From Chris Lowe – Inner Circle (United States) –
This week… a major currency move to put on your radar… and how it could lead to double-digit profits for patient investors.
Earlier this month, the British pound plunged from $1.26 to $1.18 in just two minutes of trading – a 6% drop.
The press has dubbed it another “flash crash” – a reference to the 1,000-point dive for the Dow in the middle of the trading day in May 2010 that was caused by algorithmic computer trading.
These trading algorithms are often programmed to automatically sell when prices hit a certain threshold. If those thresholds are all set at similar levels, it can create a cascade effect… and cause prices to dramatically gap lower.
But whether this month’s big move lower for the pound was the result of computer-driven trading gone haywire… or something more fundamental…