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,

Trading on Wednesday morning was almost profitless,
as Volume held to a whisper in anticipation to the
FOMC announcement at 2:00.

Once the FOMC hysteria degaussing completed, the
Bears took charge and presented us with a monster
quickie trade. Lots of slippage, in and out. We
also took a nice big bite as the PMT entry clock
ran out.

More Bears on Thursday?!?

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 M4
Wednesday 19 March 2014

1 = Wednesday morning opens with an Anomaly (Overnight, bottom left chart) at the Close, kicking off
with a 123. Volume is oddly low for Opening Range, even on an FOMC day!

A = Volume (pink arrow) perks up, and we are pulled in on a large white candle exiting the fog. Make
that multiple contracts, and immediately move the stop to Free Trade and a tik.

The next candle puts our position in Maximum Profit Giveback (MPG) violation. The candle is too small
to warrant a stop move. MPG Rules say to exit. +/-1.75 points

Volume has gone back to sleep, and Price Action slides noiselessly along the Close in anticipation of
the FOMC announcement.

B = 2:00 on the dot, Volume jumps (pink arrow), and FOMC hysteria takes over (black oval). We wait
for things to equilibrate.

2 = Double Top at the Pivot. We enter on the breakout (blue arrow).

C = Exit instantly as the bottom wick of this red inverted (Bull) Dragonfly recoups >2 points.
+/- 1.75 points

Not having any fun today!

3 = Volume is depressingly low on this 2-hit 123 off the Pivot, so we can't enter aggressively on the
red completion candle.

D = We do enter early on this DVS-driven (pink arrow) monster candle. The slippage was bad.

Looks like the FOMC news has started to sink in! Our position is instantly in MPG violation. With the
Primary Objective, S2, so nearby, we are doubly happy to place a mental stop at Giveback Level.

REMINDER: There's No reason to give it all back if the S2 holds.

E = Giant spike through the S2. We exit as soon as >2 points are recouped. Again slippage.
+/- 12.0 points Nice!

4 = Not sure what to call this, a multiple Bottom or a Doji Sandwich completing on a white Bull
Dragonfly. Either way, get ready.

F = We are pulled in on a large white inverted Dragonfly. Don't at all like the elongated top wick.
Jump the stop tight under the low of the candle, or even into the gap.

G = Another large white candle with an elongated top wick. Per our stop rules, move the profit-locking
stop under the low of the candle.

H = Finally, a healthy large white candle, and our position is in MPG violation. Mental stop at Giveback
Level.

J = Large white Spinning Top, mostly wicks, Failed MA test. Per PMT stop rules, move the profit-locking
stop under the MA.

K = Large Marubozu-like white candle through the S1. Per our stop rules, we happily (no rule for happy)
move our stop under the S1.

As the EOD Hiccup (plum lines) sets up in the Zone, we exit (or get stopped out). +/- 6.0 points

EOD Hiccup tapes the classic "V" check mark and dives south, back through the S1, to EOD close.

PERSPECTIVE
(Daily, bottom right chart)

Wednesday's FOMC announcement plunged Price Action deeply,
generating a large red day candle, which totally recouped
Tuesday's gains.

Since the potentially negative market effect (not to be
confused with economic effect) of the announcement was only
a maybe, and that was really a projection for at least six
months in the future, we are only expecting a bit more Bear
Momentum follow-through for Thursday. The Historical S/R
(blue line) is likely to hold.

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Wednesday's PMT Chart: