Euro Chat with Joe Ross
Chat log from: Wednesday, March 5, 2008
| JoeRoss joined. | |
| crosten joined. | |
| crosten | Hey Joe. |
| JoeRoss | Hi. |
| JoeRoss | Hold on I have to clean my glasses |
| crosten | Joe, gold made a high of 994 today, are u still holding onto your gold trades using volatility stop loss? |
| crosten | Gold 1000 ? A bunch of stops at 1000 i suppose? |
| JoeRoss | crosten: The only gold trade I'm in is a gold discovery company. |
| crosten | Barrick Gold? |
| JoeRoss | Nova Gold |
| JoeRoss | It's a good buy right now. |
| zendre joined. | |
| JoeRoss | It's a company that finds gold and then let's someone else mine it. |
| zendre | Hi. |
| crosten |
Gold, i still don't understand that because the dollar is weak oil price will increase because oil is price in USD? I don't understand Joe, is it because people have to buy more dollars? |
| JoeRoss | They take half the profits and have none of the mining costs. |
| JoeRoss | Hi Zendre. |
| JoeRoss | crosten: Good question. |
| crosten | Please enlighten. |
| JoeRoss | I think the answer is that because the FED is printing more dollars the supply is huge and so the increase in dollars needed is met by simply creating dollars out of thin air. |
| JoeRoss | It is legal counterfeiting. |
| crosten | Thanks. |
| JoeRoss | I think gold will hit 1000, but then there is a very high possibility of a rebound correction -- could be 100 points. |
| zendre | Any suggested method to use this hint safely? |
| zendre | OK, I see this distance is wide enough to play it on 123. |
| crosten | I took a look at Nova Gold, why was there a plunge in mid November? |
| zendre | Or do you think writing a 1050 call would be better? |
| JoeRoss | zendre, I'm not following what you are writing about. |
| crosten | What if Nova Gold does not find any gold, Joe? Then its price will not increase? |
| zendre | Poor me :( I was commenting/asking about the GC to 1000 then back to 900. |
| crosten | Joe, opec says that oil will be at 200 in 2013 wow? |
| JoeRoss |
crosten: They are not yet producing gold. But they are sitting on a huge pile of it. For me this is a long-term hold. When they start producing they will be 2nd or 3rd largest producer in the world. |
| crosten | The stock took at hit Joe it was at 20 in December, any reason? |
| crosten | Are u buying Nova as a hedge against the dollar? |
| JoeRoss | zendre: I'm not sure at this point how I would play it. I want to see more before I get an idea. |
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| JoeRoss | crosten: I would be surprised if it takes that long for gold to hit 1000.. |
| JoeRoss | crosten: I'm buying it for the huge move upward I expect it to make when production begins. |
| crosten | Joe, is this one of the fundamental trades from your paid subscription newsletter? |
| crosten | I must say it is a good find. |
| JoeRoss | crosten: It is from research done for a newsletter. |
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| YV | Hi. |
| crosten | Are u investing in other stocks besides Nova? |
| JoeRoss | Hi YV, quester. |
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| crosten | Joe, a personal question, do you dislike socialist leadership? |
| JoeRoss | crosten: a few other stocks now and then. Mostly I am trading options. |
| crosten | I just want to know from your perspective. |
| JoeRoss | Hi Susan. |
| SusanV | Hi Joe. |
| JoeRoss | crosten: I am not too interested in stocks right now. I think there will be a short rally and then much more to the downside. |
| YV |
Joe, do u think holding 2 accounts (1 for method trading strictly and 1 for other trading reasons) is a good way to go in terms of measuring your equity curve? |
| crosten | Yes, a suckers rally we tested the low yesterday. |
| JoeRoss | YV: I think 2 accounts is good if it fits your needs. |
| quester123 | Hi Joe and all. Joe, any news on the upcoming options seminar - will it be online? |
| crosten |
Was just wondering Joe, couple of weeks ago you mentioned that Obama and Hillary are socialist? I guess u dislike socialists cause they take money from u, right? |
| JoeRoss | quester: I'm working on it. It will be online when I finish. Possibly in a couple of months. I still have a lot of work to do on it. |
| JoeRoss | crosten: I dislike socialism, because I don't want to be regulated, I want to be free. It has nothing to do with money. |
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| JoeRoss | Hi nathan. |
| nathan | Hey everyone. |
| YV | Tough day at work? |
| zendre | I would go back to trading. What do you think about this commodity run up? Will it continue? |
| JoeRoss | I've had a lot of fun today, trading options with some students. |
| JoeRoss | zendre: I think the commodity run up has a long way to go. |
| crosten | Joe, suppose u have 500,000 and u want to put the money in a trading account, would u be comfortable with it? Would u worry that the broker will go bust like Refco? |
| JoeRoss | crosten: I never worry about a futures broker going bust. |
| YV | Why not? |
| JoeRoss | Refco futures never went bust. |
| crosten | Why Joe? it can happen right? |
| JoeRoss | YV Because in the U.S. your money is kept separate from the broker and from the bank. It can never be money they can get their hands on. |
| zendre | Any opinion about NG (Natural Gas, not NovaGold :) |
| crosten | And you will be wiped out? |
| crosten | And your money will be wiped out. |
| JoeRoss | I've explained this before. The safest place in the world for your money is with a futures broker, safer even than a bank. |
| YV | Joe, do u trade forex at all? |
| nathan | What do you think about new ZB? |
| JoeRoss | zendre: My opinion is that it is going to continue to go up, until there is a correction due to profit taking, and then up once again. |
| crosten | I talked to a broker and he says that the money will be in a segregated account, if the money is not in banks and brokers hand where is money stored, Joe? |
| JoeRoss | crosten: It cannot happen in the U.S. that you lose your money if a broker goes bust. |
| JoeRoss | YV: Yes I do trade forex, about once/month. |
| crosten | A carry trade strategy Joe? |
| JoeRoss | crosten: A futures account is kept in a segregated account at a bank. But the bank cannot touch the money, only hold it for safekeeping. |
| crosten | How about a bank run? |
| crosten | Everybody says it cannot happen, look what happened to Northern Rock. |
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| JoeRoss |
crosten: Get ready to see dollars sold and other currencies moving higher. If the FED lowers the amount I think they will, the U.S. will replace Switzerland and Japan as the currency to borrow against, That will push the dollar even lower. I would not be surprised to see a 1/2 to 3/4 basis point cut. |
| nathan | Joe, what do think about the currencies traded at CME? |
| JoeRoss | nathan: I don't like the new ZB. I see very little reason to trade it other than as a spread against the Ten-year notes. |
| JoeRoss | crosten: The money is segrated. A bank run will not affect it. |
| JoeRoss |
crosten: You simply don't understand the U.S. laws concerning futures margin accounts. The broker does not have access to your money and neither does the bank. If the bank goes bust, the money is safe in a segregated account and will simply be moved to another bank. It is never commingled with the bank's money. |
| zendre | Was that change in trade of ZB so dramatic, or simply it is too high, but can not go lower. |
| JoeRoss | nathan; I love the currencies traded at the CME. |
| nathan | crosten: someone said a very wise sentence: No matter how much money you have got, important is the ability to generate new money. |
| JoeRoss | zendre: I don't know what you mean by too high, but cannot go lower???? |
| crosten |
Joe, i see that u use the volatility stop in such a way that if we are in an uptrend and the market touches the volatility stop u will not exit the trade, u will only exit once the price closed below the volatility stop loss. for intraday trading is it better to exit if price touches the volatility stop or exit when price closed below the stop loss? |
| nathan | Could you explain why you don´t like new ZB? |
| YV | Joe, do u have any opinion on the S &P for the rest of this month (rally up or down)? |
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| fabio.it | Hi. |
| SusanV | Hi everybody new to the chat. |
| lac | Hi! Thank you. You are very kind. |
| nathan | For today i´m new, thank you |
| JoeRoss | crosten: You have to test the market and time frame you are trading in to find out which is better. |
| crosten | Joe, are u long Brazilian real? I believe that is still has a long way to go against the dollar? |
| fabio.it | Joe, there are plenty of RH (or there will be soon) in commodities, are you ready to pull the trigger? |
| fabio.it | Daily chart. |
| JoeRoss |
YV: Sorry, but no opinion. My feelings about the stock market are this: Many stocks are currently at bargain prices. There is a huge amount of cash not in the market waiting to be placed somewhere. When the bargain buying begins it will unleash a rally, which will probably begin in the financial sector. |
| nathan | Perhaps i´m wrong, but isn´t gold ready for some few days of diving? |
| crosten | Is the money outside the U, Joe? |
| JoeRoss | Hi fabio. When everyone is trading commodities I am usually looking somewhere else. I don't like to follow the crowd. Lately I am looking at currencies because most people are looking at commodities. |
| JoeRoss | nathan: Gold will probably dive after it goes through the 1000 mark. |
| crosten | Are u sure, Joe? Euro made a new high today? |
| fabio.it | I see a RH in Canadian dollar, i have a resting order waiting. |
| crosten | Any options play lately? |
| JoeRoss | crosten: I am not in the real at the moment. I will be by the end of this month. |
| JoeRoss | And I will be long the real. |
| crosten | Joe, what will happen when people decide not to buy any more Treasury Bonds? |
| JoeRoss | crosten: is what money outside the U.S? |
| JoeRoss | crosten: Am I sure about what? |
| crosten | U said that a huge amount of cash is not in the market. |
| Joe Ross | The money not currently in the stock market is inside the US and outside the US. |
| JoeRoss | fabio: What time frame are you looking at? |
| crosten | Are you sure that people are just focusing on the commodities market? |
| fabio.it | Daily. |
| JoeRoss | crosten: I'm in 3 option trades right now. |
| fabio.it | Electronic market chart, daily. |
| JoeRoss |
crosten: I don't know what will happen when people don't buy any more Treasury Bonds. Maybe the U.S. will attack them and try to force them to buy :-) |
| crosten | Why enter the REAL this month, Joe? Any specific reasons? |
| crosten | lol |
| JoeRoss | crosten: That's what I said. The cash is waiting outside the market. |
| crosten | What options trades are u in? The euro right? |
| JoeRoss | crosten: I am as sure that people are focusing on commodities. You read all about it in the news. |
| JoeRoss | fabio: I see the Rh in the CAD. It looks like a good short-term trade. |
| crosten | Joe, if you had to chose 1 country in Europe to live in what would it be? |
| JoeRoss | crosten: Yes very specific reasons, but they are private. |
| JoeRoss | crosten: Wrong, not the euro. |
| quester123 | Great trade in the 60 min bonds today, Joe, and it looks like it's heading lower. |
| JoeRoss | crosten: I think I would choose Croatia. |
| crosten | Because of the chicks right? lol |
| JoeRoss | quester. Are you short? I only saw the bonds briefly. I have 2 students and we looked mostly at the weekly bond chart. |
| crosten | Joe, does Panama have a high tax rate and a high cost of living? |
| JoeRoss | crosten: Because of the climate. The chicks are too tall for me in Croatia. They are very tall people in that country. |
| JoeRoss | 2 meters in not uncommon among men. |
| JoeRoss | crosten: Low tax rate and low cost of living. |
| quester123 | No Joe, unfortunately not, fear has got a grip of me. |
| JoeRoss | quester: Read what I have about that in the Spiritual Side of Trading. |
| zendre | The climate is very hot there. I go there on vacation, and I got sunburned under a tree in an hour :-) |
| crosten | What options trade are u in Joe? |
| JoeRoss | zendre: Go up into the mountains. It is springtime all year. |
| fabio.it | I have just closed a ZBM08-ZNM08 spread... it seemed starting a new trend, but today the truth is another... so only a sad even par.... |
| JoeRoss | crosten: BP and SF. |
| YV | Joe what's the weather like currently in Austin? |
| zendre | If you go up there, Slovenia seems to me a better choice. (and they have EURO not Kuna) |
| crosten | The RH on the CAD, are u talking about taking a long USD short CAD? |
| quester123 | How's Denise doing, Joe? |
| JoeRoss | YV: Clear and very nice. 73F and 23C. |
| JoeRoss | zendre: I doubt if I will ever go to either place. |
| JoeRoss | crosten: Long on the CAD |
| JoeRoss | quester: She came home yesterday. But she has 2 drains in her to get out infection. She has to rest for 1-2 weeks. |
| JoeRoss | Thanks for asking, quester. |
| zendre | I am pretty sure :-) that you wrote 2.0 calls and 1.9250 puts on the GB right? |
| crosten | Looks like a traders trick today right? |
| JoeRoss | zendre: Not right. :-( |
| zendre | Bad guess on the BP. |
| JoeRoss | crosten: Looks like a traders trick to the point of the Rh, but I don't think much more than that. |
| zendre | I hope she (Denise) gets better. |
| JoeRoss | zendre: 1.97 Put. |
| nathan | Bye and thanks for your time. |
| JoeRoss | It's 2PM and I have my students back from lunch. |
| crosten | Very dangerous so close, Joe? |
| JoeRoss | See you next week. |
| crosten | thanks |
| JoeRoss | crosten only 2 days to go. |
| zendre | Thanks for Joe and everyone. |
| JoeRoss | Bye all |
| crosten | to what Joe? |
| SusanV | Joe has private students now. Please ask all other questions tonight at the Live Chat, 8pm U.S. Central Time |
| quester123 | nnnnnn |
Next EURO Chat with
Joe Ross:
Wednesday, March 12, 2008
Time: 8:00 - 9:00 P.M., European Central Time (Berlin, Paris, Rome)
COME BACK WITH YOUR TRADING QUESTIONS & COMMENTS!
