THE MARKET MECHANIC BROUGHT TO YOU BY ODYSSEY TRADING GROUP FOR 08/03/ 2012

Welcome to the Market Mechanic daily blog

TODAYS ACTION:  The market opened strong and then hit the doldrums ( it is August) and traded sideways from mid morning until 2:30 PM when the bottom fell out. Our software and system generated 3 profitable buy signals during the sideways move and then generated a perfectly timed sell signal to capture almost the entire late afternoon sell off.
 
TODAYS SIGNALS:
8:45 AM buy signal emini S&P price 1381.00 On the 5 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 5 minute fast stochastic from negative to positive generates  a buy signal. Subsequent high 1390.50.

9:20 AM buy signal emini S&P price 1383.75 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 1390.50.

12:15 PM buy signal emini S&P price 1389.00.  On the 5 minute chart with the cross of the TI agg below its 30 line and then back up above and close above its 30 line, indicating the market coming out of an oversold condition in a bull market and with positive readings on the 5, 10 and 20 minute DTI’s and a positive reading on the 10 minute TI agg a buy signal is generated. Subsequent action: covered for a loss at 1388.00, when the software and system generated the 1:50 PM sell signal
.
1:50 PM sell signal emini S&P price 1388.00.   The set up; with a negative reading on the 10 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 1384.50.

AFTER THE CLOSE; The TIndexes from the 5 minute to the 60 minute al finished the day positive. The DTI’s finished mixed but with an upward bias. The smart play will probably be to look for the system to generate buy signals after market dips.

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.