DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT
In yesterday's PMTJournal we presented two probable scenarios
for Wednesday. Looks like the Bears took the second choice and
" . . . roll[ed] with the Momentum for another day . . ." ;
at least until the S1 Pivot Point Support finally stopped the
We ate one SCRATCH right out of the gate, but more than made
up for it with a substantial bite out of the late morning
Be extra alert on Thursday!
Enjoy and be well,
E-mini ES H1
Wednesday February 23, 2011
Wednesday morning opens at the Close, climbing.
1 = Reversal through the Close. Aggressive entry and instant SCRATCH! Not at all a nice way to
start the day.
2 = Red Bear Dragonfly completes the Double Top Reversal off the Close.
A = Pulled in on a large red candle. Initial stop advances above the high of the candle for
reduced At Risk.
B = Large red candle. Normal stop placement leaves the position in violation of Pivot Magic
Trading Maximum Profit Giveback (MPG) rules. Mental stop at Giveback Level.
Exit (with positive slippage) as the next (white) candle retraces >62%. +/- 1.75 points
3 = Resounding 2-bar off the Close for a failed Third Time Through (TTT). A Failed TTT Corollary
C = Volume really comes to life (pink arrow), and we are pulled in (just in time, per our entry
breakout rules) on a giant red candle. As the candle closes, move the stop to Free Trade and a
tik, and relax (no rule for that)!
D = Large red candle. Per PMT stop rules, we would normally move the profit-locking stop above
the high of the candle, but this leaves the position in MPG violation. Mental stop at Giveback
E = With the Primary Objective (S1) in sight, we somewhat creatively call this a "large" red
candle and move the profit-locking stop above the high of the candle.
An extremely low-Volume S-trap is a bit nerve-wracking, but with little opposition, the Bears
resume the assault.
F = DVS (pink arrow) blasts a giant red candle though the S1. Our stop rules say to move the
profit-locking stop above the S1.
G = Giant red candle off the S1. If you caught it early, this is a 2-candle 123 inviting
additional contracts. By the close of the candle it becomes less inviting as the tape presents
a Twin Towers DVS pair (pink arrow), which indicates a stall/sag/retest on the next candle.
The position is in MPG violation, so place a mental stop at Giveback Level.
The next candle (large white Spinning Top) retraces >62% of = G, which we recognize one of the
PMT Exit Now! Signals. +/- 7 points
S-trap stall, and Price Action continues south for one more large candle on a solitary DVS.
4 = It is lunchtime, and this 2-bar has no supporting Volume to entice us. Pass.
5 = No Volume confirmation for this Bull 123 Continuation off the S1.
6 = As the PMT entry clock winds down, this 2-bar Reversal again finds no support, and we shut
down for the day.
EOD Hiccup (plum lines) is a bit early, but it does tape the classic "V" checkmark pattern,
closing EOD at the S1.
(Daily, bottom chart)
Nice rangy red candle graces the Daily tape on Wednesday.
The Bears follow through on the Momentum surge from Tuesday,
dipping even deeper into the LT Trend Channel (green channel lines).
Good chance that the Bears will stop to regroup on Thursday, but as
the Fundamentals get scarier, the Channel Floor may be where they
next pause to breathe!
BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!
REMEMBER: Trade the Tape, Not my Prognostics!
Wednesday's PMT Chart: