THE MARKET MECHANIC BROUGHT TO YOU BY ODYSSEY TRADING GROUP FOR 07/20/ 2012
Welcome to the Market Mechanic daily blog
TODAYS ACTION: It is all about the earnings. Last night and todays earnings disappoint and the market heads lower. Our software and system picks up the trend and generates 5 profitable sell signals to start off the day. After 12:00 PM the market traded sideways for the most part. The software and system did generate a buy signal but with the sideways action this trade was covered at the close foe a 1 point loss. The fact that our software and system only generated 1 trading signal after 12:00 PM will tell you how little action there was this afternoon.
9:15 AM sell signal emini S&P price 1364.50 On the 5 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 5 minute fast stochastic from positive to negative generates a sell signal. Subsequent low 1360.50.
9:30 AM sell signal emini S&P price 1364.00 On the 10 minute chart, the set up; with the 5, 10 and 20 minute DTI’s and 5 minute MACD all with negaitive 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 sell signal. Subsequent low 1360.50.
9:35 AM sell signal emini S&P price 1361.75 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 1360.50.
10:15 AM sell signal emini S&P price 1363.50 The set up, with the 5, 10 and 20 TIndexs all with negative readings, on the 5 minute chart with the cross and close of the TI agg above its 70 line and then the cross and close of the TI agg below its 70 line a sell signal is generated. Subsequent low 1357.00.
11:15 AM sell signal emini S&P price 1366.26 The set up; with below 50 readings on the RSI and the TI agg on the 20 minute chart and a negative reading on the 10 minute DTI, the trigger; with the cross of the DMI on the 5 minute chart, from positive to negative a sell signal is generated. Subsequent low 1357.25.
1:10 PM buy signal emini S&P price 1359.75 . 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 action, covered on the close for a 1 point loss.
AFTER THE CLOSE: Todays sell off left all of the TIndexes except for the 45 minute and the 60 minute in negative territory. One for the bears. The 5, 10 and 20 minute DTI's all finished the day positive indicating a intermediate term firming of the market. To sum up: the jury is still out and the market direction is yet to be determined. Although I am still leaning to the upside.
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.