Chat with Joe Ross

Chat log from: Tuesday, July 10, 2007
Lo u_CO joined.
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JoeRoss Hi everyone. I wasn't sure I would make it. We had a power outage that lasted 3 1/2 hours
BruceUSA Good evening Joe.
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simtrader Hello Joe
Mini_Mike Good Evening All
JoeRoss Hi Sim
JoeRoss I guess gold gave back some of its gains today. Must have been a lot of profit taking.
JoeRoss There's a handy trade coming up that you should watch. Long yen and short pound. Pound is 28% overpriced, most overpriced in the world and Yen is the most under priced in the world. Should start to make a great spread one of these days
Mini_Mike Joe, how close is the Easy Bond Method to be tradable again?
JoeRoss It's getting close mike. Hold on while I take a look.
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JoeRoss



Piece of news for end of day traders. Mark Cherlin's Nextrend trading program will be back on the air in about 4 weeks. It was voted the best stock trading software in the world by Barrons and IBD
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shamutooth Hello everyone
JoeRoss Mini_Mike. Easy bonds is not tradable at the moment. Better right now is the Bond Blaster method. It is really humming.
Mini_Mike Thank you.
JoeRoss Hi shamu. We just got our power back about 20 minutes ago.
marsh Joe, I'm trying to understand what you are saying about gold. It look's like it's been up the last three days, and anyway, it's in a trading range.
shamutooth Joe, good to see your power back on.
Mini_Mike Joe, Was your area "awash" during all the rains in Texas?
JoeRoss marsh: I didn't see how it was at the end of the day. When I looked it was giving back some. But we had no power here for a few hours.
JoeRoss


Mini_Mike: Our area was okay. No flooding nearby. But other parts of Texas were hit hard, and the county I live in has been declared a disaster area.
Mini_Mike Do you now recommend that it is OK to trade the Easy Bond and Bond Blaster at the same time?
JoeRoss Marsh. Gold finished stronger than it looked early in the day. So I was wrong.
JoeRoss Mike: No. Trade the one that's making money and wait for the other one to come back
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Mini_Mike How about when they are both working?
JoeRoss Hi Lou.
JoeRoss Then trade them both -- Easy Bond and Bond Blaster.
Mini_Mike Thank you
marsh Gold touched the top of the bollinger band. I'm waiting for a reversal bar.
JoeRoss marsh, it might come on profit taking.
Lou_CO Sorry I was late logging in.
Mini_Mike Do you check the futures pre market be for you trade?
JoeRoss That's ok lou. Just keep talking.
Lou_CO Question on Option selling from last chat.
JoeRoss Mike: Do you mean the overnight trading. If you mean anything before the open outcry the answer is yes, I watch it all.
Mini_Mike Yes
Lou_CO I type slow
marsh The emini Russell daily chart showed a reversal bar yesterday, the es and nq a doji, and boy did they follow through today!
JoeRoss Go for it lou.
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JoeRoss Right on marsh. Stocks across the board took a hit.
Lou_CO If the option that is sold is far enough out of the money so I "win" 11 out of 12 trades....
Mini_Mike Is there a recommended charting system?
JoeRoss Mike: There are many good ones. What do you want it to have?
Lou_CO ....then the 12 th trade goes bad and eats up all the profit and then some....
JoeRoss Ouch lou!
Lou_CO Ouch indeed!!
Mini_Mike Be able to trade intra day. currently i'm using Sierra charts with Interactive Brokers as a feed.
JoeRoss lou you can't let it eat up all the money. You have to protect it with a stop in the futures.
Lou_CO ....is there a work around?
JoeRoss YES lou. Put a stop in the futures to protect those short options.
JoeRoss Mike I haven't heard anything thrilling about Sierra charts. You could try Ninja, it works with IB
Mini_Mike Thank you
JoeRoss Also there is a program called bracket trader that works with IB.
JoeRoss


marsh: the more i look at that gold chart the more it looks like it is going to be a trading range. Every daily bar except one ether opened, closed, or both inside the June 8th bar.
Mini_Mike


With Nija Trader and Bracket Trader as a "Front end" Would you still not need a charting package to see 1-2-3 and Ross Hooks to see the trade set ups?
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Lou_CO Was the option selling you spoke of last chat sold naked, or as a hedged trade?
JoeRoss Mike: I don't know about Bracket Trader but Ninja has very nice charts. You can even trade right off the chart if you want to.
Lou_CO Like selling an Iron condor?
JoeRoss Each option is to be sold naked.
Mini_Mike Thank you I did not know that. I will look into it tomorrow.
JoeRoss lou: You are selling a call and selling a put.
Lou_CO


I think the Ami-Broker chart platform might be able to do the 4 week charts with liner reg channel, do you have a starting point for length of the least Sq moving average, and how wide the std dev channel would be?
JoeRoss lou if you are doing regression of the highs and regression of the lows, that is enough of a channel. I go back as far as I have data.
Lou_CO Way cool, thanks Joe.
JoeRoss lou: if you use any kind of STD channel, you are going to get options that are way too far out of the money to have any value.
Lou_CO That was the part I didn't understand from last chat, better now.
JoeRoss ok lou, others have asked the same question on our forum.
Lou_CO I'll have to check that out.
JoeRoss lou: you have to look at the regression values 4 weeks before Option Expiration date. Whatever they are you stick with those values.
JoeRoss



lou: sometime they will be too close together to offer a trade. So you skip it. But usually, there will be enough for you to write both a put and a call, and 90% or better of the time you won't see prices end the month outside the regression values of 4 weeks ago.
JoeRoss shamu: Did you find the Chinese restaurant?
shamutooth I was so hungry,we went to the Chinese restaurant closer to the hotel.It was very good.
Lou_CO So it would be better to write European style expiration options?
shamutooth Chicken with Chinese vegetables ::biggrin
JoeRoss Lou: I don't think it will matter much.
shamutooth and egg rolls.
JoeRoss Sounds like feast.
JoeRoss All I had was a small bowl of soup :(
shamutooth I hope gold is in a trading range here;don't want to miss the next run up as I don't have time to trade it the next few days.
shamutooth LOL!
simtrader Joe, do you trade FOREX?
JoeRoss sim: Yes but probably not the way you think. I trade currencies in the futures and foreign exchange transactions through overseas banks.
simtrader So, your method is applicable using futures-put and call?
JoeRoss Which method is that, sim?
simtrader Law of Charts
JoeRoss




sim: The Law of Charts is not a method and it is not a system. It is a Law. Anything that can be charted that has highs and lows will display the Law of Charts. But there are many ways to implement the law so that you can make a profit from it.
simtrader Thank you very much Joe
JoeRoss You are welcome, sim
Mini_Mike Joe thank you for your help and all your time and effort. Bye for now.
JoeRoss Bye mike
simtrader Thank you again Joe
Lou_CO Good night room. Good night Joe, thank again !
Lou_CO left.
JoeRoss Good night all, it went very fast tonight.
JoeRoss See you next week.
marsh Nite, Joe, and thanks
jim-rainman good night
shamutooth GN Joe,all


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, 2007
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