BS"D

Exploit Pit Pivot Points
Daytrading Course
Learn to Read the Tape
******************************

DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning,

Just as we projected in yesterday's PMTJournal PERSPECTIVE,
" . . the bull breakout has definitely failed, and a test
of the Fib 50% retracement level is once again in play."

Most of Tuesday's giant red day candle resulted from overnight
trading, but we did get one nice trade, and we caught a minnow
too!

Enjoy and be well,

******************************
Pivot Magic Trading
First rule:
"Any time you don't know what is happening, get out!"
******************************

E-mini ES U3
Tuesday 27 August 2013

Morning session opens gap-down, midway between the S3 and S2, stalls for one candle, and runs
directly up to test the S2.

1 = Doji Sandwich off the S2.

A = We are pulled in on a large red candle kicking off the S2.

B = Following a scary Doji stall, a red Bear Dragonfly bounces off the MA. Per our stop rules,
move the profit-locking stop above the MA.

B = Large (looks small on the chart, but it is a 2-pointer) red candle. PMT stop rules tell
us to move the Profit-locking stop above the high of the candle.

E = Late-in-the-Move DVS (pink arrow, an exhaustion sign) generates a small exhaustion gap and
a large red candle. Our position is in PMT Maximum Profit Giveback (MPG) violation. Mental
stop at Giveback Level.

The next (white) candle retraces >62%, signaling an Exit Now! +/-4.25 points (thanks to
positive slippage)

Price Action bounces a bit before settling at the S3 for a long lunchtime sideways drift.

2 = A 2-bar "P" Signal at the S3. Trading interest has not resumed. With Volume (pink arrow)
still at lunchtime lows we pass.

3 = A 2-bar "P" at the MA (which has repeatedly proven strong Resistance). Volume (pink arrow)
has perked up a bit, qualifying this as a PMT "S" Signal.

F = We enter below the MA. At the close of the large red candle, our risk-conservative training
tells us to move the stop to Free Trade and a tik.

G = Red Spinning Top warns of imminent Momentum exhaustion. Expect a Pivot Scalp exit at the
Fibonacci 50% Retracement Level (blue line).

H = The tail spike of a white inverted (bear) Dragonfly gives us a scare, but the MA Resistance
once again holds. The next candle spikes to tap on the Fib 50% and retracts. As we are about
to enter the EOD Hiccup Time Zone, we call it a day. +/- 2.25 points

The rest of the day slides to EOD close atop the blue 50% Fib Line.

PERSPECTIVE
(Daily, bottom chart)

Tuesday taped a giant red day candle, re-entering, and
traversing the entire Expanding Triangle (lavender lines).
Trading comes to a halt just at the Fib 50% Retracement
Level.

Expecting Wednesday to pause to breath before continuing
south.

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Tuesday's PMT Chart: