MARKET MECHANIC BIG PICTURE REPORT, BROUGHT TO YOU BY ODYSSEY TRADING GROUP FOR 02/14/ 2013

Welcome to theMarket Mechanic daily blog

TODAYS TALLY: $262.50 +

TODAYS ACTION: the market gaps open lower but this lower opening proves to be a buying opportunity. The market was a slow grind higher for the balance of the day. Our software and system generated 6 buy signals, 5 of them profitable and one covered for a 5 tick loss as a reverse sell signal was generated at 2:50 PM.

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:

9:20 AM buy signal emini S&P price 1515.75. 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: 1520.75.

9:30 AM buy signal emini S&P price  1516.00.On the 30 minute chart; the set up, with a positive reading on the 10 minute DTI, the set up: the 20 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: 1520.75.

9:50 AM buy signal emini S&P price  1518.50. The set up, with the 5, 10 and 20 DTI’s with positive readings and the 5, 10 and 20 Chaikin Oscillators  with positive readings the trigger; on the 10 minute chart with the cross and close of the 10 minute DMI from negative to positive a buy signal is generated. Subsequent high: 1520.75.

11:00 AM buy signal emini S&P price 1517.00. 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: 1520.75.

12:35 PM buy signal emini S&P price 1517.75. 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: 1520.75.

2:15 PM buy signal emini S&P price 1520.00. 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 Action: covered for a 5 tick loss when a reversal sell signal was generated.

2:50 PM sell signal emini S&P price 1518.75.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 Action:  Due to the time of day this signal was only used to cover the preceding trade.

AFTER THE CLOSE : All of the TIndexes finished the day positive. Our proprietary oscillator the DTI finished negative on the 5, 10 and 60 minute time frame all others finished positive. The balance of our indicators tell us the market is bullish but the 60 minute DTI is negative and the S&P prices are in the upper half on the 60 minute Keltner Channel Band, this normally results in a at least a correction and prices moving into the lower half of the Keltner Channel Band. That being said, the market state is bullish and any correction will most likely be a buying opportunity.

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.