MARKET MECHANIC BIG PICTURE REPORT, BROUGHT TO YOU BY ODYSSEY TRADING GROUP FOR 12/12/ 2012

Welcome to theMarket Mechanic daily blog

TODAYS TALLY: $750.00 +

TODAYS ACTION : It was the FED on steroids day, FOMC minutes and Bernanke press conference and the price action was good. The market opened sideways with an upward bias. The software and system generated 5 profitable buy signals; the fifth buy signal put us long 5 minutes before the 11:35 AM price spike. At 1:30 PM the 10 minute DTI went negative and simultaneously a sell signal was generated, this 1:30 PM sell signal put us in position to take advantage of the 8 point sell off. Our software and system generated 2 additional profitable sell signals during the afternoon sell off.

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 :

9:25 AM buy signal emini S&P price 1431.00.The set up; on the 20 minute chart with the TI agg reading above 50 and the 20 minute RSI reading above 50 and the 10 minute DTI and 10 minute DMI with a positive readings, the trigger; on the 5 minute chart when the DMI crosses from negative to positive a buy signal is generated. Subsequent high: 1438.75.

10:00 AM buy signal emini S&P price 1430.00.  On the 5 minute chart with the cross of the TI agg below its 30 line and then back up above and close above its 30 line, indicating the market coming out of an oversold condition in a bull market and with positive readings on the 5, 10 and 20 minute DTI’s and a positive reading on the 10 minute DTI a buy signal is generated. Subsequent high: 1438.75.

10:25 AM buy signal emini S&P price 1430.25.The set up; on the 20 minute chart with the TI agg reading above 50 and the 20 minute RSI reading above 50 and the 10 minute DTI and 10 minute DMI with a positive readings, the trigger; on the 5 minute chart when the DMI crosses from negative to positive a buy signal is generated. Subsequent high:1438.75.

11:20 AM buy signal emini S&P price 1430.25. On the 10 minute chart, the set up, with positive readings on the 10 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 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: 1438.75.

11:30 AM buy signal emini S&P price 1431.00.The set up; on the 20 minute chart with the TI agg reading above 50 and the 20 minute RSI reading above 50 and the 10 minute DTI and 10 minute DMI with a positive readings, the trigger; on the 5 minute chart when the DMI crosses from negative to positive a buy signal is generated. Subsequent high: 1438.75.

1:30 PM sell signal emini S&P price 1434.50.  The set up; on the 20 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 10 minute DTI, indicating the market coming out of an overbought area, a sell signal is generated. Subsequent low: 1426.00.       

1:55 PM sell signal emini S&P price 1434.50. 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: 1426.00.

2:10 PM sell signal emini S&P price 1431.75. The set up; with both the 10 and 20 minute DTI’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: 1426.00.

AFTER THE CLOSE: The afternoon sell off left all of the DTI oscillators on the 5 minute through the 60 minute time frames with negative readings. Only and the 5 and 10 minute TIndexes finished the day with negative readings. So our indexes and oscillators leave us with mixed readings at the end of the day. With the DTI’s all reading negative it would seem the market is heading lower. But market movement is all dependent on news of the fiscal cliff.

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.