Chat with Joe Ross

Chat log from: Wednesday, April 1, 2009

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

	JoeRoss joined.
JoeRoss	I guess it's about that time, eh?
marsh	4 minutes
aussiebrett	good evening Joe and Marsh
marsh	Hi aussie
JoeRoss	I went downstairs to get an apple
JoeRoss	Good evening
	t.kaderavek joined.
JoeRoss	Hi T.
t.kaderavek	Good evening all
marsh	Hi t
t.kaderavek	Good evening Joe. I liked the webinar yesterday. I do not know anything about options, but I do consider to buy your books and get into them. Really good stuff, what you have showed.
aussiebrett	Hi T
JoeRoss	Great! What I showed is a great way to generate income
marsh	Oh Joy, it's Joy.
t.kaderavek	The truth is, I am more into daytrading, so I am looking forward to the webinar on 21st!
JoeRoss	Hi everyone
Joy	Joe: Good evening! I hope you have had a lovely evening!
t.kaderavek	Hi Joy :-)
Joy	Hi marsh, how are you? :-)
Joy	Hi t, good to see you!
aussiebrett	Joe, is it possible to pay for an archive download as i was at work when you were on
JoeRoss	Gee is it evening already??
JoeRoss	I've been so busy I didn't even notice it was getting dark
t.kaderavek	3 am in Prague Joe
t.kaderavek	Really dark here ;-)
Joy	Joe: Oh no, I hope you got some rest and dinner at least!
JoeRoss	brett: It's free on our website somewhere. I will try to find the link
aussiebrett	Thanks Joe
iso	Hi Joe, do you take reward/risk into consideration when trading RHs
JoeRoss	Iso: I guess I do , but in an indirect way.
aussiebrett	Thanks Joe
t.kaderavek	Anyone of you actively trades Rh??
iso	i think I am hung up on looking at the reward/risk and I see the point where costs are covered being much smaller then where a stop placed on natural S/R is
t.kaderavek	I agree iso
t.kaderavek	You must have high winning percentage.
iso	any thoughts on how to look at it
Joy	Joe: We are sO glad yOu are back!
JoeRoss	Brett, here's the link:
JoeRoss	An Evening with Joe - Download - (Meet the Masters Series)
aussiebrett	Great thank you very much Joe
JoeRoss	iso: try using Average True Range for your stop and objective.
iso	yes, I have looked at ATR but haven't tried it
JoeRoss	Joy: I'm eating an apple---mmmh delicious. That is my supper
JoeRoss	Does anyone here trade the Rh (Rosshook)? I do! Gosh, I think they might have named it after me.
Joy	Joe: May I ask a chart-reading question on ES M9, daily chart? Oh nooooo, we are not even giving you time to have supper! That is terrible! I am sorry!
t.kaderavek	Well I just wanted to ask people what they used as an objective for the first 1/3 of their position...
t.kaderavek	I guess you use ATR Joe, right?
JoeRoss	Joy: I have some soup too. Can't you hear me slurping it?
JoeRoss	t. I really like ATR
Joy	Joe: No, I didn't hear it but I am glad you are having some soup too!
t.kaderavek	I try to use it as well. I need more trades though. Do you use it for daytrading as well, Joe?
JoeRoss	Ask me Joy
Joy	Joe: Thank you! On Monday, price declined and violated the March 25 low at 787. You teach us to watch out for probability of trend reversal or consolidation when price violated a previous correction high/low.
Joy	My question is “Does the March 25 count as a correction low even though it made a higher high?” Or do I need to see a violation of the RRh at 761.50 on March 20.
JoeRoss	t. I use it every day for day trading
t.kaderavek	OK. Thank you Joe.
t.kaderavek	I will try to use it for daytrading Rh too :-) Just to see what difference does it make.
JoeRoss	Joy: I wouldn't count 4/1 as a correction low. But 3/30 is
Joy	Joe: THANK YOU! I understand now and will remember the lesson :-)
JoeRoss	Nice inside bar TTE on 3/31
t.kaderavek	Good question Joy :-)
Joy	t: Thank you! You are a good pal - so generous!
JoeRoss	We could see snp at 1000 before this is over, and then down to 725.. Then watch the VIX if it hits 39, get ready to go long.
t.kaderavek	Well it is always nice to improve my chart reading through good questions of others.
JoeRoss	The rally may run a few more weeks. But you can't be sure
Joy	Joe: WOW! Those are some good lessons for us! Thank you! I have another index chart question on TF M9, if you don't mind. It's about congestion/consolidation.
JoeRoss	You never know for sure what the big bad O will do next
Joy	Oh right, the O! :-) Joe: As the TF M9 daily chart made a 123H yesterday and a 123L today, I guess prices are congesting within the large measurement bar on March 23.
Joy	Joe: In your teaching, a new trend is not established in congestion until there is a Rh developed. Using the TF chart as an example, in congestion, 123H and 123L can be forming in an increasingly narrow trading range (like a flag).
Joy	Therefore, can we use the Rh subsequent of the nearest 123H/L (smaller range) as an indicator where the breakout will most likely take? Or should we use the further Rh (most likely left at the beginning of the congestion?)
Joy	SORRY for the wordy question....
JoeRoss	Joy: I don't have the right software up right now. I can't see TF
Joy	Oh no! SORRY for the trouble then Joe :-) Thank you anyway!
JoeRoss	Joy: But from your description I would say it is in or going into congestion
Joy	Joe: THANK YOU! Sorry to make you visualize the long question :-)
JoeRoss	I'm bringing up Trade Navigator so I can have a look.
JoeRoss	It will take awhile, coz it has to update.
iso	Joy, I see that occur a lot, I was wondering the same thing
Joy	Thank you Joe! You are the kindest!
t.kaderavek	Joy when I look at the chart I think you have a congestion by alternation. You have 2 lower closing bars 27.3. and 30.3. and 2 upper closing bars (the 2 following days). I think in one of Joe's books he describes this as an congestion.
JoeRoss	Great green hair iso. Good work on choosing an avatar
iso	:-)
iso	the irish in me I guess
Joy	t: YES, you are right! Thank you for the reminder!
	DeniseR joined.
t.kaderavek	Joy - now lets wait for Joe's approval :-)
JoeRoss	Hi Denise, choose an Avatar: Click on Action and then MY Avatar
DeniseR	perfect likeness of me
	Mel joined.
JoeRoss	Great choice Denise. I was hoping someone would choose that. Now all we have to do is to get tony to choose one.
philippe	Hi Joe, hi all, sorry to be late.
iso	I notice many times when a 123 is forming the #3 point will take out the #1 point by a few ticks and then take out the #2 point. Do you consider them valid 123 formations?
Joy	Hi philippe, good to see you again!
philippe	same here Joy, beautiful weather in Shanghai today. looks like California
Joy	Philippe: Really? That sounds wonderful!
JoeRoss	Joy: I would wait for the larger Rh for the breakout. t is right, we have congestion by alternation
Joy	Joe: THANK YOU for the wisdom to use the larger Rh for breakout! You are the best! And kudos to t!!
JoeRoss	iso: No. Not valid. If #3 passes #1, it invalidates the 1-2-3 formation
marsh	Note the latest #3 point of the 123 high is lower than the previous Reverse Ross Hook. That would indicate the trend is over, or slowing.
iso	sounds great, thanks
JoeRoss	Hi philippe and mel
JoeRoss	marsh is right as usual
Joy	Marsh: YOU are SO SMART! THANK YOU!
JoeRoss	we have definitely lost momentum
	OzTrader joined.
JoeRoss	5 bars inside a measuring bar
marsh	All I know is what I learned from Joe.
JoeRoss	in fact, 7 bars inside the measuring bar of 3/23
JoeRoss	thanks marsh.
Joy	marsh: You are right! We are so fortunate to have Joe - so gracious and so generous to teach us!
JoeRoss	yay for tony. Handsome gentleman
TonyI	::eye
Mel	Joe, if GM goes bankrupt, do I lose my stock?
philippe	no Mel, They repay you to par value ;-)
JoeRoss	Mel: Yes you do. All of it unless you have preferred stock.
JoeRoss	GM now stands for Government Motors
t.kaderavek	Joe, what about if GM goes broke and other company buys it. Do you still loose the stocks, or can you hold it under a new owner?
philippe	what is the most likely scenario for you Joe? GM to get foreign investment?
JoeRoss	t: it depends on the terms of the sale.
t.kaderavek	OK. Thanks.
JoeRoss	philippe: I suspect GM may be getting set up by the govt. for a bankruptcy.
philippe	well, they should propose a shares swap not too advantageous except for preferred stocks, i guess, what do u think?
philippe	ok.. I think like 30 years ago, there was a similar case with Chrysler, isn't that so? was saved last minutes as the "image of america". but I was 10 years old, so i don't know the details well, of that case
JoeRoss	philippe: Its all too complicated for me. But I know one thing for sure, unless GM can get rid of all their overhead, they cannot make it.
marsh	If they go bankrupt, then they can toss the union and pay the workers what the market will bear. Which will be a LOT less.
philippe	yes, that's bottom line
iso	When using the TTE to get in before the #2 point it seems like you will always be going against trend, how do you know when to take the trade? Or do you take those?
JoeRoss	The new Government Motors wants them to make small green cars which GM loses money on. GM was profitable on their trucks and larger vehicles, but the govt. wants them to quit making those.
acman	Maybe they will bring back that cool electric car they had 3 years ago and then recalled them and crushed them.
Joy	acman: Hi my friend! I did not know you joined in! How are you?! So good to see you.
philippe	Joe, any good tip for me to make a quick buck today /
JoeRoss	iso: As long as there is room between the entry and the #2 point I will take the trade. Room to cover costs and take a profit.
acman	Joy: great. Just finished my roof today. Got a standing seam metal, fixed up the exterior of the house and one interior. been having a small mexican army around for 2 weeks. Glad to have them out of my hair finally.
iso	but isn't the probability lower on them because you are going against trend
Joy	acman: YOU have been busy :) Glad your work is done!
JoeRoss	iso: if you are filled on a TTE you are going with momentum not against the trend.
iso	ah, i see
acman	joy: I have been trading also. My accounts are all moving up day by day. futures and stock accounts. Love this volatility.
JoeRoss	philippe: short AEP
Joy	acman: Good for you! Joe's Rh worked wonder in so many charts these past weeks!
acman	yes. The trading range and rh's rule
Joy	Joe: Is the AEP play related to the infamous CO2 tax?
JoeRoss	philippe: Buy DOBEU Call up to $1. Don't pay more.
JoeRoss	It's the DBC commodity index Expires on May 15. DBC Closed today at 19.95
JoeRoss	May 21 Call.
philippe	let me see
acman	what is the dbc? german?
JoeRoss	Joy: Yes AEP is related to the Co2,.O for Obama Tax
JoeRoss	acman: It's the commodities index
JoeRoss	It's a tracking index fund.
JoeRoss	You'll make 600% on the trade. Mark my words. Do it.
acman	I will look at that. I have been trading the UYM which is double the commodity index.
acman	What time frame Joe for the 6x?
iso	Would you say DBC is coming off a 123 high on the daily
JoeRoss	acman: Daily
acman	I will look at that. My trade station powder is dry and I have options now.
JoeRoss	iso: This is not a chart formation trade. it is fundamentals.
iso	ah, ok
JoeRoss	iso: It did make a 1-2-3 high, but it is now back in the same trading range as before. But the Chinese are hot for gold and copper once again. commodities are going to start climbing. Look at what's happening with Alcoa
iso	interesting
philippe	Joe, are you still visiting the prisons?
t.kaderavek	Joe, when you day trade and you want to compute the ATR at the beginning of your trading day. Do you use the last N bars before yesterdays close OR do you use the last N bars from pre-opening session?
JoeRoss	philippe: We can't get into them anymore. So we work through the snail mail.
philippe	oh i see...
JoeRoss	t. I use 20 bars including overnight on a 5 min. chart.
t.kaderavek	Thank you Joe.
JoeRoss	t: I use the highest value for ATR from the previous day. More often than not it occurs around 10AM Central.
JoeRoss	philippe: we are allowed in for an execution situation
philippe	terrible...
	SusanV joined.
acman	I have been using that ATR for traveling stops. It works well. Great technique joe.
JoeRoss	But Texas has a horrible record of wrong convictions. They may even pass a law now that reimburses wrongly convicted at the rate of $80,000/year for every year in prison, plus health care a, university education and some other perks
acman	joe: I made up a chart with 4 time frames with the atr calculated on each and see which time frame is looking good and use that for my traveler.
philippe	yes... i have to say that in Europe, we really have a philosophical problem with the Texas attitude re. this topic.
JoeRoss	acman: me too
philippe	its almost time, So I would like to wish you a happy Bday in advance Joe
JoeRoss	thanks philippe
philippe	ahah, i just send you the file and eat the cake
acman	How do I sign up for that wrong conviction. That may get people to get into jail so they can wait a year or so and then get out.
JoeRoss	And now it is time. Time for me to hit the hay, or fall into bed, or......
JoeRoss	Good night everyone.
philippe	alright Joe, thanks for your time.. Happy Bday again!
t.kaderavek	Good night
t.kaderavek	Thanks a LOT Joe
iso	thanks so much Joe
Joy	Joe: Thank you again! It's another lovely evening with you! Love you very much!
acman	Great chat joe: thanks.
OzTrader	Thanks Joe, Goodnight.
acman	joy: you trading now?
aussiebrett	thanks Joe good night
Joy	Joe: Your birthday coming up? HAPPY BIRTHDAY!

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

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