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Posted by Asher on March 19, 2008, 10:55 am
BS"D
Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
******************************
PIVOT MAGIC JOURNAL - EXCERPT
Good morning,
First the Fed over-applied the brakes, raising interest to the point
that they collapsed the markets.
Now they are over-stimulating the market by dropping the rate in ever-
larger increments. Even
these reductions are too small to have a lasting effect, and they will
be ultimately read by analysts
as admissions that the Fed has lost control of the economy and that a
more serious recession is in
the offing. Hope not, but thank G-d I don't have a mortgage on my
home!
Be well,
=] ;-)>
******************************
BS"D
Pivot Magic Trading
First rule:
"...Any time you don't know what is happening, get out!"
******************************
E-mini
Tuesday March 18, 2008
. . . [SNIP] . . .
Leading up to the FOMC the market drifts sideways, slightly bullish.
To PMT readers of the tape the distinct
direction of the drift is a TELL. The BBs prefer to move north to
assault the lavender line around 1320, hesitating
of course, in case the Fed has a trick or surprise in store.
C = No real surprise from the Fed. Even though the FOMC over-acted,
it was less than expected, and the initial
hysteria was a large red Bear charge back to the R2 followed by a DVS
(middle chart) Bull response recovery,
an equally large white candle (blue arrow).
2 = The Bear counter-response was really just a fake-out/trap and
Price Action taped a 123 (completing with a
2-candle 123) of the R2. Volume was strong, so our aggressive entry
techniques were applicable. Entry above
the R2 with initial stop advanced under that PL.
D = Giant white candle through the LowM. Per our stop rules, move
profit-locking stop under the LowM (also
approximately Giveback level since this candle violates our PMT
Maximum Profit Giveback rules as well).
E = Large white candle slams into Resistance at R3. Per our rules,
move profit-locking stop under the low of the
candle (once again this approximates Giveback level since this candle
also violates our PMT Maximum Profit
Giveback rules). The Twin Towers Volume further warns that the Price
Action will now surely stall/sag.
Price Action in fact stalls interminably at the R3. With no sign of
Bull recovery and EOC Hiccup is coming
momentarily, risk-conservative PMT traders (like good ole R-C me)
jumped ship. +/- 12 points
As it turned out, the Hiccup continued north all the way to the HighW.
. . . [SNIP] . . .
PERSPECTIVE
(Daily, bottom chart)
Although we can anticipate the market to follow through Bullish from
the boost
of Tuesday's FOMC, possibly even exiting the new LT SW Channel for a
while,
Fundamental traders will ultimately read the Fed's maneuver as a
bluff covering
fears of a serious recession. This implies that another retest of the
LT SW
Channel floor can be anticipated in the near future.
REMEMBER: Trade the Tape, Not my Prognostics!
Asher
=] ;-)>
Pivot Magic Trading Course
http://www.TradingThingys.com
Tuesday's PMT Chart:
Http://www.TradingThingys.com/PMTJ/PivotMagic031808.gif
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