Trading Blogers

To understand the essential nature of pivot trading, you’ll need to first of all understand that the stock market is controlled. Perhaps it could be best said that the Stock Market is entirely controlled and if it were not, then millions of Futures contracts and millions of shares of stock could not change hands each day so competently.

You don’t believe that the market is controlled? Let’s see an example of how control works. At the end of May 2009, Treasury Secretary Tim Geithner went to China and met with Chinese government officials. The Chinese handed Geithner a kind of warning, the conversation most likely went like this…their telling him that they have invested in the U.S. stock market and in Treasury bonds. They are willing to sell their holdings if the stock market does not rise soon.

Geithner knows that could literally crash the U.S. economy, an economy held together with bobby pins.

Geithner returns to US. Can he and his Treasury friends do anything to fix the problem? Geithner’s meeting with the Chinese happened at the END of May. After his return, the Dow appreciates to 8,800 from 8,200 in 2 weeks, a 600-point rise. Strange…this market that had not moved for over two months, hanging around 8,000. How could the DOW move up 600 points in two weeks when it hadn’t moved in over 2 months? July and August, the market rose almost 1,000 points. Examine an old Dow chart for the past five years. You’ll understand that May through August are generally thought to be what is known as summer doldrums. How could the DOW go up 1,300 points in just over one month?

The point of the story? How does that help you to become a 12-minute trader? Simple. The point is the market is controlled. The market’s “insiders” know where the market is going and how fast it will get there. They follow specific trading rules, one of which is pivots. Here’s a trick to help you become a 12-minute trader: Just learn the insider rules. Buy when they buy and sell when they sell. Be the market’s shadow. Follow the markets’ rules.

What are the pivots used by movers and shakers in a controlled market? Pivots are support and resistance price levels that allow the movers and shakers to control daily highs and lows during the trading day. There are a total of 17 Futures trading pivots — eight intraday (occurring during 1 trading day) and nine inter-day (occurring over more than 1 trading day). Futures Market movers and shakers use Futures Pivots and stock market movers and shakers use Stock Market pivots. To be a dependable 12-minute trader, pivots need to appear on your technical analysis charts. Without pivots it is difficult to trade because you won’t know where the market may reach for highs and lows.

Want to uncover more about being a 12-minute trader? Want to learn more about Futures Market pivots and technical analysis? Attend a Monday night webinar on trading the Futures marker put on by http://www.shadowtrader.com. You’ll see for yourself the 17 pivots in action on the current day’s technical chart. Shadowtraders always demonstrates the current day’s chart, not some chart from several weeks or months earlier.

Before you buy another trading seminar, make sure you attend one of Barbara Cohen’s excellent free Monday night Webinars