MARKET MECHANIC BIG PICTURE REPORT, BROUGHT TO YOU BY ODYSSEY TRADING GROUP FOR 11/23/ 2012
Welcome to the Market Mechanic daily blog
TODAYS TALLY: $450.00 + WEEKLY TALLY: $3,600 +
TODAYS ACTION: An uncontested rally on an abbreviated day. Our software and system did not even hint at a sell signal today. The momentum was also impressive with the ADX rising above 40. Our software and system generated 4 profitable buy 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.
8:50 AM buy signal emini S&P price 1395.25. 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: 1407.50.
10:10 AM buy signal emini S&P, price 1401.25. The set up; with the 10 and 20 minute DTI’s both with positive readings and an above 40 reading on the 5 minute ADX indicating the market is in a strong up trend, with the cross of the 5 minute DTI from negative to positive a buy signal is generated. Subsequent high: 1407.50.
11:40 AM buy signal emini S&P, price 1403.25. The set up; with the 10 and 20 minute DTI’s both with positive readings and an above 40 reading on the 5 minute ADX indicating the market is in a strong up trend, with the cross of the 5 minute DTI from negative to positive a buy signal is generated. Subsequent high: 1407.50.
11:45 AM buy signal emini S&P price 1403.25. 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: 1407.50.
AFTER THE CLOSE: The DTI’s and Tindexes both finished the day with positive readings on all time frames. This market wants to trade higher. The daily DTI has now turned positive but the weekly DTI remains negative. Has the correction run its course? That could be the case but with the weekly DTI and the daily TIndex both reading negative it is too early to call the end of the correction.
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.