You
have subscribed to Joe Ross' Weekly Spread Scan Newsletter.
If you have problems reading this newsletter, please follow this link:
Spread
Scan Issue: September 12, 2007 - Volume 161
This email was sent to you by Trading Educators.
To ensure delivery to your inbox (rather than to bulk or junk folders)
please add info@spread-trading.com to your address book.To unsubscribe, scroll past the end of this newsletter and
click the "unsubscribe" link.Otherwise, welcome to this week’s issue of the
Joe Ross Spread Trading Newsletter.Each week we present spread trading examples and opportunities in order to help
you become a more professional spread trader.
Be sure you receive all your issues of Spread Scan so that you can continue to enjoy learning through the best free educational trading information available, and so that we can keep you informed about additional educational services and products to help you grow as a successful and profitable spread trader.
Today we consider an inter-exchange spread: long December 07 Kansas City Wheat and short December 07 Chicago Wheat (KWZ7 – WZ7). The spread made a new historical low (data back to 1976) on 08/22 at -51 ¼. After the 1-2-3 low at the end of August, it seems the spread will move higher, right in time with its seasonal time window from app. 09/10 till 10/05.
Traders may want to enter the spread MOC. Initial margin is $705. Suggested risk is $700. Initial projected objective is $700, then a move to break even or higher. Basis is seasonal (app. 9/10 – 10/5) and a RH. Comment: We got hurt badly on the last try. Conservative traders might want to calculate the risk even higher (app. $1,000).
On August 28 we told subscribers of our professional daily spreads & position trading newsletter Traders Notebook, "Consider entering an intra-market spread LHG8 – LCG8 MOC on 08/29. Initial margin for the spread is $790 (reduced margin). Suggested risk is $800. Initial projected objective is $800, then a move to -26 or higher. Basis is seasonal (app. 8/29 – 9/21). Comment: I would recommend a complete new “scale in” strategy. 3 lots – first lot as recommended above, MOC on 08/29, second lot $400 lower as first entry and third lot $800 lower as first entry. If the spread moves up after entering the first lot, suggest adding on later. "
Here's how we suggested managing this trade:
08/29 In?
For more information about our daily newsletter, visit our Spread Website to find out more about Traders Notebook
Questions or Comments? Please email us: support@spread-trading.com
Student's Question: "Andy, I can see that you often recommend the same trades in Traders Notebook and in Spread Scan. But sometimes it seems the entry recommendations from Spread Scan are not as good as the once from Traders Notebook. How come? "
Andy: I can understand that you might think I prefer Traders Notebook subscribers over Spread Scan subscribers because Spread Scan is a free service. But I can assure you, this is not true. Let me explain how we publish Spread Scan, compared with Traders Notebook, so you can understand the difference:
Usually I start writing Spread Scan on Mondays. I look for possible trades and for some interesting Trading Bites. When I am done, everything goes to Loretta (our queen of every written word) and she changes my Genglish (German – English) into English. This usually happens on Tuesday or early Wednesday. Then, when the content is ok, Susan or Mary checks the format and makes everything ready for the distribution through email. As you know, you receive Spread Scan on Wednesday, and therefore with some delay.
On the other hand, Traders Notebook is a daily newsletter, ready to download every day at around 5:00 PM U.S. Central Time. I get Joe’s content during the day, or sometimes even few days earlier. I am checking the trades every day, and I am able to react to any kind of changes in the markets almost immediately — sometimes even during the day via email.
As you can see, if there is a difference in any trade suggestions, it depends only on the circumstances. Everyone who knows me personally would attest that I would never keep back any information just because you are not a Traders Notebook subscriber.
Profit-making concept — keep trading simple using the LAW
The truth is simple, and the charts in the markets follow a law. I call that law
The Law of Charts™
The Law of Charts™ brings you the pure simplicity of what the market is all about. Trading markets does not have to have to be complicated. Everything you need to know to make money in the markets is right there before you when you look at a chart of the prices in the market.
Some traders think that the more complicated something is, the better it is, when the truth of the matter is just the opposite. Every time you view a price chart, the truth you need for making money is staring you in the face. It is looking right back at you.
There is truth in every price bar you see, and in every group of price bars there is additional truth. It doesn’t matter whether or not you use traditional or candlestick price bars. The truth is the truth, and you will find it on the charts.
You will have to think to find it. You will have to use your imagination. The truth of the markets is not going to be found in an indicator or a mathematical formula. You will not find it in Fibonacci ratios, Elliott Waves, or Gann theory.
I don’t mean that people cannot make money using those things. What I do mean is that if you are able to throw off all the complications of theories, indicators, and mathematical ratios, you can come to see what is really there on the chart when you look at it.
My students have told me that once they understood the markets, all they ever need to trade them profitably is an understanding of the Law of Charts™ along with the dynamics of the market. You are going to receive both of these and more, learning to trade profitably from this simple trading concept of the LAW of Charts™. Follow this link for more information about the ONLINE SEMINAR which you can take right away!
©
2007 by Trading Educators, Inc
Contact
Us
1509 Jackson Drive
Cedar Park, TX 78613
Phone: 800-476-7796 or 512-249-6930
You
can e-mail us: support@spread-trading.com
Office hours are Monday - Friday 9 A.M. to 5 P.M., U.S.C.T.
Unsubscribe or change subscription
To change your subscription or to unsubscribe, scroll past the end of this
newsletter to click the "unsubscribe" link.
Disclaimer:
The Commodity Futures Trading Commission has asked us to advise you that trading spreads or outright futures is complex and carries a high degree of risk. While there is opportunity for incredible wealth building, there is also the risk of losing even more than you invested. Of course, that's not unlike most other businesses. But informed traders are the best traders!