THE MARKET MECHANIC for 06/22/2012 BROUGHT TO YOU BY ODYSSEY TRADING GROUP

Welcome to the Market Mechanic daily blog

TODAYS ACTION: After yesterdays dramatic downturn the action today was sideways with an up ward bias. Our proprietary indicator the DTI on the 10 and 20 minute time frame were opened positive and stayed positive. These positive readings kept us on the buy side of the market the entire day. Our software and system generated 6 profitable buy signals on the day. After that intense sell off yesterday, todays rally was somewhat of a surprise, but a welcome one.

TODAYS SIGNALS:

8:50 AM buy signal emini S&P price 1323.75 price The set up; on the 10 minute chart with the cross of the TI agg below and close below its 30 line, the trigger: the cross of the TI agg back above and close above its 30 line and a positive reading on the 10 minute DTI, indicating the market coming out of an oversold area, a buy signal is generated. Subsequent high 

10:05 AM buy signal emini S&P price   1324.75 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   

10:50 AM buy signal emini S&P price   1324.75 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   

12:30 PM  buy signal emini S&P price  1324.00 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   

1:30 PM buy signal emini S&P price  1326.00 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 

1:45 PM buy signal emini S&P price 1327.50 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       

AFTER THE CLOSE
 We get a welcome rally, will todays rally have legs? That is a tough question to answer. The proprietary indicator the DTI's on the 15, 20 and 30 minute time frames finished the with positive readings, which is an encouraging sign. The TIndexes with the exception of the 5 and 10 all finished the day negative which might keep prices in check. Hve a good weekend.

TODAYS CHART: