MARKET MECHANIC BIG PICTURE REPORT, BROUGHT TO YOU BY ODYSSEY TRADING GROUP FOR 12/13/ 2012
Welcome to theMarket Mechanic daily blog
TODAYS TALLY: $750.00 +
TODAYS ACTION: The market opened steady traded higher and then the politicians had a verbal sparring match and that rally was over and the market sold off hard, with good momentum. Our software and system did not participate in the early morning rally and did generate 7 profitable sell signals as the market sold 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 :
9:30 AM sell signal emini S&P price 1423.75.The set up; on the 20 minute chart with the TI agg reading below 50 and the 20 minute RSI reading below 50 and the 10 minute DTI and 10 minute DMI with a negative readings, the trigger; on the 5 minute chart when the DMI crosses from positive to negative a sell signal is generated. Subsequent low: 1409.75.
10:05 AMsell signal emini S&P price 1421.50. 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: 1409.75.
10:50 AMsell signal emini S&P, price 1417.75. The set up; with the 10 and 20 minute DTI’s both with negative readings and an above 40 reading on the 5 minute ADX indicating the market is in a strong down trend, with the cross of the 5 minute DTI from positive to negative a buy signal is generated. Subsequent low: 1409.75.
11:15 AM sell signal emini S&P, price 1417.00. The set up; with the 10 and 20 minute DTI’s both with negative readings and an above 40 reading on the 5 minute ADX indicating the market is in a strong down trend, with the cross of the 5 minute DTI from positive to negative a buy signal is generated. Subsequent low: 1409.75.
1:05 PM sell signal emini S&P price 1411.25. On the 5 minute chart; the set up, with the 5,10 and 20 minute DTI’s all reading negative and a negative 5 minute MACD, the trigger; on the 5 minute chart a yellow neutral bar or a green bar is followed with are bearish red bar, a sell signal is generated. Subsequent low: 1409.75.
2:10 PM sell signal emini S&P price 1411.25. The set up, with the 5, 10 and 20 TIndexes all with negative readings, on the 5 minute chart with the cross and close of the TI agg above its 70 line and then the cross and close of the TI agg below its 70 line, the trigger: the first red bearish 5 minute bar, generates a sell signal. Note: If the ADX is below 30; the reading of the 5 minute TIAggressive cannot be below 40 at the time that the signal is generated. Subsequent low: 1410.25.
AFTER THE CLOSE : That last minute spike higher in prices put the 5, 10, 15 and 20 minute DTI’s in positive territory. The 30, 45 and 60 minute DTI’s finished negative. The TIndexes finished the day negative with the exception of the 5 minute TIndex. With the Fiscal Cliff story hanging over the markets head, forecasting is near pointless. Today’s reaction to the professional politicians morning little spat is proof enough of that.
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.