Euro Chat with Joe Ross
Chat log from: Wednesday, May 7, 2008
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| ronnie | hey Joe |
| JoeRoss | I finally made it |
| jay | busy Joe? |
| JoeRoss | I had to have a prescription filled and it took 2 hours because it had to be compounded. |
| TradeCraze | Hello JR |
| paola | Hi Joe. I'm Paola from Italy. I'm happy to chat with you this evening. |
| JoeRoss | Hi Paola |
| JoeRoss | Hi everyone else |
| JoeRoss | I will let the chat go an extra 20 minutes to make up for the time lost |
| jay | Joe, George Soros says that we are in a bear market rally, is that true? |
| JoeRoss | I sold some 9550 Swiss Franc Calls this morning. |
| jay | When will the those options expire? |
| JoeRoss | jay: Friday |
| JoeRoss | They are selling for .0016. If you step in front of the offer you can probably get .0015 for them. |
| paola | ok! |
| JoeRoss | At .0015 you can knock down $1,875 for a 10 lot. |
| JoeRoss | Not bad for 2 day's risk. |
| jay | That's a lot of money |
| jay | 187.50 per lot |
| nathan | What was your thought about the trade? |
| ronnie | Hey Joe, how much worse do you think inflation will go? |
| JoeRoss | Place a protective stop at 9449. If it gets hit write a bunch of Puts below or Calls higher up. |
| JoeRoss | ronnie: we are seeing only the tip of the iceberg on inflation. |
| ronnie | Thought so |
| ronnie | Gold is looking pretty cheap right now |
| JoeRoss | Stop goes in the futures, open order Good til Canceled |
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| JoeRoss | If you look at the gold futures all the way out to December, the traders think it will stay in a trading range. |
| JoeRoss | Just do a spread Long Dec. gold and short June gold |
| JoeRoss | It's sideways. |
| ronnie | I was reading that gold is heavily manipulated through the fed reserve intra market deals |
| Joy | Joe: Hi sorry I am late… had a meeting running late and could not take my lunch break to join you! Hope all is well... we are talking about gold, eh? |
| JoeRoss | Joy: I was 20 minutes late myself |
| JoeRoss | So I will go overtime to 20 minutes after the hour. |
| Joy | All right, I got lucky! |
| JoeRoss | nathan: My thoughts about which trade? |
| Joy | Marsh: How are you? |
| nathan | About the chf trade |
| paola | When can i send you my e-mail? |
| JoeRoss | ronnie: Gold is heavily manipulated yes, by all of the central banks. Gold is the enemy of paper currency. |
| JoeRoss | nathan: My thoughts about the CHF trade are "that's a pretty good premium for such a short time of risk. Doesn't look like CHF is going to go very high. The Carry Trade is selling francs." |
| Joy | Joe: SORRY I missed the early part of discussion of gold. What are expected as the bands of trading range? And will writing options be a good idea? |
| JoeRoss | Paola: You can send it any time: support@tradingeducators.com |
| paola | ok Thanks! What do you think about euro? |
| ronnie | It's funny Joe that the Fed is also the biggest holder of gold in the country |
| ronnie | So inflation doesn't hurt them |
| JoeRoss | ronnie: no one actually knows how much of the gold held in the U.S. actually belongs to the U.S. There are many who know more than I do who say the U.S. owns practically no gold, even though it is stored here. |
| Joy | Joe: Is the proxy correlation between Gold and CL broken? CL up and Gold down right now. |
| jay | joe what is the margin for 1 option of chf? |
| JoeRoss |
Joy: I don't know where the trading range bands for gold will be. I just know that the spread between the front month of gold and December gold is very much sideways. Writing options will only be good if the premiums are high. Otherwise, don't waste your time. |
| JoeRoss | Joy: I have never believed in proxy relationships. As far as I'm concerned they each go whichever way they want to go. |
| jay | Are we in a bear market rally? |
| Joy | Joe: Thank you for the clarifications! So it is the spread itself sideways. |
| JoeRoss | jay: You will have to check with your own broker. They can vary by quite a bit. |
| ronnie | Joe do you think they propping up the markets till the elections? |
| nathan | How can U.S. car drivers afford to fuel? Or can´t they? |
| ronnie | Credit cards nathan |
| ronnie | The American way! |
| jay | Hillary Clinton says that the high price of oil is caused by oil traders, is this true? |
| Joy | I try to telecommute when I can. It is hard. |
| marsh | I set the cruise control at 60 now, down from 80. |
| JoeRoss | Jay: I put up $2,028 for each option. But many brokers are lower than that. That margin is above exchange minimum |
| ronnie | No way, its pure inflation |
| nathan | But that means the credit crisis sharpens again |
| JoeRoss | jay: Some people think we are in a bear market rally for stocks. I guess it is a matter of opinion, but one way to check is to look at the 20 year moving average of the Dow. Right now we are below that with a rally up to the MA> |
| nathan | When companies like amex or visa have open bills |
| JoeRoss | ronnie: Who is they? |
| ronnie | "working committees on financial markets" |
| ronnie | aka plunge protection and the treasury dept |
| JoeRoss | nathan: fuel is much less expensive in the U.S. than in Europe. But it is beginning to hurt some and there are now gas station robberies and cars having their gas stolen |
| JoeRoss | jay: The high price of oil is caused by OPEC, with some help beyond that from the hedge funds. |
| TradeCraze | It will only get worse in the US until they finally decide to handle the problem than continuing to ignore it. |
| JoeRoss | nathan: the credit crisis is far from over. |
| nathan | I think of it because of the inflation, and the house owners who are in trouble. Don´t the cars need more fuel than in europe? |
| TradeCraze | It's like that cousin that you tolerate but do nothing about ... lol. |
| nathan | Or is it past because of Japanese cars? |
| TradeCraze | And the presidential election is a joke ... these are the best candidates that we can put before the people? |
| ronnie | seriously tradecraze |
| ronnie | The only one worth anything was Ron Paul |
| JoeRoss |
ronnie: I think stocks are rising because of profit taking, and because bond and note yields are so low that people simply have to enter stocks. But look at the stocks they are buying. Those who pay dividends and have better yields than you can get from the financial markets |
| Joy | Joe: Soooo.... on the oil price track... are you making some nice profit this week with CL futures hitting all time high? |
| TradeCraze | do you think America will have health insurance like in Canada? |
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| Joy | Hi fabio.it! |
| JoeRoss | nathan: It is true that cars here on average use more fuel. And also true that on average Americans drive further for many things than in Europe. |
| fabio.it | Hi Joy, are u ok? |
| jay | How do you know whether an option that is overpriced is close to its expiration date, is there some kind of formula? |
| nathan | Hi fabio, I read and am interested in your trading blog! |
| ronnie | No way tradecraze...we're broke |
| fabio.it | Thanks nathan, i am proud of it |
| ronnie | We owe like 50 trillion in social security obligations in the next 10 years |
| JoeRoss | Joy: I am not in oil. Only use ut for cooking fried chicken ;-) |
| fabio.it | Hi Joe... sorry i'm late |
| Joy | Thank you... I am good fabio.it. Missed a few chats due to firewall and java issues. Love to read your blog! |
| JoeRoss | jay: I don't know of any formula. We are in what is called Gamma week for currency options. Delta has no more meaning. |
| Joy | Joe: Between your lettuce salad and fried chicken, you are making me hungry :-) |
| jay | Then how do you know which ones are overpriced? |
| Joy | Joe: Gamma week... can you tell more to enlighten the newbies like me? |
| jay | Yes gamma week |
| JoeRoss | TradeCraze: I sure hope that never happens, Canadian health care is awful. |
| fabio.it | Joe, do you know where, on the internet, i can find a site that tells me when reports exit everyday? |
| JoeRoss | jay: I don't know which ones are overpriced. I just look at the premium and weigh it against the risk If it looks acceptable I do the trade. |
| paola | Joe: What do you think about the euro? |
| nathan | Is it still much paper work to do to be allowed to sell options? |
| JoeRoss | nathan: The amount of paper work depends on your broker. I don't think there is any extra needed for options. |
| JoeRoss | fabio: Go to our website, click on resources, click on trading calendar |
| fabio.it | Thanks |
| jay | gamma week please explain thanks |
| nathan | fabio: do you know why italians have so few children? |
| fabio.it | nathan - because incomes are too little for living |
| Joy | That is sad, fabio.it :) |
| jay | Looks like the euro is saying that trichet may signal a cut tomorrow |
| JoeRoss |
Gamma week is the last week of an option's life. Gamma is a measure of how much the delta will change for a given move in price. But because in the last few days of an option's life it is not possible to come up with an accurate delta (virtually no time left), it is not possible to compute an accurate Delta. The only thing left is gamma. |
| JoeRoss | However, it is a lot easier to think of gamma as your parents mother. |
| fabio.it | joy - but it's the reality... for the first time in our history, the last generation has a "quality of life" expectation lesser then the previous generation |
| nathan | fabio: what's an average wage, let's say for a secretary or a butcher? |
| jay | Do you make most of your money trading options in gamma week? |
| Joy | Joe: That is funny - grammy week. |
| jay | How about the paper work? |
| JoeRoss | jay: If Trichet cuts it will take the whole world by surprise, but news has come out about weakness in Europe that may change that outlook. |
| ronnie | Joe, have you seen the documentary "End Game"? |
| fabio.it | nathan-both... the only people that make money are politicians and businessmen that lead them |
| JoeRoss | jay: I make some of it in gamma week, but not most of it. |
| JoeRoss | ronnie: Yes, I seen "End Game" |
| nathan | and fabio by trading.. ::up |
| ronnie | pretty scary stuff isn't? |
| Joy | Joe: Please tell more... which other criteria/time frame do you make most of your money in addition to gamma week. |
| fabio.it | Joy, when you write to me, you can avoid .it.... fabio is enough |
| JoeRoss | ronnie: Scary, yes. |
| TradeCraze | What is the gist of end game? |
| Joy | Thank you :) fabio fabulous! |
| ronnie | tradecraze: shows who the elites are and how they are planning to reduce the world population by 80% |
| fabio.it | nathan-as you can see in my blog, not all trades are winning... but i hope to learn even more joe's teachings and become a better trader |
| JoeRoss | Joy: I trade everything and anything. I cannot be pinned down to a market, a time frame, or a way of trading. The only constant in my trading is my approach and that is taught privately or in seminars. |
| nathan | Fabio: you will. One step after another and you get it |
| Joy | Joe: Thank you - coming through loud and clear! |
| TradeCraze | Yikes! |
| fabio.it | I hope nathan |
| TradeCraze | Are they related to the Tom Cruise people? |
| nathan | Joe: what are your liked trades when there is less movement? |
| fabio.it | Joe, do you come to Italy next week? |
| ronnie | No, the Bilderberger group... think Rockefellers and Rothschilds |
| JoeRoss | nathan: When prices are not moving I look to trade spreads. |
| JoeRoss | fabio: I come to Italy next week via Teleconference |
| TradeCraze | Ok Ronnie. |
| nathan | Joe: I really seem to need to learn spreads |
| jay | So you won't be in Italy next week Joe |
| JoeRoss | nathan: I honestly believe everyone needs to learn how to trade spreads, so when the time is right, you will know how to trade them. |
| nathan | Joe: do think bonds rise overnight? |
| TradeCraze | Sounds like revelation kind of stuff ... I googled it ronnie |
| fabio.it | Joe- ah.... i would have been come to ravenna to send my greetings... |
| TradeCraze | Fire and brimstone " |
| nathan | Joe: thanks i trust your judgment |
| nathan | fabio: you can creep through the telephone cable |
| jay | Is gamma week once a month Joe |
| JoeRoss |
It makes me sick when I see how many people think that trading is watching the emini sp on a 5 minute chart. I had a guy like that yesterday. He tells me my stuff doesn't work. But he is trading a 1 minute, a 2 minute, and a 3 minute chart, taking Traders Tricks with no idea if he can make a profit before he gets stopped out. |
| JoeRoss | nathan: I have no idea if bonds will rise overnight. The only thing I can be sure will rise is the sun. |
| JoeRoss | fabio: you can still come to Ravenna. Stick your face in front of the camera and say "Hi Joe" |
| Joy | Joe: People don't know what they don't know. I was lucky to stumble into your site in April or I am still one of the blind fools buying books from everyone everywhere. You saved me! |
| nathan | Joe: Did you pimp the guy yesterday? |
| JoeRoss | We arranged that all seminar attendees will come to the camera so I can greet them. :-D |
| nathan | Sorry i meant like pimp the ride -- pimp the guy |
| JoeRoss | nathan: I am of a different generation. I don't know what it means to pimp the ride |
| Joy | Joe: what equipment does one need to attend your online / video seminar? I don't have broadband where I live - average ISP without much reliability. |
| nathan | To make it better |
| Joy | Joe: You are from a nicer, gentler generation - I like your generation better than mine :-) |
| JoeRoss |
Joy: If you mean the teleconference seminar in Italy then you will have to be there at the seminar. But with my video seminars you download the video files and depending on the speed you have through your internet provider, downloading them can take longer with a slow connection. You need a computer or laptop with internet connection. |
| Joy | Joe: OK... thank you - bummer! I will stick with the books first then. |
| JoeRoss | Wow! Time flies. |
| fabio.it | joy - you don't try me again ::laugh |
| JoeRoss | It's time to go. |
| JoeRoss | I have a lot of stuff to do --- as usual. |
| nathan | Your right Joe, you're 37 (73), i´m too old to talk with you, i only speak Latin |
| paola | Bye Joe! thanks for this chat! |
| JoeRoss | Thanks for waiting for me to show up. I really appreciate that you waited. |
| Joy | Yes, I used up my lunch break too. THANK YOU Joe - see you tonight! |
| nathan | Its me who appreciates you!!!! |
| jay | Is it possible to place a stop loss when you are writing options |
| JoeRoss | Good evening to Europe and good day to anyone for who it is not evening. |
| Joy | I appreciate you too Joe! |
| JoeRoss | jay: Yes, you place a stop loss. It is possible. |
| fabio.it | Thanks Joe, as always |
| Joy | Bye marsh! |
| JoeRoss | Bye all, until next week. |
| JoeRoss | Ciao |
| JoeRoss | Servus |
| Joy | Hope to see you tonight marsh! |
| JoeRoss | Au revoir |
| ronnie | Worst of credit crisis is 'behind us,' say Paulson,---current headline |
| fabio.it | ciao ciao |
| Joy | Bye fabio! |
| JoeRoss | Is that one word or two?? |
| ronnie | See you Joe |
| paola | Ciao! |
Next EURO Chat with
Joe Ross:
Wednesday, May 14, 2008
Time: 8:00 - 9:00 P.M., European Central Time (Berlin, Paris, Rome)
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