Monday, September 20, 2010

The AUD is becoming extremely overbought. (update 2)

The beauty of HFT trading and large directional moves (panic) guarantees a 'flash crash' as the outcome. Of course over bidding by hedge funds/investments banks and Asian retail players have driven the AUD up into a hyper fast, overbought way.

Out of the money put spreads, with low ATR, low volatilities = Cheap. Market cycle 101 that traders (yes machines too) often forget; everything corrects...on the downside.

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