BS"D

Good morning,

The breathing at the Fibonacci 62% Retracement line (Dialy,
bottom chart, red line) has officially ended. As we predicted
in yesterday's PMTJournal, " . . . anything short of a great
FOMC solution in today's minutes release (very very doubtful)
may well precipitate a full-fledged Bear reversal."

We caught a couple of nice rides on the long run down.

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
Wednesday 14 November 2012

Morning session opens gap up at the Pivot, Reverses, stalls, and heads back to close the
gap.

1 = A 123 at the Close.

A = Volume jumps (pink arrow), and we are pulled in below the green fog. Don't much like
that elongated bottom wick though.

B = Large red candle, and another elongated bottom wick. Per our stop rules, move the
profit-locking stop above the high of the candle.

C = Giant Marubozu (full-bodied candle without wicks) plunges to the Low, putting our
position in Maximum Profit Giveback (MPG) violation. Mental stop at Giveback Level.

Strong Volume only produces feeble resistance, a white Doji Spinning Top. We feel safe.

D = A large red inverted (Bull) Dragonfly. Per PMT stop rules, move the profit-locking
stop above the high of the candle.

E = A second large inverted (Bull) Dragonfly. Move the profit-locking stop above the high
of the candle. These three candles tell us that the move is about to its end; Momentum is
gone, so make it a mental stop.

F = Late-in-the-Move DVS (pink arrow) drains the last of the Momentum, driving a large red
candle to spike the S1 and retract. That's a Pivot Scalp exit Signal. +/- 6.25 points

NOTE: The ABS is very large today (don't be fooled by the visuals; the Price Axis is in
2-point increments). To avoid jumping in and out at every Price Swing, expand the stop,
exit, and MPG placements.

2 = Double Bottom at the S1 Support takes off with a giant white candle, pulling us in
aggressively.

G = The candles are suddenly very small. Call this a second white candle closes above
the MA and move the profit-locking stop under the MA.

H = Unsure following a series of small candles, this mid-air 2-bar finally gives us an
excuse to SCRATCH! (with perhaps 1 point)

Lunchtime sideways drift atop the S1 leading up to the total dud FOMC minutes at 2:00.

3 = Nice 123 tests the S1 Support-turned-Resistance.

J = Volume expands slightly (pink arrow), and we are pulled in on this red inverted
Dragonfly. Again!

Advance the initial stop above the high of the candle for controlled At Risk.

K = Failed test of the MA is reassuring, but only permits us to tighten the stop a drop,
above the MA.

L = Large red candle. Finally a top wick!

Per our stop rules, move the profit-locking stop above the high of the candle. Seems
that is also Giveback Level, so make it a mental stop.

N = Late-in-the-Move DVS (pink arrow) pumps a large red candle to tap on the S2 and
retract. Exit Now! Signal. +/- 5 points

EOD Hiccup (plum lines) is a drop early with a 123 of the S2 that results in one final
dive before EOD close.

PERSPECTIVE
(Daily, bottom chart)

Wednesday taped a giant red day candle breaking below
the definitive Fibonacci 62% Retracement line (red line).

Although a breather day on Thursday is TA-appropriate,
a follow through day is equally likely.

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Wednesday's PMT Chart: