MARKET MECHANIC BIG PICTURE REPORT, BROUGHT TO YOU BY ODYSSEY TRADING GROUP FOR 11/14/ 2012

Welcome to the Market Mechanic daily blog
TODAYS TALLY: $1500.00 +
 
TODAYS ACTION: HALFWAY THERE!!! On 10/29/12 we stated the market has entered a corrective phase and the market was headed to the low 1300’s. Today we traded down to 1350: that is the halfway point. Our weekly and daily proprietary DTI indicators had been negative and on 10/25/12 the TIndex went negative confirming that the market was at least entering into a correction. The S&P price on 10/25/12 was 1408.25. This market is not a bear market yet but is on the verge of being one. Stay tuned.
Today was nothing but down and on good momentum. Our software and system generated 10 profitable sell signals
 
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:
8:40 AM sell signal emini S&P, price 1374.75.  The set up; with the 5, 10 and 20 minute TIndexes all with negative readings and a negative reading on the 10 minute TI agg and 10 minute DTI. The trigger; the cross and close of the 5 minute TI agg above its’ 70 line and then the cross and close of the 5 minute TI agg below its 70 line, a sell signal is generated. Subsequent low: 1349.50.
 
 
8:45 AM sell signal emini S&P price 1374.75. The set up; with  below 50 reading on the TI agg on the 20 minute chart and a negative reading on the 10 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: 1349.50
 
 
9:25 AM sell signal emini S&P price 1370.00. 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: 1349.50.
 
 
11:10 AM sell signal emini S&P price 136.75. The set up; with  below 50 reading on the TI agg on the 20 minute chart and a negative reading on the 10 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: 1349.50.
 
 
 
11:20 AM sell signal emini S&P price 1364.50. The set up, with the 5, 10 and 20 TIndexes all with negative readings, on the 5 minute chart with the cross and close of the TI agg above its 70 line and then the cross and close of the TI agg below its 70 line, the trigger: the first red bearish 5 minute bar, generates a sell signal. Note: the reading of the 5 minute TIAggressive cannot be below 40 at the time that the signal is generated.  Subsequent low: 1349.50.
 
 
 
12:30 AM sell signal emini S&P, price 1365.00 .  The set up; with the 5, 10 and 20 minute TIndexes all with negative readings and a negative reading on the 10 minute TI agg and 10 minute DTI. The trigger; the cross and close of the 5 minute TI agg above its’ 70 line and then the cross and close of the 5 minute TI agg below its 70 line, a sell signal is generated. Subsequent low: 1349.50.
 
 
 
1:10 PM sell signal emini S&P price 1365.50. The set up, with the 5, 10 and 20 TIndexes all with negative readings, on the 5 minute chart with the cross and close of the TI agg above its 70 line and then the cross and close of the TI agg below its 70 line, the trigger: the first red bearish 5 minute bar, generates a sell signal. Note: the reading of the 5 minute TIAggressive cannot be below 40 at the time that the signal is generated.  Subsequent low: 1349.50.
 
 
1:15 PM sell signal emini S&P price 1363.00. The set up; with  below 50 reading on the TI agg on the 20 minute chart and a negative reading on the 10 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: 1349.50.
 
 
 
1:40 PM sell signal emini S&P price 1362.25. The set up; with  below 50 reading on the TI agg on the 20 minute chart and a negative reading on the 10 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: 1349.50.
 
 
 
2:40 PM sell signal emini S&P price  1355.00. 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: 1349.50.
 
 
 
AFTER THE CLOSE: The TIndexes on all time frames closed the day reading negative. The 5, 10, 15 and 20 minute DTI’s managed to finish the day positive,30 ,45 and 60 minute DTI’s are negative. With the short term DTI’s finishing the day with positive readings, indicates to us that the market is oversold and needs to rally a bit to alleviate this condition. That being said we are in sell the rally mode. We will let our software and system tells us what our trades will be and when to make our trades.
 
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.