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Posted by upendra on May 3, 2008, 12:45 pm
>
>
>
> > BS"D
>
> > Exploit Pit Pivot Points
> > Learn to Read the Tape
> > PMT Daytrading Course
> > ******************************
>
> > PIVOT MAGIC JOURNAL - EXCERPT
>
> > Good morning,
>
> > Classic sleepy day of waiting for the Fed to shoot themselves in the
> > foot at 2:15.
>
> > Not satisfied that the reduction of interest rate suggests lack of
> > confidence in the
> > economy (and is an admission of the stupidity of their earlier over-
> > boosting of that
> > same rate) the Fed pretty confidently stated that they doubted that
> > the move
> > would stem the upcoming recession.
>
> > So, of course, the market fell in response to a decrease in interest
> > rate.
>
> > Go burn your Economics textbooks. =A0NOW!!!!
>
> > Be well,
>
> > =3D] ;-)>
> > ******************************
>
> > BS"D
>
> > Pivot Magic Trading
> > First rule:
> > "...Any time you don't know what is happening, get out!"
> > ******************************
>
> > E-mini
> > Wednesday April 30, 2008
>
> > [SNIP]
>
> > C =3D Someone broke ranks before the announcement (blue arrow). =A0This =
is
> > a TELL. =A0The BBs want to trade Bullish.
>
> > Notice there are two other TELLs (light blue lines): the gap open, and
> > the last-minute surge before the market slips into waiting mode. =A0In
> > fact, following
> > =A0the Fed =A0hysteria (=3D D), the Bull Volume (purple arrow, =3D C) di=
d make
> > a valiant, but futile, effort to move north. =A0Of course the
> > unfortunate phrasing of the
> > Fed exposed their ineptness, which ultimately sent the market plunging
> > to the S1. =A0I mean, how stupid to drop the interest in order to
> > encourage the market,
> > and in the same breath to say that the inflation outlook is still
> > uncertain; hopefully, the interest rate cuts "should [sic] help
> > promote moderate growth over
> > time and to mitigate risks to economic activity."
>
> > Was your confidence bolstered?
>
> > Clearly the market wasn't shored up for long!!!
>
> > 3 =3D Double-tap 123 off the R2, and the Price Action heads vigorously
> > south. =A0In principle, the Price Window to the proven R1 was too small
> > to trade, but, on the
> > other hand, the massive Volume could have possibly encouraged you to
> > enter. =A0Good ole risk-conservative me, I felt that entry immediately
> > under the R1 was
> > safer, however. =A0Initial stop above the R1 for controlled At Risk.
>
> > E =3D Small (breakaway?) gap and a large red candle slams into the
> > Pivot. =A0Our position is in violation of Pivot Magic Trading Maximum
> > Profit Giveback rules.
> > Mental stop at Giveback. =A0Watch vital signs for Pivot Scalp exit
> > symptoms.
>
> > G =3D Add contracts (don't enter in the fog, if you aren't in already)
> > on this 2-candle 123, and move the profit-locking stop above the
> > Pivot.
>
> > H =3D Another 123 off the Pivot. =A0Add contracts as the Price Action
> > leaves the "green fog" Ambush Zone. =A0 DVS (purple callout) drives a
> > giant red candle through
> > the Low to the S1. =A0 Fearing exhausted Momentum, per our PMT stop
> > rules, briskly move profit-locking stop above the Low.
>
> > Taken out at our stop on the next candle. =A0+/- =A08.25 points
>
> > And the day peters out at the S1.
>
> > [SNIP]
>
> > Pivot Magic Trading Coursehttp://www.TradingThingys.com
>
> > Wednesday's PMT Chart:
> > Http://www.TradingThingys.com/PMTJ/PivotMagic043008.gif- Hide quoted tex=
t -
>
> - Show quoted text -
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