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,

Follow-through Monday it was! Just as we predicted.

Extremely large ABS on Monday made the Price Swings deadly.
We did manage to collect a good handful of points, although
one large success was really more of an accidental gift.

A rest before Wednesday's FOMC statement, or first a bit
more continuation on 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
Monday 27 January 2014

1 = A rather interesting preceding trend gives way to a Double Top off Pivot Resistance (first top is in
range, blue arrow). Volume (pink arrow) is massive. Nice, though not required for a Bear entry.

A = We enter immediately, as this giant red candle opens below the MA. Initial stop at Free Trade and
a tik.

NOTE: It is already apparent that ABS is huge today.
To avoid getting stopped out at every Price Swing,
expand stop, exit, and Maximum Profit Giveback (MPG)
placements.

B = Large red Bear Dragonfly puts our position into MPG violation. Mental stop at Giveback Level,
rather than above the candle high.

C = Large red candle vaguely through the Close. Per our PMT stop rules, move the profit-locking stop
above the high of the candle. Perhaps a mental stop since this is approximately MPG Giveback Level?

D = A 2-candle 123 spikes the Close and heads south through the LowW. Late-in-the-Move DVS (pink
arrow) suggests exhaustion and a retest. Normal stop, above the LowW, leaves the position in MPG
violation. Mental stop at Giveback Level.

Exit as the next (white) reversing candle approaches Giveback Level. +/- 6.50 points

2 = This 123 doesn't take off.

3 = This one does!

E = The MA holds (twice), and we enter as this red inverted (Bull) Dragonfly initially spikes.

F = Large red candle. Move the stop above the high of this candle.

CHOICE:

* When this large white candle tapes a reversal,
we immediately exit. SCRATCH!

* Since our stop is nearby, and the MA Resistance
is well proven, we can hold on with a variation of
our NEW PULL-BACK LOCK-IN S-TRAP EVASION MANEUVER.

Though the first choice is the better choice for the risk-conservative (like good ole risk-conservative
me), by the time the white candle presents, we have no time for a Cancel-Replace and wait for our stop
to be hit. Thus, we might well have benefited from an accidental NEW PULL-BACK LOCK-IN S-TRAP
EVASION MANEUVER!

G = The MA holds, and a giant red candle breaks for the S1. Position is in MPG violation. Mental stop
at Giveback Level.

H = Just barely a large red candle by today's ABS standards, but, per our rules, it does afford an
opportunity to tighten the stop. Move the profit-locking stop above the high of the candle.

J = Late-in-the-Move DVS (pink arrow) exhausts Momentum. When the tail of this large red inverted
Dragonfly spikes the S1 and retracts we recognize a Pivot Scalp Exit Signal. We were gifted with
+/- 7.0 points

4 = Double Bottom through the S1. The MA has historically held strong and this lunchtime Reversal
does not really take off. Pass.

5 = A 123 retest of the S1 Support moves well above the MA.

K = Volume (pink arrow) and the pull of the Close combine. We somewhat daringly enter on this white
breakout candle. Advance the stop under the low of the candle.

Not too wild about that long top wick. Did we err?

L = Large white candle. Take this opportunity to jump the stop to Free Trade and a tik or two. Safe!

N = Large white almost Marubozu candle. Per our stop rules, move the profit-locking stop under the
low of the candle.

Caught unawares, we didn't have time to adjust for a NEW PULL-BACK LOCK-IN S-TRAP EVASION
MANEUVER. Stopped out. +/- 1.50 points

X = A collection of lunchtime TELLS (blue arrows) suggest that the BBs plan a Bull run for this
afternoon.

Price Action continues to climb to the Close.

6 = A 123 and a white Bull Dragonfly kickoff (blue arrow).

P = We rely on the series of TELLS, and enter on this large white candle. Nervous nonetheless, we
move the stop to Free Trade at the close of the candle.

Q = Large white Marubozu. We always need to prepare in case the troops don't rally into the hole
punched by one of these sumo candles. Especially mid-move and in MPG violation, we are glad to
place a mental stop at Giveback Level.

Price Action stalls and gives no sign of Bull recovery. We go flat. +/- 1.75 points

Eventually the stall resolves with a dive to the Close.

EOD Hiccup (plum lines) occurs in the Hiccup Time Zone, and tapes the classic "V" check mark
pattern. Price Action plunges most of the way back to the S1 by EOD close.

PERSPECTIVE
(Daily, bottom chart)

Monday, Price Action extended Friday's massive dive,
taping a large red Bear Dragonfly (almost a Spinning
Top) day candle. Time for a breather, but with FOMC
statement coming on Wed., the BBs may try stretch
this run Tuesday and breathe on Wed. morning instead.

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

http://www.tradingthingys.com/PMTJ/Commodity%20Day%20Trading.html

Monday's PMT Chart: