THE MARKET MECHANIC BROUGHT TO YOU BY ODYSSEY TRADING GROUP FOR 07/25/ 2012

           Welcome to the Market Mechanic daily blog

TODAYS ACTION: We started the day with a gap higher opening, that almost immediately fell apart. Our software and system was only able to generate 1 profitable sell signal. While the market sold off the 20 minute DTI remained positive, tipping us off that the sell off was going to be limited. The rally was initially caught on the 15 minute chart and the ensuing rally got our software and system to generate 4 profitable buy signals. At 2:30 we picked a profitable sell signal to end our trading day

9:55 AM sell signal emini S&P price 1327.75 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 1326.25.

10:15 AM buy signal emini S&P price  1329.75 The set up; on the 15 minute chart with the cross of the TI agg below and close below its 30 line, the trigger: the cross of the TI agg back above and close above its 30 line and a positive reading on the 15 minute DTI, indicating the market coming out of an oversold area, a buy signal is generated. Subsequent high 1339.00

10:30 AM  buy signal emini S&P price  1329.75 The set up; on the 30 minute chart with the cross of the TI agg below and close below its 30 line, the trigger: the cross of the TI agg back above and close above its 30 line and a positive reading on the 30 minute DTI, indicating the market coming out of an oversold area, a buy signal is generated. Subsequent high 1339.00

11:45 AM  buy signal emini S&P price 1331.50 The set up; on the 15 minute chart with the cross of the TI agg below and close below its 30 line, the trigger: the cross of the TI agg back above and close above its 30 line and a positive reading on the 15 minute DTI, indicating the market coming out of an oversold area, a buy signal is generated. Subsequent high 1339.00

1:00 PM  buy signal emini S&P price 1337.75 On the 10 minute chart, the set up; with the 5, 10 and 20 minute  DTI’s and 5 minute MACD all with positive 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 negative to positive generates buy signal. Subsequent high 1339.00

2:30 PM  sell signal emini S&P price 1333.75     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  1330.50 

AFTER THE CLOSE:   Today was an inside day: meaning that todays trading range is contained with in yesterdays trading range. With several economic reports due out tomorrow morning that might explain the limited trading range. The good news is these inside days are usually followed by increased volatility. The 5 and 10 minute DTI's finished negative but the 20 minute DTI  finished positive, mixed reading there. All the Tindexes except for the 5 minute finished the day with negative readings, a somewhat bearish reading there.
We will just wait until tomorrows economic reports and see what the software and system generate for our trading signals.

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.