User [gary fullett /172.138.78.199] joined forum on Wed Jul 12 21:08:01 EDT 2000 Hello Gary good evening soory I am late out working in the yard and lost track of time growing grass They slamed into the 541 and bounced like they hit a hot skillet :) hi gary now trying to build a deck you or Kelley whats that capt? Kelly mostly I am suopervising Beans the project lol 541? u mean 451 yep okay mant people read the lof many log yep so I wanted to make sure before I get bombarded with questions on the price of beans :) any questions? I wanted to talk on the beans today k it was a very very interesting day questions first anyone? n okay n one of the things that is very important to wyckoff not really, just trying to gather thoughts,....figure out what may be next and I mentioned it many many times is how a market reacts when it gets to a support and a resisatnce did any of you watch the bean market today? yes I did great capt did u watch how the market reacted for the report? yes iw watched 5 min.bars it opened up at the the 455 area after a slightly neg report it rallied a bit then it broke it went to an area that we identifed as support the 453 area I have mentioned this area several times last yrs lows the went to the 451 1/2 area I have a question why didnt the market go under and get the stops under the 450 area? ? if traders wnated to they could have sold and hit the sell stops and wipe those people out I belive it was the CM or composite man that "knew" a rally was immenient and he couldnt wait when the market opened up the volume was light and it drifted lower I had several clients that called me and asked "if I like beans at 453" since it was support I saif "i didnt like the action because demand was evident" wasnt not was evident but I then said " I dont see supply if there was supply the market would have hit stops under 450 and gone to mr J next support at 446 1/2 and flushed them out but the Cm saw that the market lacked supplt User [Joe K /172.146.165.234] joined forum on Wed Jul 12 21:20:56 EDT 2000 supply so since the beans lacked supply hey joe Hey everyone the cm ran it up hey Joe u must have heard your ears ringing :) User [Guest /204.119.225.167] joined forum on Wed Jul 12 21:21:42 EDT 2000 :) hi guest so with no supply buying came in and the market ralied why did the market rally if the report said record beans ? it should have broke hard on it way to 400 someone bought ? who do u think? bad news is out its priced in already, the CM took the lead biught support in the beans today? to make me nervous hi all hey guest hi well the Cm "knows" the news and we can follow them by watching how they trade it true mj j good point this is a case where the bad news induces selling at the lows into support when we are in a range, why do the CM and Supply, keep taking turns ? great question Joe in a trading range cm buys support sells resistance so the cm creates both supply and demand he buys and sells buys and sell all the time when the News is ready to break out of this range he moves it but he has his postion and when bullish news comes out he is long already who do u think Buys bullish news? us the public and funds the trick is to,identify support specs User [MarketWizard /216.67.37.50] joined forum on Wed Jul 12 21:27:21 EDT 2000 and accumulation Hi MW and when u identify it Hi hod your postition hi if u r bullish wait for the J ump over the creek so would the Cm sell 453 today? no no what would he do there? great call on hogs mw buy That was easy buy support yeah real easy aftr a limit down yesterday :) stevie wonder saw that :) Yes it was yes he does Joe he alwasys buys support so what should we do? buy support buy along side the Cm YEP Gary a question even though fundamentals do influence markets to a degree there has to be a prep time 1 sec joe Gary this one isnt so easy, ADU bottomed to rally and SPU topped today. a market cant make new highs then new lows without prep time they need to build cause and this is done thru a trading range the other day when beans went to 453 and rallied 15 cents someone asked me if i thought it was a sc I said I didnt like the volume off the bottom but action was okay so the market wasnt ready yet and needed to build cause and retest the lows so now the market has some casue if beans get above 474 they can fo to 505 understand this? y I will go over this example in coffee in a minute joe question? Yesterday you mentioned we could create a Spring in the 440-450 range yep Would the CM do this to decieve his intensions ut u must buy support at 453 stop at 428 area YES and then creat a AR ? sometimes the Cm sees that supply doesnt come it if u watched beans today the break was on light volume and small price range I mentioend that to clients today :) and I said 453 should be bought but it is an iffy trade and that u must risk the spring to the 428 area I am soory I am saying 428 I mean 438 15 cent risk because u never know if u will get a spring but u must protect and stay far enough away so u dont get jabbed out when the market went abobe 457 u could raise the stop to under the low of the day so all support should be bouight with a stop if u dont like the reaction from support get out or raise your stop if u bought 453 what was your risk 750 75 dollars !!!!! i mena from 453 to the low at 451 /12 k yes the stop should have been at 438 meaning 750 bucks but that wasnt threatned now where is resisatnce? we Know support 474 473 why 474? why there previous support Now ressiatnce The Gap forget the gap Gary: the low on the weekly continuation chart for the week of 2-26-99 was 449 which I believe was Preliminary Supply it was prev support prelimary supply? or support? mr J? support sorry no that is fine I want to clarify it for the log okay? the beans are a very important example Im going to go. See you all later and Good Hunting. it had an opportunity to break hard today thnax market :) but someomne bought support it want wasnt User [MarketWizard] left forum on Wed Jul 12 21:41:43 EDT 2000 a one lot herev and a 1 lot there just thought it was interesting that today's price low was within 2 1/2 points of that low what do u make of it mr j? I think it is good support old resistance became support that is correct or was 449 old resistance ? we identified the monthly support at 453 446 and 1 /2 was a number Mr J gave yesterday and Prelimary support was 449 from last r yr so it should have been bougth got it do u understand what I am talking about when I say lacked supply? yes y But suport sell resistsance place stops and let the market tell u if u r right or wrong simple huh? effort was to weak on thier part ( supply) so CM came back in and took her back up YES YES YES If you draw a horizontal line from 470 low of 6-26 and a downtrend line from the 6-5 high of 552 a close above that area might be a worthwhile move if the cm crates volume where was the volume to break support today? wasnt there so the strong peole didnt sell today why not? not enough strength or volume had a great chance with a neg report but they bought the neg news I have a question? name ONE bullish reason to buy any grain? Movement by CM there isnt one on good volume lol but if beans rally 40 cents u will see the bullish news I guarennete u :) I showed u yesterday coffe chart Oats are at historical support levels going back to 1975 I showed u that sloping line of support Hot weather coming... bet ya that will be it I shwed u that it took 6 weeks I bet u r right Capt how does the Cm know this now thru accumaltion? hes been there before ? we can watch we he does then the news comes and coffee undid in 2 days what it did on the down side in 5 weeks 6 weeks true this shows demnad do u think the CM knew about frost when he bough the lows? who do u think sold it to him CM knows everything now back to coffee I mentioned ice at the 94-9600 area it went to 9450 yesterday ofh by the way 1 more comment on beans if the Cm bought 453 the other day and he is bullish what would he do to defend his postion? he would buy it agian at that level right? and that is why u reacted today right he bought monthly support and on the retest bought it again yes i made good money watching the overnight trades in the currvcies the high and low from the night and I traded the next morning in the pit becuase I knew banks would defend thier postions so if they bought D mark at 6100 at 12 midnight I like that! what do u think they will do at 9am chicago time Buy 6100 again and if it rallies to 6200 what do u think they will do at 6100 ? buy that is yyour range of accumaltion cm defends its postion so would u if u had that much $$$$$$ we cant beat them to the news but we can ride thier coatails make sense? yes yes I am not making this up it is Not Gar Fulletts principles it was wyckoffs if a company buys a product at a buck and it gos to 150 he doesnt by it there unless he must have it he waits for a fair price at 100 he sells it back to buy it again markets are ALWAYS testing and retesting them selves sells resiaatnce Buy suport ys Joe thats whay i said coffee I said that ice was 94-96 area and that the market needed more cuase to go higher yes I heard about frost but the market could go higher abobe 96 yesterday for 2 reasons 1 ) not ebnough cause enough 2 ) Ice the market went to ressiatnce and failed I mentioedn to clients yesterday in cooffee that we should test 90 today build cause and go higher I bought coffee at the 9140 area and got stopped out at 9150 had an order in at 9005 but the low was 9025 so it wasnt filled the point is is that the amrket needed to retest User [frank /63.160.52.181] joined forum on Wed Jul 12 22:01:24 EDT 2000 suuport before getting thru ice at 94-956 area 96 Hi Frank so coffee traded perfect wyckoff today talking coffee hi mr j questions on beans and /or coffee? yes k go ahead Joe at Ice in coffee since we went back and tested support ice coffee at star bucks go on we now will hit ice and go back, on weak demand, or have stronger cause and demand and push through Ice correct ? well I mentoned that ice was 94 96 and that it took 6 weeks to fall 2 days to rally to me this means that this is the first sign of demand Does Demand create volume or vise versa ? this is my question yesterday mr j mentioned that coffee is still in a downtrend and he ids right Deamnd creates volume thankyou the cm buys support many contracts this is demand yes the trend is down but when u see demand this Must alert u to a possible change in trend case in poist Jor joe beans the marjet went to support today little volume But the market hit support demand came in Gary do you consider the price action and volume of 6-6-00 significant this cause higher volume in coffee? y yes I do so market went to support and demand kicked in and created the volume for a move higher the close was 92.50 yesterday and today closed higher than that day so I wondered if it had importance it is interesting I dont follow news I think that was prelimary support need a