THE MARKET MECHANIC BROUGHT TO YOU BY ODYSSEY TRADING GROUP FOR 07/24/ 2012

Welcome to the Market Mechanic daily blog

TODAYS ACTION: Earnings disappoint  and Moodys' downgrades Germany not the makings of a bull market. The trend day I thought we should have had yesterday we got today. The market opened slightly lower but just headed south all day. Our software and system generated 7 profitable  sell signals. The 10 minute DTI went positive at 2:30PM and the software also generated a profitable buy signal at that time . 

9:30 AM sell signal emini S&P price 1336.50 The set up, with the 5, and 10 DTI’s all with negative readings, the trigger; on the 20 minute chart with the cross and close of the 20 minute DTI from positive to negative a sell signal is generated. Subsequent low 1323.75

10:00 AM   sell signal emini S&P price 1336.75 The set up; 5,10 and 20 minute DTI’s both reading negative and a negative reading on the 5 minute MACD, the trigger; on the 5 minute chart a yellow neutral bar is followed with are bearish red bar, a sell signal is generated.  Subsequent  low 1323.75

10:10 AM   sell signal emini S&P price  1336.00 The set up; 5,10 and 20 minute DTI’s both reading negative and a negative reading on the 5 minute MACD, the trigger; on the 5 minute chart a yellow neutral bar is followed with are bearish red bar, a sell signal is generated.  Subsequent  low 1323.75.

10:30 AM sell signal emini S&P price   1337.75 On the 5 minute chart; the set up, the 5 minute TI agg crosses and closes above its 70 line and then crosses below and closes below its 70 line,  a sell signal is generated. Subsequent low 1323.75.

10:40 AM   sell signal emini S&P price  1334.25 On the 5 minute chart; the set up, the 5 minute TI agg crosses and closes above its 70 line and then crosses below and closes below its 70 line, the trigger, the first red 5 minute bar generates a sell signal. Subsequent low1323.75

12:20 AM   sell signal emini S&P price 1329.50 On the 5 minute chart; the set up, the 5 minute TI agg crosses and closes above its 70 line and then crosses below and closes below its 70 line,  a sell signal is generated. Subsequent low 1323.75

 
12:35 PM  sell signal emini S&P price  1328.50        On the 5 minute chart; the set up, the 5 minute TI agg crosses and closes above its 70 line and then crosses below and closes below its 70 line, the trigger, the first red 5 minute bar generates a sell signal. Subsequent low 1323.75     

2:30 PM   buy signal emini S&P price  1330.50    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  1335.00.  

AFTER THE CLOSE: Our proprietary indexes and oscillators finished the day mixed. Only the 5 minute Tindex finished the day positive. Chalk that up for the bears. The DTI's from the 5 minute  through the 30 minute finished the day positive. With the European thing and earnings reports still coming in, the only thing that makes sense is to wait for the software and system to generate trading signals and take it from there. Trying to predict market direction is foolish at best.

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.