THE MARKET MECHANIC BROUGHT TO YOU BY ODYSSEY TRADING GROUP FOR 07/31/ 2012
Welcome to the Market Mechanic daily blog
TODAYS ACTION: The world waits for announcements from the ECB and the Fed, not to mention Friday’s unemployment number. As the world waits the market trades sideways. I suppose this is to be expected. In these lack luster markets it is good to keep in mind that holding positions waiting for a good sized move is probably not a great idea. When you can book a reasonable albeit small profit, book it. Even with this sideways move our system and software does generate 2 profitable buy signals in the morning trade and 3 profitable sell signals in the late morning and early afternoon trade.
9:30 AM buy signal emini S&P price 1380.00 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 1383.00
10:20 AM buy signal emini S&P price 1381.50 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 1382.75
10:50 AM sell signal emini S&P price 1380.50 The set up; with a negative reading on the 20 minute DTI and a ; the trigger, the 20 minute TI agg crosses and closes above its its 70 line and then crosses above and closes above its 70 line, a sell signal is generated. Subsequent low 1375.00
11:10 AM sell signal emini S&P price 1378.00 The set up; the 20 and 5 minute DTI’s with negative readings. The trigger; the cross of the 10 minute DTI from positive to negative, a sell signal is generated. Subsequent low 1375.00
12:35 PM sell signal emini S&P price 1277.25 On the 5 minute chart with the cross of the TI agg above and close above its 70 line and then back below and close below its 70 line indicating the market coming out of an overbought condition in a bear market and with the 10 and 20 minute DTI’s and the 10 minute TI agg all with negative readings a sell signal is generated. Subsequent low 1376.00
1:15 PM buy signal emini S&P price 1378.75. The set up; with a positive reading on the 15 minute DTI and a ; the trigger, the 30 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 1380.50.
2:20 PM sell signal emini S&P price 1377.50. The set up, with the 5, and 20 DTI’s all with negative readings, the trigger; on the 10 minute chart with the cross and close of the 10 minute DTI from positive to negative a sell signal is generated. Subsequent low
AFTER THE CLOSE: That was an ugly close. We trade sideways for most of the day and in the last few minutes the markets bust out a downside move.
The story is the impending news from the Fed, the ECB and the unemployment report. Our proprietary indictor the DTI's from the 5 minute through the 60 minute all finished the day negative. The TIndexes from the f 5 minute through the 20 minute finished the day negative, these are solid bearish readings.
These bearish readings are meaningless, considering the impending news releases. We sit tight and wait.
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.