MARKET MECHANIC BIG PICTURE REPORT, BROUGHT TO YOU BY ODYSSEY TRADING GROUP FOR 01/14/ 2013
Welcome to theMarket Mechanic daily blog
TODAYS TALLY: $750.00 +
TODAYS ACTION: The market opened a little lower steadied up then took the nose dive our software and system generated 1 profitable sell signal. This market selloff puts the market into an oversold condition. The market alleviated this oversold condition with a slow grind higher. Our software and system generated 5 profitable buy signals as the market grinded its way higher.
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 sell signal emini S&P price 1464.50. 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 low: 1460.25.
10:00 AM buy signal emini S&P price 1463.50. On the 45 minute chart, the set up, with positive readings on the 45 and 90 minute DTI’s and with positive readings on 2 out of 3 of the following, the 90 minute TI agg, the 45 minute RSI with a reading above 50 and or the 45 minute DMI with a positive reading, the trigger; the 45 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: 1467.00.
12:20 PM buy signal emini S&P price 1464.25. The set up; on the 10 minute chart with the cross of the TI agg below and close below its 30 line, the trigger: the cross of the TI agg back above and close above its 30 line and a positive reading on the 10 minute DTI, indicating the market coming out of an oversold area, a buy signal is generated. Subsequent high: 1467.00.
1:10 PM buy signal emini S&P price 1465.00. 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: 1467.00.
1:50 PM buy signal emini S&P price 1465.50. The set up; with the 5, 10, 15 and 20 minute DTI’s all reading positive, the trigger; on the 5 minute chart a yellow neutral bar is followed with are bullish green bar, a buy signal is generated. NOTE: this trade will not be taken if the ADX is below 25 and the reading on the 5 minute TIagg is above 70 Subsequent high: 1467.00
2:05 buy signal emini S&P price 1466.00. The set up; with the 5, 10, 15 and 20 minute DTI’s all reading positive, the trigger; on the 5 minute chart a yellow neutral bar is followed with are bullish green bar, a buy signal is generated. NOTE: this trade will not be taken if the ADX is below 25 and the reading on the 5 minute TIagg is above 70 Subsequent high:1467.00.
AFTER THE CLOSE: The Tindexes on all time frames closed the day positive. On the DTI’s only the 15 minute and 60 minute finished the day with positive readings. So, again a mixed reading on the indicators but with the TIndexes all positive we will keep an eye on the DTI’ s, if they make a move positive we could have a good rally at hand.
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.