MARKET MECHANIC BIG PICTURE REPORT, BROUGHT TO YOU BY ODYSSEY TRADING GROUP FOR 12/17/ 2012
Welcome to theMarket Mechanic daily blog
TODAYS TALLY: $1050.00 +
TODAYS ACTION: The market gapped open higher and went on a high momentum run, with the 5 minute ADX peaking at a reading of 40 plus. Our software and system went along for the ride and generated 3 profitable buy signals to start the week. The market moved into an overbought state that was resolved with a sell off. The sell off generated a profitable sell signal for us but then put the market into an oversold state. The software and system generated 3 profitable buy signals as the market rallied in response to the oversold condition.
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.
8:55 AM buy signal emini S&P price 1417.25. 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:
9:40 AM buy signal emini S&P price 1416.50. 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: 1422.75.
10:20 AM buy signal emini S&P price 1419.00. 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: 1422.75.
12:45 PM sell signal emini S&P price 1418.25. 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 close below its 70 line and a negative reading on the 10 minute DTI, indicating the market is coming out of an overbought area, a sell signal is generated. Subsequent low: 1416.75.
2:00 PM buy signal emini S&P price 1419.50. On the 10 minute chart, the set up, with positive readings on the 10 and 20 minute TIndexes 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: 1428.00.
2:10 PM buy signal emini S&P price 1420.50. The set up; with both the 10 and 20 minute RSI’s with positive readings, the trigger: the TI agg on the 20 minute chart crosses and closes above its 50 line, a buy signal is generated. Subsequent high: 1428.00.
2:50 PM buy signal emini S&P price 1422.25. The set up, with the 5, and 20 DTI’s all with positive readings, the trigger; on the 20 minute chart with the cross and close of the 10 minute DTI from negative to positive a buy signal is generated. Subsequent high: 1428.00.
AFTER THE CLOSE : Are we done with the Fiscal Cliff? We can only hope. That late afternoon rally put the TIndexes and the DTI’s on all time frames into positive territory. This tells us the market wants to go higher. Will the Fiscal Cliff news cooperate?
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.