THE MARKET MECHANIC BROUGHT TO YOU BY ODYSSEY TRADING GROUP FOR 07/17/ 2012
Welcome to the Market Mechanic daily blog
TODAYS ACTION: Big Ben Bernanke dominates the morning trade. First he releases his comments to the press and the market hates them. Then he is is grilled by the politicians on capital hill and the market warms up to Ben and we rally. It was a nice rally, some 20 points off the low. The rally was good until about 2:00 PM and we traded sideways with a downside bias. The software and system did a great job of tuning into todays action. In the morning it generated 2 profitable sell signals and it caught the rally with 5 profitable buy signals. In yesterdays closing remarks, I said we will be looking for dips to buy and we caught it just right with the 10:30 AM buy signal the software generated.
9;10 AM sell signal emini S&P price 1346.25 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 1339.25
9:40 AM sell signal emini S&P price 1342.00 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 1339.25.
10:30 AM buy signal emini S&P price 1349.50 On the 30 minute chart; the set up, the 30 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 30 minute DTI a buy signal is generated. Subsequent high 1360.50.
10:45 AM buy signal emini S&P price 1353.00 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 1360.50
11:10 AM buy signal emini S&P price 1353.00 The set up, on the 20 minute chart if 2 out of 3 of the following: the 20 minute TIndex, the 40 minute TIndex and or the 40 minute TI agg have positive readings and the 20 minute TI agg is above its 50 line; the trigger: the 20 minute DMI crosses from negative to positive, a buy signal is generated. Subsequent high 1360.50.
12:25 PM buy signal emini S&P price 1356.75 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 1360.50.
1:45 PM buy signal emini S&P price 1358.50 On the 5 minute chart; the set up, the 5 minute TI agg crosses and closes below its 30 line and then crosses above and closes above its 30 line, the trigger; the first green 5 minute bar generates a buy signal. Subsequent high 1360.50.
AFTER THE CLOSE: Todays rally left all of the TIndexes in positive territory and the DTI's all finished positive with the exception of the 5 and 10 minute. These readings are fairly bullish and as we did today we will be in the market to buy dips. We will let our software and system generate those signals and they could be good for a good run.
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.