MARKET MECHANIC for 6/14/2012 BROUGHT TO YOU BY ODYSSEY TRADING GROUP

Welcome to the Market Mechanic daily blog

TODAYS ACTION:
We open higher and the market continues to trade higher our software picks up this move and generates 6 profitable buy signals. Okay we start the day with a nice quiet up move, nothing special, pretty average, nothing to see here. At 1:30 our 10 minute DTI turns negative the down move starts, the system generates a sell signal, its profitable again nothing special a quiet down move. Then bang we get a spike a 5 minute bar with a 12 point range and the nutty hour begins. That 5 minute bar does generate a buy signal but lets get real, I wouldn't trade it with your money. It is time to sit back and watch the show. By the way the spike was caused by news that the Europeans will flood the market with money. Fine, good luck with that.

TODAYS SIGNALS:

9:00 AM buy signal emini S&P price 1314.75 The set up, on the 15 minute chart if 2 out of 3 of the following: the 15 minute TIndex, the 30 minute TIndex, and or the 30 minute TI agg have positive readings and the 15 minute TI agg is above its 50 line; the trigger: the 15 minute DMI crosses from negative to positive, a buy signal is generated. Subsequent High 1321.25

9:10 AM buy signal emini S&P price 1315.25 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 above its 50 line; the trigger: the 20 minute DMI crosses from negative to positive, a buy signal is generated. Subsequent High 1321.25

9:50 AM buy signal emini S&P price 1316.25 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 1321.25

11:20 AM buy signal emini S&P price 1318.25 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 DTI’s and a positive reading on the 10 minute TI agg a buy signal is generated. Subsequent high 1321.25.
 
11:50 AM buy signal emini S&P price 1319.25 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 1321.25.

1:30 PM sell signal emini S&P price 1316.75  The set up; with a negative reading on the 10 minute DTI and a ; the trigger, the 20 minute TI agg crosses and closes above its its 70 line and then crosses above and closes above its 70 line,  a sell signal is generated. Subsequent low 1314.00.
  

TODAYS CHART; 

AFTER THE CLOSE:
I think I mentioned yesterday about the market volatility caused by the mess in Europe, I said get used to it. Well, are you used to it yet.
Going forward. The DTI's on time frames from through 60 minutes all ended the day in positive territory as did all the TIndexes. So it looks like higher prices ahead. So we will be looking to buy dips and our software is a champ at  identifying the right time to buy those dips.