MARKET MECHANIC for 06/11/12 BROUGHT TO YOU BY ODYSSEY TRADING GROUP

Welcome to the Market Mechanic daily blog

TODAYS ACTION:

Good news from China and Europe over the weekend had the market up big Sunday night and opened us up higher this morning but the rally could not have been more short lived. In fact our software generated a sell signal at 8:50, the opening rally was just a short lived selling opportunity. The market continued the slide and our system generated four more profitable trading signals. After 10:30 AM the market went into the trade sideways mode and our system did pick up profitable trade in the sideways to up move. But this rally also proved to be another selling opportunity and our system generated three more profitable sell signals.

TODAYS SIGNALS:

8:50 AM sell signal emini S&P price 1322.50. 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 coming out of an overbought area, a sell signal is generated. Subsequent low  1312.50      
 
9:10 AM sell signal emini S&P price 1318.50. 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  

 9:20 AM sell signal emini S&P price 1317.75. 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 1312.50. 

 9:50 AM sell signal emini S&P price 1316.25.  The set up; with  below 50 readings on the RSI and the TI agg on the 20 minute chart and a negative reading on the 10 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 1312.50.
  

10:05 AM sell signal emini S&P price 1314.00. On the 5 minute chart; the set up, with the 5,10 and 20 minute DTI’s all reading negative and a negative 5 minute MACD, the trigger; on the 5 minute chart a yellow neutral bar or a green bull is bar is followed with are bearish red bar, a sell signal is generated.  Subsequent  low 1312.50.

11:50 AM buy signal emini S&P price 1316.25. The set up, on the 10 minute chart if 2 out of 3 of the following: the 10 minute TIndex, the 20 minute TIndex, and or the 20 minute TI agg  have positive readings and the 20 minute TI agg is above its 50 line; the trigger: the 10 minute DMI crosses from negative to positive, a buy signal is generated. Subsequent High 1319.25.

12:50 PM sell signal emini S&P price 1314.25. 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 10 minute DMI from positive to negative a sell signal is generated. Subsequent low 1299.75.

 1:50 AM sell signal emini S&P price 1311.50. 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  1299.75.

2:50 PM sell signal emini S&P price 1305.25. 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  1299.75.

AFTER THE CLOSE:
Todays price action turned  our proprietary oscillator the DTI from positive to negative on the charts from the 5 minute through the 60 minute time frames, this means we are more than likely looking at lower prices going ahead. The TIndexes also went negative on the 5, 10 ,15 and 20 minute charts, signaling the break down of the market. The fact that the market got a serious beat down on the close is a also a terrible sign. It looks like we are back to sell rally mode.

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 several distinct, 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.