| A Significant Rule to be Applied in Emini Futures Trading |
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| Written by Barbara Cohen, CIO, Shadowtraders |
| Sunday, 28 March 2010 14:36 |
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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.
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 say you don't agree that the market is controlled? I'll give you an example of how it works. End of May 2009. Treasury Secretary Tim Geithner goes to China ane meets with government officials. The Chinese gave Geithner some kind of a warning, the conversation most likely their telling him that they have invested heavily in the U.S. stock market and in U.S. Treasury bonds. They are prepared to sell their holdings if the stock market does not appreciate. Geithner immediately identifies that Chinese withdrawal could devastate the U.S. economy, an economy barely being held together with bobby pins. Geithner comes back to the US and figures out what he and his Treasury friends can do to fix the problem. Geithner's meeting with the Chinese officials took place at the END of May. Right after he came back, the Dow appreciates to 8,800 from 8,200 in 2 weeks, a 600-point run up. Note...the DOW that had not moved up for over two months, remaining around 8,000. How could the DOW move up 600 points in just 2 weeks given that it hadn't moved in over 2 months? Between the months of July and August, the market went up almost 1,000 points. Strange...examine an old Dow chart for the past five years. You'll realize that May through August are normally thought to be what has come to be known as the summer doldrums. So explain how the DOW could go up over 1,000 points in just over one month? Now that is control. How does that kind of control help you to become a 12-minute trader? Simple. The point of this story is that the market is controlled. The market's "insiders" know where they are interested in taking the market to and they can control just how fast it gets there. Insiders follow very controlled trading rules, an important one of which is Futures Pivots. To become a 12-minute trader, you need to learn the insider's rules...buy when they buy and sell when they sell. Become a market shadow. 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. If you want to discover more about becoming a 12-minute trader and learn more information on Futures Market pivots, attend a Monday night webinar on trading Futures sponsored by http://www.shadowtrader.com. There you can see for yourself the pivots in action on the current day's technical analysis chart. Shadowtraders always shows the current day's chart, not some old chart from weeks or months earlier. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Before you buy a subscription to a Futures trading chatroom, make sure you attend one of Barbara Cohen's excellent free Monday night Webinars |
| Last Updated on Saturday, 03 April 2010 14:49 |