MARKET MECHANIC BIG PICTURE REPORT, BROUGHT TO YOU BY ODYSSEY TRADING GROUP FOR 01/11/ 2013

Welcome to theMarket Mechanic daily blog

TODAYS TALLY: $ 75.00 +   WEEKLY TALLY: 3112.50 +     

TODAYS ACTION : Sideways and it was not a lot of fun. We had a five and a half point trading range for the entire day. This tight of a trading range signals to us the lack of commitment on the part of traders. The only good thing that can be said about this is that it usually leads to a good volatile spike in prices one way or the other. Our software and system generated 7 trading signals 5 of them profitable and 2 were covered when a counter trading signal was generated with an open position. Surprisingly a loss of 9 ticks was booked for each of the 2 losing trades.

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:

8:55 AM sell signal emini S&P price 1464.25. 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: 1462.25.

9:10 AM  sell signal emini S&P price 1462.50. The set up, with the 5, 10 and 20 DTI’s with negative readings, the trigger; on the 10 minute chart with the cross and close of the 10 minute DMI from positive to negative a sell signal is generated. Subsequent Action: covered for a 9 tick loss.

9:50 AM buy signal emini S&P price 1464.75. 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: 1465.75.

10:50 AM buy signal emini S&P price 1464.50. 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: 1465.75.

12:20 PM sell signal emini S&P price 1463.50. The set up, with the 5, 10 and 20 DTI’s with negative readings, the trigger; on the 10 minute chart with the cross and close of the 10 minute DMI from positive to negative a sell signal is generated. Subsequent Action: covered for a 9 tick loss.

1:30 PM buy signal emini S&P price 1465.75. 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: 1467.75.

2:25 PM buy signal emini S&P price 1466.75. The set up; on the 10 minute chart the DTI and the TI agg both have positive readings, the trigger; when the 5 minute MACD, 5 minute RSI, 5 minute DTI and the 5 minute Chaikin Oscillator all align positive, a buy signal is issued. Subsequent high: 1467.75.  .

2:30 PM buy signal emini S&P price 1466.75. The set up, with the 5, and 10 DTI’s all with positive readings, the trigger; on the 20 minute chart with the cross and close of the 20 minute DTI from negative to positive a buy signal is generated. Subsequent high: 1467.75.

AFTER THE CLOSE :The week finishes with the DTI’s and TIndexes all closing positive on all time frames.  We will be looking for dips to buy and the real value trades will be to the long side. On the macro front, the weekly and daily DTI’s are now both positive, so we have agreement from the weekly to the 5 minute time frame. Somehow in spite of the professional political class, this bull market just keeps rolling along.

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.