MARKET MECHANIC BIG PICTURE REPORT, BROUGHT TO YOU BY ODYSSEY TRADING GROUP FOR 11/16/ 2012
Welcome to the Market Mechanic daily blog
TODAYS TALLY: $1050.00 + WEEKLY TALLY: $6450.00 +
TODAYS ACTION: The market opens unchanged and steady and then proceeds to make its move lower. Our software and system picks up on the move lower and generates 3 profitable sell signals as the market moves down 9 points from the opening high. But then the fun begins, the politicians get together in front of the cameras and tell us that they are all playing nice and we shouldn’t concern ourselves with this fiscal cliff nonsense. The market buys it for now and rallies. Our software and system generates 4 profitable buy signals to cash in on the rally. The 10 minute DTI went negative at 1:30PM and simultaneously a profitable sell signal was generated on the 30 minute chart. With the weekend looming it looks like we had some late day profit taking and the software and system picked up on this and generated a profitable buy signal as the market gained an additional 6 points after the signal was issued.
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.
8:55 AM sell signal emini S&P price 1347.00. The set up; the 5, 10 and 20 minute TIndexes all with negative readings; the trigger, on the 5 minute chart; 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: 1340.25.
9:10 AM sell signal emini S&P price 1345.50. The set up; with both the 10 and 20 minute RSI’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: 1340.25.
10:10 AM sell signal emini S&P price . The set up, with the 5, and 10 DTI’s all with negative readings, the trigger; on the 20 minute chart with the cross and close of the 20 minute DTI from positive to negative a sell signal is generated. Subsequent low: 1340.25.
10:45 AM buy signal emini S&P price 1349.00. The set up; on the 15 minute chart with the cross of the TI agg below and close below its 30 line, the trigger: the cross of the TI agg crosses back above and closes above its 30 line and a positive reading on the 15 minute DTI, indicating the market is coming out of an oversold area, a buy signal is generated. Subsequent high: 1359.00.
10:50 AM buy signal emini S&P, price 1051.25. The set up; with positive readings on the 5, 10 and 20 minute DTI’s, the trigger: the cross and close of the 20 minute TI agg above its 50 line, buy signal generated. Subsequent high: 1359.00.
11:00 AM buy signal emini S&P price 1355.50. The set up, on the 10 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 30 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: 1359.00.
11:30 AM buy signal emini S&P price 1356.25. 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 positive 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 negative to positive generates buy signal. Subsequent high: 1359.00.
1:30 PM sell signal emini S&P price 1350.75.The set up; on the 30 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: 1348.00.
2:30 PM buy signal emini S&P price 1354.25. The set up, with the 5, 10 and 20 DTI’s with positive readings, the trigger; on the 10 minute chart with the cross and close of the 10 minute DMI from negative to positive a buy signal is generated. Subsequent high: 1360.50.
AFTER THE CLOSE: Our proprietary oscillator the DTI’s finished the day positive on all time frames. The TIndexes finished positive on the 5,10, 15 and 20 minute time frames, the 30 45 and 60 minute finished the day with negative readings. Yesterday we said the market was oversold and needed to rally to alleviate this condition. The market gave us a rally but it looks like it will rally some more. Remember the overall market state; the market is in a downward corrective phase, we will be going lower. We will be looking to sell rallies and the high value trades will be to the downside.
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.