MARKET MECHANIC BIG PICTURE REPORT, BROUGHT TO YOU BY ODYSSEY TRADING GROUP FOR 02/12/ 2013

Welcome to theMarket Mechanic daily blog

TODAYS TALLY: $750.00 +       

TODAYS ACTION : The market opened steady and then proceeded to give us a good tradable rally. Our software and system generated 4 profitable buy signals. This rally put the market into an overbought condition. The system generated 2 sell signals as the market sold off to alleviate this overbought condition.

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 :

9:00 AM buy signal emini S&P price 1513.25. On the 10 minute chart, the set up, with positive readings on the 10 and 20 minute TIndexes and with positive readings on 2 out of 3 of the following, the 20 minute TI agg, the 10 minute RSI with a reading above 50 and or the 10 minute DMI with a positive reading, the trigger; the 30 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: 1519.00.

9:10 AM buy signal emini S&P price 1515.00. The set up; with both the 10 and 20 minute RSI’s with positive readings, and a above 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 or the closing price of the 20 minute bar can be mid Keltner for the trade to be taken, if the ADX reading is below 50.  Subsequent high: 1519.00.

9:50 AM buy signal emini S&P price 1514.25.The set up; on the 20 minute chart with the TI agg reading above 50 and the 20 minute RSI reading above 50 and the 10 minute DTI and 10 minute DMI with a positive readings, the trigger; on the 5 minute chart when the DMI crosses from negative to positive a buy signal is generated. Subsequent high: 1519.00.

11:25 AM buy signal emini S&P price 1516.00. 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: 1519.00.

1:15 PM sell signal emini S&P price 1516.75.  The set up; with a negative reading on the 10 minute DTI; the trigger, the 15 minute TI agg crosses and closes above its its 70 line and then crosses below and closes below its 70 line,  a sell signal is generated. Subsequent low: 1515.00.

2:40 PM sell signal emini S&P price 1516.25. 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: 1515.00.

AFTER THE CLOSE : The DTI’ all closed the day with negative readings except for the 60 minute DTI. All of the TIndexes finished the day positive with the exception of the 5 minute TIndex. With the DTI’s with mostly negative readings it looks like the market is looking to digest some of its recent gains with a sell off. The extent of the sell off is to be determined but with the overall state of the market bullish a sell off will produce a buying opportunity at some point. Timing the selloff and the buying opportunity we will leave to our software and system.

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.