Zone-Trader
10-27-12
ESZ12
GCZ12
HOF13

Hold all 3 long positions from prior days recommendations.
1. Long January Heating Oil positive and holding
2. Long December Gold positive and holding
3. Long December Emini SP

The ESZ12 is setting up for a possible failed bearish breakout on the Quarterly Profile which will cause an increase in prices back to the Zone-Trader Pivot on the Quarterly Profile at 1441 price area.
This market continues to bounce around inside the Quarterly Persistence Zone, bulls and bears still fighting for control of the ESZ12 on the Quarter.
Again Yearly Profile bulls are in control on the year and they have already established a bullish breakout.  This market will take one more leg to the upside at least.

January Heating Oil has failed to make a bearish breakout on the Quarterly Profile and is now reversing back to the Zone-Trader Pivot at the 3.10 price area.  That move will provide bulls with a nice chunk of change and the ability to reduce risk, and lock in profit while still holding the long for potential cold weather building up in the Northeast.

December Gold the bulls are in control of the market on the yearly Zone-Trader Profile and it is currently just slightly above the Zone-Trader Pivot and attempting to make a bullish breakout.  December Gold failed to make a bearish breakout a few months ago and the bulls maintained control of the this market.  If December Gold can make a bullish breakout on the yearly Zone-Trader profile it should continue higher towards 1900.

ESZ12 10-24-12

I recommended long positions  on the December Emini SP.  Also long gold, and Jan. Heating Oil.
The Emini is still bouncing inside the Zone-Trader Quarterly Profile Persistence Zone.  

In past post we discussed the Persistence Zone and the fact that the Emini had opened inside it on the Quarterly Profile.  It will continue to bounce off the top and bottom of the PZ until it can breakout and hold the time filter signaling to us traders who now has control of that market on the Quarter.  We started looking for the buy position around the bottom of the pz on the Quarterly.  ESZ12 has now bounced off it and is trading higher possible developing into a failed bearish breakout on the Quarter, which would send prices to 1441.25 as it reverts to the Zone-Trader Pivot, and possibly higher. 

Again the Yearly Profile made a bullish breakout and is suggesting a move to 1500 area.  Hold long positions, and don't pay any attention to the news listen to the zone-trader and the model will guide the way.

Emini SP December contract hit the top of the Persistence Zone on the Quarterly Profile and turned right off of it.  Again the ESZ12 opened inside the Quarterly PZ telling us the bulls and bears are fighting for control of the market on the Quarter.  The ESZ12 will continue to bounce inside the Quarterly PZ just as i told you in the last post i put out, until it is able to either break above the top and stay above it for 7 consecutive days, or break below the bottom and stay below it for 7 consecutive days.

The Yearly Profile did make a bullish breakout 5 weeks ago by closing on a weekly candle above the midpoint between MR1 and MR2, this tells us that the ESZ12 will take at least one more leg to the upside and attempt to continue the uptrend.

We were legging into this current pullback with the Bullish Breakout on the Yearly Profile.  Currently the ESZ12 is getting support around the 1/4 line within the Quarterly Profiles Persistence Zone, and is now pushing up towards the midpoint at 1431.25.  If ESZ12 can break above the midpoint, the bulls will take another shot at taking control of the market on the Quarter and attempt to push prices above the top of the Quarterly PZ at 1460.00.

Yearly Profile suggest the ESZ12 could reach the 1500 area and possibly to 1600 based upon prior market movement within the Zone-Trader Yearly Profile.

Currently Long and holding.  

ESZ12 10-05-12

The Emini Sp December contract is at a key price currently at the 1460 level.  This price level is the top of the persistence zone within in the new quarterly profile.  The ESZ12 opened inside the Zone-Trader Quarterly Profile Persistence Zone, providing us traders with a key piece of information, which is there is currently no control bias, the bulls and the bears are fighting for control of the market within the current quarter.  In order for the bulls to take control of the ESZ12 within this quarter they will have to push prices above the top of the Zone-Trader Quarterly PZ and keep there for 7 consecutive days.  Today the ESZ12 has stuck its nose above the 1460 price, but the question still remains, whether or not the bulls can keep it there.

Normal fluctuation within the Zone-Trader Profiles, tells us that if the underlying market opens inside the PZ on any of the five profiles, and the bulls and bears are fighting for control, if either one makes an attempt at taking control and fails, expect a reversal and test of the opposite side.  So in this case the bulls are currently attempting to take control of the ESZ12 if they fail to keep prices above the top of the Quarterly PZ 1460 for 7 consecutive days, and then we get a close lower then the low of the prior candle on the daily chart, we should look for prices to reverse to the bottom of the Quarterly PZ at 1403.75 and then see if the bears are capable of holding the time filter below the bottom of the Quarterly PZ for 7 consecutive days to take control.

It is possible they both fail and this market continues to bounce around inside the Quarterly PZ moving in a sideways range-bound market.  Only time will tell, but pay close attention to those 2 price levels. (1460.00, and 1403.75).

The Persistence Zone is always defined by the two orange colored lines, and it represents a zone from the prior Quarter's Zone-Trader Profile, where the market traded for the longest period of time.  This tells us where the fight was the greatest between the bulls and the bears.  Wherever the market spends the longest period of time tells us there is an even number of buyers and sellers.  Hence the Persistence Zone defines our control bias.  If above the PZ the bulls are in control, if below the PZ the bears are in control.