BS"D
DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT
Good morning,
Bull market again. No Volume and no reason.
Though most of Thursday traded sideways, we got a couple of
small bites. Better than a poke in the eye with a sharp
stick, as my Daddy (z"l) used to say. Still . . .
TGIF!!!
Enjoy and be well,
******************************
E-mini ES H1
Thursday March 24, 2011
NOTE: The charting service has still not corrected the time axis
for daylight savings time. Assumedly, it will get square when we
move our clocks forward here, April 1st. In my commentary I will
try to remember to add 1 hour to what you see on the charts.
Don't get too confused!
1 = Thursday opens gap-up with a massive Anomaly (Overnight, bottom left chart) through the R1. Killer
Volume (pink arrow), and we enter aggressively below the R1. By the close of the candle move the stop
to Free Trade and a tik, for instant locked-in profit. Way to start the day!
A = It took 3 average-sized candles, but our position is now in Pivot Magic Trading Maximum Profit
Giveback (MPG) violation. With no sign of this move abating, we are reticent to exit arbitrarily.
Creatively, call it a large enough candle, and move the profit-locking stop above the high of the candle.
B = Giant red Spinning Top. The Momentum is now failing. Move the profit-locking stop above the high
of the candle. In anticipation of an S-trap, make that a mental stop.
C = Still shy of the Primary Objective (closing the opening gap), the tape presents a mid-air Reversal.
As Price Action retraces 62% of the red Bear Dragonfly, Exit Now! Slipped. +/- 2.75 points
2 = Gap is closed, and a "P" 2-bar Reversal off the Close completes outside the green fog Ambush Zone.
D = Pulled in on large white candle. Initial stop under the low of the candle.
E = Failed test of the MA. Per PMT stop rules, move the profit-locking stop under the MA.
F = White Marubozu (full-bodied candle without wicks) puts our position in MPG violation. Again
creatively, with the Primary Objective in range and no signs of Momentum failure, call it a large enough
candle, and move mental stop under the low of the candle.
G = A Late-in-the-Move DVS (pink arrow) is an exhaustion indicator. The white Spinning Top is another.
This ugly combo puts our position in MPG violation. With only negative signs on the tape, we seek no
excuse to be creative. Follow the basic rules. Exit Now! +/+ 3 points
3 = A wicked S-trap fails the MA test and sets up a 2-candle 123 through the R1. The massive Volume
spurt (pink arrow) lets us enter aggressively. As the candle closes, move the stop to Free Trade plus a
tik, and sigh (no rule for that!).
H = Twin Towers DVS pattern (pink arrow) indicates a stall/sag on the next candle. Convert to a mental
stop in preparation. Exit briskly as the next (red) candle retraces >62% of = H.
+/- 1.25 points
Lunchtime sideways drift starts early today, and slides along the MA till the BBs start to dump their
position at 3:15. We shut down early, around 2:15-2:30, when it becomes certain that we won't be tempted
further today.
PERSPECTIVE
(Daily, bottom right chart)
Not too surprisingly, for no apparent reason Thursday
taped a healthy white day candle. The market continues
to climb with neither Volume nor reason.
BEWARE OF TRAPS ON FRIDAY!!! and
BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!
REMEMBER: Trade the Tape, Not my Prognostics!
Asher
=] ;-)>
Thursday's PMT Chart:
