Euro Chat with Joe Ross
Chat log from: Wednesday, April 16, 2008
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| JoeRoss | Hello everyone |
| zendre | hello! |
| Lola joined. | |
| JoeRoss | Is anyone awake? :-) |
| crosten | halo Joe |
| JoeRoss | Hi Lola |
| Lola | Hello |
| JoeRoss | Option boxes in the bonds have been very lucrative lately. Easy money :-D |
| zendre | Sorry, I am a slow coach today |
| JoeRoss | I think you are not the only one Zendre |
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| JoeRoss | Hi samuel |
| zendre | Do you think that the stock indices started a big trading range? |
| samuel_France | Hi Joe, very happy to meet with you |
| JoeRoss | We are all taking a siesta, so welcome to siesta time. |
| samuel_France | Hi all |
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| JoeRoss | zendre: I know this is going to sound strange, but I think we haven't seen the bottom yet. But when we do, i think stocks will go up very sharply. |
| JoeRoss | Hi Joy. |
| Joy | Hi Joe, I am embarrassed to say I went to the wrong chat room :-) |
| zendre | Joy: it is quite interesting: What chat room did you intend to go to? |
| JoeRoss | Maybe you went to the U.S. chat room which is tonight? |
| Joy | Joe and zendre: Joe has another chat at 8pm US central time and I went to that one :-) and waited there while you have a party! |
| samuel_France | Joe, in what order do you recommend to read your books? |
| JoeRoss | Joy, so far our party has been a slumber party. No one has been asking questions or even making comments. |
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| Joy |
Joe: Could you talk about currency today? I could sort of see yesterday the AUD has strong weekly uptrend. And many currency futures had huge volume yesterday. But I don't understand Euro. Is today a gap up at open? |
| zendre | I see! I thought you somehow found this one, but you were interested in e.g. Birds flying routes, so and you realized that this is not the good one :-) |
| zendre | Good topic! |
| JoeRoss | Samuel. There is not particular order in which to read them. I would not read Trading is a Business until you have had some losing trades. Then you are ready for it. |
| JoeRoss | Before that, Trading by the Book, Day Trading or Trading the Ross hook can be read in any order. |
| samuel_France | Don't you think you're too hard with us Joe, when saying that one must first go through a loss? |
| samuel_France | Joe, in a 123 formation, how many bars must there be at least, before the number 1 bar? |
| JoeRoss | Joy, I don't see a gap open in the euro, but it sure is doing nicely. A new high today. |
| zendre | Actually before losses you will not understand that much of emotional pain that is described in the Trading Is a Business Book, so would think it is not as serious as described |
| SusanV | Joe, is it worth trading the euro at the moment? |
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| JoeRoss | To be perfectly honest, I have been ill the past 2 days and have not kept up with the markets. But it is interesting that Swiss franc has not followed euro. |
| JoeRoss | samuel: i am not hard enough. You won't appreciate Trading is a Business until you have had losing trades. |
| zendre | But all the other currencies followed at some extent, so the problem is with the SF :-) |
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| Joy | Joe: I was reading the Euro June Daily chart. Am I right to say we are in a 123 uptrend then? That is, 1 happened during the week of 3/31, 2 in the week of 4/7, and 3 just happened this week? |
| JoeRoss | samuel. You can have as many as you want before #1. But #1 must be at the end of a trend or leg of a swing. It is the highest or lowest bar in a series. |
| Joy | Joe: Since I am a newbie, I hope you don't mind me asking such an elementary question. |
| Joy | Joe: I hope you are better and recovered. |
| zendre | Maybe the SF was overvalued and it gets back to its normal place |
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| zendre | We are having a big party here! :-) |
| JoeRoss | Susan: Yes, the euro is very much worth trading at the moment. It will almost surely hit 1.60. |
| GregV | Hi Joe |
| GregV | Hi all |
| fabio.it | hi greg |
| Lola | Hey Greg |
| fabio.it | hi everybody |
| GregV | Hey Lola |
| fabio.it | many women tonight... it's rare in trading environment |
| JoeRoss | Joy: we are in an uptrend but I can't say I see it the way you are seeing it. The 1-2-3 low that began the trend made the #1 point back on January 22. |
| zendre | women are supposed to be better traders :-) |
| Joy | That is because we women love Joe - he is so kind |
| JoeRoss | From there we have a series of hooks. |
| fabio.it | we all chatters are..... |
| JoeRoss | Joy: I made a miraculous recovery during the night after my wife prayed for me. Today I am back to normal. |
| JoeRoss | Hi Greg. |
| Joy | Joe: I am glad to hear you are well again. And thank you! I have so much to learn to read charts correctly. |
| JoeRoss | Hi Fabio, I didn't see you come in. |
| zendre | I think that the meats started their uptrend. what is your opinion? |
| Joy |
Joe: May I ask another basic question? When I read TLOC and TTE (by the way, they are so deep that each day when I re-read I see something new), I am a bit unclear on trade off the 2 point of a 1-2-3 before 3 is identified. Am I right to think a more conservative approach is to trade off a Rh after a 1-2-3H or 1-2-3L is fully identified. However, if a chart looks right, you'd go ahead and trade off a point that looks like 2 because retracement bars start to appear? |
| JoeRoss | We love the women. Women are the flowers of our lives. I don't know anyone who doesn't love flowers. |
| fabio.it | Joe... IB didn't authorize me to post his charts on my blog... do you know a site where i can get them? |
| Joy | Joe is also a poet - in addition to being a wonder teacher and successful trader, as we can see! |
| fabio.it | me!!! i'm allergic!!! :) |
| Lola | Hey Joe what would you recommend a trader that can not stick to a strategy, jumping from strategy to strategy. |
| GregV | We all love flowers. As a child I had a cat called Flower! From .... |
| samuel_France | Joe, Added to the fact that you're a master trader, you also seem to be a great poet. I think Loretta has got it all |
| JoeRoss | zendre: Live Cattle still trade very much the way markets traded years ago. We have had a 1-2-3 low, followed by a Rh, and then a breakaway gap. |
| GregV | ... a bit embarrassing. |
| JoeRoss | We should still see a runaway gap, and later an exhaustion gap. |
| fabio.it | Are electronic meats markets very thin yet? |
| zendre | After the exhaustion gap you expect a trading range? |
| JoeRoss | Joy: TTE gets you in before the actual #3 point is made. It has two advantages. 1. Less initial risk on entry. 2. A chance to be paid to trade prior to prices actually breaking the #2 point. Same thing for the Rh. |
| Joy | Joe: THANK YOU! Staying on live cattle, if I look at the LC June daily chart, was yesterday the breakaway gap? |
| JoeRoss | fabio: Brite futures has free charts. |
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| samuel_France | Joe, what do you think works best: profit objective setting (with fibonnacci? or simple trailing stop to follow a trend? |
| JoeRoss | Lola: Break a leg, that way you can't jump so much. :-) Seriously, it is a matter of discipline. But, discipline is not all. Jumping from strategy to strategy may turn out to be your trading style. I am very much that way in my own trading. I do a lot of jumping. |
| Joy | Joe: So if a trader wants to get in to the LC trade and have missed the Rh point, what will be the next entry point? When there is a retracement again? And how does one know it is getting too high? Seeing the exhaustion gap you mentioned? |
| crosten | Joe, bill gross is saying that US treasuries are the most overvalued in the world, what u think Joe? |
| fabio.it | Joy, are you talking about spread trade or simple future trade? |
| JoeRoss | fabio: to the best of my knowledge the meat markets are still having the volume in the pits. |
| crosten | Joe, will the eur/usd be in an uptrend like forever? |
| JoeRoss | zendre: Yes after the exhaustion gap comes a trading range, usually quite wide from top to bottom. |
| JoeRoss | Joy: Correct. Yesterday was the breakaway gap in June LC. |
| Joy | fabio.it: simple futures :-) I am a newbie learning and don't know all the trades I can think of like you can. |
| fabio.it | Joy i'm not very newbie, but i can assure to you that it is a long way to being a constant profitable trader... |
| samuel_France | Joe, to identify a 1-2-3 formation, must there be a minimum number of bars before the bar number 1? |
| Joy | Joe: Can we non-professional trade through the pits? Are the orders harder to manage? |
| JoeRoss | Joy: Next entry would be a TTE ahead of a Rh. |
| JoeRoss | crosten: I agree with Bill Gross. |
| Joy | Thank you fabio.it! You made me feel so much better and less embarrassed for my dumb questions! |
| fabio.it | Joe, i see in actual market that is dangerous to enter from 2nd Rh and those beyond.... what do u think? |
| JoeRoss | crosten: Nothing is forever. But I suppose it is possible for the euro to remain in an uptrend against the dollar until the point where there is no more dollar and there is then the Amero :-D |
| crosten | Are you smirking by looking at the euro, Joe? |
| JoeRoss | samuel: No minimum. |
| JoeRoss | Joy: Some electronic brokers allow electronic pit orders. The order comes out on a hand-held device in the pit. |
| fabio.it | joy... questions in trading are never dumb... unfortunately in the chat it is not possible to discuss about it deeply.... for example:- what to do after a losing streak? |
| crosten | Any options play Joe? |
| JoeRoss | Joy: There are no dumb questions. |
| GregV | I'm reading The Dollar Crisis at moment, good economic bed time reading on the slide. |
| Joy | Joe and fabio.it: THANK YOU! I know what Joe would do after a losing streak - I ran into an excellent interview of Joe. Joe said he would stop immediately to figure out what went wrong. |
| JoeRoss | fabio: In most markets that would be true. But in a market like cattle, where they are still trading the way they used to trade, it should be safe to trade beyond the 2nd Rh. |
| crosten | a france official says that the G7 statement is as big as the plaza accord, are your kidding me, I am laughing when i heard that !!!1 |
| JoeRoss | crosten: No, not smirking. |
| Joy | Joe: Following through your answer to fabio.it! What is changed in trading for the other markets to make it less safe beyond the 2nd Rh? |
| JoeRoss | crosten: Option boxes in the bonds are doing extremely well. |
| JoeRoss | crosten: What was the G7 statement? |
| JoeRoss | Joy: The answer is computerized trading models and mechanical systems. |
| fabio.it | Joe, do you think it's better position trading or daytrading, for living? Or both? |
| crosten | they gave a hint about coordinated intervention, if you look at the currencies on monday there was a gap opening on the eur and gbp but the gap is now filled |
| JoeRoss | fabio: they can't both be better :-D |
| crosten | the market just brushed that off |
| samuel_France | Joe, could you advise any trading tool? I use transact AT (infinity brokerage), and i'm trying trade Navigator |
| JoeRoss | I think overall long-term trading is best for most traders. Sadly, it seems that everyone wants to start out by being a day trader. Day trading is the most difficult form of trading. |
| Joy | Joe: Does that mean computerized models detect market behaviors and take away opportunities after the 2nd Rh? |
| Joy | Joe: I prefer to do long-term trading. |
| Joy | Joe: BUT it seems markets favor short-term. |
| JoeRoss | crosten: Ahh. Coordinated intervention. In other words do whatever you have to, to save your skin. |
| JoeRoss | samuel: The tools you have chosen should be able to do the job if all you want to do is electronic trading. |
| crosten | Any good trades lately, Joe? |
| zendre | Any option hints for now? |
| crosten | Are you long the aud Joe? |
| Joy | Joe: You ARE right! No one cares about US or USD. G7 is a joke! |
| JoeRoss |
Joy: You are very close. Yes they take away opportunity. You see, when a computer thinks something is "oversold" or "overbought" it simply issues a buy or sell signal even if the market is not oversold or overbought. |
| crosten | Joe, you said earlier that the fed is wrong to bailout bear sterns... |
| JoeRoss | Joy: Not true. The markets favor short term traders, but only because they can take their money more quickly. The long term traders still walk away with the bigger slice of the cake. |
| JoeRoss | crosten: Lots of good trades, but I didn't take any. I've been sick. |
| crosten | the longer the time frame the more significant the trend? |
| crosten | emm let me guess a flu? |
| Joy | Joe: THAT is good to know. So how long IS long-term in your definition? Position-trading that catches the bigger and daily-to-weekly-to monthly trend? |
| JoeRoss | zendre: Short dated options are coming up this Friday. There will be less than 1/2 month till expiration on options that expire May 1. |
| fabio.it | joe... brethe.... |
| JoeRoss | crosten: Not long AUD |
| crosten | what is short dated Joe? |
| zendre | Joe, I hope you get better soon! |
| fabio.it | Joe, would you be long crude oil? |
| Joy | Joe: Would you say AUD is showing a 123 downtrend? |
| JoeRoss | crosten: I think it was Rhino virus. the whole thing seemed to be in my nose, but with fever. |
| Joy | Rhino virus! WHAT is that? Sounds terrible... |
| JoeRoss | The FED was wrong to bail out Bear Sterns crosten. I will always believe it. |
| Joy | AMEN to Joe |
| Joy | I used to work in the FED. |
| JoeRoss | Joy: Long Term is at least a week long. |
| crosten | What did you do, joy? |
| Joy | A bunch of proud economists that are out of touch. |
| crosten | an economist to greenspan? |
| Joy | crosten: I worked in Finance and IT at the FED. |
| zendre | Oh, we stop to curse the FED :-( |
| Joy | Because I know/work with some of them personally, I never respected Greenspan and now Bernanke. |
| JoeRoss | crosten: short dated is options that have only a short time to run. On Friday those options will have only 11 trading days left in them. |
| Joy | zendre: no worry... I don't like the FED. They are destroying our dollars and economy! |
| JoeRoss | fabio: Being long crude oil should have been done long ago. We may be near a top. Some say 130 is about all the world can take. |
| Joy | 130! My lord... |
| JoeRoss | Joy: AUD a downtrend? It looks to me like it's going up, probably to parity with the U.S. dollar before the end of the year. |
| zendre | Europe economy is running on 3 times more expensive gasoline than US, and still ticking. I think the economy is not as much sensitive for crude as we thought it is |
| fabio.it | yes Joe... i have seen too late a big RH two days ago on the daily chart |
| JoeRoss | Rhino mean nose :-) It was a nasal virus. |
| crosten | yes yes parity to usd please |
| crosten | i am long aud as an investment |
| crosten | thank you |
| Joy | Joe: I can see the weekly AUD chart is up but thought the daily chart showing a 123 downtrend. I don't seem to get charts right :-( |
| samuel_France | Joe, do you have any tutorial in chart reading? |
| JoeRoss | My friends it has been a "joy" chatting with you, but I have work to do. I hope to be trading on Friday in bond options. |
| Joy | samuel_France: I need that class more than anyone :-) |
| JoeRoss | See you next week. |
| zendre | Bye all! |
| Joy | Joe: THANK YOU and get better!! |
| fabio.it | thank you. ciao |
| Lola | by Joe and thanks |
| Lola | bye all |
| samuel_France | Thank you Joe |
| fabio.it | bye lola |
| samuel_France | Thanks all |
| fabio.it | bye samuel |
| samuel_France | Bye fabio |
| JoeRoss | samuel: only in one to one personal training, but there is some in the The Law Of Charts online seminar and also in the Online Day Trading Seminar. |
| JoeRoss | Bye to everyone |
| GregV | thanks Joe. |
| fabio.it | ciao joy, ciao lola, ciao everybody |
Next EURO Chat with
Joe Ross:
Wednesday, April 23, 2008
Time: 8:00 - 9:00 P.M., European Central Time (Berlin, Paris, Rome)
COME BACK WITH YOUR TRADING QUESTIONS & COMMENTS!
Learn a simple approach to day trading the market
