MARKET MECHANIC BIG PICTURE REPORT, BROUGHT TO YOU BY ODYSSEY TRADING GROUP FOR 11/15/ 2012

AAPLWelcome to the Market Mechanic daily blog
TODAYS TALLY: $1350.00 +
 
TODAYS ACTION: The market opens higher; this higher opening is a selling opportunity. Our software and system recognizes this and generates 6 profitable sell signals as the market trades lower and takes out yesterdays low. Even bear markets can be oversold; the 10 minute DTI goes positive at 12:10 PM indicating the market needs to take a breather. Our software and system generates a profitable buy signal as the market puts in 5 point rally after our 12:30 buy signal. The rally again gives us an opportunity to sell and our software and system generates 3 profitable sell signals as the market trades off nearly 10 points from this latest rally.
 
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:
 
8:50 AM sell signal emini S&P price 1353.75.  On the 5 minute chart; the set up, the 5 minute TI agg crosses and closes above its 70 line and then crosses below and closes below its 70 line, the trigger, the first red 5 minute bar generates a sell signal. Subsequent low: 1345.25.
 
 
9:50 AM sell signal emini S&P price 1352.00.  On the 5 minute chart; the set up, the 5 minute TI agg crosses and closes above its 70 line and then crosses below and closes below its 70 line, the trigger, the first red 5 minute bar generates a sell signal. Subsequent low: 1345.25.
 
 
10:10 AM sell signal emini S&P price 1350.25. The set up with negative readings on the 5 and 10 minute DTI’s and a negative reading on the 20 minute TI agg, the trigger; the cross of the 20 minute DTI from positive to negative generates sell signal. Subsequent low: 1345.25.
 
10:50 AM sell signal emini S&P price 1346.50. 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: 1345.25.
 
 
11:45 AM sell signal emini S&P price   1347.75. The set up; the 5, 10 and 20 minute TIndexes all with negative readings, a negative reading on the 10 minute DTI and with a below 50 reading on the 20 minute TI agg, the trigger; the 5 minute TI agg crosses and closes below its 70 line and then crosses above and closes above its 70 line, a sell signal is generated. Subsequent low: 1346.25.
 
 
12:30 PM buy signal emini S&P price 1351.50.  On the 15 minute chart; the set up, with a positive reading on the 15 minute DTI, the set up: the 15 minute TI agg crosses and closes below its 30 line and then crosses above and closes above its 30 line, a buy signal is generated. Subsequent high: 1356.50.
 
 
1:20 PM sell signal emini S&P price 1351.25. The set up; the 5, 10 and 20 minute TIndexes all with negative readings, a negative reading on the 10 minute DTI and with a below 50 reading on the 20 minute TI agg, the trigger; the 5 minute TI agg crosses and closes below its 70 line and then crosses above and closes above its 70 line, a sell signal is generated. Subsequent low: 1345.50.
 
 
1:35 PM sell signal emini S&P price 1350.00. 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: 1345.50.
 
2:05PM sell signal emini S&P price 1348.00. 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: 1345.50.
 
 
 
AFTER THE CLOSE: A late afternoon short covering rally put the 5 minute TIndex into the positive column, all others remained negative. The DTI’s all finished the day with positive readings. These mixed readings tell us that the market is oversold and will need to rally to alleviate this condition. That being said, we are in market that is in a state of correction and we are in sell the rally mode. The high value trades will be to the downside. As always, our software and system will tell us when it is time to sell these 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.