I have given a short talk at TSAA-SF Annual Round Up the last two years on pivots. The last version had 3 main points:
1. If above the YP, look for YR1. If below the YP, look for YS1. Odds of one of these happening are very good!
2. Nearly always, pivots on important turns in the market. No pivot, no turn.
3. Keep it simple basic strategy: buy above pivots, short or at least avoid below. This is good enough for great gains. In contrast to my spec buy post today, mostly better to avoid buying support and selling resistance, unless taking profits.
So this post is about #1. We are only 6 weeks into the year, and #1 yearly pivot promise has delivered on:
SPY SPX ES
NDX COMPQ NQ
INDU DIA YM
RTY IWM TF
IBB SOXX XLE XLF
ACWI FM FXI PIN RSX
NKY EWJ DAX EWG
TLT HYG TNX TYX ZB ZN
That is quite a lot in 6 weeks! If a hedge fund had traded all these moves, it would be taking the rest of the year off :)