I've never had a lot of luck using the "needle" method - like you it seems the needle contact is specious at best, and misleading at it's worst.
Plus you penetrate the insulation and leave a hole - a hole waiting to suck up moisture and ground or corrode your wire.
Best is alligator clips and a reliable VOM. The red plastic Harbor Freight meters are frequently on sale for less than $5, and while I wouldn't trust the ohm-meter part for specific readings (it doesn't even have a zero) its good enough for continuity.
And when you fubar the meter by putting the switch on the wrong scale, you're not out much money.
Joe K