Euro Chat with Joe Ross

Chat log from: Thursday, June 14, 2007
Alexa joined.
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JerryM thanks nice to be here
SusanL Hi Jerry...hang on....chat will start momentarily:)
JerryM understand
SusanL but welcome! Glad you're here
JerryM So am I. I am one of the fortunate who got to hear Joe last weekend in Denver. What a treat!
SusanL That's awesome!
SusanL He had a good time
JerryM Well so did we. What a wonderful human being. And what a great wit and sense of humor.
Buzz joined.
JerryM And here is another one of our group from Denver
JerryM buzz meet Susan
Buzz ::smoke
SusanL Hi Buzz, welcome to Joe's Euro Chat.
Buzz Hi Susan, thanks
SusanL He will be online in a few seconds.
SusanL Just stick with us
Buzz You bet
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SusanL I'm happy to see you all joining the chat.....just keep coming
Buzz


My congratulations to whoever wrote the instructions for registering etc, to the live chat. It is refreshing to see something so clear, logical, and well written. I am a big fan of clarity in communication!
SusanL I hope you really mean it. Thanks. I am glad you were able to follow it.
Buzz I completely meant it.
SusanL You just have to make sure you all have the latest java software downloaded, should be version 6 (or also labeled 1.6.0)
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JerryM I have J2SE 5.0 update 10
JerryM So that must mean I need to download version6.0??
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SusanL I guess you can stay but for next time it would be better to have that.
SusanL You will see the chat room in a more modern version.
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SusanL looks better
joeross Hi everyone!
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joeross We might as well get started.
joeross Good evening in Europe and good afternoon in other parts of the world
Buzz Good evening from Denver, Joe
joeross Good noon in Denver, Buzz
Buzz Thanks.
davidkmonroe Joe, i like your new look
quester123

Hello Joe and all. I'm reading the new version of Trading is a Business, it truly is an impressive book

joeross Thanks quester.
joeross I'm glad you are enjoying it.
quester123 Joe, what do think bonds are indicating regarding interests rates.
joeross We are open for comments and questions, so the more you write the better the chat will be.
ubbs from germany
joeross quester: The bonds have been reflecting the expectation of higher interest rates in the U.S.
joeross Of course there are arguments on both side. But I tend to think they will ultimately have to go higher.
joeross It seems the FED has decided to sacrifice the dollar and that means the U.S. will have to pay higher interest to finance the debt.
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Crosten Hi joe
joeross crosten and I had quite a conversation last week. Some interesting questions came up.
Crosten Great to see many people today :)
Crosten Joe, what is your view on the recent bond sell-off ?
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quester123 Joe, would you hazard a guess as to high interest rates will go and would you expect a correction in the stock market?
murra Happy to meet you Joe, and everyone
joeross


quester: I really cannot guess other than to say they will go as high as is needed to sell those bonds in light of a falling dollar. Rising interest rates will eventually hurt stock prices.
joeross If bond rates went let's say to 7%, people would leave stocks to lock in the higher bond rates.
quester123 ok thanks Joe
murra I have some questions about keltner channel
murra can i ask?
joeross crosten: I already answered your question earlier. Please read the chat tomorrow, or click on Actions and Review Room History
Crosten Joe, do you think that the bond sell off is due to what bill gross said ?
joeross Sure murra ask :)
joeross crosten: it could be. I really don't know how much weight his opinions have in the market. But I do respect Bill Gross very much.
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Stefanm Hello
joeross Hi Stefan
murra


I agree with you, those are only a crutches but i am willing to gather everything you write in your book yet if you within more indicator oscillator indicate same i estimate those are the best.
Crosten Joe, why do you respect bill gross very much? Is it because his call has been very accurate?
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SusanL To view beginning of this chat, go to ACTION and click on recent room history.
murra 1) my software for setup indicate period
murra Keltner channel
joeross crosten: His calls are very accurate and he is the world's greatest bond trader.
joeross





murra: Keltner channel uses a fixed percentage or fixed amount for the bands. Compare that with Bollinger Bands which let the market decide where the bands should be based on volatility. The best way to use either one is to determine which one works best in the market and time frame you are trading.
ubbs


Hi Joe, Mr. " greene" have a partnership with the Allianz Investment Group, well with Bill gross by Pimco, they have now very interesting speaker . What do you say about this connection?
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joeross ubbs: I don't know very much about Allianz, and I didn't know they are connected to Bill Gross. I really have no opinion on that.
murra




For Keltner channel my software indicates a period but it does not explain if period is nr of close. You speak in your book about nr 39 close. Would period normally indicate close. 2 if tte in in the channel but ross hook is out would it been a valid signal? Or both(tte e rh) must happen out of channel?
Crosten Joe, do you still use Ninja trader? What is the most powerful feature of Ninja Trader?
ubbs ::smile
SusanL



To those members who just joined: to view whole chat, go to Action, and click "recent room history" - tip: if you want to have a bigger window, click on the button with the 4 black arrows, you can then maximize the chat window!!
joeross


murra: I don't know what period means in the software you are using, but normally period means how many bars you are using for the computation.
quester123 Joe do you watch finance tv at any time for any reason at all?
joeross


murra: If you are going to use an indicator I think it should be only to confirm the price action. So if prices seem to be turning and you are at a channel low or high, then you are getting confirmation.
joeross



crosten: I am still using Ninja but I am not 100% happy with it because they do not allow MIT orders. I am not familiar with many of the features in Ninja. There are many, but I haven't had time to really study it, so I cannot say what is the most powerful feature.
joeross quester: I avoid financial TV the same as I would the plague.
Crosten Why do you love using Ninja, Joe?
joeross crosten: I didn't say I love using Ninja. I use it because it does the job I need some of the time. Very often I have to use something else.
Crosten


Joe, I learned that you only trade in the morning, if you lost money in the morning will you trade in the later part of the day to make back the money you lost?
joeross My preference would be to use T4, but they don't have a relationship with Interactive Brokers.
joeross crosten: I never trade to attempt to make the money back.
joeross If I lose I take my loss and come back to trade fresh the next day.
Stefanm What are MIT orders?
joeross Stefan: Market if Touched
Stefanm Ok thanks
Crosten Don't you feel tempted to trade in the afternoon, Joe?
Stefanm In my trading i use spread orders
joeross If you price is touched your order becomes a market order. You could be filled better, worse, or at your price.
joeross crosten: No! Not ever.
joeross I am much to busy to sit and watch trades all day long.
Stefanm Ok i prefer limit orders because i do not chase the market.
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Crosten MIT and limit order is quite the same right joe ?
murra





Generally i don't use indicators but when i red in your book i like to test it for the purpose to learn about your teaching and in this moment i am testing the help by keltner and just to day it has confirmed price action stood for the purpose to have a filter i believe that this I think can help trading or simply given more courage and conviction but principally when i ask about i ever for first look price action
joeross Stefan: Limit orders do not guarantee a fill. I use MIT when I absolutely want to be filled.
colbru Hi
Stefanm ok
joeross crosten: read my answer to Stefan.
quester123 Joe which country did Lena Goodman go to the US from if it's not too personal.
joeross murra: You are describing the correct use of an indicator. I agree with that.
joeross Hi colbru
colbru Hi Joe
murra Are you agree? Sometimes i increase, if price action if confirmed by filter nr of stock ar contract only for this?
joeross quester: I believe it was Poland.
joeross I agree murra.
colbru Joe, let me ask you a simple question... I hope your answer will be simple as the question.
joeross ok colbru
Crosten Joe, which grain market do you trade, corn wheat soybean etc.?
joeross crosten: Wheat
Stefanm i tend not to use indicators only price action.
joeross Same for me, Stefan
colbru I have not read a book of yours yet. If I get my self the Hook... will I be able to trade profitably after reading it and trading the Hook pattern?
joeross colbru: NO!
joeross colbru: It takes a lot more than reading a book.
joeross But a book can help
colbru Ok I understand that I need experience...
Stefanm It,s a long way to the top if you wanna trade.
joeross colbru: Yes
quester123 Joe, can you please explain the yield curve and how it relates to the markets.
murra



joe i bombard you be patient ::smile for the segment (if i don't explain well i will write in forum) the point of the swing must be higher or lesser or it doesn't mean different if it doesn't mean different which is the best signal?
joeross






quester: I will try. The yield curve is simply a picture of interest rates: short, medium, and long-term interest rates. A normal yield curve would have long-term interest rates higher than medium or short-term interest rates. An inverted yield curve can have short or medium term interest rates higher than long-term interest rates. Currently the yield curve in the U.S. has come out of inversion and is normal.
Stefanm What has this to say for us?
joeross murra: If prices are rising, the best swing is to be higher.
murra TKO tk joe
Stefanm What impact has the actual yield curve on trading?
joeross Stefan: Is us the U.S. or is us all of us? :)
Crosten Joe the trading strategy that we talk last weak about how you trade the wheat market, are you referring the method to straddling?
Stefanm The US.
Stefanm Because i only trade US markets.
joeross Stefan: The yield curve has very little effect on traders; only on investors.
Stefanm But i think it's good to know the big picture.
murra Is a signal if the swing not happen higher or we have to live the signal?
ubbs Joe, do you take only Bar Charts?
joeross


Stefan: The only impact I know of for the yield curve is that when it is inverted a recession follows within 15 months most of the time, but not always.
Stefanm Ok thanks.
joeross crosten: If you mean straddle the high and low, the answer is yes.
joeross murra: the trade will be safer if the signal is there.
Crosten thks
joeross


ubbs: I prefer bar charts because I have been trading them for decades, but candlestick is ok, too. I just don't pay any attention to what the candles are saying.
Crosten Joe are you currently using t4 I heard that it is expensive?
joeross ubbs: I also am happy trading line charts.
joeross crosten: T4 is $25/month, less expensive than Ninja
ubbs Thanks.
murra Me too prefer bar chart I have same difficulty to look candle stick.
quester123 Joe are you paying any attention to the chinese markets thanks?
joeross quester:: Only from the point of view of general knowledge.
Crosten Which broker are you using t4 with, my friend is using t4 with proactive they are charging $1 per round turn for the platform?
Stefanm maybe we can write options in China?
joeross crosten: I am not using T4. I wish that I could, but they do not clear through Interactive Brokers. I am trying to change that situation.
murra


In the line chart;joe , not happen a really price action because close and open live mx and minimum how do you read it joe? in the past i only used line chart but now i could have same difficulty.
joeross Stefan: The best thing for me about China is eating Crispy Duck.
Stefanm Like in Munich.
Stefanm ::smile
joeross murra: if you are not sure, don't trade. Wait for clear, clean signals.
joeross Stefan: Yes! Like in Munich..
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Crosten Where do you get the25/month from? It's very affordable, my friend are paying more then 25/month for t4
joeross Germany has the best crispy duck of any place I've been.
ubbs Joe, there`s a big ross hook over the last years in the Dow?
Stefanm i agree.
ubbs grr, crispy from germany ....
joeross crosten: I spoke with them just 2 days ago. That was the price they quoted me.
Crosten Who are they Joe? interactive
joeross ubbs: I don't have a Dow chart up right now.
joeross




Interactive Brokers is the broker I use for a couple of reasons that are very important to me. They are reasons that cannot be met by other brokers. But I won't say more about it. There are plenty of good brokers out there and I usually recommend other brokers to our students.
murra In your analysis Joe, do you think the market is going in a buying climax?
joeross murra: Which market do you mean?
zendre Hello guys, I am trading mainly on ECBOT. Does anybody have some kind of excel that describes what contracts are active in different times of the day?
murra dj and nasdaq sp
zendre I mean active with tight spreads, not just "open".
joeross Hi Zendre: I don't know of anything like that. But if you tell me which markets maybe I can tell you the best hours.
zendre HG, ZW, ZC, RB, HE ZM, ZS
Crosten Joe, how much are you paying per round turn including exchange and nfa fee for trading the emini S&P?
zendre ZL, GC, SI :)
Stefanm It's better to trade the ZG instead of the GC
joeross Zendre: most of those are not ecbot markets.
zendre OK, there are nymex and globex as well.
Stefanm Chicago markets are better than NY.
joeross I never trade the New York markets. Too manipulated for me.
zendre Is it valid for electronic trading as well?
Stefanm ZG is the electronic ECBOT Gold contract.
murra Which market in sostitution you trade Joe?
joeross murra: the stock indexes look very much like they may be going into a buying climax. But trade what you see, not what you think.
Stefanm And very liquid.
joeross murra: I don't know what "sostitution" is. You have to help me with that one.
Stefanm They are options as well over this contracts for gold and silver.
joeross murra: I trade only CME and CBOT markets. There is more than enough trading there for me.
zendre Joe, I am pretty much fond of your book optures and futions. Is there any trading recommendation for the strategies described there?
zendre I mean like TN (Traders Notebook).
murra Yes i now very well your rule and sure i respect it but in my analysis sometimes i make this but i always trade only what i see.
Crosten Joe, which other trader do you admire besides bill gross?
joeross zendre: If you want trading recommendations, you should subscribe to Alan Parry's free letter. If you go to our website you can click on the South African flag and follow the links from there.
joeross crosten: Tom Baldwin
Crosten Joe, how much are you paying per round turn including exchange and nfa fee for trading the emini S&P?
joeross crosten: I think it is $3.62
murra For the stock which do you prefer?
joeross But I'm dyslexic, so it might be $3.26????
joeross Or $2.63
Stefanm Joe, where can i subscribe to the options newsletter?
Stefanm I'm on the page but i don't find it!
joeross Stefann: Trading Educators South Africa
quester123 Joe, what will the online course include
joeross Stefan: you will have to look around.
Stefanm what is the name?
joeross Hold on
Stefanm wow or something ?
joeross Yes. That's it. The WOW report
Stefanm ok i will find it
joeross I've got a lot of work to do so I have to end the chat.
murra good night and tk you Joe and everyone
joeross murra: Email me your question.
murra ok
Crosten thks Joe
zendre thanks bye
quester123 Thanks again, Joe
joeross Good night everyone. Ciao, Tschüß, Saludos, etc.
Stefanm tschüss
Rick thanks
SusanL thank you everybody, hope you all come back and join the chats next week. Tuesday at 8 PM, US Central Time and thursday 8 PM Central European time
SusanL Goodbye to everybody
Buzz thank you, Joe
Buzz and Susan

Next Chat with Joe Ross:
Thursday, June 21
, 2007
Time: 8:00 - 9:00 P.M., European Central Time (Berlin, Paris, Rome)

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