MARKET MECHANIC BIG PICTURE REPORT, BROUGHT TO YOU BY ODYSSEY TRADING GROUP FOR 02/13/ 2013

Welcome to theMarket Mechanic daily blog

TODAYS TALLY: $ 750.00+       

TODAYS ACTION: The market gapped open higher, our software and system generated 1 profitable buy signal during this upturn. The rally put the market into an overbought condition and at 10:00 AM the 10 minute DTI went negative setting the stage for the subsequent sell off. Our software and system generated 3 profitable sell signals.  After the sell off the market attempted a rally and a profitable buy signals was generated. The rally was short lived as the 10 minute DTI went negative again at 1:20 PM and our software and system generated 2 profitable sell signals as the market sold off.

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 buy signal emini S&P price 1521.00. The set up, with the 5, and 10 DTI’s, 10 minute Fast Stochastic all with positive readings and 10 and 20 minute Chaikin oscillator with positive readings, a positive reading on the 5 minute TIAggressive, 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. Note: this trade will not be taken if the RSI is reading above 70 indicating an overbought market. Subsequent high: 1522.00.

10:00 AM sell signal emini S&P price 1519.00.The set up; on the 30 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: 1514.75.

10:15 AM sell signal emini S&P price 1518.75. 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: 1514.75.

10:30 AM sell signal emini S&P price 1516.00. 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 20 minute DMI from positive to negative a sell signal is generated. Subsequent low: 1514.75.

12:00 PM buy signal emini S&P price 1517.00 The set up; on the 30 minute chart when the TI agg crosses and closes beneath the 30 line and then trades above and closes above the 30 line and both the 30 and 60 minute TIndexes are positive and 2 out of 3 of the following have positive readings: the 60 minute TI agg, the 30 minute RSI is above 50 and or the 30 minute DMI is positive, a buy signal is generated. Subsequent high: 1518.50.

1:20 PM sell signal emini S&P price 1515.75    . 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: 1513.00.

1:30 PM sell signal emini S&P price 1516.00. 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 20 minute DMI from positive to negative a sell signal is generated. Subsequent low: 1513.00.

1:50 PM sell signal emini S&P price  1514.50. 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: 1513.00.

AFTER THE CLOSE : The DTI’s on the 60, 45 and 30 minute charts finished the day negative all others positive. Of the TIndexes only the 10 and 15 minute finished negative all others positive. With the longer term DTI’s in a negative state it looks like the market may sell off to digest some recent gains. Of not is the 60 minute DTI’s negative reading with prices on the 60 minute chart in the upper half of the Keltner Channel Band, this suggest that prices should move into the lower half of the Keltner Channel Band that would be between 1516 and 1511.

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.