MARKET MECHANIC BIG PICTURE REPORT, BROUGHT TO YOU BY ODYSSEY TRADING GROUP FOR 02/07/ 2013

Welcome to theMarket Mechanic daily blog

TODAYS TALLY: $1050.00 +       

TODAYS ACTION: We have been looking to buy dips and we got that dip today. The market opened steady and then collapsed. The software and system generated 4 profitable sell signals as the market sold off. At 11:40 the 10 minute DMI went positive signaling the end of the selloff. Our software and system generated 5 profitable buy signals as the market moved higher for the remainder of the day.

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 :

9:10 AM sell signal emini S&P price   1504.75.  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:1494.50.

9:20 AM sell signal emini S&P price 1502.75. 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: 1494.50.

9:30 AM sell signal emini S&P price 1499.25. The set up, with the 5, 10 and 20 DTI’s 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 1494.50.

10:20 AM sell signal emini S&P price 1497.75. On the 10 minute chart, the set up; with the 5, 10 and 20 minute DTI’s, 10 and 20 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:  1494.50.

11:50 AM buy signal emini S&P price 1500.25. The set up; on the 20 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:  1506.00.

12:25 PM buy signal emini S&P price 1500.25. 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: 1506.00.

12:50 PM buy signal emini S&P price  1502.25. The set up; with both the 10 and 20 minute RSI’s with positive readings, and a below 50 reading on the 40 minute TI agg, the trigger: the TI agg on the 20 minute chart crosses and closes above its 50 line, a buy signal is generated. NOTE:  the 20 minute TIAggressive cannot be above 60 at the time that the signal is generated, if the ADX reading is below 40.  Subsequent high: 1506.00.

1:10 PM buy signal emini S&P price 1503.00. The set up, with the 5, 10 and 20 DTI’s with positive readings, the trigger; on the 20 minute chart with the cross and close of the 20 minute DMI from negative to positive a buy signal is generated. Subsequent high: 1506.00.

2:10 PM buy signal emini S&P price 1503.75. The set up; with both the 10 and 20 minute RSI’s with positive readings, and a below 50 reading on the 40 minute TI agg, the trigger: the TI agg on the 20 minute chart crosses and closes above its 50 line, a buy signal is generated. NOTE:  the 20 minute TIAggressive cannot be above 60 at the time that the signal is generated, if the ADX reading is below 50.  Subsequent high: 1506.00.

AFTER THE CLOSE : The afternoon rally put the DTI’s and the TIndexes on all time frames into the positive column. The agreement between our proprietary indicators tells us that the market looks to be going higher. We will be looking to buy dips and the value trades will be to the upside.

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.