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Rare Thin Line Trend From Pivot to Pivot *LINK* *PIC*

BS"D

Good morning,

I know, yesterday I predicted an "updraft", but Tuesday
was really more of an upsurge. A rarity, optimistic
late morning trading taped a thin-line trend with nine
white candles in a row.

A brief S-stall, and the run from Pivot Point PL (Close)
to Pivot Point PL(R2) completes just like in the book.
And we rode it all the way! Yahoo!!!

Made up for some of the previous sleepy days, yessir!

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 H3
Tuesday 18 December 2012

Opening range Volume is confused and oddly low. The trading session opens at the
Close, and Price Action spends most of a frustrating first hour struggling to pull free
of the green fog.

1 = A 2-bar through the Close, still in the fog here.

A = Volume (pink arrow) perks up a bit, confirming multiple-contract entry on a 2-candle
123 breakout. Not wild about the Spinning Top candle though. Advance the stop under
the High.

B = Large white candle does not naturally help us tighten out stop as we would like,
but at the close of the candle, it seems prudent to move the stop to Free Trade and a
tik.

C = Large white Bull Dragonfly. Moving the profit-locking stop under the low of the
candle, per PMT stop rules, leaves the position in Maximum Profit Giveback (MPG)
violation. Mental stop at Giveback Level.

D = Volume heats up a bit (pink arrow), pumping another large white candle into MPG
violation. Mental stop at Giveback Level.

E = Call it second healthy white candle closes above the HighM. Move the profit-locking
stop under the HighM.

Since trading is now six deep into an all white thin-line trend, we expect a stall at
any moment, and the R1 Resistance might well turn that into a mess. Consider making
that a mental stop with intent to pull the trigger at 32.25.

F = Price Action was slowed by a 2-bar 123 crossing the R1. At 8 white candles in a
row, we hesitate to add contracts. Mental stop below the R1, with aggressive intent.

G = Large white Dragonfly. Stop under the low of the candle is also Giveback Level.
Rare. Not often you see a run of 9 candles in a row! Make it a mental stop.

The next (red) candle tapes a small mid-air reversal. Not large enough to force exit
(an honorable mistake on the side of risk-conservation, BTW +/-5 points), but certainly
enough to get our hand to hover over the mouse!

H = To our surprise and delight, we survived the S-trap. Large white Marubozu (full
bodied candle without wicks) slams north into MPG violation. Never sure that the troops
will rally into the hole punched by one of these sumo candles, we gladly place a Mental
stop at Giveback Level.

J = Very Late-in-the-Move DVS (pink arrow) drives a giant white candle for one last
stretch for the R2 Objective. Position is clearly in MPG violation. Mental stop at
Giveback Level.

K = Even before this candle turns red, the initial flick up to tap on the R2 and retract
signals a Pivot Scalp Exit Now! +/-9 points

Lunchtime arrives, Volume dies off, and Price Action starts to drift sideways, along the
underside of the R2.

L = A sudden assault (pink arrow). A giant white candle rockets through the R2 and
beyond. No signal, of course.
Rip roaring move lasted for 2 candles. With that little maneuver the BBs funded some
nice gifts for the holidays.

Price Action goes to sleep atop the R2 and the day trades out uneventfully. Even the
EOD Hiccup (plum lines) didn't add much to the afternoon.

PERSPECTIVE
(Daily, bottom chart)

Tuesday taped a surprisingly large white day candle,
taking the current LT Trend (green trend channel
lines) to a new high.

Looks like time to breathe.

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Tuesday's PMT Chart: