Euro Chat with Joe Ross
Chat log from: Thursday, July 19, 2007
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| JoeRoss | Hi everyone |
| quester123 | Hello Joe and all. |
| JoeRoss | What's new? |
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| JoeRoss | I heard yesterday, that one of the funds traded at Bear Stearns went broke and all the people in it lost all their money. |
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| JoeRoss | Apparently, there were heavy losses and they were hidden from the fund participants. |
| Stefanm | Hello |
| JoeRoss | Hi Stefan |
| Bondtrader | Hello everybody... |
| Stefanm | Hello to zurich |
| JoeRoss | Hi Bond |
| Bondtrader | Joe how are things? |
| JoeRoss | Going good, Bond. |
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| JoeRoss | CBOT is now merged with CME. |
| Bondtrader | That was a hedge fund and they leveraged it about 10 to 15 times over.... |
| Bondtrader | I think that merger is better then with ICE ...? |
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| JoeRoss | I think I would have retired if CBOT went to ICE. |
| Bondtrader | hihihihihi |
| Bondtrader | Me, too. |
| JoeRoss | Right, it was a hedge fund. |
| crosten | Joe, did you trade the equity, currency and bond market when Bernanke was testifying and also during the Q & A or did you not trade at all?? |
| Stefanm | What is ICE? |
| crosten | Ice cream |
| JoeRoss | crosten: I was in and still am in a bond option. |
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| Bondtrader | Hi Susan. |
| JoeRoss | Intercontinental Commodity Exchange (ICE) |
| SusanL | Hi Bondtrader. |
| Stefanm | Thanks. |
| crosten | Joe is it normal for you to trade when Bernanke is talking, or is this a once off event where you took a trade while he is talking? |
| Stefanm | Joe I think it's good that the two who merged are in chicago. |
| JoeRoss | I was in the trade before he was talking, crosten. |
| Bondtrader | It's hard for me to find a situation that is worth the risk trading those days when Bernanke is talking. |
| JoeRoss | I got in the option on Tuesday. |
| Bondtrader | There is no direction this month. |
| crosten | Joe is it ok to trade while Bernanke is talking or is it better to wait for him to finish talking? please advise. |
| quester123 | joe do you use the matrix for option trading? |
| Stefanm | What impact has FOMC minutes today on the EC? |
| JoeRoss | FOMC minutes affect the EC only to the extent they affect the dollar. |
| JoeRoss | I suspect there was a lot of political pressure on the CBOT to merge with CME. From an accounting point of view, they would have been better off with ICE. But I would have taken up another occupation if ICE had gotten the CBOT. |
| Stefanm | Where is the ICE located ? Also in Chicago? |
| Bondtrader | Yeah. I think it is good how it worked out... |
| ISeidl | Hi everyone. |
| JoeRoss | crosten: It depends on what you want to get into. I was not worried about Bernanke when I did my option trade. |
| Stefanm | Hello |
| JoeRoss | Stefann: It is located in the UK. |
| crosten | Joe, did you think the moves we see in equity, bond and fx market are the result of what Bernanke said? |
| Stefanm | So it was a better choice to merge CBOT and CME because of the same location ? |
| JoeRoss | Physical location was somewhat important. But to lose the CBOT would eventually have made the U.S. a second-rate futures trading nation. |
| ISeidl | Hi joe I saw your notice about the hedge fund at Bear Sterns. |
| ISeidl | I don't know about you but I read about that around 3 weeks ago. |
| JoeRoss | crosten: whenever the FED head speaks, it affects the financial markets. This time it had a serious effect on the stock market. |
| ISeidl | And I read that Merrill-Lynch was trying to inject some funds but then they bailed on that :) |
| ISeidl | But what I find kind of amazing is that the DOW didn't made a single hesitational move on that (PPT???) |
| JoeRoss | IS: I only heard about it yesterday. So it wasn't news. It was olds. Yes, perhaps the PPT held the market up. |
| ISeidl | jajajaja yes :) I just mention it because I saw no relevant action on the markets because of that ... |
| Stefanm | I'm still bullish on the euro, and the pound 2.20 |
| JoeRoss | The public don't care very much about a hedge fund going broke. |
| JoeRoss | Me too, Stefan. |
| ISeidl | I see. |
| crosten |
Joe, you wrote in you chart scan newsletter that you anticipate a drop in the gold market, but look at where gold is right now? Are you ready to admit that your analysis is wrong?? |
| ISeidl |
Ready to admit?? I think Joe once said: whenever he tries to be a prophet he results in being a false one ... that means ... trade what you see not think ;) |
| JoeRoss |
crosten: First of all it wasn't my analysis. If you read what is in the Chart Scan Newsletter you will find that it was all in quote marks. In any case, Gold is still in a trading range. |
| Stefanm | The british pound is even stronger than the euro you see English people anywhere in europe. |
| Stefanm | That means that they expect a further increase of purchasing power against the euro. |
| JoeRoss | stefan: They are coming over here too. |
| ISeidl | Well I think that was always like that UK people :) |
| Stefanm | Sure, the US is cheaper than ever for them. |
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| Stefanm | They purchase real estate in Bulgaria at an incredible rate. |
| zendre | Hi everybody. |
| ISeidl | Are you from Bulgaria, Stefan? |
| crosten | Ok then, what is your view of that persons analysis now that gold is at 677 ? Are you still with him or are you saying he is wrong? |
| Stefanm | I was in bulgaria for a week on vacation. |
| ISeidl | Oh ok :) |
| JoeRoss | crosten: I said: "Gold is still in a trading range" |
| Stefanm | It,s real cheap and Turkey is near. |
| Stefanm | I'm also bullish on gold. |
| Stefanm | Braam has the same opinon with his point and figure chart. |
| JoeRoss | Look at a weekly chart of Gold, crosten. All it has done is make a 50% retracement from the recent low. |
| zendre | What SW U use for point and figure? |
| JoeRoss | I don't think so, Stefan. Braam was saying he expects a huge drop in gold. |
| Bondtrader | Sorry but I got to leave...take care everybody....byebye. |
| JoeRoss | Bye bond. |
| ISeidl | Bye. |
| ISeidl | Uhmm it seems that today good questions lack :) |
| Stefanm | If the US dollar weakens this should be good for gold? |
| Stefanm | And that the dollar weakens is obvious. |
| JoeRoss | Right Stefan. It should be good for gold but that is not always the case. |
| crosten | You said that you share his view gold is about to make a move down? do you still believe in this or have you changed your view? |
| ISeidl |
Maybe I have a simple one :) ... Joe what do you think about this statement? : " Trading is a business of precision, exact figures and zero emotions" ... I just wrote that in my logs :) |
| JoeRoss | crosten: I still believe it will go down. |
| Stefanm | Yes but point and figure told me that we're gonna see a new all time high in gold this year. |
| Stefanm | And point and figure is the voice of the market. |
| JoeRoss | Write this as well IS: Trading is a business of following rules. |
| ISeidl | EXCELLENT :) |
| ISeidl | Will take note and it. It's easy to digest. |
| JoeRoss | I'm happy to know that, Stefan. But sadly, I don't believe that point and figure are the voice of the market.. |
| crosten | Joe, can you send the link to Braam Avenant's website? |
| JoeRoss | crosten: I don't know if he has a website. |
| Stefanm | Has he a website? |
| Stefanm | www.pointandfigure.net. But that's not Braam's website. |
| crosten | Joe, you said that he is going to setup a school where can I get more info? |
| Stefanm | Yes |
| JoeRoss | crosten: He is setting up a school for poor blacks and coloreds |
| Stefanm | In the German newsletter from Karsten today. |
| Stefanm | What a pity, I'm white. |
| Stefanm | I would like to assist. |
| JoeRoss | Braam is a very generous man. He is getting funding from the local government and from the local school. |
| JoeRoss | Can you speak Afrikaans, Stefan? |
| Stefanm | Vredendal is 250 km north of cape town. |
| Stefanm | And has also an airport. |
| crosten | Where can i get more info Joe? |
| ISeidl | Nice... by the way ... if there is something you should read from Joe`s site it is the spiritual side of trading :) my personal recommendation. |
| JoeRoss |
Those kids don't speak English. They are very poor and will never have a trading account. But he will teach them to have self-worth and to be able to hold up their heads. |
| Stefanm | If I get rich with option trading I will visit Alan first and Braam also. |
| Stefanm | Afrikaans. |
| Stefanm | They speak, I suppose. |
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| JoeRoss | Braam can barely speak English himself. |
| Stefanm | i know i talked to him on Skype. |
| JoeRoss | Stefann: you don't have to be rich to go to South Africa. The currency exchange is very much in your favor. |
| Stefanm | But he is a good gold trader. |
| crosten | Joe where did Braam learn pnf chart? Did he learn it from you? |
| JoeRoss | crosten: Not from me. I know nothing about it. |
| Stefanm | And even the Ross Hook exists in point and figure--even much clearer. |
| Stefanm | And the 123 low and high. |
| JoeRoss | That much I am aware of Stefan. |
| crosten | Who is his mentor? Where did he learn? I see that you have high praises for Braam. |
| JoeRoss | I love the charts Braam sends me. |
| ISeidl | Joe, would you agree that the trading plan gives you safety and consistency? |
| Stefanm | Updata plc in the UK. |
| JoeRoss | crosten: I don't know the answers to any of those questions. |
| Stefanm | The software is ok. |
| Stefanm | But now more expensive than ever. |
| Stefanm | Hopefully we can integrate a point and figure module in Ross trading analysis. |
| Stefanm | This would be fun. |
| JoeRoss |
I met Braam through a third party who said the two greatest things he ever saw were Braam's point and figure analysis and the Ross Hook. Since he is paid very highly to analyze all market concepts, it was good news for me. |
| ISeidl | Interesting. |
| Stefanm | But I know something about point and figure too, Joe. |
| ISeidl |
Well that's like a cold coffee for me ;) I always knew that JR education was the best around and I stuck to it from the very beginning... honestly I don't know anything about any other thing that is not JR teachings LOL :) |
| crosten | Let's pack our bag and meet up in Africa. |
| ISeidl | And I am very happy for that (less crap in my head). |
| JoeRoss | Stefan: Your point and figure on gold is not in agreement with Braaam's. I will take his analysis over anyone elses.0 |
| Stefanm | Since the close point and figure chart is still in bullish territory there is no danger that the trend breaks. |
| JoeRoss | Maybe you are using a different setting than Braam. |
| Stefanm | I looked up 2,5 and 5 dollar boxsize and they show the same. |
| Stefanm | My x objective is now 695 $. |
| ISeidl | What is so cool about point and figure (just out of curiosity). |
| JoeRoss | Then your analysis of what you see is not the same as Braams. |
| Stefanm | Could be but I only trade what I see. |
| Stefanm | and this is what you are teaching me |
| JoeRoss | $695 is still inside the trading range. |
| Stefanm | Ok. |
| crosten | The fundamentals of gold such as weakness in the dollar and high oil price does not justify a sell? |
| Stefanm | You know that I only trade GC and EC? |
| JoeRoss | When I see gold break 704.30, I will say "yippee, it is trending." |
| ISeidl | jejejeje |
| crosten | Joe, which market are you currently active in? |
| JoeRoss | Bond market, crosten. |
| JoeRoss | I would like to ask a favor of everyone: |
| Stefanm | ok |
| ISeidl | ? |
| JoeRoss | Please write to the CME or send them an email asking them to replace the Russell 2000 with a "CME 2000" |
| ISeidl | CME 2000? |
| Stefanm | Why? |
| JoeRoss | To replace the Russell 2000 which is moving exclusively to ICE. |
| crosten | Joe you said said that you are in the bond options? Is settlement over OTC ? |
| JoeRoss | If you want to trade ER2 you will have to trade it on ICE. |
| Stefanm | Ok. |
| ISeidl | Ok. |
| JoeRoss | crosten: Settlement is in cash. |
| JoeRoss | It will take only a few minutes to write and if enough of us do it, maybe they will do something. |
| Stefanm | Joe, I only make vertical option spreads at the moment. |
| crosten | Bond options trade over the counter right? |
| Stefanm | And in only two markets. |
| JoeRoss | crosten: Options on bond futures. |
| Stefanm | Bull call spreads and bull put spreads. |
| crosten | joe what do you think of Bernanke's testimony ? |
| JoeRoss | Stefan: it sounds like a lot of "bull" ;) |
| ISeidl | Maybe you should write that in you next Chart Scan Newsletter :) |
| JoeRoss | crosten: he said the economy would be weak. That's not news--that's olds. |
| Stefanm | There was no impact on the euro. |
| ISeidl | Is not a great thing :) |
| JoeRoss | There was no impact on the bonds, either. |
| Stefanm | That tells me that there are many waiting for the next down bet. |
| Stefanm | Maybe tomorrow is a good day for a huge move in the euro. And I'm long. |
| crosten | Joe, what is the thing that attracts you to the bond market? |
| Stefanm | I'm bearish on bonds. |
| JoeRoss |
Stefan: not from anything that happens here. We have no reports tomorrow. So if it happens, it will be from some other reports or from the currency traders. |
| JoeRoss | crosten: The fact that I can make money in it. |
| Stefanm | Yes. |
| crosten | Is one of the reason trading bonds because that small players are not there ? |
| Stefanm | But I don't know. Fridays are mostly good for huge moves in the eur/usd. |
| JoeRoss | It took me 30 years to figure out how to trade the bonds and make money from them. |
| Stefanm | That's a long time. |
| JoeRoss | crosten: I don't know who is there, and I don't care. |
| Stefanm | I hope I can cut that a little shorter |
| JoeRoss | Stefan: then it is the currency traders who are doing it. |
| crosten | Joe, what is the reason behind the Russell making beautiful and clear chart patterns as compared to other indexes? |
| Stefanm | Could be. |
| JoeRoss | crosten: The really big traders are not so much in the Russell. They need more liquidity. |
| Stefanm | I'm long 1.3800/short 1.3950. |
| ISeidl |
Joe, from all the methods that are available on TE since the very beginning which ones have stopped to perform at least once? did they started to perform again later? |
| Stefanm | So the future can stop at 1.3950. |
| JoeRoss | The Zulu method stopped performing when the beans went electronic. Most of them have stopped at least once, but all of them came back except Zulu. |
| crosten | Besides your website do you recommend other places to learn about trading? |
| ISeidl | Ok that was something to expect with Zulu, right? :) cause the gap was because of the pit. |
| Stefanm | Pointandfigure.net. |
| JoeRoss | crosten: I know nothing about other places. |
| Stefanm | tradingeducators.es |
| Stefanm | spreadtrading.es |
| crosten | Joe regarding your best trade you talk about last week, did you take the trade in the BP and SF during the ERM crisis ? |
| JoeRoss | IS: You got that right. But I keep wondering what would happen if you trade electronically but took signals from the open outcry pit trading? |
| ISeidl | uhmmmmmmm |
| ISeidl | Interesting. |
| ISeidl | I will check on that :) |
| JoeRoss | crosten: What is an ERM crisis? |
| Stefanm | Electronically regulated market? |
| Stefanm | Crisis? |
| ISeidl | Explosive recursive misunderstanding? |
| ISeidl | jejejejej |
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| JoeRoss | Egg roll mousse? |
| ISeidl | jjajajajajaja |
| crosten | ERM fall out, the time where Soros bankrupted the BOE. |
| Stefanm | exponential rubbish monster trade? |
| Stefanm | ::smile |
| ISeidl | jajaja |
| nfspips | Hi all. |
| JoeRoss | crosten: I don't even remember that. |
| nfspips | Is my first time here. |
| ISeidl | Hi. |
| ISeidl | Welcome. |
| nfspips | Hi Joe. |
| crosten | Joe regarding the BP and SF trade which year did yo take that trade? |
| nfspips | Glad to be here. |
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| JoeRoss | Hi NF. |
| JoeRoss | Welcome to the last 6 minutes of the chat. |
| nfspips | :) |
| ISeidl | jajajaja |
| nfspips | Better than nothing:) |
| Stefanm | Good Evening in Texas it's still morning? |
| JoeRoss | Welcome BigD also. |
| ISeidl | When we are all tired of asking questions and poor joe have to crawl away from the keyboard all tired. |
| BigD | Thanks. I'm in different time zone so its difficult to keep up. |
| JoeRoss | It is 1:55 PM |
| JoeRoss | Where are you BigD? |
| Stefanm | It's hot in big Texas? |
| crosten | Joe do you subscribe to any daily newsletters? What are some of the websites that you visit everyday? |
| BigD | Temporary in Australia visiting. |
| JoeRoss | Not today. It is cloudy and gray. Not too hot. |
| Stefanm | I'm melting down here in Barcelona. |
| nfspips | I'm from Romania. |
| BigD | Usually in Ohio. |
| ISeidl | stefan : hablas español? |
| JoeRoss | nf: This is the right time for you. |
| Stefanm | Claro. |
| ISeidl | jajaa ah bueno. |
| Stefanm | Que sí. |
| ISeidl | Yo tambien. |
| nfspips | Yes it is 9:55 PM. |
| crosten | Joe, which year did you take the BP and SF trade? |
| Stefanm | Parlo tambe Catalan. |
| Stefanm | Faltan los acentos. |
| Stefanm | Pero bueno. |
| JoeRoss | crosten: I think it was 1991, but I'm not sure. |
| Stefanm | No tengo ganas de cambiar el teclado. |
| JoeRoss | It was a long time ago. |
| Stefanm | Sorry. |
| ISeidl | Y bueno... |
| nfspips | Anyone trade live with 123 pattern? Ross Hook? |
| crosten | That must be during the ERM crisis ! |
| crosten | Joe, do you subscribe to any daily newsletters? What are some of the websites that you visit everyday? |
| ISeidl | ERM? |
| ISeidl | crosten where are you from? |
| JoeRoss | nf: I would say a few of us do :) |
| ISeidl | if not everyone ;) |
| Stefanm | I can tell you I found that the 123 low and high and Ross Hook are more reliable when there is also a buy signal in the point and figure chart. |
| BigD | Tried it once or twice ::cool. |
| JoeRoss | Good filter, Stefan. |
| Stefanm | And you can make a trading system out of it maybe. |
| crosten | Joe, how much did you pay too be an S & A member? |
| JoeRoss | S&A?? What is it? |
| Stefanm | It's like the time stop in day trading. |
| crosten | staninburry |
| crosten | Or something like that. |
| JoeRoss | stefan: Right is takes the time element out of the trade. |
| JoeRoss | crosten: $6000. |
| Stefanm | Yes. Because point and figure only gauges price movement. |
| JoeRoss | I'm willing to sell a 1/2 interest in S&A. |
| Stefanm | No fancy indicators. |
| ISeidl | 1/2 interest? |
| crosten | What's 1/2 interest? |
| JoeRoss | $3,000 for full rights to all of their info. |
| Stefanm | A little Bollinger bands and moving averages on the point and figure chart and that's all. |
| ISeidl | Well surely you will get it ;) |
| nfspips | What is s&a member? |
| Stefanm | Stainburry |
| ISeidl | jajaja stefan... what else... then some MACD and throw some Stochastic and you are set ;) |
| JoeRoss | Stansberry Research sells a lifetime membership to all of their advisories for a fee. I bought mine for $6,000. I think it may be higher by now. |
| JoeRoss | They have some of the best advisories and research in the world. |
| ISeidl | Interesting. |
| Stefanm | Joe, I only trade what I see in the chart and that's all. |
| crosten | Did you take trades from their calls ? |
| JoeRoss | So if any of you want to buy part of my subscription, I can go as low as 1/6th: 6 people for $1,000 each. |
| Stefanm | I can't afford fancy research. |
| JoeRoss | crosten : Yes, I most certainly do. |
| crosten | What's the probability of a win? |
| zendre | What type of research do they do? Fundamental? |
| ISeidl | It's an advisory crosten ;) |
| JoeRoss | stefan: This is for investing not trading. But there is one exception. They have a penny stock advisory. Quick in and quick out. |
| crosten | Probability of winning trades that you take based on their research? |
| JoeRoss | crosten: They have over a dozen advisory letters. |
| Stefanm | I only focus on two markets that's enough for me. |
| crosten | Give us some probability number, Joe? |
| crosten | Winning trades ? |
| Stefanm | I had the last 7 trades 6 winning trades. |
| JoeRoss | crosten: Are you insane or what? Over 1 dozen advisories and you want me to give you a number? |
| ISeidl | jajajajaja |
| JoeRoss | It's time for me to get back to work. |
| ISeidl | Take care Joe :) |
| JoeRoss | See you next week. |
| ISeidl | Great to share time with you. |
| zendre | Bye. |
| quester123 | Thanks Joe. |
| crosten | What their probability like? I mean on average combine of their advisory? |
| zendre | Thanks. |
| Stefanm | adios Joe saludos a los mexicanos. |
| nfspips | Bye all see you. |
| ISeidl | jajaja |
| JoeRoss | crosten: Send me $10,000 and I will spend an afternoon figuring it out for you. |
| ISeidl | jajajaja |
| crosten | ::laugh |
| JoeRoss | Bye all. |
| Stefanm | vendremos pronto para conquistar Mexico con Joe Ross. |
| JoeRoss | Adios. |
| ISeidl | jajajajaj. |
| ISeidl | Adios. |
| Stefanm | ::smile |
| crosten | Have a potter weekend! |
Next Chat with
Joe Ross:
Thursday, July 26 , 2007
Time: 8:00 - 9:00 P.M., European Central Time (Berlin, Paris, Rome)
COME BACK WITH YOUR TRADING QUESTIONS & COMMENTS!
