One of the Most Important Tools to Trade E-Mini Futures Contracts

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 realizes that Chinese withdrawal from the Market could crash the U.S. economy, an economy only being held together with rubber bands.

Can Geithner and his buddies in the Treasury do anything? Geithner's meeting with the Chinese takes place at the END of May. Upon his return, the Dow goes from 8,200 to 8,800 in two weeks, a 600-point spike. This is a market that had not moved for over two months, hanging around 8,000. How could the stock market move 600 points in two weeks if it hadn't moved in over 2 months? In July and August, the stock market went up almost 1,000 points. Look at the Dow chart for the last five years. You can see that May through August are always thought to be summer doldrums. How, then, could the market go up 1,300 points in just over one month?

How does control make you a 12-minute trader? That's easy. The market is controlled. The market's "movers and shakers" know where they are want to take the market and they how fast to get it there. Movers and shakers abide by very controlled trading rules, a most important one being Futures Pivots. In order for you to become a 12-minute trader, you must learn the movers and shaker's rules...buying when they buy and selling when they sell. You'll need to truly become a market shadow.

What are pivots? They are support and resistance price levels that the market's insiders use to control daily highs /lows on any given trading day. There are actually 17 Futures trading pivots -- nine inter-day (occurring over more than 1 day), and eight intraday (occurring in just one day). Futures Market insiders use Futures Pivots while stock market insiders use Stock Market pivots. To be a consistent 12-minute trader, you'll need all the pivots to appear on your chart. It is very difficult to trade without pivots on your charts

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.

About the Author

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

by: Barbara Cohen, CIO, Shadowtraders
Total views: 4 Word Count: 530 Date: Wed, 24 Mar 2010 Time: 3:50 AM 0 comments

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