MARKET MECHANIC FOR 06/25/2012 BROUGHT TO YOU BY ODYSSEY TRADING GROUP

Welcome to the Market Mechanic daily blog

TODAYS ACTION: 
This week the EU is to meet and discuss how to keep the Titanic afloat, Andrea Merkel says let it sink. The market sells off. Go figure.
Our software and system opened negative and generated 5 profitable sell signals before noon. At 12:40 the 10 minute DTI turned positive signaling the end of the morning sell off. The software and system did generate 2 profitable buy signals after the positive reading on the 10 minute DTI. 

TODAYS SIGNALS:

8:55 AM sell signal emini S&P price 1309.50 On the 5 minute chart; the set up, with the DTI’s on the 5, 10 and 20 minute chart all with negative readings and the 5 minute MACD also with a negative 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 positive to negative, sell signal generated. Subsequent low 1302.50.

9:10 AM sell signal emini S&P price 1309.25 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 1302.50

10:00 AM sell signal emini S&P price 1307.75 The set up; 10 and 20 minute DTI’s both reading negative and with the ADX (a momentum indicator) with a reading of plus 50, on the 5 minute, the trigger; on the 5 minute chart a yellow neutral bar is followed with are bearish red bar, a sell signal is generated.  Subsequent  low 1302.50

 
10:30 AM sell signal emini S&P price   1306.50 The set up; 10 and 20 minute DTI’s both reading negative and with the ADX (a momentum indicator) with a reading of plus 50, on the 5 minute, the trigger; on the 5 minute chart a yellow neutral bar is followed with are bearish red bar, a sell signal is generated.  Subsequent  low 1302.50
 

11:50 AM   sell signal emini S&P price 1305.00 On the 5 minute chart with the cross of the TI agg above and close above its 70 line and then back below and close below its 70 line indicating the market coming out of an overbought condition in a bear market and with the 10 and 20 minute DTI’s and the 10 minute TI agg all with negative readings a sell signal is generated. Subsequent low 1303.25

1:10 PM  buy signal emini S&P price    1307.25 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 1310.25.

2:15 PM buy signal emini S&P price    1308.25 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 1310.25.

AFTER THE CLOSE: We said a couple of weeks ago, that the EURO ZONE story was not go away an time soon, this now goes double for this week. All we can do is watch our software and system and take the signals as they come. All of the TIndexes with the exception of the 5 minute finished negative on the day.The 10, 15, 20 and 30 minute DTI's all finished the day positive. it looks like we will start the day tomorrow with a mixed bag of indicators. We will be patient and wait for our opportunities to arise.

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.