MARKET MECHANIC BIG PICTURE REPORT, BROUGHT TO YOU BY ODYSSEY TRADING GROUP FOR 02/21/ 2013

Welcome to theMarket Mechanic daily blog

TODAYS TALLY: $750.00 +       

TODAYS ACTION : Yesterdays sell off continues into today with rising momentum. The ADX on the peaked at 56, this reading does not get much higher. Our software and system generated 4 profitable sell signals as the market made its move lower. At 1:40 PM the 10 minute DTI went positive indicating that the sell off was due for a correction. Our software and system generated buy signal as the market had a corrective rally.

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:

8:50 AM sell signal emini S&P price 1501.75. On the 5 minute chart, the set up; with the 5 and 20 minute  DTI’s 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 5 minute fast stochastic from positive to negative generates  a sell signal. Subsequent low: 1495.00. 

10:15 AM sell signal emini S&P price 1500.75. The set up, with the 5, 10 and 20 TIndexes all with negative readings, on the 5 minute chart with the cross and close of the TI agg above its 70 line and then the cross and close of the TI agg below its 70 line, the trigger: the first red bearish 5 minute bar, generates a sell signal. Note: If the ADX is below 30; the reading of the 5 minute TIAggressive cannot be below 30 at the time that the signal is generated.  Subsequent low: 1495.00.

11:20 AM sell signal signal emini S&P, price 1498.25. The set up: on the 20 minute chart, with the RSI below 50 and the 20 TIagg having a reading below 50, the trigger the 10 minute DTI Oscillator goes from negative to positive a buy signal is generated.  Subsequent low: 1495.00.

1:05 PM sell signal emini S&P price 1496.25. 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:  1495.00.

2:10 PM buy signal emini S&P price 1502.25.  The set up; with a positive reading on the 10 minute DTI; the trigger, 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: 1504.75.

AFTER THE CLOSE: Only the 5 minute TIndex finished the day positive all others closed negative. The DTIs’ the 60, 45 and 5 minute finished the day negative and the 10, 14, 20 and 30 finished the day positive. With most of the TIndexes registering negative and the DTIs’ a mixed picture, it looks like the market will be heading lower. We will be looking to sell rallies and the value trades should be to the downside.

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.