MARKET MECHANIC BIG PICTURE REPORT, BROUGHT TO YOU BY ODYSSEY TRADING GROUP FOR 01/08/ 2013

Welcome to theMarket Mechanic daily blog

TODAYS TALLY: $1200.00 +       

TODAYS ACTION : The market opens lower, holds steady for 20 minutes then takes the nose dive with good momentum. Our system and software generated 5 profitable sell signals during this sell off. The market reaches an oversold condition and the 10 minute DTI crosses positive signaling the end of the morning sell off. The software and system generates 4 profitable buy signals during the afternoon rally.

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 sell signal emini S&P price 1453.50. The set up, on the 20 minute chart; if 2 out of 3 of the following: the 20 minute TIndex, the 40 minute TIndex, and or the 40 minute TI agg have negative readings and the 20 minute TI agg is below its 50 line; the trigger: the 20 minute DMI crosses from positive to negative, a sell signal is generated. Subsequent low: 1446.00.

9:10 AM sell signal emini S&P price 1451.50. The set up, with the 5, and 10 DTI’s all with negative readings, the trigger; on the 20 minute chart with the cross and close of the 20 minute DTI from positive to negative a sell signal is generated. Subsequent low: 1446.00.

9:20 AM sell signal emini S&P price 1449.25. 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 negative 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 positive to negative generates sell signal. Subsequent low: 1446.00.

9:55 AM sell signal emini S&P price 1447.50. 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: 1446.00.

11:30 AM sell signal emini S&P price 1449.00. The set up; with  below 50 reading on the TI agg on the 20 minute chart and a negative reading on the 20 minute Chaikin Oscillator and 20 minute DTI, the trigger; with the cross of the DMI on the 5 minute chart, from positive to negative a sell signal is generated. Subsequent low: 1447.25.

12:30 PM buy signal emini S&P price  1449.50.  On the 20 minute chart; the set up, with a positive reading on the 10 minute DTI, the set up: the 20 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:1453.25.

1:00 PM buy signal emini S&P price 1450.25. The set up, with the 5, 10 and 20 DTI’s with positive readings, the trigger; on the 10 minute chart with the cross and close of the 10 minute DMI from negative to positive a buy signal is generated. Subsequent high: 1453.25.

2:10 PM buy signal emini S&P price 1450.50. The set up; with  above 50 reading on  TI agg on the 20 minute chart and a positive reading on the 20 minute Chaikin Oscillator and 20 minute DTII, the trigger; with the cross of the DMI on the 5 minute chart, from negative to positive a buy signal is generated. Subsequent high: 1453.25.

2:55 PM buy signal emini S&P price 1451.50. The set up; with  above 50 reading on  TI agg on the 20 minute chart and a positive reading on the 20 minute Chaikin Oscillator and 20 minute DTII, the trigger; with the cross of the DMI on the 5 minute chart, from negative to positive a buy signal is generated. Subsequent high: 1453.25.

AFTER THE CLOSE : The 15, 20 and 30 TIndexes closed negative all others positive. The 45 and 60 minute DTI’s finished negative all others positive. The market finishes the day with mixed readings on our proprietary indicators and oscillators. So we will go into the market tomorrow with no preconceived notions but with earnings season beginning we should expect higher volatility. The trick now is to have the rise in volatility work for us.

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.