THE MARKET MECHANIC BROUGHT TO YOU BY ODYSSEY TRADING GROUP FOR 07/19/ 2012

 Welcome to the Market Mechanic daily blog

TODAYS ACTION: Market opens higher driven by good earnings. At 9:00 AM bad economic news released, market sells off.  Earnings reports come out through the day and the market likes what it sees market rallies. So how do you reconcile bad economic news with good earnings? I can not tell you, but the market says "What Me Worry". The 9:00 AM reports send the market lower the software and sytem generates a cluster of profitable sell signals. At 10:10 Am the 10 minute DTI goes positive and tells us of the coming rally and we get 3 profitable buy signals. The market as a whole gets a little overbought and the software generates two profitable buy signals. As we have been watching for dips to buy, this sell off gives a good opportunity and we get our buy signal at 1:15.

TODAYS SIGNALS:

9:10 AM sell signal emini S&P price  1369.00 On the 20 minute chart; the set up, the 20 minute TI agg crosses and closes above its 70 line and then crosses below and closes below its 70 line, the trigger, with a negative reading on the 10 minute DTI a sell signal is generated. Subsequent low 1366.00.

9:20 AM sell signal emini S&P price   1369.00 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 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 1367.00.

9:30 AM sell signal emini S&P price   1369.00 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 1367.00   .

9:50 AM buy signal emini S&P price   1370.75 On the 10 minute chart, the set up, with positive readings on 2 out of 3 of the following, the 20 minute TI agg, the 10 minute RSI with a reading above 50 and or the DMI with a positive reading, the trigger; the 10 minute TI agg crosses and closes below its 30 line and then crosses above and closes above its 30 line, a buy signal is generated. Subsequent high 1376.00.

10:00 AM buy signal emini S&P price   1370.50 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 1376.00
 

11:05 AM buy signal emini S&P price   1372.50 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 1376.00  

12:00 PM sell signal emini S&P price 1371.00 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 1367.25.      

12:30 PM  sell signal emini S&P price   1372.25 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 1367.25

1:15 PM buy signal emini S&P price   1370.75 On the 15 minute chart, the set up, with positive readings on 2 out of 3 of the following, the 30 minute TI agg, the 10 minute RSI with a reading above 50 and or the DMI with a positive reading, the trigger; the 15 minute TI agg crosses and closes below its 30 line and then crosses above and closes above its 30 line, a buy signal is generated. Subsequent high 1373.50.

AFTER THE CLOSE: This market will not go down. We are not seeing a price spike, just steady gains, which is typical of a bull market. Our  proprietary indicator the DTI on the 5 minute through the 30 minute finish the positive. One for the bulls. The TIndexes al 5 through the 60 finish positive. Two for the bulls. As we have been saying we will be looking for dips to buy. It has worked so far.

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.