THE MARKET MECHANIC BROUGHT TO YOU BY ODYSSEY TRADING GROUP FOR 07/18/ 2012

Welcome to the Market Mechanic daily blog

TODAYS ACTION: Bernake back in front of Congress, says double dip recession not likely, gives the morning trade a boost. The software and system generates 5 profitable buy signals. Beige book released at 1:00 PM causes to sell of briefly the software and system generates 2 profitable sell signals. Yesterday we stated we would be looking for dips to buy and the Beige Book sell off gave us one. The software generated a buy signal on the 15 minute chart that proved profitable.

TODAYS SIGNALS:

8:55 AM buy signal emini S&P price  1361.25 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 1370.50

9:00 AM    buy signal emini S&P price 1362.00 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 1370.50

9:45 AM  buy signal emini S&P price    1365.50 The set up; 10 and 20 minute DTI’s both reading positive  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 1370.50

10:40 AM buy signal emini S&P price  1366.75 The set up; 10 and 20 minute DTI’s both reading positive  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 1370.50

11:10 AM  buy signal emini S&P price 1369.00 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 1370.50.

12:45 PM   sell signal emini S&P price 1367.75 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 1363.50.         

1:40 PM   sell signal emini S&P price 1367.75 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  1363.50 

2:15 PM   buy signal emini S&P price 1367.00  The set up; on the 15 minute chart when the TI agg crosses and closes beneath the 30 line and then trades above and closes above the 30 line and both the 15 and 30 minute TIndexes are positive and 2 out of 3 of the following have positive readings: the 30 minute TI agg, the 15 minute RSI is above 50 and or the 15 minute DMI is positive, a buy signal is generated. Subsequent high 1368.75

AFTER THE CLOSE: All the TIndexes finished the day positive, one for the bulls. On the other hand all of the DTI's with exception of the 60 minute all finished the day negative, one for the bears. Tomorrow we have a rash of economic date, jobless claims, leading indicators Philly fed survey and more earnings report. So what is a trader to do? Follow the game plan by following the signals the software generates. It some times is that simple.

TODAYS CHART:

ABOUT 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.