MARKET MECHANIC FOR 06/20/2012 BROUGHT TO YOU BY ODYSSEY TRADING GROUP

Welcome to the Market Mechanic daily blog

TODAYS ACTION:
With the 10 and 20 minute DTI's with negative readings after the opening, the market was in a sell mode. Our system generated 4 profitable sell signals to start the day. The market was awaiting the announcement from the Fed on its ongoing policy to be released at 11:15. The 11:15 announcement said operation Twist was to  be continued and the market sold off on the news, Now it was time to wait for the Bernanke news conference at 1:15 PM. The market rallied before his news conference and our system did generate a couple of profitable buy signals. Then the news conference happens and the market is disappointed and sells off. Our system generates 1 profitable sell signal. Late in the day the market rallies and closes unchanged for the day.

TODAYS SIGNALS:

8:40 AM sell signal emini S&P price 1349.50 The set up; with a  below 50 reading on 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 1338.75

9:40 AM sell signal emini S&P price 1349.50 The set up; with a  below 50 reading on 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 1338.75

 
11:00 AM sell signal emini S&P price 1348.25 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 1338.75

11: 05 AM sell signal emini S&P price 1347.25 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 1338.75   

11:50 AM buy signal emini S&P price  1346.50     On the 20 minute chart; the set up, the 20 minute TI agg crosses and closes below its 30 line and then crosses above and closes above its 30 line, the trigger, with a positive reading on the 10 minute DTI a buy signal is generated. Subsequent high    1355.50  

12:00 PM buy signal emini S&P price 1348.75   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  1355.50 .
  
1:00 PM buy signal emini S&P price   1351.25  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 1352.75.

1:50 PM sell signal emini S&P price 1344.00 The set up with the 5 and 20 minute DTI's with negative readings; the trigger, the cross of the 10 minute DTI from positive to negative a sell signal is generated. Subsequent low 1340.50.

AFTER THE CLOSE: The late day rally leaves our proprietary indicators in a mixed state. The 60, 45 and 30 minute DTI's close negative for  the day. The 5, 10, 15, 20 finish the day with positive readings. All of the TIndexes with the exception of the 10 and 15 minute  finish the day with positive readings. So with this we will not give any indication of tomorrows action.

TODAYS CHART: