Crude oil on 200 dma

January oil futures closed last Friday right on the 200 day moving average(white line) at $69.50. Look for a little bounce here before it heads lower to $67.88 or $66.66.

Natgas monthly pivots

Natgas last week bounced off the monthly S1 pivot at $4.44(blue arrow) and today hit the monthly R1 pivot at $5.33(blue arrow). Thats almost a 25% move in 1 week. Pro traders use daily, weekly and monthly pivots for entry and exits. Just pick your time frame, you want to trade.

Gold hits yearly R2 pivot

Gold went up to the yearly R2 pivot at $1203 and fell $60 dollars on Friday. We may pullback to $1033, and test last years high. In 1980 Gold fell 35% in 7 days. Watch out in 2010!

S&P tests 1120

This past week, the S&P 500 tested 1120....the 50% retracement fib(mid), from the all time high in October 2007, to the March lows this year. The market has made back 50% of it's losses. I have been saying for a few months now, that I was looking for 1120-1136, for the 2009 highs. The yearly R1 pivot is at 1136. This is a major resistance area. Looking at the chart above, we have been going sideways since the November Bradley date. New highs have been sold, not bought, like last spring and summer. This is the new trend. Look for more of the same this week, as we consolidate more. Trading range 1070-1128.

http://mpgtrading.blogspot.com/2009/11/watching-yearly-r1.html

AIG

AIG this year, has played off the yearly pivots(purple lines, and blue circles) to perfection. Why did buyers show up last March, when AIG went down to the S2 pivot at 6.40? Why did sellers come out 2 times this past fall, and sell AIG right at the R1 pivot at 53.6? Is it possible that smart money / market makers are using Pivot Points? Or is it just a coincidence? If you think the latter, you should not be a trader!