THE MARKET MECHANIC BROUGHT TO YOU BY ODYSSEY TRADING GROUP FOR 11/09/ 2012

Welcome to the Market Mechanic daily blog
TODAYS TALLY: $1050.00 + THE WEEKS TALLY $4,912.50
 
TODAYS ACTION: The market gaps open lower but at 9:00 AM the 10 minute DTI turns positive setting up a rally and our software and system generates 5 profitable buy signals during the run up. The rally puts the market in an overbought state and the software and system recognizes this and generates 5 profitable sell signals.
 
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 1378.75.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:  1388.00
 
 
9:45 AM buy signal emini S&P price 1381.75.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 with a positive reading,  the trigger; on the 5 minute chart when the DMI crosses  from negative to positive a buy signal is generated. Subsequent high: 1388.00.
 
 
9:50 AM buy signal emini S&P price   1379.00. On the 10 minute chart, the set up; with the 5, 10 and 20 minute DTI’s, 10 minute Chaikin oscillator and 5 minute MACD all with positive 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 negative to positive generates buy signal. Subsequent high: 1388.00
 
 
10:50 AM buy signal emini S&P price  1382.75.  On the 5 minute chart; the set up, with the 5,10 and 20 minute DTI’s all reading positive and a positive 5 minute MACD, the trigger; on the 5 minute chart a yellow neutral bar is followed with are bullish green bar, a buy signal is generated. Subsequent high: 1388.00.
 
 
11:00 AM buy signal emini S&P price   1382.75.  On the 5 minute chart; the set up, with the 5,10 and 20 minute DTI’s all reading positive and a positive 5 minute MACD, the trigger; on the 5 minute chart a yellow neutral bar is followed with are bullish green bar, a buy signal is generated. Subsequent high: 1388.00
 
 
12:15 PM sell signal emini S&P price 1381.00.  The set up; on the 15 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 closes below its 70 line and there is a negative reading on the 10 minute DTI, indicating the market coming out of an overbought area, a sell signal is generated. Subsequent low: 1374.00       
 
1:45 PM sell signal emini S&P price 1381.25. The set up, with the 5, 10 and 20 TIndexes all with negative readings, the trigger; 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, a sell signal is generated. Subsequent low: 1374.00.
 
 
1:50 PM sell signal emini S&P price 1379.25. The set up; with both the 10 and 20 minute RSI’s with negative readings of below 50 and a negative reading on the 10 minute DTI, the trigger: the TI agg on the 20 minute chart crosses and closes below its 50 line, a sell signal is generated. Subsequent low 1374.00.
 
2:10 PM sell signal emini S&P price 1378.00. 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: 1374.00.
 
 
2:55 PM sell signal emini S&P price 1380.75. The set up; with  below 50 reading on the TI agg on the 20 minute chart and a negative reading on the 5 minute DTI, the trigger; with the cross of the DMI on the 5 minute chart, from positive to negative a sell signal is generated. Subsequent low:1374.00
 
 
 
 
AFTER THE CLOSE: The DTI’s and the TIndexes on all time frames both closed the week with negative readings. The market put in a new weekly low this morning which is not a good sign. We are expecting the market to trade lower with the real possibility of trading into the low 1300 range. The value trades will be to the downside and rallies will eventually be sold.
 
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.