Help with Axis Placement when extruding I am just learning Blender.
I am going through the second part of the coffee mug tutorial on YouTube.

The first part was good. I was able to follow it. Coming from SketchUp, it is taking some adjustment. But I am getting it.

I am just starting the second video. At the beginning, the instructor selects the top of the mug to extrude it. When he presses the E key and Enter, the red, green blue axis moves to the center of those vertices. That does not happen when I press the E key and Enter. 

This is only 1:30 into the video.

How can I get the axis in the middle of this circle of vertices? 
The next step is to scale. I need the reference point in the middle of this circle of vertices. I cannot left-click accurately enough to position the axis/reference point.

I am using 2.69. The video uses 2.64.
Make sure the Pivot point is set to Median Point (&#9096; Ctrl,) or Bounding box center (,) in 3D view > Header: