BS"D

Good morning,

Though I fail to see any positive long-term purpose to the Fed move
to buy bonds, which supposedly will reduce interest rates, and thereby
hopefully [sic] to encourage an increase in irresponsible corporate
deficit spending, the market continued to run bullish even following
the initial FOMC hysteria.

We managed to ride the wave all the way to the top, for a single,
lovely (read: profitable), hour and 45-min trade.

TGIF!!!

May mankind be blessed with a Sweet New Year of Peace.

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 Z2
Friday 14 September 2012

Thursday morning opens at the Close. Volume is depressed and Price Action trades sideways
in the green fog all morning leading up to the highly-touted FOMC statement at 12:30.

A = At FOMC time, Volume expansion (pink arrow) and attendant wild Price Action (black oval)
responded with the usual hysteria.

1 = The Bull Momentum continues to assert with a 123 continuation "S" Signal off the R3.

B = Volume is strong, and we are pulled in on a large white candle. Advance the initial stop
under the candle for reduced At Risk.

C = Large white Marubozu (full-bodied candle without wicks) surges north, putting our position
in Pivot Magic Trading Maximum Profit Giveback (MPG) violation. Mental stop at Giveback Level.
We are anxious to see if the troops will rally into the hole punched by this sumo candle.

D = They do! Another large white candle puts our position again into MPG violation. Mental
stop at Giveback Level.

As Price Action approaches the LT Trend Channel Ceiling (blue channel lines), trading becomes
indecisive and stalls. We stand ready to exit.

F = Large white candle rushes defenses at the blue line. Again we are in MPG violation.
Mental stop at Giveback Level. Prepare to exit if Resistance at the blue line holds.

F =- Large white candle through the blue line. Per our stop rules, move the profit-locking
stop under the blue line/MPG Giveback Level.

G = Giant white candle puts us AGAIN in MPG violation. Mental stop at Giveback level.

H = Late-in-the-Move DVS (pink arrow) warns that Momentum is exhausted. Large white candle
with an elongated top wick reads with the same message. Since the top wick has already
retraced 2 points, use a mental stop under the low of the candle, but prepare to exit if the
next candle turns red. +/- 12.50 points

Following the mid-air reversal, Price Action turns sideways, drooping to an EOD close atop
the LT Trend Channel Ceiling (blue line).

PERSPECTIVE
(Daily, bottom chart)

In response to the FOMC statement, Price Action was stimulated,
and Thursday taped a very large white day candle gently exiting
the LT Trend Channel Ceiling (blue trend channel lines).

Friday may well follow suit, so be prepared.

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: