MARKET MECHANIC BIG PICTURE REPORT, BROUGHT TO YOU BY ODYSSEY TRADING GROUP FOR 01/09/ 2013
Welcome to theMarket Mechanic daily blog
TODAYS TALLY: $225.00 +
TODAYS ACTION : The market gaps open higher, trades higher from the opening and our software and system generates 3 buy signals 2 profitable and 1 covered with a 10 tick loss, when the system generated a profitable reversal sell signal. At 11:20 the 10 minute DTI goes negative signaling the end of the rally. Our software and system generates 3 profitable sell signals as the market makes a slow grind lower. A late day rally closes the day; this rally generated no trading 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 1455.50. 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: 1459.50.
10:30 AM buy signal emini S&P price 1457.75. 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 TIndexes and a positive reading on the 10 minute DTI a buy signal is generated. Subsequent high: 1458.75.
11:00 AM buy signal emini S&P price 1457.25. 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 TIndexes and a positive reading on the 10 minute DTI a buy signal is generated. Subsequent Action: covered for a loss at 1454.75
11:50 AM sell signal emini S&P price 1454.75. On the 20 minute chart; the set up, with a negative reading on the 10 minute DTI, the trigger : 20 minute TI agg crosses and closes above its 70 line and then crosses below and closes below its 70 line, a sell signal is generated. Subsequent low: 1452.50.
1:45 PM sell signal emini S&P price 1454.50. 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: 1452.50.
1:50 PM sell signal emini S&P price 1454.25. The set up, with the 5, 10 and 20 DTI’s all with negative readings, the trigger; on the 20 minute chart with the cross and close of the 20 minute DMI from positive to negative a sell signal is generated. Subsequent low: 1452.50.
AFTER THE CLOSE : Of the TIndexes only the 5 and 10 minutes finished the day negative. The DTI oscillators for the 60, 20, 15, and 10 all finished negative, all other DTI’s positive. So, again the mixed picture for our indicators. I will point out that for the last 4 days we have been in a 15 point trading range, from roughly 1445 to 1460. We will break out of this range ( I really went out on the limb there). It is interesting to note that today we were in the upper portion of that trading range, with the 60 minute DTI reading negative, not a healthy sign. This suggests to us a break out to the downside. Earnings season is in full swing, so the fundamentals will overrule the technicals for now.
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.