Chat with Joe Ross

Chat log from: Wednesday, March 25, 2009

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

	JoeRoss joined.
JoeRoss	Yo ho ho and a bottle of rum
marsh	Everyone made so much money today using Joe's methods that they're out celebrating.
JoeRoss	Truer words have not been said.
aussiebrett	I have just finished work so i have looked at nothing unfortunately
Philippe	hi all, hi Joe, from sunny Shanghai
JoeRoss	Good evening one and all
aussiebrett	the trading gods have been kind since changing to spreads so there is no reason why it hasn't continued
Philippe	Joe, what do you think of the trillions plan to buy toxic assets?
JoeRoss	Philippe: I think it is bound to fail. It cannot work. It will just make things worse.
marsh	get out of debt by borrowing more
Philippe	i thought u would say that, that's why i asked.. why u think cannot work?
marsh	That's like meeting a margin call.
JoeRoss	philippe: because of what marsh said. You can't get out of debt by borrowing more. This is like the lady who had a hole in her blanket. She took a scissors and tried to cut out the hole. But it only got bigger.
marsh	I think that most of the bailout and stimulus money is being sent out of the country to fill the coffers of the big gangsters.
marsh	And converted out of dollars
Joy	Good evening, Joe! How are you? I am sorry to be a few minutes late.
Joy	Hi marsh :-)
JoeRoss	I'm doing well, Joy
JoeRoss	Just cruising around looking for possible trades for tomorrow.
JoeRoss	I'm still looking at ROY and also now I'm looking at NAK
Joy	Joe: Is NAK a stock?
JoeRoss	Yup it's a stock
JoeRoss	buy TJX up to $25
DH	Are you waiting for ROY to fall back and fill that gap?
JoeRoss	DH, yes I am waiting. I won't pay more than $2 for it, but hoping to get it for even less in the gap.
JoeRoss	Also MET is a short at these prices and PRAA is a buy.
JoeRoss	So, what are any of you looking at?
Joy	Joe: You are faaast! I just looked up NAK - that falls into the gold/resource producers bucket you like. Right?
marsh	Gold had that really big outside bar last week, and the subsequent bars are inside of it. Looks like a congestion to me.
JoeRoss	Joy: right!
JoeRoss	The banks are putting a floor under gold at around $500. But you can't trust a banker's motives.
Joy	marsh: Yeah, the weekly chart does look like congestion. Gold, GC J9, had a huge intra day price moves this morning. I have not watched Gold intra day chart enough to know. But is Gold always so volatile in intra day charts too?
marsh	I was looking at the daily chart
Joy	Joe: How can one tell where the bankers put a floor for gold?
JoeRoss	Gold is usually very volatile By putting a floor under gold, they could cause gold prices to soar. This is not exactly what banks want. They want you to hold the toilet paper they call money. On the other hand, maybe they realize they cannot win the gold wars and are now hoarding it themselves.
marsh	Silver looks more bullish, and has 2 TTE's. It's above the range of that huge bar
JoeRoss	Joy: It was in many International publications
Joy	Joe: THANK YOU! I am not so well read as you are :-) Thank you for your patience!
JoeRoss	Joy: Marsh: Did either of you get a chance to watch the 2 hour video?
marsh	Not yet. I looked to see if Netflix had it, though.
Philippe	which video ?
Joy	Joe: I started a little and forgot the chat started ;-) I want to watch it through tomorrow though.
henco	hello
marsh	Netflix doesn't have it.
JoeRoss	This video: But you need 2 hours to watch it. But better do it before they remove it. Click here to watch it
JoeRoss	Then send it to everyone you know no matter where they live on this planet
Joy	Joe: Do you mean they pressure Google to remove the video?
marsh	I can't cut and paste
JoeRoss	Joy: Yes, pressure to remove it.
Philippe	marsh, just google obama+deception+full
JoeRoss	you can't copy from the chat, but you can from the chat log.
JoeRoss	Try to watch the one from google, coz the one on youtube may have been tampered with.
marsh	Thanks Fhillippe. That worked!!
JoeRoss	I downloaded it in case they remove it, I have it.
Philippe	i downloaded it, too
Joy	Thank you Joe! What can one do, Joe, at this kind of time? I feel small and hopeless seeing what is going on these days.
Philippe	Joe, changing topic. do u think its "wise" to short using CFD"s ? Or spread CFD's?
JoeRoss	we can get a grassroots movement going if people know what's happening.
JoeRoss	Philippe: CFDs can be the best and the worst all at the same time. They have the same cheating broker problems as forex has.
JoeRoss	You have to be prepared for a lot of slippage. You must use limit orders, and you must use a 4 day time stop.
marsh	I see that Alex Jones has it on Utube, and it can be downloaded with KeepVid.
JoeRoss	That'll work, but some parts may have been censored.
JoeRoss	I watched it on google.
marsh	Chances are Alex Jones would want us to see it entirely.
marsh	But I'll see if I can check it.
Philippe	yes, I'm aware that CFDs are like casino.. globally, to win, better to be the dealer than the customer! and i think it would make sense to use only small positions to reduce the leverage
JoeRoss	there's enough even in the first hour to make your hair stand on end. but for you marsh it will make your hair straight.
Philippe	joe, maybe u put the video in the forum? cause so slow to download
JoeRoss	Philippe: Maybe you can trade them in the land of OZ. The aussies have them on a regulated exchange.
Philippe	thx for the tip Joe
Philippe	would u trade them as spreads?
JoeRoss	I can put the link in the forum, but not the whole thing.
marsh	Maybe it will turn my hair black again, and fill up the blank spaces.
Joy	Joe: Going back to Gold... a quick question:
JoeRoss	Philippe: Sure, why not. you can do almost anything with a CFD
Philippe	thx Joe
Joy	Andy had a great Spread Scan lesson on a “Traders Notebook” Gold trade (short GC J9) last week. I noticed he used stops at about ½ of the daily average true range. Is this a correct observation to say that is a way to take advantage of the overlapping daily prices and reduce risk acceptance in a very volatile market?
JoeRoss	Joy, it's valid. We have always used that kind of concept for exit placement on spreads and anything else.
Joy	Joe: THANK YOU!
Joy	Joe: I was a few minutes late... did I miss your commentary on the current stock market rally?
JoeRoss	Joy: No comment
JoeRoss	If you want a comment on it here goes.
Joy	Joe: OK... thank you!
Philippe	joy, what price lever did Andy propose to short?
JoeRoss	we will have a correction and then a rebound to at least 800 maybe 1000 for the mini SP. then to new lows or at least to test the previous lows. We have not seen the bottom yet.
Joy	Joe: WOW! THANK YOU for being so gracious to share your words of wisdom!
JoeRoss	Joy Those are guesses.
Joy	Joe: Understood - you don't have the crystal ball. But thank you for your educated guesses!
JoeRoss	bottoms don't look this nice.
Joy	Philippe: Andy did not trail the stop at the prior day's high or the average true range - he placed it about halfway of prior day's daily range and pulled the stop at about break even as soon as the first profit target was hit --- or so was my student observations :)
Joy	Joe: Do you mean bottoms show a prolonged congestion and slow accumulations (and emotional fears/pains), rather than the sharp V-bottom we see?
JoeRoss	I wasn't referring to the way they look on a chart. The so-called recent bottom was very orderly and with almost a magic rebound. The real bottom will be ugly, chaotic, and make no sense at all and be accompanied by a complete capitulation by the longs.
JoeRoss	This bottom did not have capitulation. There were too many hungry bulls just waiting to get in. The real bottom will be characterized by short covering as being the only buying or the major part of the buying. We need to see 3 legs down and 2 rallies before we will see the bottom. The end will be at the end of the 3rd leg. Right now we have only the first leg down, and are in the first rally. We will probably see the S&P go to 600 or lower.
Joy	Joe: Ah, thank you, and thank you for the lesson!
marsh	You could see the hungry bulls today.
JoeRoss	at the real bottom, bulls will be as scarce as hens teeth
Joy	Joe: Is that why the Opens and Closes have often been at or very close to the extremes of the daily bars (about 2:1 in March) for the mini/index? The hungry bulls are ready to jump in and go long?
JoeRoss	Joy: that's as reasonable a theory as any. I really can't say for sure.
Joy	Joe: Thank you!
DH	Any thoughts on oil? I keep thinking I should put on a long term buy. Maybe USO?
JoeRoss	DH: XlNT idea! Do it. You won't be sorry.
JoeRoss	Also get long natural gas. It is going to go up very fast and very much.
Joy	Joe: Is natural gas a seasonal entry? I noticed heating oil has been going up but not so much for NG.
JoeRoss	Oil, gold, silver, nat. gas. All inflation hedges. We are going to have hyper inflation
JoeRoss	Joy short term it is seasonal; long term it is a helluva bargain right now, with that obamaniac going to tax coal, gas is the cheap alternative which is why I want to own CPN
Philippe	i think gas has already started uptrend, but short term we in a correction, what u think joe?
JoeRoss	Philippe: I agree. it is already making a move. It is cheap and clean and will replace coal under CAP and TRADE
Philippe	see Joy ;-) the master agrees with me.. hehe
Philippe	thx Joe
Joy	Joe: WOW! Thank you for the lesson! I am writing CPN down :-)
Philippe	Joe how much to get CPN? 6?
JoeRoss	Global warming is going to kill us all; slowly but surely. Think about the life cycle of plants and animals: if we stop producing co2, the forests will die. We need them for oxygen. We can't have too much co2 or too much oxygen. They are in perfect balance the way they were created to be.
JoeRoss	Phillippe: $6 is good, but you may not get it that low. Get it before $8.
Joy	Philippe: You are so smart!
JoeRoss	If there is more co2 there will be more plant life to thrive on it. and therefore more oxygen for all of us.
Philippe	i have a friend working for the government on climate change. he told me that even we stop every activity on earth now, it would need 200 years before earth balance goes back to situation it was 30 years ago
Joy	oh noooo
JoeRoss	Why would we want it to go back to 30 years ago? Things change. There are now 2 billion more people on earth than 30 years ago. We need more oxygen, and it comes from plant life.
marsh	Maybe they can invent a process that runs off water power or something that takes the co2 out of the air.
JoeRoss	I want more co2 in the air not less.
Philippe	sorry guys i need to go, appointment is here. have a nice day or night y all
JoeRoss	Global warming is not caused by co2, it is caused by an increase in sun spots.
marsh	I see. Well, that will go away, won't it?
JoeRoss	In 1903 was the most sun spots ever recorded and it was the warmest year in recorded history.
JoeRoss	Several years later there was a great reduction in sun spots and the weather was extremely and unusually cold.
Joy	Can we shield the earth from the increasing sun spots?
JoeRoss	One way would be to produce more co2 :-)
JoeRoss	So as I leave you for the evening I suggest you eat a lot more beans and help the planet.
JoeRoss	good night all.
JoeRoss	see you next week
Joy	Joe: THANK YOU! I will eat more beans. Have a great night!
henco	Thank you, cheers
Joy	Sweet dream, love you!
JoeRoss	thanks

Next Chat with Joe Ross:
Wednesday, April 1, 2009
Time: 8:00 - 9:00 P.M., U.S. Central Time.

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