Trading Educators Inc. - Joe Ross - Day Trading and Online Trading

Chat with Joe Ross

Chat log from: Tuesday, September 4, 2007

Live Chat with Joe starts Tuesday at 8.00 PM U.S. Central Time!

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JoeRoss	Good evening everyone.
ronnie	Good evening Joe.
ronnie	What's looking good these days Joe?
JoeRoss	You mean besides me? :)
ronnie	Naturally.
JoeRoss	Wheat looks very good but may be nearing a top.
JoeRoss	And corn may be busting out of a long consolidation.
ronnie	Oil has been inching up.
JoeRoss	That too, but I don't touch the New York markets. I am thinking of plunking a bunch of $$ into XLE.
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ronnie	Is that an ETF?.
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JoeRoss	Yes, XlE is an ETF.
JoeRoss	One of several oil related indexes.
ronnie	How about a nice spread oil vs oil services?
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JoeRoss	It might be a good spread.
JoeRoss	Too bad they don't have an oil services futures contract.
JoeRoss	Looks like we have a lot of silent sams tonight. If you don't comment or ask questions, the chat will be very dull.
ronnie	Yen vs Euro futures spread seems to make some nice moves.
JoeRoss	If they unload the carry trade, the yen will beat the euro.
shamutooth	Hey everyone. Just tucked the kids in.
JoeRoss	shamu, do you ever trade mortgage bond futures?
shamutooth	No, I didn't know you could.
JoeRoss	You guys better behave yourselves tonight, we are being honored by the pope.
JoeRoss	shamu: I think they have them at the CBOT, you should check it out; at least they used to have them.
ronnie	Joe, I noticed you have a CFD course coming up.
pope	Just an old nickname. Bless U all.
hellboy	Hi Joe, I wrote about $ crisis and suggested to put money into other currencies or gold. What about real estate?
JoeRoss	Yes, CFD course is completed but not recorded. I want to test it out in Germany in November to iron out any kinks.
shamutooth	I will. Pete will probably get REAL excited about them
ronnie	Are you using the same methods?
JoeRoss	hellboy: I don't think real estate is a very good investment at the moment. Wait until it bottoms out, maybe in 2 years???
Bullfrog	What is the best exchange for currency? CME (seems choppy) or forex, for swing trades 3 to 15 days.
JoeRoss	shamu: let me know if you find them. I think I've seen them somewhere.
JoeRoss	ronnie: Sure, same methods for CFDs. A market is a market.
hellboy	Agree, but when $ will start really dropping?
JoeRoss	frog: I would use the CME.
JoeRoss	hellboy: To hedge the dollar you are already doing the right thing: gold and other currencies. You might add silver.
hellboy	Thanks.
JoeRoss	Personally, I don't want any dollar assets other than the roof over my head.
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Bullfrog	Do you use spreads there to smooth out the gaps?
zendre	Hi everyone.
JoeRoss	frog: You can use spreads or you can take advantage of the high volatility using options.
JoeRoss	Hi zendre.
Bullfrog	There is that word again, options, do you have info on how to work that end of it.
hellboy	What about buying currencies CDs from internet bank?
JoeRoss	frog: It's too much to explain here on the chat. We do have an options course you can take.
Bullfrog	Ok thanks. That is what I meant.
JoeRoss	hellboy: Very good. That's one of the things I do. Everbank and Jyske bank.
hellboy	Thanks.
JoeRoss	shamu: They began trading mortgage futures at the CBOT in 2001.
JoeRoss	Both futures and options.
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shamutooth	Hey BofB.
BofB	Hey room.
JoeRoss	Hey BofB
shamutooth	I wish Marsh were here; I wanted to congratulate him on the great gold call 2 weeks ago.
zendre	Any idea what happened on the wheat electronic today at the day session?
JoeRoss	zendre: Which month?
acman	Nothing wrong with with electronic. It went up limit on Dec.
JoeRoss	zendre: I saw the same thing. Gap and then limit up.
zendre	Dec-SEP-AND EVEN MARCH.
acman	Wheat will be sold by the grain if this keeps up.
JoeRoss	They are worried about not enough wheat. Late last year and early this year, farmers concentrated on corn and didn't plant enough wheat.
acman	The commodity funds bought a lot of contracts a few weeks ago also.
JoeRoss	acman: Smart move by the funds.
zendre	The price is over 6 standard deviations on the monthly.
acman	Joe, is it best not to trade grains the last weeks of august?
JoeRoss	acman: Not that I know.
zendre	How come that 30000 contracts on the buy side?
JoeRoss	zendre: It could be a commodity fund.
zendre	Short covering?
acman	The charts have been crazy last week on the wheat. I guess it is best just to stay out when markets are making new highs.
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JoeRoss	acman: The old timers always said to buy new highs.
acman	I will try that next time.
zendre	There was plenty of possibility to do so in Wheat.
JoeRoss	It was good advice. I can't remember ever seeing wheat this high.
acman	The corn wheat spread is 479 tonight! Golden wheat!
hellboy	Is DBA a good ETF?
JoeRoss	Power shares are getting ready to really move up---I think!
shamutooth	Joe, so you think that this correction in the markets is over so quickly?
JoeRoss	shamu: Which market?
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acman	A good market ETF is the UWM and TWM. they are the R2000.
shamutooth	joe: Nasdaq, S&P.
JoeRoss	shamu: No opinion at this time on either of those.
shamutooth	Aren't Power shares QQQQ?
JoeRoss	QQQQ is Nasdaq shares traded on AMEX.
shamutooth	Joe, I thought when you referred to Power shares earlier that you meant QQQQ.
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zendre	What do you think about that corn-wheat spread?
JoeRoss	shamu: No. Power shares refer to an ETF.
zendre	Could that difference keep up, or is it only a question of timing to win on that?
JoeRoss	zendre: It has been a beautiful spread if you were long wheat.
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zendre	:)
JoeRoss	The difference will end one of these days. Nothing stays the same for long. The markets will ultimately find a balance.
zendre	Where do you feel that balance could be considering the supply-demand differences in wheat-corn?
JoeRoss	It's interesting, if you had entered that spread every time the fast stochastic crossed the slow stochastic (5,3,3) you would have made a fortune on that spread.
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JoeRoss	If wheat keeps going up like that the farmers will plant a lot of wheat and not so much corn and the balance will shift to long corn. Also, if wheat keeps being so high, I'm gonna start eating a lot of corn bread ;)
JoeRoss	zendre: That 30,000 contracts could not be short covering by the commodity funds. I believe they are all "long only" funds. They protect the short side with Put options.
zendre	Of course this does not help this crop year.
zendre	I mean planting wheat.
zendre	Because your bread eating helps :)
JoeRoss	Give me some of that good old corn pone, Jeb!
zendre	Do you mean referring to the Stochastic, that if it turns around, it keeps its direction?
acman	One extreme was where wheat was cheaper than corn. I guess this is the other extreme.
zendre	I mean Corn-wheat spread.
JoeRoss	zendre: If it turns around the crossings will be the same only the corn will be long and the wheat short.
shamutooth	Wonder why wheat, gas, corn, almost everything costs more when our inflation is so low.
zendre	I am waiting for that moment, because I am afraid to enter a Wheat-corn today.
shamutooth	Oh yeah, all that stuff is excluded ::mad
JoeRoss	shamu: Surely you can't be believing the govt. statistics.
zendre	Will not be low in a couple of months :)
shamutooth	I think our inflation rate is based on the price of Dell computers.
zendre	Of course we will not go bankrupt eating a lot of bread. Especially corn ones :)
acman	Is there any news out of Montana from the Fed meeting?
JoeRoss	acman: Just double talk.
JoeRoss	They assured everyone that they would act if they thought they needed to. But they didn't say what that would be.
zendre	Someone said that banks are greater danger than standing armies.
JoeRoss	For sure that applies to Central Bankers.
acman	They gave everyone loans, then complained when it blows up in their face.
zendre	It is a nice thing in electronic banking, that they can give the printing a rest, just press some ENTERs to create money.
JoeRoss	You got that right, zendre.
shamutooth	Now they're going to make Fannie Mae and FHA save the day in the sub prime mess.
BofB	They are doing that, lol
JoeRoss	By the way, I won't be here next week.
acman	Traveling?
JoeRoss	I will be giving a talk to the Austin Traders.
acman	Where? I live in Austin.
JoeRoss	I'll talk for 2 hours.
JoeRoss	Gotta go now, It's my sleep time.
JoeRoss	See y'all in 2 weeks.
acman	Joe, where is the talk?
shamutooth	G'night Joe, all.
zendre	bye
Bullfrog	thks
zendre	thanks
JoeRoss	Somewhere on Barton Springs Blvd.
BofB	C ya Joe, Shamu and room.
JoeRoss	Hold on and I'll give you the address.
shamutooth	Cya Bof B.
JoeRoss	721 Barton Springs Rd. Room #130 on the first floor. It's the Austin City Energy Building.
acman	I know that building with the AC business. What time?
JoeRoss	Please park on one of the upper levels. They have a garage inside the building. 6:30 PM
	Austin Association of Financial Traders (AAFT) Traders of Stocks, Mutual Funds, Options, Futures and Forex Meeting Announcement: This next meeting of the Austin Association of Financial Traders (AAFT) will be meeting Tuesday September 11, beginning at 6:30 PM. Guest Speaker: Joe Ross
acman	I will drag Marsh along. He will be back then.
JoeRoss	ok cu there
JoeRoss	Good night everyone
spreadtrader	nite Joe and all
acman	Good night. Happy trading.
hellboy	good night

Next Chat with Joe Ross:
Tuesday, September 18, 2007
Time: 8:00 - 9:00 P.M., U.S. Central Time.

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