MARKET MECHANIC for 06/13/12 BROUGHT TO YOU BY ODYSSEY TRADING GROUP

Welcome to the Market Mechanic daily blog

TODAYS ACTION:
The market opens lower due to poor retail sales numbers the software generates a profitable sell signal to catch some of this action. The market trades firmer after a good inventory and until 1:00PM trades sideways with an upward bias. But the European cloud returns, this time its Alan Greenspan every ones favorite saying the EU monetary union is a failure and will be unable to resolve the crisis. Thanks Al. Also Spains debt gets another downgrade, go figure. Our 10 minute proprietary indicator the DTI goes negative at 1:00 PM and sets up two great sell signals, catching the meat of this down move and it was a good one, the market fell over 10 points after our 1:00 PM sell signal.

TODAYS SIGNALS:

8:50 AM sell signal emini S&P price 1311.75 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   1308.25      

9:15 AM buy signal emini S&P price 1314.75 On the 5 minute chart; the set up, the 5 minute TI agg crosses and closes below its 30 line and then crosses above and closes above its 30 line, the trigger; the first green 5 minute bar generates a buy signal. Subsequent  high 1320.75

9:30 AM  buy signal emini S&P price 1314.75  The set up, on the 20 minute chart if 2 out of 3 of the following: the 20 minute TIndex, the 40 minute TIndex and or the 40 minute TI agg have positive readings and the 20 minute TI agg is aboves its 50 line; the trigger: the 20 minute DMI crosses from negative to positive, a buy signal is generated. Subsequent  high 1320.75

11:00 AM 1316.00 sell signal emini S&P price The set up; on the 30 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  1313.50.       

11:40 AM  buy signal emini S&P price 1318.75  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  high1320.50.

12:30 PM  buy signal emini S&P price 1319.50 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

 1:00 PM 1315.50 sell signal emini S&P price The set up; on the 30 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    1303.50.     

2:00 PM 1310.75 sell signal emini S&P price On the 10 minute chart, the set up; with the 5, 10 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 10 minute fast stochastic from positive to negative generates  a sell signal. Subsequent low 1303.50.
 
AFTER THE CLOSE:

Europe is not going away for a very long time. We all better get used to it. The EU is teetering on the brink and its pending break up, bail out or whatever the
resolution might be,  is bringing untold uncertainty and the market loathes uncertainty.
Now, on to our indicators. The DTI's the 10 minute through the 60 minute are negative the exception of the 5 minute. The TIndexes the 5 through the 30 finished negative. The 45 and 60 minute TIndexes are still positive for now and could provide the frame for a rally. The 1300.00 level for the S&P has stood like a rock lately but the more we go down there, the more support is chipped away.
 All we can do is follow our system and take advantage of this volatility.

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.