BS"D

Exploit Pit Pivot Points
Daytrading Course
Learn to Read the Tape
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DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning,

Our concern yesterday: "Not altogether certain that the
Channel Floor will hold back the 123 pressure on Tuesday"
proved correct. Nonetheless, as day traders we took a
nice bite out of the first leg of Tuesday's 20+ point dive.

Eyes open for the FOMC this afternoon.

Enjoy and be well,

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Pivot Magic Trading
First rule:
"Any time you don't know what is happening, get out!"
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E-mini ES Z3
Tuesday 08 October 2013

Tuesday morning opens at the Close/LT Sideway Channel Floor (lavender line). Price Action does
battle at this Level for the next hour.

1 = A 123 off the Close/LT Sideway Channel Floor completes on massive Volume (pink arrow) with
a giant red candle. We enter aggressively. At the close of the candle, move the stop to Free
Trade and a few tiks.

A = Large red candle through the S1. Per PMT stop rules, move the profit-locking stop above the
S1. We observe that this is also a 2-candle 123 and we add contracts.

B = Price Action stalls for a single candle before taping a giant red Marubozu candle. Our
positions are now in Maximum Profit Giveback (MPG) violation. With a possible Late-in-the-Move
DVS (pink arrow), exhaustion is likely. Additionally, we never know if the troops will rally
into the hole punched by this type of sumo candle. We thus have three good reasons to move our
stop to Giveback Level. Remember, it is not actually necessary to give it ALL back.

And there it is; the next white candle retraces >62% and we bail out. +/- 5.50 points

2 = A serious 123 off the S1. Price Window is closed to the proven S2. We pass.

3 = Nice 2-candle 123 through the S2. Twin Towers stall indicator (pink arrow) and the
lunchtime clock both warn us to wait. The move dies.

Lunchtime Price Action turns sidewise, drooping eventually to test the S2 Support.

4 = A 2-Bar Reversal off the S3. We don't trust DVS-based (pink arrow) 2-candle signals for
longevity. Pass.

Volume dries up and Price Action resume sideways drift.

EOD Hiccup (plum lines) is a few minutes early, but still traces a classic "V" check mark
pattern, as Price Action dives through the S3 for EOD close.

PERSPECTIVE
(Daily, bottom chart)

Tuesday's large red cay candle clearly exited the
LT Sideway Channel (lavender lines), crossing below
the both the Fibonacci 50% and 62% Retracement Levels
as well. Unless Wednesday's belated FOMC minutes
reveal some overlooked good news, this is a bad sign
for investors.

Sure glad we are day traders and not investors!

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Tuesday's PMT Chart: