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,

The vigorous response to the do-nothing (no taper yet)
FOMC statement generated lots of trading range Wednesday.
Sadly, the run up was full of swings and corrections.
We were only safely able to take a couple of moderate
bites out of the trend.

Breather or Momentum follow-through on Thursday?
Stay alert and watch out for traps!

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
Wednesday 18 December 2013

Hard to tell from the attached chart, but Volume was reasonable though all the morning trading opportunities
were effectively blocked by the Pivot on Wednesday.

Volume dies, and Price Action comes to silently rest atop the S1 in anticipation of the FOMC at 2:00.

A = Fed statement is out. Guess no (taper) news was read as good news. Hysteria Volume goes wild (pink
arrow), driving a humongous 20-point white Bull Dragonfly candle. We are glad that we weren't standing in
front of that fast moving train!

1 = We wait for things to adjust. BTW, if you were anxious and entered aggressively on this 123, moving the
stop to Free Trade at the close of the candle, you were rewarded with a quick SCRATCH!

2 = A second 123, this time testing R2 Resistance-turned-Support. Entry is possible as the completion
candle clears the preceding red candle.

NOTE: ABS is greatly bloated, so to avoid getting stopped
out at every swing we expand our stop, exit, and Maximum
Profit Giveback (MPG) placements.

B = DVS (pink arrow) looks small due to the large point spread of the vertical axis, but it is actually pretty
massive. Giant white Marubozu through the R3 leaves our position in MPG violation. Mental stop at
Giveback Level.

3 = We exit as Giveback Level goes into jeopardy. +/- 4.25 points

Reversal Signal in the direction of the Close/Pivot looks good.

C = We enter with multiple contracts as a 2-candle 123 breaks south.

4 = Arrrggghhh! Stopped out for a loss by a 123 through the R3.
A 123 above the R3 (blue arrow) sets up a multiple contract entry.

D = DVS (pink arrow) blasts a giant white Marubozu breakout. Our position is instantly in MPG violation.
Mental stop at Giveback Level.

E = Looks small, but this is a 3-point candle. Again we are in MPG violation. Mental stop at Giveback Level.

A 2-point red Bear Dragonfly signals reversal (may be just a stall?). We go flat instantly as soon as the
next candle shows red. +/- 3.75 points

The MA holds, and the classic "V" check mark EOD Hiccup pattern (plum lines) continues the swinging run
up for another 8 points or so, without us aboard.

PERSPECTIVE
(Daily, bottom chart)

Wednesday's FOMC-driven giant white day candle
stretched to test the contract high. Imagine if
the Fed had actually taken some action!!!

Question now is whether Price Action will take a
breather/retrace following such a giant run or
will residual Momentum continue to push Price
upward on Thursday.

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Wednesday's PMT Chart:

Asher
azlcpa@netmedia.net.il
azlcpa