MARKET MECHANIC BIG PICTURE REPORT, BROUGHT TO YOU BY ODYSSEY TRADING GROUP FOR 11/19/ 2012

Welcome to the Market Mechanic daily blog
TODAYS TALLY: $ 750.00 +
 
TODAYS ACTION: The market gapped open higher today and proceeded to trade sideways until 1:45 PM when the market put in another leg higher. The market traded with a solid upward bias and with good momentum. The ADX on the 15 minute chart traded above 40, indicating a very strong market. The software and system generated 6 profitable buy signals. We have been expecting a rally to alleviate the oversold condition of the market and we got that rally today. We were also expecting to sell that rally, which did not happen, the software and system did not generate a sell signal today.
 
 
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 buy signal emini S&P price 1376.25. On the 5 minute chart, the set up; with the 5 and 20 minute  DTI’s 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 5 minute fast stochastic from negative to positive generates  a buy signal. Subsequent high: 1384.75.
 
 
9:00 AM buy signal emini S&P price 1377.50. 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 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: 1384.75.
 
 
 
9:20 AM buy signal emini S&P price   1378.75.  On the 5 minute chart; the set up, with the 5,10 and 20 minute DTI’s all reading positive and a positive 5 minute MACD, the trigger; on the 5 minute chart a yellow neutral bar is followed with are bullish green bar, a buy signal is generated. Subsequent high: 1384.75.
 
 
12:30 PM buy signal emini S&P price 1378.00. The set up; with  above 50 readings on the RSI and the TI agg on the 20 minute chart and a positive reading on the 10 minute DTI, the trigger; with the cross of the DMI on the 5 minute chart, from negative to positive a buy signal is generated. Subsequent high: 1384.75.
 
 
12:55 PM buy signal emini S&P price 1378.75. The set up; with  above 50 readings on the RSI and the TI agg on the 20 minute chart and a positive reading on the 10 minute DTI, the trigger; with the cross of the DMI on the 5 minute chart, from negative to positive a buy signal is generated. Subsequent high: 1384.75.
 
 
1:10 PM buy signal emini S&P price 1378.75. The set up, with the 5, 10 and 20 TIndexs all with positive readings,  on the 5 minute chart with the cross and close of the TI agg below its 30 line and then  the cross and close of the TI agg above its 30 line, the trigger: the first green bullish 5 minute bar, generates a buy signal. Note: If the ADX is below 30; the reading of the 5 minute TIAggressive cannot be above 60 at the time that the signal is generated.  Subsequent high: 1384.75.
 
 
AFTER THE CLOSE: Today’s rally resulted in all of the TIndexes and all of the DTI’s finishing the day with positive readings. It looks as though the market wants to trade higher. We will not stand in the way. We still expect the market to sell off some more, but we will wait for the software and system to generate our trading signals and trade accordingly.
 
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.