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,

As we anticipated in Yesterday's PMTJournal, PERSPECTIVE:
" . . . Thursday may permit a bit of a bull resurgence . . .".

With most of the run up taking place during the Overnight,
we only managed to eke out one healthy trade amidst the
frustrating series of SCRATCHES.

TGIF!!!

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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BONUS TRADE FROM WEDNESDAY
(Bottom left chart)

To avoid confusion, yesterday I left out discussion of a very interesting discretionary
trade that appeared on Wednesday's tape.

We still don't have any rules for safely trading the EOD Hiccup. Nevertheless, this is
a discretionary trading methodology.

Our PMT Failed Third Time Through (TTT) Corollary is extremely reliable. With the Third
failing attempt to penetrate the rock-hard Pivot effectively tracing the first leg of a
classic EOD Hiccup "V" check mark, Price Window wide open to the Close, and the Reversal
off the Pivot, no less, advanced Readers of the Tape feel odds-on certain of a nice
profitable, low risk trade.

From aggressive entry on the red reversing candle (below the low of the white candle that
tapped the Pivot) to the Spike and retrace Exit Signal at the Close, +/-4.25 points of
profit were secured by the daring.

E-mini ES Z3
Thursday 10 October 2013

Thursday morning opens gap up and continues to climb to the R3.

1 = A 2-bar off the R3. Volume is down a bit, but we don't require strong Volume support for a bear
entry.

A = We are pulled in on a red Spinning Top. Not wild about this stall-candle breakout.

B = Black Volume Bar of Death (pink arrow) Doji. Combined with the Spinning Top preceding, the odds
of recovery are slim. Per our rules, prepare to exit on the first sign of white on the next candle.

SCRATCH!

2 = A 123 breakout from a small Ascending Triangle (lavender lines). Volume is high (pink arrow),
and we enter aggressively. Bad choice. The next candle is very small, and then the Bears run back
to retest the R3. We SCRATCH!, again.

3 = Late-in-the-Move DVS drives a large red candle completing a 2-candle 123 through the R3. Fooled
twice, we hesitate. The move dies.

4 = Another 123 breakout from a small Ascending Triangle (lavender lines). This time, in spite of the
strong supporting Volume (pink arrow), we are cautious.

C = We finally enter on a second, large white candle 123 breakout. At the close of the candle we
aggressively move our stop to Free Trade and a tik.

D = Large white candle puts our position in PMT Maximum Profit Giveback (MPG) violation. Mental stop
at Giveback Level. The Twin Towers (pink arrow) stall indicator seconds our decision.

E = Following a single-candle stall, a DVS (pink arrow) exhausts Momentum with a white Spinning Top.
Per our PMT stop rules, move the profit-locking stop under the low of the candle.

F = Large white Bull Dragonfly puts us in MPG violation. Mental stop at Giveback Level.

A = Large red Spinning Top and a protracted stall tell us it is pointless to try to weather the
lunchtime sideways drift. Exit Now! +/- 3.75 points

Price Action continues to drift. Feels like forever. Already at 3:00 The BBs begin to offload their
positions. This boosts Price Action briefly, but sideways drift resumes to EOD.

PERSPECTIVE
(Daily, bottom right chart)

Sadly for us, most of Thursday's monster white day candle resulted
from overnight trading. Price Action reversed at the Fibonacci 62%,
and climbed through the Fib 50% to re enter the LT Sideways Channel
(lavender lines).

Fridays are notoriously unpredictable, but we surely can expect a
retrace/breather following Thursday's huge gains.

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Thursday's PMT Chart: