Euro Chat with Joe Ross
Chat log from: Wednesday, April 23, 2008
| crosten joined. | |
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| GregV | Hi all |
| JoeRoss joined. | |
| GregV | Hi Joe |
| Lola | Hi everybody |
| crosten | hey joe |
| JoeRoss | Hi Greg, be with you in a minute |
| crosten | smirking at the euro, right Joe? |
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| JoeRoss | crosten: I don't smirk at markets. I have too much respect for them to smirk. |
| JoeRoss | Hi everyone. Welcome aboard. |
| samuel_France | Hi Joe, Hi everybody. |
| JoeRoss | Hi samuel. |
| JoeRoss | I wonder if gold is leading the way for a big correction in commodities? |
| GregV | Hmm 906 |
| samuel_France | Joe, i have a little problem with time frames: must i stick to one single time frame for a given product, or is it wise to go from time frame to time frame, what would you advise? |
| JoeRoss | Gold wasn't able to sustain a rally, and commodities are beginning to look like a bubble. |
| crosten | Joe, do you use cci value 14 or 20? |
| crosten | Why does it look like a bubble Joe can u explain? |
| JoeRoss | samuel. Move around on time frames. No one makes you stick with just one. Go where you are comfortable and see that there is Money to be made. |
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| JoeRoss | crosten. I use only 30 for CCI |
| quester123 | Hello Joe and all |
| Lola | Hi |
| GregV | Hi |
| JoeRoss | crosten: prices are really very high and they moved up very fast. Nevertheless there are a couple of things that indicate the bubble will remain intact. |
| crosten | What are the things, Joe? |
| JoeRoss | There is a genuine world food shortage. It is not easy to replace two year worth of world wheat suffered from drought in the Southern Hemisphere. |
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| samuel_France | Joe, could we say that the higher the time frame, the more reliable would a signal be? |
| JoeRoss | Farmers in a number of countries are putting a lot of land into bio fuels, which means smaller food harvests. |
| kenle | Hi Joe and all. |
| JoeRoss | And.... The gold/oil ratio is way out of whack. Either gold has to move up quite a lot, oil has to come down, or both. I would not be surprised to see oil drop to $80. It is too highly priced and this will force acceleration of the use of other fuels. |
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| crosten | Joe, one mention that once your trading account gets bigger u should trade more lots, how do you come to the conclusion on the max Lots u are gonna use? |
| JoeRoss | Hi kenle |
| JoeRoss | samuel: I believe that is an accurate statement. |
| JoeRoss | Hi quester |
| JoeRoss | Hi Lola |
| Lola | Joe: how is gold with oil correlated? |
| crosten | The aud finally made a new high, Joe!!! |
| JoeRoss |
crosten: A lot of the decision about how many lots to use comes from trial and error. If you see that you are moving the market Then you know you have too many contracts. If you see that you have become the target, you are trading too many contracts. |
| JoeRoss | Lola: Not correlated, just looking at the historical ratio. |
| Lola | Can I calculate that myself? |
| JoeRoss | Lola: just divide the price of oil by the price of gold. |
| quester123 | Joe, have you/do you always traded through the summer period even in the early years? |
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| Lola | Joe: thanks |
| JoeRoss | quester: Yes, I always have traded during the summer period. |
| JoeRoss | Hi Hrasa |
| Hrasa | Hi |
| crosten | Thanks |
| crosten | Another great answer |
| kenle | Joe, what would your advice be to a new trader in this current climate? Is it a dangerous time to be trading the mkts? |
| kenle | ie. avoided |
| crosten | Every day is dangerous in the market kenie |
| kenle | Yes i guess even more so if you're new |
| Lola | I think it's a very interesting time to watch the markets |
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| JoeRoss |
kenle: the markets are always dangerous. If they are very volatile they are dangerous. If they are not volatile they are dangerous. In high volatility when option premiums are high, trade options. If you hate volatility, trade spreads. If you hate congestion, wait for trend or move to a time frame where you can see a trend, or use tick charts to create a trending market where there isn't one. |
| crosten | Trading - what do u think is the most dangerous!! |
| nathan | Hi! |
| JoeRoss | Hi nathan. |
| kenle | Ok thanks Joe |
| samuel_France | Joe, do you trade during Globex hours (before 9:00 AM CET)? |
| nathan | Joe, do you still develop new methods or do you improve old ones? Or teach and trade? |
| JoeRoss | samuel: I do occasionally |
| JoeRoss | nathan: I do all of the above. |
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| JoeRoss | Plus write, write, write--sometimes I think my fingers will fall off. |
| nathan | What's your favorite activity beyond earning |
| nathan | While trading. |
| JoeRoss | nathan: Helping other people. This year I am growing a big garden so I can have extra food for those who need it. |
| JoeRoss | I like gardening a lot. |
| JoeRoss | According to my aptitude tests in school I should have been a farmer. |
| quester123 | I don't think you trade the 30 year bond on anything less than than 60 min Joe but the 10 min has produced some beautiful 1-2-3's especially yesterday and today |
| Lola | My wife has one too, but I don't have time gardening unfortunately |
| Lola | It's a good time to be a farmer |
| GregV | My first trading partnership was with a farmer! |
| Lola | When I look at inflation |
| JoeRoss | quester: I believe it, but it is not often you can trade bonds on a 10 minute chart. |
| GregV | I can relate. |
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| JoeRoss | Hi YV |
| YV | Hey Joe, how are u? |
| quester123 | Can you explain a bit about why you say that Joe? |
| JoeRoss | Lola: Farmers are hurting. They are not making a lot of money. Their costs of production have skyrocketed. |
| JoeRoss | Fine YV. |
| JoeRoss | Say what quester? |
| YV | Joe, was it always like that that the Bonds do almost the opposite of the ES NQ AND ER? |
| nathan | Any comments on Hilary's victory yesterday? |
| Lola | But I mean they can grow food and eat it but what do you do with money that's not worth anything |
| quester123 | That you can't often trade bonds on the 10 min chart because the volume seems fairly good |
| JoeRoss | YV: Most of the time, but not always. There are often long periods of time when the bonds and the stock move the same way. |
| Lola | Like in Zimbabwe. |
| crosten | Joe, when u started trading, did u day trade or position trade? |
| JoeRoss | It is not very often that bonds form very well on a 10 minute chart. What you are seeing now is the exception, not the rule. |
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| zendre | Hi all! Sorry for being late :) |
| JoeRoss | Lola: Zimbabwe has lots of paper to burn, YES. |
| nathan | Time to get out of gold? |
| GregV | *smiling* |
| Lola | Haha like the 1 billion bills in germany |
| JoeRoss | crosten: when I started trading the term "day trading" didn't exist. |
| JoeRoss | Hi Zendre |
| JoeRoss | nathan: I wish I knew if it was time to get out of gold or get into gold. |
| crosten | When u were building your account, were you position trading or day trading? |
| nathan | Me too... |
| nathan | First i raised my position then i cut it and no i... |
| JoeRoss | Instead of printing 1 Billion face notes, they should have printed a billion 1 notes, that way you had more to burn. |
| quester123 | Thanks Joe, i think since the change in tick size i see more 123's |
| zendre | Any chat about any commodity? |
| JoeRoss | crosten: When I built my account the term day trading hadn't been invented. |
| JoeRoss | I started trading in 1957. |
| nathan | ZG has formed a 1-2-3 high now |
| kenle | Joe, what made you want to teach people your methods? |
| nathan | Also could be interpreted as consolidation |
| JoeRoss | quester: Good point. Cutting the bond in half has helped the intraday activity. |
| YV | I do not see any 1-2-3 on ZG, what time frame? |
| nathan | Weekly. |
| JoeRoss | kenle: Literally an act of God :) |
| kenle | Oh yes, i think i recall reading about that on the site somewhere.... |
| YV | Weekly yes, but u will probably need to put your stop where god is |
| crosten | Joe, do you prefer 1/2 point or 1/4 point for the T-bonds |
| quester123 | How's Denise recovering, Joe? Better i hope. |
| nathan | Everywhere? |
| zendre | Anybody has IV and HV charts for commodities? |
| JoeRoss | crosten: They didn't ask me for my preference when they made the change. I think we all got ripped off. |
| JoeRoss | I prefer the 1/2 point. |
| JoeRoss | quester: Denise is ok now. In fact I expect her here at the end of the chat. |
| JoeRoss | Thanks for asking. |
| YV | Joe, which contracts do u think make the best clusters breakouts. I personally trade the bond cluster breakout from night session and the ER. |
| quester123 | That's good to hear, Joe. How many different methods would you say that you have traded since your start? |
| nathan | Joe, when you owned a farm, did you use "round up ready"? |
| JoeRoss | YV: ER2 on the 30 and 60 minute charts. |
| JoeRoss | quester: too many to count. |
| crosten | Joe, can u spot a big difference between the 1/2 pont and 1/54 point - have u changed your trading style, Joe? |
| crosten | Joe, do you have a trading method to day trade stocks? |
| JoeRoss | nathan: No, I didn't use any chemical fertilizers or weed control. If you build up the soil, you don't need that stuff. |
| Lola | I believe organic is the only way to go |
| nathan | Joe: do you really expect er2 to be untradable at ice? |
| JoeRoss | crosten: the difference is in what I have to pay in commissions and how many contracts I have to trade to make the same amount of money as before. |
| JoeRoss | crosten: No method for day trading stock. |
| JoeRoss | nathan: I don't know if it will be untradable, but there are a lot of complaints about ICE, so it may be that people don't follow it over there. |
| nathan | Would you invest capital to gain more in Monsanto or Syngenta? |
| JoeRoss | nathan: I don't know enough about either of them. |
| zendre | Any idea about CHF? |
| JoeRoss | zendre: I'm long-term long on CHF. I don't bother myself with these corrections. Right now I want the safety of the franc. |
| zendre | I wrote 0.94 Jun Puts. |
| Lola | Joe: What about the EUR? |
| JoeRoss | zendre: They should be safe. |
| JoeRoss | I don't think we will see 94 by May 9. |
| JoeRoss | Lola: What do you want to know about EUR? |
| Lola | Joe: do you think it will go further up against the dollar? |
| zendre | They are June puts, May puts were worthless |
| JoeRoss | Lola: I believe 1.60 is just around the corner. But I won't trade my opinion, I will trade what I see. |
| quester123 | Joe, do you think i'll get a much better rate of dollars to the pound in the short term? |
| JoeRoss | quester: Yes you probably will. it looks like the pound wants to come down a bit more. |
| JoeRoss | quester: You should do it quick |
| quester123 | Glad to hear it Joe coz that's when i'll come and see you |
| JoeRoss | quester: You need to pick a date, my calendar fills up very fast. |
| quester123 | Yes i will Joe probably be back end of the year though |
| JoeRoss | I'm getting sleepy. It's almost time for my afternoon nap. |
| JoeRoss | If nobody has anything else, I'll curl up and go to sleep. |
| JoeRoss | Only 2 minutes left. |
| quester123 | Thanks for tonight Joe, much appreciated |
| JoeRoss | You are all welcome. |
| JoeRoss | I'll see you next week. |
| JoeRoss | Good evening and good afternoon, and good night for some of you. |
| Lola | Thank's Joe |
| JoeRoss | A great big CIAO to all. |
| JoeRoss | Bye |
| GregV | Rhx Joe bye |
| Lola | Bye |
| GregV | Bye all |
Next EURO Chat with
Joe Ross:
Wednesday, April 30, 2008
Time: 8:00 - 9:00 P.M., European Central Time (Berlin, Paris, Rome)
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