BS"D
Exploit Pit Pivot Points
Learn to Read the Tape
PMT Daytrading Course
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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. NOW!!!!
Be well,
=] ;-)>
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BS"D
Pivot Magic Trading
First rule:
"...Any time you don't know what is happening, get out!"
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E-mini
Wednesday April 30, 2008
[SNIP]
C = Someone broke ranks before the announcement (blue arrow). This is
a TELL. The 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. In
fact, following
the Fed hysteria (= D), the Bull Volume (purple arrow, = C) did make
a valiant, but futile, effort to move north. Of course the
unfortunate phrasing of the
Fed exposed their ineptness, which ultimately sent the market plunging
to the S1. I 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 = Double-tap 123 off the R2, and the Price Action heads vigorously
south. In 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. Good ole risk-conservative me, I felt that entry immediately
under the R1 was
safer, however. Initial stop above the R1 for controlled At Risk.
E = Small (breakaway?) gap and a large red candle slams into the
Pivot. Our position is in violation of Pivot Magic Trading Maximum
Profit Giveback rules.
Mental stop at Giveback. Watch vital signs for Pivot Scalp exit
symptoms.
G = 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 = Another 123 off the Pivot. Add contracts as the Price Action
leaves the "green fog" Ambush Zone. DVS (purple callout) drives a
giant red candle through
the Low to the S1. 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. +/- 8.25 points
And the day peters out at the S1.
[SNIP]
Pivot Magic Trading Course
http://www.TradingThingys.com
Wednesday's PMT Chart:
Http://www.TradingThingys.com/PMTJ/PivotMagic043008.gif
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