E-mini looks ominous, but meanwhile, we got a really nice bite of the
plunge Monday.

Guess the BBs still read our Daily PMYJournals.  In yesterday's
PERSPECTIVE section
we ruminated:  " . . . A particularly large, red, day candle closes
outside the LT
SW Trend Channel . . . below the 62% Fibonacci Retracement level.
This warns  . . .
more serious Reversal may be in the works.  The BBs will probably hold
back, waiting
to ride Wednesday's FOMC announcement hysteria . . . overall bearish,
with breather
candles for both Monday and Tuesday."

Also mentioned, "Monday is likely to be like treading treacherous
shifting sands.
Security and alacrity are our key words for the next couple of days!"

Read on, in today's discussion.

***********************************************
DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT
***********************************************

E-mini
Monday November 02, 2009

Monday opens slightly gap-up.  Price Action stretches for the Pivot
before swiveling to attempt a closing of the gap.
MA Support intervenes, and Price Action reverses.

1 = Ten o'clock Action Time Zone and the tape presents a 123
Continuation of the Pivot.  We are pulled in aggressively
on a DVS-driven (pink arrow) giant white candle through the 62% Fib
(red line).

By the close of the candle, the position is already in violation of
PMT Maximum Profit Giveback (MPG) rules.  Mental
stop to Giveback level.

Ouch!  Next (red) candle is a J-hook and our stop is hit.  +/- 3.25
points

A whole trade in a single candle.  Forewarned, we trade with alacrity!

2 = Volume is back up so we prepare to enter.  White Bull Dragonfly
looks small compared to Monday's ABS, but it is
a 2-pointer "P" Signal off the Pivot.

A = Large white candle pulls us in.  Initial stop advances under the
low of the candle per our stop rules.

B = Very large candle puts our position in MPG violation.  Mental stop
at Giveback level.

C = Large candle through the 62% Fib Retracement level (red line).
Take the opportunity to move the profit-locking
stop under the famed, hypothetical S/R (red line).

Vague J-hook, and, like lightening, we're out, with slippage.  +/-
1.50 points

NOTE:  The three Lower Highs and Lows (plum channel lines, excluding
the as yet not
having occurred Pivot crossing) not only define a trend, but also
represent a strong
(green arrow), moderate (black arrow), and feeble (blue arrow) TTT
attempt to reverse
the depressed trading atmosphere (below the 62% Fib Reversal level.
The PMT Failed
TTT Corollary phenomenon ensues.

We are without PMT or TA permission or encouragement to enter during
lunchtime, even
though a Pivot Scalp is a sure bet, with Gravity and the Pivot rubber
band both
pulling against a depressed background and in conjunction with the
powerful need to
close the opening gap.  The pain!

3 = Pivot Support fails!  With a 123 Continuation offering us an "S"
Signal, we find zero Volume.  Not yet.

D = Large red breakaway candle.  With the gap yawning below, one might
wisely get micro and call this a DVS
(pink arrow), as the tape offers an entry opportunity.  Always
security/Money Management conscious, the entry
(joyously) turns out to be coupled with the easy chance to slide the
initial stop to "free trade" at candle's
end.  Nice!

E = Disinterested, the Bulls barely make a show.  The Bull Volume
again surges and Price Action plunges toward the
Close.  Very large red candle puts our position in MPG violation.
Mental stop at Giveback Level.

F = Giant DVS (pink arrow, exhausting) slams a gigantic red candle
through the Close.  Opening gap is closed (duh!),
and the Momentum carries down through the Low.  Exhausted, the spike
reverses > 2 points.  That is a PMT Exit Now!
Signal.  +/- 10.75 points

4 = Full-sized Double Bottom though the Close.  No clear Volume
encouragement to suggest attempting a ride to the
Pivot.  Move turns into a dud, along with the rest of the day.

PERSPECTIVE
(Daily, bottom chart)

Large white Bear Dragonfly day candle tentatively inched lower.  Not
only
does this candle amplify our reading that a serious Reversal may be in
the
works, but it definitely is just about the only white candle that fits
our
earlier projection of "overall bearish, with breather candles for
both
Monday and Tuesday."

Large range day, but the lack of net Price change makes it a breather,
and
the long upper wick, representing a failed Bull push back Overnight,
convert
this to an overall bearish candle and formation - A Tinderbox waiting
to be
ignited by the Fed.  Hope that makes you feel better.  Hehehe!

DAYTRADERS:  Make hay while you may!

REMEMBER: Trade the Tape, Not my Prognostics!

Asher
=] ;-)>

Pivot Point Daytrading Course
http://www.tradingthingys.com/PMTJ/Commodity%20Day%20Trading.html

Monday's PMT Chart:
Http://www.TradingThingys.com/PMTJ/PivotMagic110209.gif