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,

Even though Monday was not an overly exciting welcome back
day, we did score nicely on both the Anomaly open, and on
the follow-through Plunge portion of the Plunge-Slide Maneuver.

What's in store for Tuesday?!?

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
Friday 06 January 2014

Monday morning greats us with massive a gap-up Anomaly (Overnight, bottom left chart)
through the R1. With the move headed for the Pivot/Close, we are comfortable to enter
aggressively.

A = Giant red candle puts our position in Pivot Magic Trading Maximum Profit Giveback
(MPG) violation. Mental stop at Giveback Level.

B = DVS (pink arrow), late in the move, uses up Momentum, driving another giant red
candle through the Pivot to spike the Close and retract. That is a Pivot Scalp Exit
Signal. +/- 5.0 points

Price Action stays trapped bouncing in the Pivot-Close channel for most of the next
hour.

2 = DVS (pink arrow) drives the completion of a 123 off the Close Support-turned-
Resistance. We enter aggressively. At the close of the candle we move the stop
above the Low/Free Trade and a couple of tiks.

C = Price Action stalls, but the bears break free with a DVS (pink arrow) and run south
through the S1. Although closing penetration is only minimal, the elongated bottom wick
suggests that it would be wise to move the profit-locking stop above the S1 (good ole
risk-conservative me!).

D = A 2-candle 123 permits us to add contracts. When we see the magnitude of the
associated DVS (pink arrow) we wonder if we might be safer to call this a tap on S2 and
a retract, i.e. a Pivot Scalp Exit Signal. Since we are in MPG violation and will surely
exit if >2 points are recouped (including the bottom wick), let's place a mental stop at
Giveback Level.

E = Tiny Doji and then a for-certain spike to tap on S2 and retract. Pivot Scalp Exit
is signaled. +/- 6 points

Lunchtime sideways drift ensues, taping a gentle Ascending Triangle (lavender lines)
pressed against the underside of the S1.

3 = DVS (pink arrow) drives a giant white candle 123 breakout from the Triangle. Even
aggressive entry does not afford sufficient Price Window to the Close per our entry rules.
Pass.

F = As it turns out, the assault fails on the next candle, just short of the Close.

Price Action is sideways, pinging the Close Resistance until our PMT entry clock runs out.

G = At 3:30 minimal Volume (pink arrow) somehow drives a gigantic Marubozu to a failed
test of the S1. Price Action bounces and settles just under the S1 at EOD close.

PERSPECTIVE
(Daily, bottom right chart)

We return from our break to a rather droopy, stalled trend
in the e-mini. Monday taped a small red Bear Dragonfly day
candle, breathing in place.

Not enough on the tape to predict tomorrow's direction, but
as day traders, that is of little matter to us. Stay alert.

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Monday's PMT Chart: