THE MARKET MECHANIC BROUGHT TO YOU BY ODYSSEY TRADING GROUP FOR 07/23/ 2012

Welcome to the Market Mechanic daily blog

TODAYS ACTION:
Greece back in the news and reports overnight of an Asian slow down, sends the morning market lower.  The system and software generates 2 sell signals, one profitable and one covered for a loss. We said Friday that we should be looking for dips to buy and at 9:50 the 100 minute DTI went positive, telling us it was time to look for the buy signals. The software generated 4 profitable buy signals before we got a minor pull back and rally from that pull back, that did give us a profitable buy signal.

TODAYS SIGNALS:

9:05 AM sell signal emini S&P price   1333.50 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 1332.25

9:10 AM   sell signal emini S&P price 1333.00 sell signal emini S&P price           . On the 10 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 10 minute fast stochastic from positive to negative generates sell signal. Subsequent action covered for a loss.

10:55 AM  buy signal emini S&P price 1340.50 . 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  1348.50

11:40AM   buy signal emini S&P price 1339.50 . 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 1348.50  

11:50 AM  buy signal emini S&P price 1341.00 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 high 1348.50
 1348.50

12:40 buy signal emini S&P price   1342.25 The set up, with the 5, 10 and 20 DTI’s  with positive readings, the trigger; on the 10 minute chart with the cross and close of the 10 minute DMI from negative to positive a buy signal is generated. Subsequent high 1348.50
 1348.50
1:05  buy signal emini S&P price  1343.00   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  1348.50    

2:25  buy signal emini S&P price 1345.25 . 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 1348.50  

AFTER THE CLOSE: After hearing last nights news: Greece out of the EU, China slow down and the down grade of Japanese banks, I would of thought the market would have been straight down. That did not happen. Why. well, if you can not invest in Europe and Asia and bonds yield next to nothing, what is left?  The USA.
The TIndexes except for the 5 minute and 10 minute finished the day in negative territory. The DTI's from the 5 minute through the 30 minute finished the day positive. As I said Friday we are leaning to the bull side of the market. We will remained focused on our trading signals and be ready for what ever the market gives us.     

TODAYS CHARTS:

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.