BS"D
Good morning and a good week,
Friday taped a classic Surge-Slide maneuver, and, prepared, we scooped
up a nice fistful of points.
The Funnymentals have been "sequestered", and the market is dangerous.
As our [sic] CFR representatives in the White House continue dismantling
the middle income class, [thus creating a greater spread, = animosity
and jealousy, between the poor and the rich [setting things up for
"popular" acceptance of socialist solutions), our (capitalistic) market
continues to wobble.
Therefore, please note that we have started trading with increasing
aggressiveness.
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
Friday 01 March 2013
Friday morning opens gap-down at the S1 and heads south, determined to test the S2.
1 = If we count the tiny Doji (Overnight, bottom left chart, blue arrow) we have an Anomaly white Bull
Dragonfly off the R2 preceded by a trend. Actually, we could even count the reversing candle to get
our trend. Massive Volume (pink arrow) and the undeniable clarity of the Reversal itself make this an
aggressive entry.
A = Large white candle. Move the profit-locking stop to Free Trade and a tik. Exhale.
B = Small gap and a large white candle. Normal stop placement leaves our position in PMT Maximum
Profit Giveback (MPG) violation. Use my convention and slip the stop into the gap.
C = DVS (pink arrow) blasts a giant white candle through the MidM and S1. The long top wick retraces
too much for normal stop placement under the MidM, so we are forced to use an aggressive stop, tight
under the S1.
D = Giant white candle puts our position in MPG violation. The Twin Towers DVS (unmarked) indicates
a stall/sag is coming on the next candle, making a mental stop at Giveback Level extra worthwhile.
The next (red) candle tapes a mid-air Reversal and we briskly exit as soon as the next candle shows
red. +/- 6.25 points
As indicated by the Twin Towers, Price Action heads directly back to test the S1
Resistance-turned-Support.
2 = Strong Volume (pink arrow) permits us to enter aggressively, as this 2-bar materializes. At the
close of the candle, move the stop to Free Trade.
E = Large white candle through the Low. Position is in MPG violation. Mental stop at Giveback.
Note the elongated top wick and prepare for early exit - no reason to give it all back.
F = Small white inverted (Bear) Dragonfly taps on the Close and retracts, a Pivot Scalp Exit Signal.
+/- 3.25 points
3 = A clean 123 of the Close even exits the green fog. No Price Window to the (always considered
proven) Pivot, however. Pass.
4 = Double Doji Sandwich through the Pivot. The Price Window to the proven Close is too small.
Pass again.
5 = Volume is down somewhat, but no matter, either way there is no Price Window to the Pivot.
Lunchtime sideways drift slides atop the Pivot all the way to EOD, without even a decent EOD Hiccup.
PERSPECTIVE
(Daily, bottom right chart)
Albeit a decent-sized white Bull Dragonfly, Friday's day candle
must be read as just another breather candle.
REMEMBER: Trade the Tape, Not my Prognostics!
BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!
Asher
=] ;-)>
Friday's PMT Chart:
