THE MARKET MECHANIC BROUGHT TO YOU BY ODYSSEY TRADING GROUP FOR 07/06/ 2012
Welcome to the Market Mechanic daily blog
TODAYS ACTION; Once again it all comes down to the unemployment number and it was not good. Proof that the professional political class is clueless, about the economy for one and so much more. We gap open lower and the market with great momentum trades lower. The software and system generates 6 profitable sell signals. At 2:00 PM the 10 minute DTI turns positive, setting the stage for a rally. The market did rally, for some reason, probably some short covering and our software and system did generate a profitable buy signal.
9:10 AM sell signal emini S&P price 1346.75 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 1343.25
9:35 AM sell signal emini S&P price 1348.00 On the 5 minute chart; the set up, with the 5,10 and 20 minute DTI’s all reading negative and a negative 5 minute MACD, the trigger; on the 5 minute chart a yellow neutral bar or a green bull is bar is followed with are bearish red bar, a sell signal is generated. Subsequent low 1343.25.
9:50 AM sell signal emini S&P price 1347.00 On the 5 minute chart; the set up, with the 5,10 and 20 minute DTI’s all reading negative and a negative 5 minute MACD, the trigger; on the 5 minute chart a yellow neutral bar or a green bull is bar is followed with are bearish red bar, a sell signal is generated. Subsequent low 1343.25.
12:30 PM sell signal emini S&P price 1346.00 The set up; on the 10 minute chart with the cross of the TI agg below and close above its 70 line, the trigger: the cross of the TI agg back above and close below its 70 line and a negative reading on the 10 minute DTI, indicating the market coming out of an overbought area, a sell signal is generated. Subsequent low 1342.25.
12:35 PM sell signal emini S&P price 1345.50 The set up, with the 5, and 20 DTI’s all with negative readings, the trigger; on the 10 minute chart with the cross and close of the 10 minute DTI from positive to negative a sell signal is generated. Subsequent low 1342.25
2:10 PM sell signal emini S&P price 1345.75 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 1352.50.
AFTER THE CLOSE: Yesterday we said it looked like the market was forming a good base on which to start a rally. Well, we are going to have to put that view point on hold at least for a while. The proprietary indicator the TINDEXES on the 5 minute through the 45 minute finished negative, the 60 minute remained positive. The 60 minute reading could offer a ray of hope. The proprietary oscillators the DTI's the 5 minute through the 30 minute turned positive, again a positive sign. Going forward, after the sell off , the afternoon rally could signal better things ahead. Next week starts earnings season, so we will just sit tight, wait for our set ups and take it from there.
Have a good weekend.
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.