Euro Chat with Joe Ross
Chat log from: Thursday, August 30, 2007
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| crosten | Bombastic welcome for u Joe |
| JoeRoss | Thanks. |
| mgeo | Hello. |
| JoeRoss | Hi mgeo |
| mgeo | Joe, are you trading this week or is it not appropriate? |
| JoeRoss | Yes, I have traded all this week. |
| crosten | Some gas was found at the UN, the market moved, Joe. |
| crosten | Joe, in which market(s) are you active? |
| JoeRoss | This week I have been trading the Canadian dollar. |
| crosten | What is the reason behind that Joe? The CAD moved a lot today. |
| mgeo | How do you decide which market you are going to trade?? What did you see on the CD to trade it? |
| JoeRoss | The 9550 Call is paying a large premium. |
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| ronnie | Guten Tag Joe! |
| JoeRoss | I saw a lot of volatility and overpriced options. |
| mgeo | You are selling the 9550? |
| JoeRoss | servus ronnie |
| JoeRoss | mgeo: Yes, selling the 9550. |
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| crosten | Joe, from your years of experience, which indicator do you find the most useful to ride the trend for intraday and daily chart respectively? |
| JoeRoss | crosten: The volatility Stop. |
| crosten | For both intraday and daily charts? |
| JoeRoss | Yes, for both. |
| crosten | Who invented the Volatility Stop? |
| mgeo | Did you sell the 9550 based on your analysis or on the Matrix? |
| JoeRoss | crosten: Welles Wilder invented the VS. |
| JoeRoss | mgeo: based on the Matrix. |
| crosten | Joe, can you recommend a good website where I can view options prices for free? |
| JoeRoss | crosten: I don't know of any. |
| mgeo | Are you looking forward to keep the entire premium of the 9550 on a daily chart? It looks interesting to short it here.... |
| mgeo | Optionetics for free prices, crosten. |
| JoeRoss | mgeo: If premium drops to 10 cents I will buy it back. |
| crosten | Thanks. |
| JoeRoss | I already took $1,400 out of it, and I have only 5 contracts left. |
| mgeo | Did you sell them today? |
| crosten | Sell Put options is also known as naked short, right? |
| JoeRoss | No, I sold them 1-2 days ago. |
| JoeRoss | crosten: Naked short, yes. |
| crosten | Joe, do you use any other option strategy besides naked short? |
| JoeRoss | crosten: Yes, I also do option boxes. |
| crosten | Option boxes is that straddle? |
| JoeRoss | crosten: It is not a straddle. |
| crosten | Joe, why do you like to sell options near their expiry? |
| mgeo | Do you write about option boxes in your options book? |
| JoeRoss | crosten: Less risk near expiry.. |
| JoeRoss | mgeo: I touch on it in the book, but not a lot of detail. |
| JoeRoss | Detail is given in the seminars. |
| crosten | The indices are moving up and down today. |
| mgeo | Can you tell me the page? |
| JoeRoss | crosten: There is a lot of position squaring ahead of the long U.S. Labor Day weekend. |
| crosten | Joe, how do you do a quick scan of overpriced options? |
| JoeRoss | mgeo: I don't know which page, and I don't have a book with me at the moment. |
| ronnie | Sweet; just nailed another point on the Russell. |
| JoeRoss | crosten: It's easy to do a quick scan with the Option Matrix. |
| ronnie | haha, thanks. |
| crosten | Joe, suppose I sell 1 call option on the ES, is the margin for the option higher or lower than the outright contract? |
| ronnie | It's been crazy lately. |
| JoeRoss | Bitte. |
| ronnie | Joe, I've been going for TTE's using the 50 moving average. |
| ronnie | It seems to work nicely. |
| JoeRoss | ronnie: Good, that's what you are supposed to do. Find out what works and trade it. If it stops working find something else. |
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| ronnie | It seems like I change setups every 2-3 months. |
| JoeRoss | crosten: option margins are usually lower than the outrights. |
| JoeRoss | Hi fabio |
| fabio | Hi Joe, how are you? Hi everybody. |
| crosten | How do you calculate options margin? |
| JoeRoss | ronnie: You are sounding like a trader. It's good that you are flexible enough to change setups. |
| JoeRoss | crosten: I look at the brokers website to find out what the margin is. |
| mgeo | Joe, the 96 on the Canadian has higher Open Interest. Isn't it worth selling the high open interest option strikes? |
| ronnie | I was using slow stochastics to time the TTE when the market was more ranging. |
| JoeRoss | mgeo: Sure, if you can get what you want out of the high OI strike, use it. |
| JoeRoss |
I don't concern myself with OI very much. OI represents what is not trading. |
| crosten | Joe, do you trade support and resistance? |
| JoeRoss | I want to know what is trading, not what is not trading.. |
| mgeo | I don't understand that, OI represents what is not trading... |
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| JoeRoss | ronnie: Another good strategy. I've done the same thing myself. |
| BenHH79 | Hi all ! |
| fabio | Hi. |
| JoeRoss | OI represents people who are holding their position, not trading it. Volume tells you what is trading. |
| JoeRoss | Hi Ben. |
| ronnie | Another thing I have noticed, even though I hate saying it, is the whole wave count method. |
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| ronnie | corrections on wave 1 and 3 seem to have a higher probability. |
| JoeRoss | Uh oh! Now you're not sounding like a trader. |
| crosten | Joe, do you trade support and resistance? |
| ronnie | I believe you state them in your books as successive hooks. |
| JoeRoss | crosten: No, I don't trade support and resistance. |
| crosten | Waves are just baloney. |
| ronnie | With the first and second hook having the best chance and successive ones have a less chance of making follow through. |
| JoeRoss | ronnie: They may be successive hooks, but never confuse what I do with wave counting. |
| mgeo | ronnie, your wave counts are always after the chart is displayed. |
| crosten | What are the causes support and resistance to form? |
| crosten | What causes support and resistance? |
| BenHH79 | Joe, what food/softs markets can be traded at electronic exchange? |
| ronnie | I know, I know, I don't follow Elliott. |
| ronnie | Just how many corrections a current trend has had. |
| JoeRoss | crosten: I don't know what causes them to form. I don't believe in support and resistance. |
| crosten | Are support and resistance caused by options? |
| JoeRoss | Ben: As far as being tradable--the grains. |
| JoeRoss | crosten: What causes support and resistance is for you to find out and report back to the rest of us. |
| fabio | Joe, I tested, on the market I trade, that it's not very important the existence of room from TTE and the RH in day trading 5 minutes or less charts... what do you think about it? |
| JoeRoss | fabio: You are correct. There will not usually be enough room to take profits on a 5 min. chart using the TTE. |
| BenHH79 | So coffee, cacao, sugar, cotton, are definitely not tradable via IB.... |
| crosten | Joe, can you look at the eur/usd chart on 1 hr? Is that the most strangest chart ever? |
| JoeRoss | Ben: Definitely not with IB. |
| BenHH79 | Okay. |
| mgeo | No Ben, by sure not. |
| ronnie |
Joe which software were you using when you showed the difference in strategies when you checked the box that made limit orders only fill if price went through it? |
| mgeo | Joe, are you also selling the puts on CD? |
| BenHH79 | I'm writing with Marco from Infinity, he told me that RCG is going to release a new platform with a spread matrix. |
| david-g | Joe, when I first bought your books you were happy with Nextrend -- which software are you now happy with? |
| JoeRoss | ronnie: That was Genesis Trade Navigator. |
| JoeRoss | mgeo: No I'm not selling the Puts, but I may do it tomorrow. |
| ronnie | Does Genesis execute trades as well? Or just for testing? |
| crosten | Joe, is the bond market waiting for Bernanke? |
| mgeo | Joe, are bonds saying anything to you now? |
| ronnie | I think all the markets are waiting for big Ben. |
| JoeRoss | david: I have never truly been happy with any software. So I use 4 and soon 5. |
| JoeRoss | ronnie: Just for testing. |
| mgeo | Which are the 4 and the next one if you could share.... |
| david-g | What 4 / 5 different ones? |
| JoeRoss | crosten: The bond market is waiting for Tuesday when the Labor Day holiday will be over. |
| JoeRoss | mgeo: Trade Navigator, Aspen graphics, Ninja, Market Detective, and soon Nextrend. |
| crosten | Why Tuesday Joe? Are the big traders away? Ben could say something big tomorrow. |
| JoeRoss | crosten: The big traders are away. Ben won't say anything tomorrow unless he wants to have a strange and sudden death. |
| ronnie |
Bernanke's efforts to stabilize the U.S. financial system have met with minimal success that should prove short-lived. On the plus side has been temporary relative stability in the equity market, aided by extraordinary jawboning and data manipulation, along with market manipulations of the Working Group on Financial Markets (a.k.a. the Plunge Protection Team) as indicated by Treasury Secretary Paulson. |
| david-g | I use e-Signal because I like being able to use multiple charts -- do any of the ones you mentioned have 'full multi-monitor capability'? |
| ronnie | Article I just read. |
| JoeRoss | The only traders in the market tomorrow will be the juniors, and they have strict instructions to not make waves. Not even Elliott waves ;) |
| JoeRoss | david: All have that ability. |
| crosten | How do you know the big traders are away Joe? Do you have an inside connection? |
| JoeRoss | Oops! Not Ninja--at least I don't know if it can. |
| david-g | Thanks. |
| JoeRoss | crosten: Everyone knows it, it is common knowledge. |
| ronnie | Joe, you stated that the dow should be at 20,000 to be inflation adjusted, so the market wants to go down now, but the PPT is keeping it up right? |
| JoeRoss | ronnie: I believe that is correct. |
| fabio |
Do you know where I can find historical commodities data for free (about six months back at least) for spread trading use? I found "http://www.britefutures.com/quotes/spreads.aspx", but it seems me a bit inaccurate. |
| ronnie | That can't be a good sign. |
| crosten | Common knowledge? Does it mean big traders are always away from labor day? |
| crosten | Enlighten me. |
| JoeRoss | fabio: Try Man Financial. |
| fabio | Thanks, Joe. |
| JoeRoss | crosten: I'm turning on the light for you. It means they are away for labor day. |
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| JoeRoss | Fabio: http://www.manfutures.com/resources/getquotes.cfm?page=cspread. |
| fabio | Ok, thank you very much. |
| crosten | What other days are big traders away, Joe? |
| BenHH79 | Joe, do you know a trading platform with a spread matrix? |
| JoeRoss | crosten: Good Friday, Christmas, New Years, Fourth of July. |
| fabio | When big traders are away, it has effect in european markets too? |
| JoeRoss | Ben: I don't know of one. |
| JoeRoss | fabio: Yes it affects European markets too. |
| JoeRoss | Ben: what is a spread matrix? |
| BenHH79 | :-) |
| mgeo | Joe, do you trade the eurostoxx? |
| crosten | Joe, what is you analysis of eur/usd chart at the moment? |
| JoeRoss | mgeo: I have trade eurostoxx 50 at times. |
| JoeRoss | crosten: I don't have that chart at the moment. |
| BenHH79 | (I never thought I could get the chance to teach you) it's a table where you can see the different contracts/months against each other and the spread values. |
| david-g | Do you have any longer term views on the indexes? The ES / ER2 / YM / Dax / FTSE etc |
| JoeRoss | crosten: You need to be more specific. What time frame am I suppose to analyze? |
| david-g | Take whichever one you want, if you believe they are all talking from the same song sheet. |
| crosten | A 1 hr Joe, thks. |
| JoeRoss | Sounds like a good thing, Ben. Do you have to have an RC account to see and use it? |
| BenHH79 | On IB's "spread trader" (a module of the TWS) there's a matrix for calendar spreads. |
| JoeRoss | david: I don't have any long term views on the indexes. |
| crosten | Do any of you guys use Bloomberg? |
