BS"D

Good morning,

The most interesting thing about Monday was the Bar/Line versus
candle view lesson. Though we prefer to use candles to see
quickly and clearly the direction and nature of individual time
increments (5-Min), sometimes other presentations actually give
us more clarity (See = 1, below in the commentary).

As we expected, Monday's Volume was low, and Price Action
remained stalled. We rightly projected that it would stay there
till elections are over. We just barely eked out one minimally
profitable trade.

Truth is, we may see some vigorous swinging Tuesday, as
the news reports change with the exit polls.

Play it safe!

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
Monday 05 November 2012

Morning session opens just above the Close, and trading returns back through to close
the gap.

1 = This is one of those times that a line chart (5-Minute Trading Session, bottom left chart)
view helps us read our tape. In this view, we can clearly see that the accumulation at the
Close is in fact a Double Bottom with a 123 kickoff (blue arrow).

Volume (pink arrow) is strong and we enter aggressively above the green fog Ambush Zone.

A = Large white candle. Per our stop rules, we would normally move the profit-locking stop
under the low of the candle. Free Trade and a tik, however, feels like a more secure stop
placement (good ole risk-conservative me!).

Price Action slows and then stalls with a small Doji. Consider converting to a mental stop.

B = Large white Spinning Top continues the stall, but at least permits us to tighten our stop
under the low of the candle. Late-in-the-Move DVS (pink arrow) suggests that the move is
exhausted. Use a mental stop for quick exit.

C = Small red inverted (Bull) Dragonfly is followed by an average sized white candle.
Prepare to exit.

The next (red) candle tapes a mid-air Reversal and we exit on red. +/- 2.75 points

2 = Small "P" Signal off the MA Resistance qualifies as a PMT "S" Signal. Insufficient Price
Window to the proven Close. We pass.

3 = This mid-lunch Reversal is only supported by sporadic small Volume bursts. Again,
we risk-conservatively pass.

The BBs, who hardly made an appearance today anyhow, do not return from lunch. At 2:00
we shut down early.

The first position of the EOD Hiccup (plum lines) is on time and traces a "V" check mark
running up to spike and fail at the Pivot. The Hiccup reverses, drooping black below at
the EOD close.

PERSPECTIVE
(Daily, bottom right chart)

Monday taped a small white day candle smack dab in the stall zone.

Wise to expect swings of elation and depression as the exit polls
are reported Tuesday, election day in the US.

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Monday's PMT Chart: