MARKET MECHANIC BIG PICTURE REPORT, BROUGHT TO YOU BY ODYSSEY TRADING GROUP FOR 11/20/ 2012

Welcome to the Market Mechanic daily blog
TODAYS TALLY: $1650.00 +
 
TODAYS ACTION: the market opens lower but this lower opening proves to be a buying opportunity and our software and system generates 3 profitable buy signals to take advantage of the early morning weakness. The market goes into a sideways trading pattern and our software and system generates both a profitable sell signal and a profitable buy signal during the sideways trade. The market then breaks out to the downside and our system puts us in a good position generating 3 profitable sell signals as the market trades down over 13 points from the high of the day. This sell off puts the market into an oversold condition and our software and system recognizes this and generates 5 profitable buy signals as the market rallies over 12 points from the low.
 
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 1381.50. On the 10 minute chart, the set up, with positive readings on the 30 and 20 minute DTI’s and with positive readings on 2 out of 3 of the following, the 20 minute TI agg, the 10 minute RSI with a reading above 50 and or the 10 minute DMI with a positive reading, the trigger; the 10 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: 1387.50.
 
 
9:00 AM buy signal emini S&P price 1382.00. 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 20 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: 1387.50
 
 
9:15 AM buy signal emini S&P price   1383.25. 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: 1387.50.
 
 
10:00 AM sell signal emini S&P price 1382.75. The set up; on the 15 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 closes below its 70 line and there is a negative reading on the 15 minute DTI, indicating the market coming out of an overbought area, a sell signal is generated. Subsequent low:  1381.50.      
 
11:00 AM buy signal emini S&P price 1386.50. 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: 1387.50.
 
 
11:40 AM sell signal emini S&P price 1383.75. 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:  1374.00.
 
 
12:05 PM sell signal emini S&P price 1382.50. 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: 1374.00.
 
 
12:10 PM sell signal emini S&P price 1380.75. 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 negative readings and the 20 minute TI agg is below its 50 line; the trigger: the 10 minute DMI crosses from positive to negative, a sell signal is generated.  Subsequent low: 1374.00.
 
 
1:00 PM buy signal emini S&P price 1379.50. On the 30 minute chart, the set up, with positive readings on the 30 and 60 minute DTI’s and with positive readings on 2 out of 3 of the following, the 60 minute TI agg, the 30 minute RSI with a reading above 50 and or the 30 minute DMI with a positive reading, the trigger; the 30 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: 1387.00.
 
1:55 PM buy signal emini S&P price 1381.75. 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: 1387.00.
 
2:10 PM buy signal emini S&P price 1379.00. 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 20 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: 1387.00.
 
3:00 PM buy signal emini S&P price 1385.75. 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 20 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: 1387.00.
 
 
 
AFTER THE CLOSE: The afternoon rally put the TIndexes on all time frames and the DTI’s on all time frames into positive readings. These readings tell us the market will be trading higher. The market is oversold on the daily chart, so this rally is not a surprise. Keep in mind that the daily and weekly DTI’s are reading negative and at some point this rally will stall out and become a selling opportunity. Our software and system will be our guide as to when to sell the rally.

 
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.