| david-g | Short term views? |
| ronnie | Looks like the indexes are gunning for their intraday lows. |
| JoeRoss | crosten: eur/usd is in a trading range. |
| BenHH79 | But that matrix is not very well programmed I think. I heard RCG is going to offer a better matrix. |
| mgeo | Would you trade the 10yr notes? |
| JoeRoss | david: I would say 60 min. is a very short term view. |
| BenHH79 | Joe, if you are RC customer you'll see that soon - onyx. |
| crosten | Am I correct to say the top of the range is 1.3680 and 1.3560 for the bottom of range? |
| JoeRoss | mgeo: There were a couple of good options on the notes yesterday. I haven't looked today. |
| JoeRoss | crosten: That's the way I see it. |
| crosten | Thks. |
| mgeo | What were they? |
| JoeRoss | mgeo: I don't remember the numbers. But they were overpriced. |
| crosten | Have you been avoiding outright contracts Joe? I see that you are very active on options? |
| mgeo | Overpriced looking at volume correct... I'm asking because I have the matrix. |
| JoeRoss | crosten: I go where the money is. The past 3 weeks there has been plenty of it in the options. |
| JoeRoss | Besides, I needed a change of pace from the outrights. |
| JoeRoss | mgeo: I think I scanned for options expiring in 20 days or less, paying at least $200, and with volatility of 15 or greater. |
| crosten | Joe, do you self-teach yourself options, or did you have a mentor Joe for options? |
| JoeRoss | If you have the data from yesterday or the day before, I think that was the scan I used. |
| JoeRoss | crosten: I learned to trade options on my own, but I never traded them the way option traders do. So my friend John Barbour clued me in about the Greeks and how to use an option model. |
| JoeRoss | I used to trade without a model and without any of the Greek stuff. |
| JoeRoss | I just combined options with futures. |
| BenHH79 | Do you also trade spread options? |
| crosten | What percent of your trades are naked short? |
| JoeRoss | crosten: I don't have any idea. |
| david-g | I have to go now, tks and goodnight Joe and all. |
| fabio | Goodnight david |
| JoeRoss | Ben: I am not an option spread trader unless I am creating boxes. When a box is closed, I have a bull spread and a bear spread. |
| JoeRoss | Goodnight david. |
| crosten | I read a book on options on futures, it says only armatures buy options ::happy |
| BenHH79 | Is that explained in your book about option trading? |
| JoeRoss | crosten: I believe that is mostly true, but not 100%. |
| Alpha | Hi Joe. I am curious, do you have the daytrading book and trading the ross hook as ebooks? |
| JoeRoss | Ben: There is something in the book about boxes, yes. |
| JoeRoss | Alpha: Sorry, only as hardcover books. |
| BenHH79 | Ok. |
| ronnie | Another point in the books. |
| BenHH79 | Joe, may I trade all commodity future markets on RCG? |
| JoeRoss | Ben: I think so. |
| BenHH79 | That sounds good. |
| JoeRoss | I will answer 3 questions for those who are typing and then I have to go. |
| crosten | What will Ben say, Joe? |
| Alpha | Have u ever used the ADX in trading the emini sp |
| crosten | Market is waiting. |
| fabio | Hi Joe, thanks... Hi all... |
| JoeRoss | Alpha: No I never used ADX for the emini sp. |
| JoeRoss | crosten: If you want to know, why not ask Ben? |
| JoeRoss | Good night to Europe. |
| crosten | He could signal a policy change. |
| JoeRoss | Good something to Malaysia. |
| JoeRoss | crosten I think you should stay up all night and worry about it. |
| BenHH79 | Good evening, Joe!! Thank you for your time. |
| JoeRoss | See you next week. |
| crosten | Trade the news. |
| BenHH79 | c u |
| JoeRoss | Ciao fabio |
| fabio | ciao ;o) |
| JoeRoss | Servus if you are in Germany. |
| JoeRoss | I don't know where the rest of you are, but if you tell me I will remember. |
| Alpha | Tanzania. |
| BenHH79 | Germany. |
| JoeRoss | Sleep well. |
Next EURO Chat with
Joe Ross:
Thursday, September 13, 2007
Time: 8:00 - 9:00 P.M., European Central Time (Berlin, Paris, Rome)
COME BACK WITH YOUR TRADING QUESTIONS & COMMENTS!
