's PMT Chart: