RE: [OpenFX] AUDUSD: Short?

Hi Jack,

Thanks for your note. I'll be putting options information at the new site. Quickly, currency options are traded through a regular stock account (check with your broker to make sure they offer this) on the Philadelphia Stock Exchange. Of course, FX traders don't have to use options and can just use their normal spot FX account, in thi this case, taking a short position. The advantage of options "is risk" is limited to the cost of t he option; however, the return is less, too.

Either way, options or spot FX, per my comments yesterday and the attached chart, I hope everyone was able to take the "temperature" of AUD-USD in the longer term. And, I hope these sorts of observations and posts are useful. I know many here are active traders, but I wanted to offer longer term observations for those who interested.

Cheers,

Clay

-------- Original Message --------
Subject: Re: [OpenFX] AUDUSD: Short?
From: "Jack" <jlhach7@bellsouth.net>
Date: Mon, March 07, 2011 3:39 pm
To: <OpenFX@yahoogroups.com>

Clay I am interested in learning how to use the put options.

Jack

----- Original Message -----

From: clay@claymarafiote.com

To: openfx@yahoogroups.com

Sent: Monday, March 07, 2011 1:35 PM

Subject: [OpenFX] AUDUSD: Short? [1 Attachment]

Hi Traders,

I'm watching AUD/USD for a shorting opportunity. True, it's been on a tear, going beyond parity. But, based on what I'm seeing, the aussie is setting-up for a turnaround. Per the weekly and daily charts, the technicals are point to this:

1) Rising wedge

2) MACD divergence

3) Elliott 5th wave

4) Harmonic pattern

I've attached a weekly chart highlighting the above, with the daily information, too. While I might, I'm not going to get into the fundamentals at the moment, but support what I'm seeing; I'll leave fundamentals for future posts.

If you're thinking "short", obviously you could sell AUD/USD using your spot forex account. Or, you might consider using a put option (let me know if you need more info on how to do this).

Also, let me know if this information is useful; as I continue developing the new site, obviously I only want to include those items you and other members find valuable. Mucho thanks for the feedback.

Great trading!

Clay