THE MARKET MECHANIC BROUGHT TO YOU BY ODYSSEY TRADING GROUP FOR 07/16/ 2012
Welcome to the Market Mechanic daily blog
The retail sales number before the opens disappoints and the market gaps open lower and precedes to trade lower for a while. The market then could not pick a direction, it then traded higher, then lower then higher then lower. You could call it another choppy Monday. The software and system did a good job picking up on the chop and generated 3 profitable sell signals and 2 profitable buy signals. It is interesting to note that todays trading range was inside the trading range of last Friday, commonly called an inside trading day. Typically this is a slow day where the market shows little conviction as we saw today.
8:50 AM sell signal emini S&P price 1345.75 The set up, on the 10 minute chart; if 2 out of 3 of the following: the 10 minute TIndex, the 20 minute TIndex, and or the 20 minute TI agg have negative readings and the 10 minute TI agg is below its 50 line; the trigger: the 10 minute DMI crosses from positive to negative, a sell signal is generated. Subsequent low 1343.
9:40 AM buy signal emini S&P price 1349.00 The set up, on the 10 minute chart; if 2 out of 3 of the following: the 10 minute TIndex, the 20 minute TIndex, and or the 20 minute TI agg have positive readings and the 10 minute TI agg is above its 50 line; the trigger: the 10 minute DMI crosses from negative to positive, a buy signal is generated. Subsequent High 1352.50
10:45 AM sell signal emini S&P price 1349.00 The set up; on the 15 minute chart with the cross of the TI agg above and close above its 70 line, the trigger: the cross of the TI agg back below and close below its 70 line and a negative reading on the 15 minute DTI, indicating the market coming out of an overbought area, a sell signal is generated. Subsequent low 1345.75
12:15 PM buy signal emini S&P price 1348.00 The set up, on the 15 minute chart; if 2 out of 3 of the following: the 15 minute TIndex, the 30 minute TIndex, and or the 30 minute TI agg have positive readings and the 15 minute TI agg is above its 50 line; the trigger: the 15 minute DMI crosses from negative to positive, a buy signal is generated. Subsequent High 1351.75
2:40 PM sell signal emini S&P price 1347.75 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 1346.25
AFTER THE CLOSE:
We had an inside trading day not al ot of action so our proprietary indicators did move much. All the TIndexes except for the 10 and 5 minute finished positive.On the other hand all the DTI's with the exception of the 45 and 60 minute finished the day negative. One for the bulls and one for the bears. I am favoring the TIndexes for now and I think looking for dips to buy is the way to trade this. Of course we will wait for our software and sytsem to generate the signals letting us know when and where to buy.
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.