Chat with Joe Ross
Chat log from: Wednesday, February 4, 2009
Live Chat with Joe starts Wednesday at 8.00 PM U.S. Central Time! |
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| JoeRoss | Good evening |
| sunny12 | Good evening Joe |
| tony | good evening.....good morning from here. |
| JoeRoss | good morning tony |
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| JoeRoss | How are things in Bali? |
| tony | Joe....I just arrived back here in Bangkok this morning |
| Aussiebrett | Hi Joe, Hi all |
| tony | Bali....was great .....rained like hell though... |
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| JoeRoss | hi brett |
| tumen | Hi Joe, Hi everyone |
| JoeRoss | hi Tumen |
| JoeRoss | It looks like the U.S. govt. is "going on tilt" It is having a psychotic break. Acting totally irrationally |
| JoeRoss | The wave of collapses is going to get much worse. Lots more banks will fail, so the FDIC will need hundreds of billions more in funding. |
| tony | USA....is more than a tilt.....it looks like back in the 30's when the slogan was "Happy Days are here again....' |
| JoeRoss | They are already trying to bail out everything, starting with the auto companies. |
| JoeRoss | Who knows where they'll stop? |
| jafa | Can they stop? |
| JoeRoss | jafa: I don't think they can. They have a tiger by the tail. |
| JoeRoss | Homebuilders are lining up. Can't let commercial property developers fail, because it would put that much more pressure on the banks. |
| tony | Joe.....now you wonder....who was the most luckiest .....Clinton, McCain or Obama.? |
| JoeRoss | If you notice, everything since this whole mess started is nothing more than trying to save the banking system. |
| JoeRoss | tony: You were the most lucky :-) |
| tony | Why me? Joe.... |
| JoeRoss | coz you got yourself out of this mess. |
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| JoeRoss | Who would want to be any of those 3 loony tunes. You have to be a little bit nuts to be a trader, but you have to be insane to want the US presidency. |
| JoeRoss | Hi Joy |
| Joy | Joe: Good evening! Hope you are doing well.... and sorry to be a little late. |
| JoeRoss | Have you noticed that the public is beginning to buy gold --- at any price!!!??? |
| JoeRoss | ...Barrick Gold Corp. Chairman Peter Munk said last week he has been inundated with calls from wealthy investors seeking to buy gold to protect their capital. |
| JoeRoss | He said, the window to raise money for gold stocks has blown open. The investing public has started to go to that one thing that they think it’s safe to invest in. |
| JoeRoss | Gee tony, we thought maybe you were raptured and we were all still here--left behind, like in the movie. |
| Joy | Joe: Is Barrick Gold a mining company? |
| jafa | Joe, did you watch the ES or TF this AM? Was I just lucky or was it obvious to you from the pre-market action that they were going to take it down at the open only to turn it around and run it up? Which they did. |
| JoeRoss | Joy: Yes Barrick is a gold miner |
| Joy | Thank you Joe! Maybe the gold mining companies can finally catch the trend of gold price spike this year. |
| JoeRoss | jafa: This morning was the first day in a long time that I did not look at either one of them. As of this evening, I still haven't looked. |
| walkegra | Joe, I have a question about exchange traded funds (ETFs). Do you believe that ETFs are built on a sound foundation or are they another doomed financial innovation, a house of cards destined to come crashing down, destroying much wealth in the process? |
| jafa | Okay |
| JoeRoss | walkegra: I think they are sound and will replace mutual funds as an investment vehicle. The only ones I wouldn't trust are the gold ETFs. |
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| Joy | Joe: Why do you think they will replace mutual funds? |
| JoeRoss | The gold ETFs are a pawn of the bankers. |
| JoeRoss | Joy: Coz the mutual funds have almost all sustained huge losses. They are too expensive. The true cost of investing with a mutual fund would shock you if you saw how much of your money they keep--and how truly tiny are your profits. |
| JoeRoss | I saw a study on it a few months ago, and it was appalling. It turns out to be much, much more than the 1 or 2% that appears on the surface. |
| Joy | Wow! Thank you Joe! I think people are waking up to their so-called investment advisor too for their funds - basically do nothing and tell you to keep your money in till it is too late. |
| tony | Joy.....you hit the nail right on the head. |
| Joy | Joe: When you said gold ETFs are a pawn of the bankers, do you mean the big banks manipulate gold stock share prices as COMEX gold futures are manipulated? |
| Joy | tony: THANK YOU! Wow, that means a lot from someone so experienced like you! |
| tony | Joe....what do you think of keeping 90% in cash and maybe the rest in treasury bills....? |
| Joy | Or the corporate bond funds Joe wrote in Chart Scan? |
| tony | I wouldn't go near any treasury bonds with a ten foot pole. |
| JoeRoss |
Joy: Correct. When it was made public a few years ago that the banks were running a gold cartel and artificially depressing the price of gold by selling gold in the open market, the banks decided to go underground. They created the gold ETFs so they manipulate the price of gold that way. They can short the ETFs. That means they borrow the shares, which in turn means they can sell shares that don't even exist. There is no accounting as to whether or not there is actually 1/10th ounce of gold backing every share. |
| Joy | :-) Got it, tony! I won't either then. |
| Joy | Lordy! How crooked!! |
| tony | Joy.....listen to Joe....not me. I'm here on this chat box to hear what Joe has to say. Joe...goes way, way back and quite a story at that. |
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| JoeRoss | tony: Cash is good. T-Bills? I don't know. You are receiving negative or no interest in either case. Of course, the cost of living at the moment is down 13% in the US. |
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| tony | Joe....yes....there is practically no yield....but it's safe. Right now you want to find a safe place. You want to be in cash when the day comes to then move in and then pick all the pockets. |
| Joy | tony: Absolutely, we all appreciate being part of the most valuable education forum on earth - Joe's! And I appreciate your camaraderie ;-) |
| JoeRoss | I think that the Chinese must finally have taken a liking to chocolate. Cocoa prices hit a 23 year high. That's interesting, coz I was the guy who sold the 20 year low in cocoa. |
| JoeRoss | tony: Agreed. I am 90% in cash, but not dollars. |
| tony | Joy.....I first came across Joe's name way back when we use to draw our own charts. In fact it was when we had to go to the brokers office to trade by the monitor there. It was there that I heard the voice of "JOE ROSS"....and it was all good. |
| Joy | Joe: You are too funny! Maybe the Chinese decided to dump milk and just eat dark chocolate straight! Or is it a seasonality thing for Valentine’s day? |
| tony | Joe.....you've got it...... |
| Joy | tony: Wow, what a great story about Joe! |
| JoeRoss | Joy: I once read that if the Chinese ever became chocoholics, there wouldn't be enough cocoa in the whole world to satisfy just them. |
| Joy | Oh dear, maybe we should plant cocoa :-) |
| tony | Joy....all the guys were raving about this "Joe Ross". I kept thinking that maybe this guy might be related to Barney Ross..... |
| Joy | tony: Who is Barney Ross? Joe's uncle? |
| JoeRoss | Joy: It doesn't grow in too many places. And I think it takes a lot of years (30??) to produce anything. |
| jafa | The best chocolate comes from Venezuela. |
| tony | Barney Ross was a pugulist.....a famous boxer back in those days when Joe and I were much younger......both of us trying to charm the local girls. |
| JoeRoss | tony: You said it, and it was so. |
| Joy | Ah, too bad - there goes my retire-on-cocoa-plantation-and-eat-cholocate all day dream! |
| JoeRoss | The swiss buy their cocoa from the Ivory Coast. Belgium also buys from them. |
| tony | See.....see how Joe knows so much. The guy is amazing. |
| JoeRoss | Nestle introduced chocolate into China about 10 years ago. |
| JoeRoss | tony: The markets tell all. I just learned how to read them. |
| tony | WHEN JOE SPEAKS.........LET NO DOGS BARK. |
| Joy | tony: you are absolutely right - Joe has a wealth of knowledge that we are so fortunate to learn, for free! |
| Joy | Joe: That is your advanced Valentine's love! |
| JoeRoss | I'm may have to put a price on this chat ;-) |
| Joy | We will pay with chocolate, Joe! |
| tony | Joy.....by the way.....how old are you? |
| Joy | Joe: You ARE awesome! We are very, very lucky to have you to guide us! You change our lives!! |
| tony | Joe....let us decide that... |
| JoeRoss | Joy: Well one guy on the euro chat said today that he stopped in just to say that I had changed his life. Not only in trading but in all aspects of his life. I had the red face then, too. |
| JoeRoss | I blush when people say such kind things about me. |
| Joy | Joe: You shouldn't :-) He is absolutely right! You touch all of our hearts and spirits - every aspect of our lives. You help us become better people, not just better traders. |
| OzTrader | Joe, you are one of the keys to my success, many thanks. You have helped me heaps. |
| JoeRoss | Thanks Oz. |
| Joy | Yeah, Oz! Well said! |
| OzTrader | Pleasure, it's the least I can do. As mentioned, must have you over next time your in Oz. |
| JoeRoss | A thought just hit me. A play that might be a lot better than gold, which is near a 20 year high. would be resource producers. Rio Tinto, BHP Billiton, Vale do Rio Doce, Freeport McMoran, Xstrata... |
| OzTrader | Joe what sort of timeframe? |
| JoeRoss | The reason being they are now so low that when they finally go up, the rise in price will be astronomical. The world will be starved for resources. |
| JoeRoss | Oz: i'm afraid it will be multi-year. So they would be buy and hold situations, on the daily chart. |
| OzTrader | Okay as I think there is still more down side. |
| Joy | Joe: Thank you for the great tip! Are most of them traded in the U.S.? |
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| MartinS | Hi |
| tony | OzTrader.....where you from? |
| Joy | Hi Martin! |
| OzTrader | Tony: Australia, Sydney, Manly |
| MartinS | so what's up ? :-) |
| JoeRoss | Oz: The way I would play it is to buy them cheap and sell Calls against them. If they go up you make money. If they go down you have them at a discount and can sell more Calls at option expiration. You even get dividends from some of them. These are companies that are not going to go away. |
| JoeRoss | Joy: All are traded in the U.S. |
| JoeRoss | Hi martin |
| tony | Oz.....way back in WW2.....one of the best beers in the world was in Sydney.....it was called ....TOOTHS/ |
| Joy |
Joe: THANK YOU! Following up on jafa's great question earlier on TF price action today, I am looking at the TF H9 60 min-chart and see the Tuesday and Wednesday lows (around 443-444) were touched repeatedly. Does that often mean stop running on days when the market start to congest? |
| JoeRoss | Joy: Yes, probably was so. |
| OzTrader | Joe, totally agree, I follow BHP and RIO on the ASX and my thoughts are they will probably move lower. |
| JoeRoss | Oz: Have you had Swan Lager? That's an aussie beer I used to drink once/week. |
| OzTrader | Tony: Is it Toohey's these days? |
| MartinS | Joe when is the release date of TMC 2.06 ? next week ? :-) |
| OzTrader | Joe, yes love the Swan Lager from Western Australia. |
| tony | Oz: Are you familiar with "Wise Owl"......there where you are? |
| MartinS | I am interested in your bullish view on the USD. |
| JoeRoss | Martin: This Friday |
| MartinS | aha thanks |
| OzTrader | Tony, did not understand question, please repeat. |
| jafa | Does anyone know how long it takes to receive the new E-mini S&P 500 ebook? |
| tony | Wise Owl is a stock adviser..... |
| JoeRoss | Martin: My view keeps changing on the dollar. I am beginning to feel like a Frenchman--changing my mind every day or two. I'm not bullish on the dollar right now. I'm mostly confused. |
| OzTrader | Tony: Okay, no I have Mac Bank and IB accounts. |
| Joy | Joe: That makes me a French woman! Not bad :-) |
| MartinS | aha really ? |
| JoeRoss | jafa: It's an E-book. |
| tumen | Jafa: what new e-book you are talking? Please, tell me name, from which web? |
| jafa | I received two emails, but no book in them. Does it take a bit for that to come through? |
| jafa | The one that is mentioned in red on your screen ;-) |
| JoeRoss | jafa: 24 hours more information about this E-mini S&P 500 e-book, click here... |
| MartinS | I agree with your assessment that the euro zone has huge problems... |
| MartinS | spain greece the baltic states etc |
| tumen | Jafa: thanks |
| MartinS | and lots of people here in sweden thinks it safe with euro..that concerns me. |
| Joy | Joe: A quick question on spread, something I read from Andy. He mentioned, “It’s also a carrying charge spread and therefore limited to the down side.” Do you mind enlightening me why it is limited to the down side? |
| MartinS | because they are usually wrong |
| OzTrader |
Tony; I don't use any stock or futures advisors, I do my own homework and trust my judgment $$$. The way I see it, if they were any good why are they wasting there time advising? advising can be self serving as they buy lower and then wait for the cattle to follow? And you know what Gekko thinks of sheep and cattle? |
| JoeRoss | euro is not safe, Martin |
| jafa | What is safe, Joe? |
| tony | MartinS.....you should be concerned.....things are worse in Europe than a lot of people can even realize. |
| JoeRoss | Joy: Better to ask Andy what he meant by that. |
| MartinS | people thinks it is safe due to recent price stability. |
| Joy | Joe: OK... thank you! SORRY to have troubled you! |
| MartinS | tony yes |
| JoeRoss | jafa: I still think the safest currency is the Swiss franc. |
| JoeRoss | Joy: It could mean more than one thing which is why I said "ask Andy." |
| Joy | Joe: Thank you! I understand :-) |
| JoeRoss | Probably he means that there is a floor to the spread because the guys who arbitrage in the carrying charges won't let the spread get too narrow. |
| JoeRoss | But no guarantee that it's what he means. It could be they wont let it get too wide!! |
| Joy | Joe: THANK YOU! You are wise beyond description! |
| JoeRoss | Thanks everyone for joining us this evening. |
| tony | Joy: SEE what I mean about Joe....... |
| JoeRoss | It's bed time for me, or at least getting ready to go to bed. |
| MartinS | thanks good night |
| Joy | Joe: THANK YOU, as always, for your gracious time and wonderful lesson! |
| sunny12 | Thank you Joe |
| tumen | I thank Joe very much. |
| OzTrader | Joe, Many thanks. Happy Snoozing..zzzzzzzzzzzzzzzzz |
| Joy | tony: YES, you ARE right! Joe is amazing! |
| jafa | good night all |
| JoeRoss | zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz |
| Aussiebrett | Thank you Joe good night |
| tony | Good night Joe.....AND GOD BLESS |
Next Chat with
Joe Ross:
Wednesday, February 11, 2009
Time: 8:00 - 9:00 P.M., U.S. Central Time.
COME BACK WITH YOUR TRADING QUESTIONS & COMMENTS!
