MARKET MECHANIC BIG PICTURE REPORT, BROUGHT TO YOU BY ODYSSEY TRADING GROUP FOR 01/16 2013
Welcome to theMarket Mechanic daily blog
TODAYS TALLY: $ 900.00 +
TODAYS ACTION: The market opens lower but the lower opening proved to be a buying opportunity the software and system generated the first profitable buy signal at 9:10AM then generated 5 additional profitable buy signals as the market grinded higher. The rally put the market into overbought territory and our software and system generated 2 profitable sell signals as earlier gains were digested and the market drifted lower.
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.
9:10 AM buy signal emini S&P price 1465.25. 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: 1469.00.
9:30 AM buy signal emini S&P price 1466.00. 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 20 minute TI agg have positive readings and the 20 minute TI agg is above its 50 line; the trigger: the 20 minute DMI crosses from negative to positive, a buy signal is generated. Subsequent High: 1469.00.
10:20 AM buy signal emini S&P price 1466.50. The set up, with the 5, and 20 DTI’s all with positive readings, a positive reading on the 5 minute TIAggressive, the trigger; on the 10 minute chart with the cross and close of the 10 minute DTI from negative to positive a buy signal is generated. Subsequent high: 1469.00.
11:40 AM buy signal emini S&P price 1466.75. 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: 1469.00.
12:20 PM buy signal emini S&P price 1466.75. On the 5 minute chart; the set up, the 5 minute TI agg crosses and closes below its 30 line and then crosses above and closes above its 30 line, the trigger; the first green 5 minute bar generates a buy signal. Please note the 5 minute Chaikin oscillator must be positive at the time the green bar is generated. Subsequent high: 1469.00.
1:20 PM buy signal emini S&P price 1467.75. 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: 1469.00.
2:30 PM sell signal emini S&P price 1466.75. The set up; on the 20 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: 1465.25.
2:45 PM sell signal emini S&P price 1467.25. 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: 1465.25.
AFTER THE CLOSE : The late afternoon sell off put the DTI’s on all time frames into negative territory. Only the 5 minute TIndex went negative with the afternoon sell off all other time frames remained positive. The DTI’ breaking to the negative towards the close leads us to believe that some of the recent overall market gains need to be consolidated with a selloff. But the Macro picture for the market is bullish. So, any selloff could give us a good buying opportunity. The software and system will let us know where and when.
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.