MARKET MECHANIC BIG PICTURE REPORT, BROUGHT TO YOU BY ODYSSEY TRADING GROUP FOR 02/19/ 2013

Welcome to the Market Mechanic daily blog

TODAYS TALLY: $ 600.00 +       

TODAYS ACTION : The market gapped open higher and never looked back. The market gave us a good momentum trade today; the ADX on the 10 minute chart was over 30 and rose to 45. Our software and system generated 6 profitable buy 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 :

9:15 AM buy signal emini S&P price 1523.00.  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. Note: If the ADX is below 25; the reading of the 5 minute TIAggressive cannot be above 70 at the time that the signal is generated.  Subsequent high: 1528.75.

9:30 AM buy signal emini S&P price 1524.50. 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. Note: If the ADX is below 25; the reading of the 5 minute TIAggressive cannot be above 70 at the time that the signal is generated.  Subsequent high: 1528.75.

9:45 AM buy signal emini S&P price 1524.00.  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. Note: If the ADX is below 25; the reading of the 5 minute TIAggressive cannot be above 70 at the time that the signal is generated.  Subsequent high: 1528.75.

10:20 AM buy signal emini S&P price 1524.00. 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: 1528.75.

11:45 AM buy signal emini S&P price 1525.00. 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:1528.75.

2:50 PM buy signal signal emini S&P, price 1527.75. The set up: on the 20 minute chart, with the RSI above 50 and the 20 TIagg having a reading above 50, the trigger the 10 minute Chaikin Oscillator goes from positive to negative a buy signal is generated.  Subsequent high: 1528.75.

AFTER THE CLOSE : .Only the 10 and 15 minute DTI’s finished the day negative and all TIndexes finished the day positive. With the overall market status bullish and our short term indicators leaning bullish, we will be looking to buy dips and trades to the upside will give be the higher value trades.

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.