Market Mechanic for 06/19/12 BROUGHT TO YOU BY ODYSSEY TRADING GROUP

Welcome to the Market Mechanic daily blog

TODAYS ACTION: As we noted yesterday all the proprietary indicators finished the day positive and we called for higher prices today. The market did not disappoint, we gapped open higher and traded higher until about 1:30 when the market started a small sell off. We caught the up move with 4 profitable buy signals and caught the down move with to profitable sell signals.All eyes on the Feds announcement tomorrow

TODAYS SIGNALS:

8:50  AM buy signal emini S&P price 1346.50 On the 5 minute chart; the set up, with the DTI’s on the 5, 10 and 20 minute chart all with positive readings and the 5 minute MACD also with a positive reading and the ADX with a reading of plus 25 on the 5 minute chart, the trigger; the first 5 minute fast stochastic cross of the day from negative to positive, buy signal generated. Subsequent high 1357.00

9:55 AM buy signal emini S&P price1351.75 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 1357.00
 
10:30 AM  buy signal emini S&P price 1350.75 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 1357.00

12:25 PM buy signal emini S&P price 1354.50 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 1357.00   .

1:30 PM sell signal emini S&P price 1353.75 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  1350.00. 

2:35 PM .sell signal emini S&P price 1252.50 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   1350.00

AFTER THE CLOSE: All of the DIT's finished negative at the close, all of the TIndexes with the exception of the 5 minute finished positive. All this information can be put on hold as we wait for the announcement from the Fed tomorrow on what their next move is.

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.