THE MARKET MECHANIC BROUGHT TO YOU BY ODYSSEY TRADING GROUP FOR 11/13/ 2012

Welcome to the Market Mechanic daily blog
TODAYS TALLY: $1350.00 +
 
TODAYS ACTION: yesterday in the AFTER THE CLOSE section of our blog we stated that we expected a break out to the downside. We got it right out of the box; but we did not expect the break out to the upside that followed the early down draft. In fact the downside move was so quick that the system generated no trading signals. The software and system did generate 4 profitable buy signals on the morning run up. This run up put the market into an overbought state and the software and system generated 2 profitable sell signals. Then after 12:00 PM the market went into a sideways trade with an upside bias. The software and system generated a profitable buy signal during this sideways move. The market again returned to an overbought condition, the software and system recognized this and generated 2 well timed and profitable sell signals. These 2 signals put us in position to capitalize on the 10 point afternoon sell off. We finished the day with one more profitable sell signal as the sell off picked up steam.

The Tally is determined is ing 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:
9:10 PM buy signal emini S&P price 1376.75. The set up; on the 10 minute chart the DTI and the TI agg both have positive readings, the trigger; when the 5 minute MACD, 5 minute RSI, 5 minute DTI and the 5 minute Chaikin Oscillator all align positive, a buy signal is issued. Subsequent high: 1386.25.
 
 
9:15 PM buy signal emini S&P price 1380.00.The set up; on the 20 minute chart with the TI agg reading above 50 and the 20 minute RSI reading above 50 and the 10 minute DTI with a positive reading,  the trigger; on the 5 minute chart when the DMI crosses  from negative to positive a buy signal is generated. Subsequent high: 1386.25.
 
 
9:20 PM buy signal emini S&P price 1378.00. The set up, on the 10 minute chart; if 2 out of 3 of the following: the 10 minute TIndex, the 20 minute TIndex, and or the 20 minute TI agg have positive readings and the 10 minute TI agg is above its 50 line; the trigger: the 10 minute DMI crosses from negative to positive, a buy signal is generated. Subsequent High:1386.25.
 
10:00 PM buy signal emini S&P price 1384.25. The set up, on the 15 minute chart; if 2 out of 3 of the following: the 15 minute TIndex, the 30 minute TIndex, and or the 30 minute TI agg have positive readings and the 15 minute TI agg is above its 50 line; the trigger: the 15 minute DMI crosses from negative to positive, a buy signal is generated. Subsequent High:1386.25.
 
 
11:50 PM sell signal emini S&P price 1380.25. The set up; on the 20 minute chart with the cross of the TI agg above and close above its 70 line, the trigger: the cross of the TI agg back below and close below its 70 line and a negative reading on the 10 minute DTI, indicating the market is coming out of an overbought area, a sell signal is generated. Subsequent low:  1378.50.
 
 
12:00 PM sell signal emini S&P price 1379.75. On the 30 minute chart, the set up, with negative readings on 2 out of 3 of the following, the 60 minute TI agg, the 30 minute RSI with a reading below 50 and or the 30 minute DMI with a negative reading, the trigger; the 30 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: 1378.50.       
 
12:30 PM buy signal emini S&P price 1381.00. The set up, on the 15 minute chart; if 2 out of 3 of the following: the 15 minute TIndex, the 30 minute TIndex, and or the 30 minute TI agg have positive readings and the 15 minute TI agg is above its 50 line; the trigger: the 15 minute DMI crosses from negative to positive, a buy signal is generated. Subsequent High: 1383.75.
 
 
1:40 PM sell signal emini S&P price 1379.50    . 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:    .
 
 
1:50 PM sell signal emini S&P price 1379.50. The set up; with both the 10 and 20 minute DTI’s with negative readings, the trigger: the TI agg on the 20 minute chart crosses and closes below its 50 line, a sell signal is generated. Subsequent low:
 
2:50 PM sell signal emini S&P price 1373.50. On the 10 minute chart, the set up; with the 5, 10 and 20 minute DTI’s, 10 minute Chaikin oscillator and 5 minute MACD all with negative readings, in conjunction with a plus 25 reading of the ADX on the 5 minute chart, the trigger, the first cross of the 10 minute fast stochastic from positive to negative generates sell signal. Subsequent low:
 
 
AFTER THE CLOSE: Our proprietary oscillator the DTI and the proprietary indexes the TIndex both finished the day with negative readings on all time frames from the 5 minute to the 60 minute. The market is undergoing a correction for now. As noted earlier the daily and weekly DTI’s are reading negative with the monthly DTI reading positive. If the monthly DTI goes negative and it is getting close, the market will be in bear state. We will keep you posted. The high value trades will be shorts. We will be looking to sell rallies. This strategy certainly worked today and will continue to be effective. Timing is everything and we will allow our software and system to exactly show us when to sell rallies.
 
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.