THE MARKET MECHANIC BROUGHT TO YOU BY ODYSSEY TRADING GROUP FOR 11/12/ 2012

Welcome to the Market Mechanic daily blog
TODAYS TALLY: $900.00 +
 
TODAYS ACTION: The market gaps open slightly higher, trades sideways, then makes its’ move lower. The software and system generates 4 profitable sell signals as the move lower happens. The sell off puts the market into an oversold condition and at 11:40 AM the 10 minute DTI goes positive and a profitable buy signal is generated as the oversold condition is alleviated. The rally puts the market overbought and our software and system generates 3 profitable sell signals as the market sells off to finish the day.
 
The tally is determined is by taking the trade at the closing price of the 5 minute bar when the software and system generates a trading signal. We will trade 3 contracts per signal with the profit goal of 4 ticks or 1 point per trade. This profit goal is a minimum.  The system will employ a 4 point disaster stop or a loss can be booked when the software and system generates a trade that would reverse our outstanding position. There will be times when the software and system generates what can best be called overlapping trading signals, in this case there will be only one trade booked.
 
 
 
TODAYS SIGNALS:
 
8:55 AM sell signal emini S&P price 1379.00. On the 5 minute chart with the cross of the TI agg above and close above its 70 line and then back below and close below its 70 line indicating the market coming out of an overbought condition in a bear market and with the 10 and 20 minute DTI’s and the 10 minute TI agg all with negative readings a sell signal is generated. Subsequent low:  1373.00.                                                                    
 
9:05 PM sell signal emini S&P price 1379.00. The set up; with  below 50 reading on the TI agg on the 20 minute chart and a negative reading on the 5 minute DTI, the trigger; with the cross of the DMI on the 5 minute chart, from positive to negative a sell signal is generated. Subsequent low: 1373.00.
 
 
9:20 AM sell signal emini S&P price 1377.50. The set up; on the 10 minute chart the DTI and the TI agg both have negative readings, the trigger; when the 5 minute MACD, 5 minute DTI,  5 minute RSI and the 5 minute Chaikin Oscillator all align negative, a sell signal is issued. Subsequent low: 1373.00.
 
 
9:45 AM sell signal emini S&P price 1377.00. The set up; on the 10 minute chart the DTI and the TI agg both have negative readings, the trigger; when the 5 minute MACD, 5 minute DTI,  5 minute RSI and the 5 minute Chaikin Oscillator all align negative, a sell signal is issued. Subsequent low: 1373.00.
 
 
11:50 AM buy signal emini S&P price 1377.25. The set up; on the 20 minute chart with the cross of the TI agg above and close above its 30 line, the trigger: the cross of the TI agg back below and close below its 30 line and a positive reading on the 10 minute DTI, indicating the market is coming out of an oversold area, a buy signal is generated. Subsequent high: 1381.75.
 
1:45 PM sell signal emini S&P price 1376.75. On the 15 minute chart, the set up, with negative readings on 2 out of 3 of the following, the 30 minute TI agg, the 15 minute RSI with a reading below 50 and or the DMI with a negative reading, the trigger; the 15 minute TI agg crosses and closes above its 70 line and then crosses and closes below its 70 line, a sell signal is generated. Subsequent low: 1375.50.      
 
2:10 PM sell signal emini S&P price 1377.25. The set up; with  below 50 reading on the TI agg on the 20 minute chart and a negative reading on the 5 minute DTI, the trigger; with the cross of the DMI on the 5 minute chart, from positive to negative a sell signal is generated. Subsequent low: 1375.75.
 
 
2:30 PM sell signal emini S&P price 1377.25.  On the 5 minute chart with the cross of the TI agg above and close above its 70 line and then back below and close below its 70 line indicating the market coming out of an overbought condition in a bear market and with the 10 and 20 minute DTI’s and the 10 minute TI agg all with negative readings a sell signal is generated. Subsequent low: 1375.75.                                                                      
 
 
 
 
AFTER THE CLOSE: Today was an inside trading day, meaning the trading range of today was inside the high and low of last Friday. This suggests that the market is pausing and will need to break out and this breakout usually will be in sync with the overall market direction. In this case the overall market direction is lower. The TIndexes all finished with negative readings and only the 30 and 45 minute DTI’s finished the day with positive readings. These slightly mixed readings tell us the market still is looking to move lower.
 
TODAYS CHART:

 
ABOUT THE MARKET MECHANIC:
The Market Mechanic has developed 3 proprietary indexes and oscillators: the Trend Index Aggressive (TI agg), the Delta Trend Index (DTI) and the Trend Index (TIndex).  These 3 proprietary indicators combined with the Directional Movement Index (DMI), the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) give us over thirty, high probability set ups that are used to day trade the emini S&P market. These indexes and oscillators are applied on time frames from 5 minutes to 60 minutes (5, 10, 15, 20, 30, 45 and 60) and these set ups are traded on all time frames. The final product of the combination of these proprietary and non proprietary oscillators and indexes is a mechanical system and methodology for identifying entry points into the market that completely sidelines emotion and allows its user to concentrate on the money management part of the trading equation.
The philosophy of the Market Mechanic is not to predict the market but to anticipate likely market scenarios that the market will produce on a daily basis and the best way to exploit these opportunities. These set ups are designed to profitably and consistently exploit these market scenarios.
Markets are opportunity generating machines; our software and methodology strive to take advantage of these opportunities as they arise and provide its users a consistent and reliable profit making trading set ups.