period after 92.50 but the news was neg coffee today it said a frost from yeterday wasnt ging to be as severs sevrere as thought yesterday and other bearish news too well the Cm knew this when he sold ice yesterday with "bad news' the market was 40 lower yesterday after being up over 800 points at 1 point yesterday so if u were long coming int yesterday do u care that u lost 40 points today on "neg news : ? no that means that wehn the market broke to support at 9025 and held most of the demand gains from yesterday and poeple got out due to the :"bad news" who do u htink bought it? cm YeP!!!! neg news shuld hve cracked them today by the way the amrket can rally here 10-15 cenrts and the shorts stil wont cover above 108 u can see 120 easily just with all the buy stops present in my opinion cool sorry i didnt get to charts today frm yesterday but I will go over the rest tomorrow I want to talk about something import important it i how to place stops and orders if u dont mind if u do I will discuss another topic? go ahead sounds good okay I want to share some secrets floor traders have a rough idea of how much they make with each trade in their head so they like even numbers like 200 bucks 500 bucks ect.. they donike to figure 187.50 dont with that said u will notice market will have bottom like 9000 well if u place an order to by at 9000 and the low is 90 fo u think u will get filled? do not likely so u place the order at 9005 so if 9000 is the low u will be filled also if u watch markets the opening will eaither be the high or the low for the day withjin a few hundred bucks do u understand that? y y if u bought beans on the opening your risk was 200 bucks u would habe made 500 look at markets today the opening was new the high or low of the day so if u r bullish a market buy it near the opening and place a stop underthat the floor traders use the opening range as their Pivot points they buy above it and sell under it :) that info is worth alot go see and look to see how many market stop at even numbers like 00 50 75 25 40 50 10 20 floor trader are lazy as I said so when u place a stop place it at a level thnat not many peole have that area does that make sense it isnt wyckoff yes but it is fom the trading days on the floor when u see a stop that u get slippage on it is many times that it was placed with alot of other stops thus the reason for slipage u can minimize slippage by the proper use of stops. do u undersand what i said? y y i believe very important and it is worth alot of money in my mind if u follow this see for your selves if you dont belive me I have observed it for yrs off the floor and on the floor if u ant to buy bonds at 9210 plae the order at 9211 place if u want to buy beans at 453 buy it at 453 1/4 had an order there today even though it went to 452 1/2 most times on a spring with a prper stop u wont get jabbed out q? no no make sense? yup dont tke my word for it thanks for the tips will watch for this in the future se for yourselves :) always in the future never in the pasture :) In the pasture I always look down lol yes in the futures U must look up tomorrow I will go over the rest of the charts is there anything that u would like me to discuss about my yrs on the floor? any question on floor traders/ yes k joe? how do you keep track of trades in an open cry pit when everyones hollering it eems very chaotic very good question seems but when u trade with another trader u check the trade afer u ake it with eye contact to make sure one is selling and 1 is buying and at what price the customer paaper order ALWAYS has precendent so i cant buy from a guy at 521 in beans customer order if he wasnt ot sell is at 521 1/4 so u check the trade when it happens and then again right after it happens with eyes contact and u use hand signals to initte the trades there are errors these are called "out trades" customers are NEVER involved in these a local as they are called in the pit one who trades for hs own account will give : in to a larger trader or a brokerage house most times User [Guest /204.119.225.167] joined forum on Wed Jul 12 22:38:40 EDT 2000 because he needs to trade with these peoople for liquidity it is a very honest process if someomne screws u on an out trade they the whole pit knows and u are like a pariah and many wont traade with u beause u may screw em so the whole process joe is basd on honesty and intrigity otherwise the other trader WILL not trade with u does that help Joe? and other? does it make sense? y got to go good night everyone User [mrj] left forum on Wed Jul 12 22:41:22 EDT 2000 how many traders are there on one side representing 1 firm, in say coffee for instance nie mrj in coffe there are several broker from what i know that fill customer and large order like from folgers max well house ect how many from RJO ( Floor Brokers ) but if I am folgers I amy use 2 or 3 differnt broker to execute to the pit doesnt run my order I will try to decive them how many R J obrien traders in coffee? yes local? or filler of paper? I dont know the difference locals trade for themselves right ? a local trades for himslf filler ofpapaer trades for customers and firms proably 5-10 in coffee for r j o 1 apper filler paper User [Guest] left forum on Wed Jul 12 22:45:27 EDT 2000 okay why>? any other questions? no nope thanks k thenI will see u all tomorrow nite k User [Joe K] left forum on Wed Jul 12 22:46:41 EDT 2000 have a great night User [gary fullett] left forum on Wed Jul 12 22:46:45 EDT 2000