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

 Welcome to the Market Mechanic daily blog

TODAYS ACTION:

This morning the market opened higher and looked like it was going to keep running that way until LeGarde of the IMF spoke up and the market promptly tanked. Our system generated a sell signal after Le Garde spoke and we promptly sold  right into support around the 1300 level. The trade did not have a chance.  The market reversed course aided by bullish comments from USD Fed's Tarullo, our system picks up this rally and issues profitable buy signals for the balance of the day.

TODAYS SIGNALS:

9:40 AM sell signal emini S&P price 1299.50  The set up; the 20 and 5 minute DTI’s and the 5, 10 and 20 minute TIndexes all with negative readings. The trigger; the cross of the 10 minute DTI from positive to negative, a sell signal is generated. Subsequent action covered for a loss.
 
9:50 AM  buy signal emini S&P price 1304.75 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   1320.50.

10:05 AM buy signal emini S&P price 1306.75 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 1320.50

12:15 PM buy signal emini S&P price 1310.75 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 1320.50.

12:25 PM buy signal emini S&P price 1310.75 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   1320.50.

1:25 PM buy signal emini S&P price 1310.25 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 1320.50.
  

1:35 PM buy signal emini S&P price 1312.75 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   1320.50.

2:30 PM buy signal emini S&P price 1313.75 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 1320.50

2:45 PM buy signal emini S&P price 1316.75 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 1320.50.

AFTER THE CLOSE;
The TIndexes and The DTI's all finished positive across all time frames from the 5 minute through the 60 minute. the daily charts are starting  to look better also. The short, intermediate and long term oscillators version the DTI's are now all positive on the daily chart. The weekly DTI's are still negative but the market looks like it has more upside potential.

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.