EMINI S&P MARCH CONTRACT

The Monthly Profile provided us with a beautiful textbook Zone-Trader Philosophy setup, which developed over the course of yesterday and today's trading hours.  The Bears Failed to make a bearish breakout on the monthly profile, no candle body close below the midpoint between MS1 and MS2, which generates a buy signal from Rule 8 as we expect the market to revert back to the Zone-Trader Pivot or POC and to possibly attempt to make a bullish breakout.  The bulls were in control of the market on the month and they were able to maintain control as they blocked the bears from making the breakout.  The fact that the bulls maintained control of the market tells us to look for a move back towards the top of the PZ which is in Orange and the price is 1506.75 and possibly higher.  The ESH13 did exactly as was expected or being predicted by the Monthly Profile and the market traded back above the top of the PZ and is currently attempting to make a bullish breakout.  This move was 34 pts depending on where one was to get filled on the Rule 8 buy signal.

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ESH13 2/21/13

The Emini S&P continued the selling that began yesterday after the failed bullish breakout on the Weekly Profile, in the opening and early morning of the session.  Then around 11:25 am pst the ESH13 found support at the 1495 price area which was MS3 to the tick on the Daily Profile.  The ES at that time failed to extend the bearish downtrend on the Daily Profile, which suggest to look for buys and to expect the market to revert back to the Zone-Trader Pivot.  The ES did revert right back to the POC or ZT Pivot at 1503.50 just like clockwork and the became balance on the day.  Once the market becomes balanced on any of the 5 profiles it must then attempt to make another breakout.  On the Daily Profile the ESH13 made one more attempt at a bearish breakout and failed, as it did not close below the midpoint between MS1 and MS2 suggesting to continue to buy and this market was going higher.  This signal on the Daily Profile confirmed the Monthly Analysis and set us up for a nice long trade which can be held overnight depending on the trader.

The Monthly Profile was making the first retrace after a Bullish Breakout and we expect to see support around the Zone-Trader Pivot at 1500.50 as well as the midpoint of the Persistence Zone at 1498.75 and one more support at the midpoint between the ZT Pivot and MS1 which is 1495.50 and the bottom of the balanced oscillation area.  With 3 strong support in one price area and the Daily Profile failing to continue to the downside and signaling buys and a revert to the ZT Pivot we expected this to be the beginning of the 2nd Wave on the Monthly Profile which is the Bullish Confirmation Wave.    Text book signals on both the Monthly and the Daily Profile, especially since the Bulls are in control of the market on the month there is very high percentage that the midpoint of the PZ will hold initial support.    Picture of the Monthly Profile is below.  Please keep in mind the Zone-Trader Philosophy is an intuitive based trading methodology that captures the underlying psychology of the market on 5 different time frames.  The method utilizes rule based entries that are derived by combining price action with the specific rule within is specific zone.  The Zone-Trader is faster and more frugal then any statistical based system in existence a leading indicator that capture the turns with pinpoint accuracy.  

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EMINI S&P 2/20/13

The ESM13 contract failed to make a bullish breakout today on the weekly profile, which generated the sell signal at 1527.00.  The ESM13 then proceeded to sell off and is currently trading at 1506.25 area a nice 20 point move.  The market presented a breakaway gap on Friday and buyers came in driving price heavily to the upside.  Most traders were still looking to get long or buy the retrace move.  The signal to sell which generated on the weekly profile after the ESM13 failed to make a bullish breakout, kept traders from falling into this bull trap.  Expect some support in this area down to the 1497.00 price level, then look for a swing move to occur between there and 1518 area most likely.  We will only take trades that are generated by the Zone-Trader Rules but if the rules generate an order in those price areas we will look to get in there. Keep eye out for next signal.   Chart of Weekly Profile is below.

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EMINI SP 500 FUTURES

The ESH13 provided us with another classic textbook Zone-Trader Philosophy trade today, which is currently positive 5 points and holding.  The trade setup on the Weekly Profile which utilizes a 144 minute candle to assess price action within the Zone-Trader Philosophy pricing map.  The ESH13 was already above the top of the Persistence Zone which fell at 1508.50 telling us that the bulls were in control of the market on the week.  Then this market made a Bullish Breakout yesterday with a candle body close above the midpoint between MR1 and MR2 telling us to buy the 1st retrace.  This signal created alignment between our control bias as derived from the Zone-Trader Rules, and our Control Bias which is derived from the Persistence Zone.  The alignment of the 2 increases the probability of winning dramatically.  The first retrace pushed lower to the 1510.00 price area and approached MS1 on the Weekly Profile which provided support and created the reversal back to the upside.  With the close of the Green colored candle above the Zone-Trader Pivot the buy was generated at market, since this info told us that the bears failed to make a bearish breakout and by closing above the ZT Pivot the bulls would now take their shot or attempt at making a bullish breakout.  The market order 1514.25 and then the ESH13 proceeded to trade higher in price as was expected and predicted by Zone-Trader Philosophy and its ability to capture the underlying psychology of the market.  Currently the ESH13 is trading at 1519.50 and about an hour ago the time filter held above the top of the PZ on the daily profile so the bulls have taken control of the market on the day as well now.

 

ES provided easy daytrade again today right out of the gate.  The neutral zone was higher then the persistence zone on the daily profile, which tells us that the balanced state of the market is occurring above where the fight was the greatest the prior trading day.  This increases the probability for the bulls to be able to generate enough volume to attempt and most likely establish a bullish breakout.  The ES attempts at the bullish breakout and simultaneously breaks above the top of the pz in orange and holds the time filter for 7 consecutive minutes, telling us that the bulls have taken control of the market and to buy the first retrace.  The buy entry setup off the zone-trader pivot in white at 1513.50.  The trade was good for 5 points and then call it a day.  The chart shows more description as well.  This was a text book Zone-Trader Philosophy trade or setup and another simple trading day.