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,

A few points, but mostly the day was just SCRATCHES.
Lunchtime TELLS let us know that the FOMC was likely
to explode with a strong Failed TTT Corollary Reversal
(Daily, bottom chart). Though exciting to watch, it
wasn't too PMT profitable.

[SNIP]

A Happy and Kosher Pesach!!!

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 09 April 2014

Wednesday opens with a pair of hovering Dojis gap-up near the R1 Resistance. Price Action plummets,
but quickly turns into a mass of dragonfly mosquitoes, swarming to close the gap.

1 = Effectively closing the gap, this vigorous 2-bar off the Close, pulls us in aggressively. Stop
advances under the MA/Free Trade.

A = Large white candle crosses the High. Per PMT stop rules, move the stop under the High.

Stall tests the High Resistance-turned-Support, but before our stop was hit the High held. We prepare
to either Pivot Scalp Exit on the next candle or pull the plug.

B = DVS (pink arrow) indicates exhaustion, as the tail of large white inverted (Bear) Dragonfly
stretches wildly to tap on the R1, spike and recoup, the classic Pivot Scalp Exit Signal.
+/- 4.25 points

2 = Volume is strong (pink arrow). Interesting tight Head and Shoulders off the R1.

C = We enter the breakout with stop above the MA. Rather disappointing breakout, I might add.

D = This move looks to be over. 2-point red candle puts us in Maximum Profit Giveback (MPG) violation.
A mental stop at Giveback Level is called for, but make sure that it's at least Free Trade and a couple
of tiks.

3 = Exit Now! Signal, 2-bar "P" Reversal at the MA. SCRATCH!

When the Reversal, qualifying as a PMT "S" Reversal, sets up and breaks out with a High-Volume (pink
arrow) 123 kick off from the MA, we almost jump in. The R1, however, is proven, albeit gently, and
trading is about to enter pre-FOMC lunchtime stillness. No tradable Price Window. Pass.

The blanket toss off the elastic MA (= 3, blue arrow) wafts Price Action softly upward to a halt at R1
Resistance. Round trip Doji day so far.

X = And now it's all clear! We have a TELL (three actually, blue arrows, lines, and ovals). Lunchtime
Volume surges, and the BBs are through the R1. TELLING us that they want to go seriously bullish!

NOTE: Since the today's FOMC minutes will be about the
March Fed discussions, their effect is theoretically
already expressed in the current Market (Price). It is
thus known that the minutes will pretty much confirm
the previous FOMC non-statement. CONCLUSION: Any FOMC
hysteria now is just that. We traditionally DO NOT
TRADE THE FOMC, but just watch it unfold today!

E = Just as the minutes are about to be passed out, the tape quietly completes a wide but shallow Head
and Shoulders set up (blue oval), with a modestly vigorous 123 (blue arrow). It overall obvious from
the TELL that an entry order above the MA will pay off!

Minutes are out. Bull pandemonium (pink arrow) generates a monster white candle. Relying on the TELL,
Report traders can be fairly certain that a large white candle will follow. Twin Towers DVS, and a spike
through and retract at the R2 signal a Pivot Scalp Exit. Nice little quick-profit run for the bravest
of experienced Readers of the Tape who hopped aboard the ROMC Train!

4 = Back in PMT reality, Volume is strong (pink arrow), and we enter aggressively as the 123 blasts
through the R2. At the close of the candle, move the stop to Free Trade and a couple of tiks.

F = Large white candle puts our position in MPG violation. Mental stop at Giveback Level.

Price Action stalls, tapes a Black Volume Bar of Death Doji, and then shows red. We go instantly flat!
+/-1.50 points

5 = Doesn't look to have much power, but there's a pair of Bull Dojis forming a DT Double Bottom off
the R1.

G = Volume is up (pink arrow), so we enter above the MA.

H = Sadly, Volume promptly droops. We call this a second white closes above the MA and Move our stop to
Free Trade.

No good news. When the candle following a Black Volume Bar of Death Doji shows red a few candles later,
we SCRATCH!

Ultimately, the MA holds and Price Action does continue to drift gently up to EOD close.

PERSPECTIVE
(Daily, bottom chart)

Wednesday's large white day candle demonstrated the
Failed TTT Corollary. A huge sumo candle rebound to
the most solid of the LT SW Channel Ceiling levels
(lavender line).

The almost perfect Marubozu candle suggests a breather
rather than a follow through right away on Thursday.

REMEMBER: Trade the Tape, Not my Prognostics!

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

Asher
=] ;-)>

Wednesday's PMT Chart: