Ken Roberts Chat

Let's Talk Trading (tm) with Ken Roberts
from January 7, 2003

As we begin this evening’s session, let me state the reason I conduct these monthly chats: to provide you the opportunity to ask questions and pick the brain of a successful, long-time, real-money trader. It’s not the highest and best use of our limited time here together for me to define basic terms and explain introductory principles taught in your TWMPMM Manual. That’s what my Course Counselors are here for... Now is the time for you to use me to help you apply the basics you’re learning and to prepare you for what to expect once you’re out in the market itself (either paper trading or with real money). And if we have some fun along those lines, so much better. Alright... w’ve got Fuente Double Robustos fired up, here’s our plate of freshly baked cookies, the coffee’s poured, so let’s talk commodities!

macho trader asks:
Redondo Beach, CA: Ken...Any info on the new upcoming KRC product. Have gone through all your courses and videos. Trading doesn't take any time at all. I am getting bored!!! By the way my commodities account was up 600% in 2002. How does that compare to the S&P!!!

at 6:26:30 PM
Right on, macho trader! Good for you! Part of the new product is a whole new Course titled "The Greatest American Business." Then there's a REVOLUTIONARY new website service that I'll announce (and send you a long letter about) within the next few weeks. Great things are in store . . . . Thanks for asking.

Jon here in LEFTY LAND asks:
Hi Ken, When you determine your first 50% exit point in the front month contract, do you go by the 50% in the front month, or do you use the last year on the weekly contract that tallies up the front month contract? Using 2 year note as an example, the 2003 march contract daily 50% is 106-30. Using the last year on the weekly chart, it goes down to 105-20. What do I use? Thanks Ken, your going to help me sleep much better at night. P.S. My wife said if I try to smoke Partagas in bed one more time, she's going to leave me. Man I'm gonna miss her. Jon

at 6:28:29 PM
Yeah, Jon. Tell your wife hi (bye!) for me. I use the DAILY 50% as my first target (based on the FRONT MONTH chart) and the WEEKLY (and/or MONTHLY) 50% target as my second target point. Thanks for logging on tonight.

GotCoffee? asks:
Hi Ken! Any indication that THIS may be the year coffee finally takes off?

at 6:29:02 PM
Well if it's up to me, this will defininitely be the year! Thanks.

rober asks:
when is the best time to bracket a channel

at 6:29:49 PM
As soon as you've identified it as a channel. Good one!

Ben--Austin,Tx asks:
Is this a good time to short April-Live cattle or buy some June -puts?

at 6:31:51 PM
Yep; now's the time. Live Cattle will be making a 50% retracement --- daily, weekly, and monthly. Thanks!

chart farmer asks:
I was long 2 January rice contracts at 415 and planned to exit 2 weeks before FND (Dec 31). Everyone else did too? and Jan. rice tumbled. I bought 2 more March contracts and eventually rolled out of January the day before FND and bought 2 more March contracts at that time. I took quite a loss on the January contracts but am starting to make it up on the 4 March ones I now have. I am still watching January which has now risen to where I would have sold before FND with only minimal loss. My question(s): was there anything I could have done different to sell at a better price? and, who is allowed to trade contracts between FND and LTD? I also see that a lumber contract FND is after it's LTD. I don't understand this. Can you explain? Thanks. p.s. This is a great course, I've learned so much and am having a ball! Maybe I'll even make a few bucks!

at 6:38:01 PM
Okay, chart farmer, you got me with the schmoozing at the end of your question (which is actually about ten questions)! So here goes: No, I see nothing you could have done to sell at a better price since I wait for upside targets to get hit (telling me when to exit). And since that didn't happen, I would have done what you did. Those who are SHORT the market may trade all the way to LTD. What you've noticed regarding FND and LTD in lumber is true in the energy markets also. It's been explained to me that the reason for this is political: that is, to give those who must ante up the physical commodity more time. (Did I answer them all?) Thanks for joining us tonight.

wheatman asks:
Hi Ken, I've been trading for about a year. Made a little money but I must be greedy because I never get out in time to make the big money. Last trade was hogs and eurodollars. Need suggestion on what looks presentable at this time.

at 6:39:10 PM
I'd look at Euroyen puts and Coffee calls, wheatman. They're cheap (and extreme). Don't let GREED jump on your head! And this is a lesson we all must deal with constantly. Thanks.

Triple Nickle asks:
Manitoba, Canada, The cocoa market made a huge down move, but was considerably short of the 50% retracement from 674 to 2405. With the action lately, would you still expect it to make that 50% retracement to 1539?

at 6:41:05 PM
Absolutely, Triple Nickle. Hold on and watch that Weekly 50% target of 1539.5 get hit! Thanks.

Rick in Nip asks:
Hi Ken, Rick from Nipawin, Saskatchewan in Canada. I think it's doing this kind of thing (chat), along with your sincerity that separates you from most other commodity experts out there. Now I'd like to pick your brain, what do you think would be a good strike price for call options in coffee? I am looking at buying some July coffee calls.

at 6:42:56 PM
Good schmooze, Rick (you folks are right on it tonight --- what's up?)! Your question is a (slightly) veiled attempt at getting me to do your work for you, but I will say this: I bought some May 150 calls not long ago . . . .

Ninja asks:
Hi Ken & Crew, I was stopped out of gold with a $2,200 profit and want to know your opinion of golds recent price action. I want to get back in and it looks to be consolidating now. do you see it dropping some before it moves higher? thanks for your input!

at 6:45:36 PM
Only a psychic knows the answer to your question, Grasshopper (and Miss Cleo's not available, I hear). If you'd like to trade a possible 50% retracement back down (basis the monthly and weekly charts), price the far-out gold puts until they get cheap. (But I'd hold some calls in reserve . . . .)

nova scotia scott asks:
Hi Ken & Gang, Thanks again for the chats, they're great! Made money twice in cocoa since dec. 1. Do you have a rule-of-thumb in how much relative to margin required you're willing to pay for an option insurance hedge? i.e. No more than 100%, 75%, 50% of the margin required? 2. I saw a reference in archives to a level 1 trade moving to a 4, what does this mean?

at 6:48:39 PM
I have no rule of thumb re: margin/hedging, nova scotia scott, but what works for you? "Levels 1 - 4" refer to a charting tool I teach at Boardrooms and Bootcamps. It's too long to get into here on the Chat, so just call a Course Counselor and ask . . . . Thanks!

RMS asks:
Hi Ken; RMS from Phx.; You buy options with limit orders only. - Do you buy at current price, or how much below current price(to try to get them filled)?

at 6:49:52 PM
My typical order is to bid half of the option's price I've determined to be "cheap." (And I'm filled more than 80% of the time.) Stick around; you'll probably see this topic mentioned at least once tonight. Thanks!

rudy from victoria, canada asks:
Ken, Are you still buying silver call options?

at 6:50:26 PM
Not presently, rudy, but only because I'm already brim-full of silver. Thanks.

The Professor asks:
I'm still confused about Pure 50%'s. Should I use them or think about the big picture when it comes to the daily 50% and the weekly 50%. The Professor

at 6:51:25 PM
Dear Professor: I made up a saying that answers your question: "Eschew the true."

Ray asks:
Hey Ken....just wanted to say I loved the Jan 2003 TWMPMM 2 Newsletter, helped me get back on track. Quick question....now that coffee has passed its daily 50% what price targets other than 50% weekly (180) could we look for as liquidation poits? Im having trouble finding the resistance and supports. You and your team are greatly appreciated. Have a great year. Thanks (from south bend,in)

at 6:53:43 PM
The daily price target I'd use now in coffee is it's front month's #1 top point at about 76. Then, go coffee go! and hit that weekly target! Thanks.

Jim from Kalamazoo, MI asks:
If I am shorting a eurodollar contract, and I hedge with a call option, do I need to worry about margin call?

at 6:55:14 PM
It's up to the Exchange/Brokerage, etc., but here's a quick, generic response to your question: If your hedge option is at-the-money with your futures contract, you probably will have no margin requirement and no margin calls. Hope this helps.

big007 asks:
Hi Ken. I really enjoy the chats and will be renewing my Charts subscription. Am paper trading for the last year and up 15K. What does the term: "floor traders gunning for stops" refer to and how does this relate to the use of silent stops. Thanks for your help.

at 6:57:39 PM
"Gunning for stops" refers to many, many open stop-loss orders sitting in the pit (which floor traders can see). So if you're a floor trader and see 200 orders that will get triggered for execution if a certain price is hit (and you're paid per order as they're filled), would you try to make that happen? Silent stops, on the other hand, are NOT known to any floor trader because it's not written on any order ticket. It's just an agreement you have with your broker.

Roy from Kansas asks:
Hi Ken, Is the ACTT course a new course or has it ben available for a while.

at 6:57:56 PM
...available for awhile. Thanks!

1waykoolchic asks:
Ken, we bought your course several years ago. We got in before we were ready and were fortunate to have broken even. I always knew I would come back to you, and I have. We lost the TWMPMM I course and had to order a new one from your company. It seemed to have some new information in it that the old one didnt' but could just be my poor memory. Anyway, I have your old TWMPMM II from our first go around, but wondered if I am missing some key info by not getting the newer version. Can u advise? PS. I am still paper trading and am planning to take a more conservative approach this time. I feel that trading options is a key part of this plan.

at 7:00:43 PM
Good thinking, koolchic. Options are THE GREATEST! No need to buy another (or newer) Course: just ask a Course Counselor about a "Restart Kit" which will upgrade any older Course you have. Thanks and keep at that paper trading --- it really can make the difference.

rober asks:
can you roll over a contract into a farther out month, say from march to september?

at 7:02:30 PM
Absolutely, rober. It's done all the time. (And your broker places a special order for doing this that's called a "switch," which means to liquidate the nearby contract and enter the farther-out contract SIMULTANEOUSLY (to help avoid any slippage between the two contract months.) Thanks.

stretch asks:
Good evening Ken, Strech from Whitehorse Yukon. I am no stranger to your courses and feel that you have done a tremendous service to my life style. I have both of your twmpmm courses, in print and on video and although I have had the stock course for some time I am just getting started on it. I find I need to review Ted Warren's book quite a bit to really get the hang of what he is trying to put across. I just think it is wonderful that you care enough to share this information with all of us, your coursr members. Thanks Again.

at 7:03:54 PM
Yours is my favorite "question" this evening, stretch. THANKS! (And remember Matt's stock chats too.)

BigAl asks:
Hello Ken! I've been watching March Sugar,and it seems to be headed in a downard trend. So should i go short if thats the case?

at 7:05:22 PM
It could go either way now, BigAl. I'd price both puts and calls and bracket it with cheap options. Price some . . . . Thanks!

bassboat asks:
bassboat in mt home arkansas is it time to buy rice contracts or should we stay with calls and wait for a CLEAR 1-2-3-? thank you. PS_A VERY happy new year to you and the staff

at 7:07:14 PM
Thanks, bassboat. If Rice hasn't actually made a clear 1-2-3, it should be very close now. I'd see if there are some cheap call options still available. Good fishing!

Kaery asks:
Hello Ken from Pacific Grove CA, When a front month expires does the new month technically change the weekly and monthly targets? If so, is this change enough to adjust the numbers as to prevent one from waiting to long to liquidate? Thanks!

at 7:09:31 PM
No, Kaery, a new front month contract doesn't "technically" change the weekly and monthly targets. Always compute the weekly and monthly targets looking ONLY at the monthly and weekly charts. Hope this answers your question . . . .

RickDenver asks:
Please notify me too when your new product comes out...by the way, $25,000 last September in Hogs and Coffee...thanks for showing the way, Ken.

at 7:10:05 PM
Thanks Rick! I just pointed --- YOU followed the trail!

ML asks:
What are you doing right now with OJ? (Besides drinking it)

at 7:11:54 PM
I NEVER drink OJ, ML. (Fruit should always be eaten, not juiced, so you don't miss out on all the other good stuff that's there to balance everything out.) I'm LOOKING to get long OJ right now . . . .

BigL asks:
Ken, I have 3 July coffee contracts. I'm in at 70 and 73. My plan is to pillar contracts every 25 pt move (75, 100, 125, 150) and add put options for protection as I go up. What do you think of the plan? Thanks for all you do for us!

at 7:13:01 PM
That sounds like a solid plan, BigL. (Now go, coffee, go!)

Bart asks:
Ken: Bart here. Why are chickens not on the commodity exchanges? Thanks, the course materials are terrific.

at 7:15:06 PM
I believe that "broilers" are traded, Bart, but we don't include that market in our chartbook. If you're interested, I'm sure there's a source for chicken prices. Call the PR dept. of the various Exchanges. (No kidding; they're very helpful.)

ML asks:
Are you related to Julia Roberts?

at 7:16:14 PM
The question is, ML, is SHE related to ME . . . .

lvsnaper asks:
I have been trading options for two years without earning a penny. I keep reading that you have to stay in but I have lost almost $7,000.00 in options so far. How do I keep encouraged? I am presently in May Coffee but cannot afford any more after that. Help!!!

at 7:17:50 PM
I know you've heard me say it, Ivsnaper, but hang in there. All you need is ONE market to blast off and you'll learn a whole lot about trading (and yourself). It's hindsight, but maybe you diversified into too many markets relative to your budget?

Irvine Dave asks:
Hi Ken and all chatroom attendees. Just wanted to give another example of how Ken's strategy of bidding half price for way out options really does work. On October 17, I placed a GTC order to buy two 720 July rice calls at 7 cents, half the ask of 14 cents. Two months later on December 20, my broker called me and told me my order had been filled. He said he was "surprised" it got filled. That sounds familiar. One of the hardest things about this business is having enough patience to wait for your plan to happen. Now with two July rice calls and two long March rice futures contracts at 415, I never thought I'd like rice cakes as much as I do. Thanks, Ken, for your great teaching!

at 7:19:46 PM
Good one, Irvine Dave. Couldn't have said it better myself (and people will tend to believe you more than if I said it). Sorry, but I can't agree with you about those rice cakes. They taste like styrofoam to me . . . .

The Dust Rhino asks:
Ken, Lumber looks like its gaining some strenght any insight on your end?

at 7:20:59 PM
Yes it does, Dust Rhino. Won't be such a boring market much longer . . . .

tammy asks:
hi ken, I'm really having trouble picking the right commodity to trade .It never hits the daily 50% before it expires. I'm wondering about Mar soybeans, are they in a channel now?

at 7:22:18 PM
Yes, tammy, you could bracket Beans now. Always plan for TWO rounds to help avoid that expiration problem . . . .

LOWRYDER asks:
Hello Ken. Thank you for being there for us. Through all of your years of trading, what was your worst trading experience that left you, temporarily, fearful to make that next trade, and how did you overcome it? Very grateful for your willingness to share!

at 7:23:26 PM
Hello, Lowryder. The most painful trade I ever made was in Palladium (don't make me relate that nightmare again), but I have to say it didn't leave me fearful to make the next trade, only really, really angry . . . .

Ninja asks:
Hi KEN Are you short pork bellies yet or waiting for it to go higher?

at 7:24:05 PM
I need higher prices in bellies before I'll short them. Thanks!

Breezin asks:
Breezin' in Florida says: Thanks for Twmpmm II. It pulled it all together for me. I started trading for real last week and have my orders in for cheap options.

at 7:24:27 PM
Way to go, Breezin. Thanks for joining us tonight.

stormie normie asks:
At this present time what is the safest and most profitable way to go long on lumber?

at 7:25:35 PM
Only Miss Cleo knows the answer, stormie normie, but I'd add that you should price those call options and watch for "cheap." Thanks.

Ben--Austin,Tx asks:
Dollar Index--has it bottomed-out or should we wait to see if or when the war may begin?

at 7:26:27 PM
Wait a minute, Ben, wouldn't that be a FUNDAMENTAL trade . . . ?

rjc asks:
Ken: Is tobacco traded even though it is not in your charts? If it is, do you know which exchange ? Just thought that this must have been one of the first basic commodities traded like wheat, oats, corn, ect.

at 7:29:23 PM
Yes, tobacco is traded extensively, rjc (you should go by "RJReynolds"?) Not sure which Exchange, but I know there's at least one out there . . . .

DREAM CATCHER asks:
DREAM CATCHER-VANCOVER ISLAND,B.C.KEN I NOTICED YOU HAVE LIBOR ON PAPER CHARTS BUT NOT ONLINE?ANY CHANCE OF THIS HAPPENING IN THE NEAR FUTURE.THANKS AGAIN FOR GIVING ME A NEW LEASE ON LIFE (FREEDOM)TO LOOK FORWARD TO A MORE FUN FILLED JOURNEY AHEAD. ALL THE BEST TO YOU AND YOU FAMILY AND THE GREAT C.C. AND THEIR FAMILIES IN 2003

at 7:31:10 PM
Thanks Dream Catcher! You too . . . . The reason Libor's not listed both places is some political reason (not COMMON SENSE). You could call U.S. Charts' office and ask.

Sparky asks:
B.C. Canada,Ken do you ever trade tops and bottoms of channels.Ex. I have been following Cdn Dollar for the last year. It seems to be in a channel between 62.50 and 64.50. I made one long trade for a profit of $700.00 and done lots of paper trading in this market. Any comment on this technique.

at 7:32:11 PM
Yes, Sparky, it's a great technique (until prices break OUT of that channel). But this isn't said to discourage you. Keep at it.

TahoeClay asks:
Hi Ken and Crew: I almost forgot the chat was tonight. The Holidaze sort of offset my rhythm with the closures of markets etc. I am glad that we're back to 5 days a week trading! Looks like I am gonna get filled on some more of those cheap way out there cocoa options for $50 and $60 dollars, July is cheap and Sept is getting closer to my strikes. Also I was able to get a few more May 150 Coffee for 35pts and less, and the other day at the end of the year I just missed getting filled on a July 150 Coffee calls for 40 pts.....So glad to be trading!! I look forward to doing my updates, in the quiet of the morning, before I go out to make some turns on all the snow we have..... Thanks for everything and Best Trading this New Year 2003!!!

at 7:33:56 PM
Good to hear from you, TahoeClay! Happy New Year! You always say things BETTER than I can . . . .

montana asks:
montana says: Ken, you and the people at KRC are excellence in motion...thank you for lifting the mist and opening many eyes to greater possibilities in life! Question: Is Soybean Oil making a slower decline than you expected? There is alot of talk about it dropping below 18.00, but it seems to be in no hurry to make a decisive move down. Thanks for all of your hard work! Scobey, Montana USA

at 7:35:13 PM
No, it's doing just what it's supposed to do, Montana. Glad you're watching it --- that EVERYTHING. Thanks!

Jim from Kalamazoo, MI asks:
any advice how not to be discouraged?

at 7:35:47 PM
Just decide NOT to.

DARIUS asks:
KEN, ARE YOU GIVING ANY SEMINARS IN THE NEAR FUTURE?

at 7:36:22 PM
Nothing yet planned, but I hope to soon, Darius. Thanks!

Tundra asks:
Temecula, CA - Hi Ken, I understand that when you go to trade a futures contract you will usually watch the front month but trade the month that has the second highest open interest. If the open interest is decent enough is there any reason you wouldn't trade a farther out contract month? For instance I just shorted July Bean oil with a call as insurance. I have six months until Last Trading Day and the call only cost about $630.00. Thats alot of time for the money. What do you think?

at 7:37:34 PM
Sounds great, Tundra. Always go for TIME (that's our biggest enemy in trading).

DARIUS asks:
KEN, I HAVE ALWAYS HAD A PROBLEM TAKING PROFITS. I NEVER KNOW WHEN IS THE BEST TIME. BUT A SAVY TRADER WAS TELLING ME "THE BIGGER THE ACCOUNT THE EASIER IT IS TO TAKE PROFITS!" DO YOU AGREE? YOUR OPINION IS IMMENSLY WELCOME.

at 7:38:37 PM
No I don't, Darius. I solved this universal problem for myself when I learned to trust my charts explicitly and ONLY take profits when my 50% targets are hit. Good question.

Jim from Kalamazoo, MI asks:
When nothing much seems to be happening in a market you are watching, what should a person do? I have been watching Eurodollar for a year and a half, and all it does is go up or go level.

at 7:40:57 PM
WAIT, Jim, WAIT! That's the answer . . . .

Rick in Nip asks:
Hi Ken Rick from Nipawin Canada again. I did my own work this time (haha). I have bought a bunch of put options on the Eurodollar. Is the Eurodollar not sitting in exactly the same position as the example you used in your course where you said "you have them boxed in a corner"?

at 7:42:14 PM
It's in an EVEN BETTER position than when I said that, Rick. The Eurodollar now sits at ALL-TIME highs!

Ninja asks:
KEN, Coffee is starting to channel and since the price is still so low would you bracket this market (long&short) or just wait for a breakout on the upside to go long? THANKS

at 7:42:44 PM
Personally, I'm just sitting LONG, Ninja (and waiting, waiting, waiting . . . .)

GotCoffee? asks:
Northridge, CA...Gooooooooooood Evening and Happy New Year!! It was 75 today here in sunny SoCal...I hope Rice finally starts to heat up...Which leads to my question: Since rice is not heavily traded, you can't get options farther out than about 6 months. With Rice being in the doldrums for so long, I'd like to get farther out options. Should I just put a bid in for a farther out month and wait until it gets filled or just put in an order for a more recent month?

at 7:43:54 PM
Yes. (Try both, GotCoffee!)

nova scotia scott asks:
Ken,Paper traded mar corn channel [broke up on xmas eve], got stopped out [price touched my stop only]. Does it make sense to "rebracket it" again and r u long corn or looking to go long?

at 7:45:23 PM
Try shopping for cheap calls, nova scotia scott. (I'm long corn too . . . .)

asks:
Hi Ken! Just wondered............. why can't we trade fish on the exchanges? I luv sushi and would surely enjoy making a few bucks from it!

at 7:51:38 PM
Sure, I LOVE scale trading the fish market (although some traders think it stinks). And when I try to teach people to fish for options in the fish market, their spirits sink and can't get hooked on the principle. Be careful, though, of fish brokers: They often try to bait and switch you. Some traders buy it hook, line, and sinker. Another technique is to bottom-fish this market. (That's a great school of thought.) You can really net some profits here, though. Okay, time to get off this boat. I feel like I'm swimming upstream now. I'm filled to the gills . . . .

sushi asks:
Hi Ken! With the pullback recently in gold do you still think it has a lot of upside? How about silver, what are your feelings on the poor mans metal?

at 7:54:08 PM
Yes, sushi, 565 is my MONTHLY 50% target in Gold. Looking at its Weekly chart, however, we may see a 50% retracement back to 301 first. (Gold is a GREAT market to find cheap AND far-out call options.)

bruce wayne asks:
If I see a good 1,2,3 formation in the front month and I want to get in then I notice that the front month end in say 7 days, then I go to the next contract and look but the 1,2,3 is not quite there would I still get in based on the "front" month or disregard it and wait for the next month to form? thanks for your time

at 7:55:27 PM
I'd take ALL my cues from the present front-month contract (even though I'm actually TRADING a farther-out contract). Thanks!

DARIUS asks:
KEN, IF YOU HAD TO START ALL OVER AGAIN WITH $5,000, WHAT MARKET WOULD YOU TRADE TOMORROW AND WITH FUTURES OR OPTIONS? THANKS FOR SHARING.

at 7:56:03 PM
I'd trade options only for awhile and diversify my $5,000 over several markets. Thanks.

fuertu asks:
Hi Ken Would you happen to be short Live Cattle? We're short @ 78 on front month & have a call @ 79. Also have (2) 82 calls in April waiting on a top to form so we can go short. Also a 77 put in April. Does this sound about right? Also what is your opinion on Lumber.

at 7:58:28 PM
Yes, fuertu, I'm short Live Cattle. Your plan tells me you're approaching this trade wisely. I'd look to get long Lumber. Thanks for joining us tonight.

LovinCommodities asks:
When can we expect an updated course catalog. looking forward to ordering some of the new items. How long before the last trading day should you roll over your contract(s) to the next month? Thanks for all you have taught me in Commodities. What you taught is correct, Once you learn the business and are comfortable, you do not need Ken Roberts anymore. It is a joke to see these other teachers out there trying to get you to spend all your money year in and year out on there courses. I took your course...learned it....shaped it to my trading style....and now I am good to go!!! But I love to stay updated on any new ideas you have....CAN'T WAIT. Thanks Ken!!

at 8:00:39 PM
Thank YOU, LovinCommodities! Before I put out a new Course Catalog, you'll receive my letter announcing brand new Course and (REVOLUTIONARY!) Website Service. Stay tuned . . . . Thanks!

hopefulchic asks:
Hi Ken, Several weeks ago I purchased Cocoa options but had to purchase as a market order. I went to purchase Cocoa yesterday and discovered that I could now place a limit order. I am a new on-line trader. What is the best way to handle this market order situation? I purchased one round at 8 points which was too high? Thanks for a whole new way of life. My husband has become excited about trading after reading responses from course members.

at 8:03:12 PM
Thanks hopefulchic! Sounds like you're doing SUPER! (8 points for an option is UNHEARD of by most traders!) The limit order/market order situation changes often (and at the Exchange's discretion). (The New York markets have been particularly volatile since 9/11.) Happy New Year!

TahoeClay asks:
Hi Ken and Crew: Is there something fishy going on?

at 8:05:31 PM
You bet there is, TahoeClay. (And I can smell it a mile away!) Time to cut bait on this line . . . .

Kaery asks:
Hello again Ken, Thanks for your response and you did answer my question,almost. You say you only look at weekly and monthly for your numbers for the 50%. Do the numbers on the weekly and monthly charts change over time and if so do you redo them periodically? Thanks again!

at 8:06:32 PM
Yes: Weekly and Monthly 50% targets DO change periodically, but only when new highs and lows are made.

Breezin asks:
Breezin'in Florida asks: Mar Wheat has hit it weekly 50% and I'm thinking its time to buy 379 calls (the daily 50%). Given that the Options expire 2/22, do you think there's enough time for the market to make that much of a move? Thanks.

at 8:07:38 PM
No, Breezin, shop for options in much farther out months. (Remember: TIME). Thanks.

nova scotia scott asks:
Ken. would you consider triangles and wedge formations to be aggressive trading?

at 8:09:07 PM
Not at all, nova scotia scott. Just other types of chart formations to learn and get used to. Thanks! Run to the roundhouse, nova scotia scott, they can't corner you there!

TahoeClay asks:
Hi Ken and Crew: Any New Year's Resolutions you or anyone Chatting tonight want to share? Mine is to Floss my teeth once a day instead of flossing once a year a couple of minutes before I leave for my check up/cleaning..... go coffee go!!!

at 8:10:31 PM
Good one, TahoeClay. And if you ONLY ingest coffee, you may not even need to floss at all! (Then you'll just need a brightening treatment from your dentist!) Guess we ground this subject down . . . .

bruce wayne asks:
Ken how much weight, if any, do you give to the "last major move" when looking to liqidate your position?

at 8:11:32 PM
I stick to 50% levels pretty much exclusively, bruce wayne.

Eric in Fort Worth asks:
Thanks again for these encouraging chats, Ken. Have you found that it's easier to buy a low market than sell (short) a high one, because high markets tend to be volatile?

at 8:12:16 PM
Yes, Eric. And high markets have no limit . . . . Good comment!

Well that's it for another month. Here are my favorite web sites if you're interested: www.wildlifeimages.org; www.LP.org ; www.uschartco.com ; www.fourstarbooks.com. ; www.historictrees.org. ; (new!) www.foxnews.com/oreilly. My next chat will be Tuesday, February 11th. Also remember Matt's stock and commodity chat next Tuesday, January 14th. As always: Use these newfound powers only for Good. Good night!

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