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Commodity and Futures - Physical commodity and financial futures markets.
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Posted by Asher on June 27, 2008, 9:20 am
BS"D
Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
******************************
PIVOT MAGIC JOURNAL - EXCERPT
Good morning,
Yesterday we warned:
"Expecting Thursday to be a bomb!"
The day candle was about 35 points from Open to Close.
I'd call that a bomb.
There was a fair amount of drift and swing Thursday, and fully a third
of the massive plunge
occurred overnight. As a result, we only managed to pull out about a
dozen points.
(Minus, of course the initial losing scratches for the more intrepid
and fearless traders
amongst us.) Not really all that shabby.
TGIF!!!
******************************
Pivot Magic Trading
First rule:
"Any time you don't know what is happening, get out!"
******************************
E-mini
Thursday June 26, 2008
[SNIP]
A = Note that neither of these powerful DVS attempts (pink arrow)
managed to generate very substantial Bull Price Action. Conclusion:
This is a sort of TELL
that it's going to be a Bear morning/day.
3 = Failed Third Time Through (TTT), 123 "S", off the S2. Failed TTT
generally resolves with a strike at the next PL in the opposite
direction.
The heretofore confused Volume steadily gains strength, as the tape
displays a large red candle, (finally) pulling us in. Initial stop
may be advanced above
the high of the candle, per our stop rules.
C = Failed test of MA. Move the profit-locking stop above the MA,
further reducing the Undefended At Risk. The next candle (blue arrow)
is a large one, so, in
accordance with our PMT stop rules, move the profit-locking stop above
the high of the candle.
NOTE: ABS today is a bit large. To avoid getting stopped out at
every Price adjustment,
consider expanding the Maximum Profit Giveback and stop placement
spacings.
D = Large red candle puts our position in violation of the Pivot Magic
Trading Maximum Profit Giveback rules. Mental stop at Giveback level.
E = Another large red candle again puts our position in violation of
the Pivot Magic Trading Maximum Profit Giveback rules. Mental stop at
Giveback level.
The next candle is (sadly) a reversal signal. Exit Now! +/- 5.75
Rather high-Volume lunchtime drift ensues, with Price Action moving
sideways, repeatedly testing the S3.
4 = TTT of the S3 tries to take off with a 123 through the S3. The
next lower Historical S/R (aqua line) seems to interfere, but all of
this is of little interest to us.
No way we will enter beyond the Extreme PL S3 during lunchtime.
F = A series of red DVSs (pink arrows) comprise a rather transparent
TELL. Once the BBs come back from drinking lunch, expect a Bear
assault.
5 = BBs are back (pink arrow), and a Double-top/Failed TTT blasts off
from the under side of the S3, through the aqua line! Considered
aggressive entry below
the aqua line.
G = Large red candle pulls in the rest of us risk-adverse (like good
ole risk-conservative me) PMTers. Stop above the MA. Per usual, the
Price Action immediately
turns sideways!
On a happier note, the Bull DVS (pink arrow) once again effected
virtually no meaningful advance in Price. The Bulls just aren't
strong enough today to rally.
H = Large red candle. Per our stop rules, move the profit-locking
stop above the high of the candle.
J = Large red candle drives a Bear Dragonfly, putting our position in
violation of Maximum Profit Giveback rules. Mental stop at Giveback
level.
L = Possible mid-air reversal. When the Bears are unable to recover
on the next candle (blue arrow), it is clear that the Momentum is
exhausted. Exit Now!
+/- 5.50 points
Price Action is confused for the next hour, and then Price Action
etches the classic V of the checkmark shaped EOD Hiccup on the tape
(lavender line).
[SNIP]
BEWARE OF TRAPS ON FRIDAY!
right
REMEMBER: Trade the Tape, Not my Prognostics!
Asher
=] ;-)>
Pivot Magic Trading Course
http://www.tradingthingys.com/PMTJ/Commodity%20Day%20Trading.html
Thursday's PMT Chart:
Http://www.TradingThingys.com/PMTJ/PivotMagic062608.gif
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