COTTON AND NATTY GAS

Back on the 25th of January the post below on Cotton and Natty Gas went out recommending to enter buy signals and to expect higher prices in both markets.  Following both markets retraced in price one last time to the downside creating an excellent buying opportunity for new entries as well as for those looking to add to their current positions.  The Zone-Trader told us clearly that these markets were going higher based upon the Control and Directional Bias on the long-term time Profiles.  Do to the Zone-Trader's ability to capture the underlying psychology of the market and who has control of it, we were not fooled by the quick push down on the retrace and clearly understood that the smart money was trying to create a buy entry point for themselves to go long.  Falling right in line with what we expected.  Both Natty Gas and Cotton have proceeded to increase in price over the last 13 to 28 days pushing the price on NG to 3.887 from 3.164 and on CT to 91.50 from 81.39.

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March Cotton CTH13 is currently attempting to break above the top of the persistence zone on the Yearly Profile, telling us that the bulls are attempting to take control of the market on the year.  CTH13 will need to stay above the top of the PZ defined by 2 orange lines for 4 consecutive weeks in order for the bulls accomplish this control attempt.  This market is also attempting to revert back to the Zone-Trader Pivot or the POC at 94.24 depicted by the White line.  Look for buys signals in this market.

March Natty Gas has failed to make a bearish breakout on the yearly profile and reversed back to the Zone-Trader Pivot or POC as was expected.  Also the bears failed to take control of the market on the Year since they were not able to hold the time filter of 4 weeks below the bottom of the PZ depicted by 2 orange lines.  Normal market movement within the Zone-Trader Model tells us that if the a failure occurs on one side of the pz in this case the bottom and the bears failing to take control then to look for the market to trade to the opposite side in this case the top of the pz which the price is 3.855 and for the bulls to attempt to take control of the market.  Look for buys on this market keep close eye on the midpiont between the Zone-Trader Pivot white line and MS1 royal blue, the price of which is 3.434 this is the bottom of the balanced oscillation area and the market will need to stay above this price level to make the bullish move we are looking for.  Recommend buying limit off that midpoint or close to it if possible.