The Son of Finance of the Great Age

  Chapter 178 Force out the intention of bulls

  When Zhongshi’s huge buy order of 10,000 lots was thrown out, not only the bears, but even the bulls who had been fighting fiercely with the bears were confused, and they almost stopped entering the market immediately. Both sides are very puzzled by this ferocious operation. The bears think that this is a long-planned assault by the bulls, while the bulls wonder that it is another strong bulls entering the market.

  Originally, the operation direction of this force is beneficial to the bulls, but the main bulls with ulterior motives think more. Their first reaction is not that this situation is beneficial to them, but whether it will affect their future operation strategy. Especially for the United States, the Quantum Fund stopped operating almost immediately.

On the other hand, Sumitomo Trading Co., Ltd. followed Zhongshi's back and attacked the camp step by step. However, when they reached around 2220 US dollars, they keenly found that the bulls were showing signs of retreating, so they were one step ahead. After clearing the previously established positions, the two long forces tacitly let go of the high-level long positions to follow suit.

This lightning-quick operation set the tone for the copper futures of the day. The subsequent counterattack by the bears finally fixed the price of copper futures at $2,207 per ton, a drop of $18 or 0.81% from the previous trading day. The total number of traded hands has reached about 100,000 hands.

The most important thing is that the option short positions did not have time to leave the market. Originally, they and the main short sellers were still fighting at around 2180 US dollars. As a result, the price of copper futures was pushed up to around 2250 US dollars under the impetus of large-scale purchase orders, which made them dumbfounded all of a sudden. But then they, together with the main short sellers, brought the price of copper back to around $2,200. But after experiencing a price lower than $2,200, they are unwilling to close their positions above $2,200.

On the next day, Thursday, May 19th, the two sides fought again. Although the trading volume was still as many as 100,000 lots, the price did not change much. Finally, the copper futures price on this day closed at 2250 US dollars, which was the same as the previous trading volume. Day-to-day changes are not large.

   On this day, the main force of the bulls is mainly Sumitomo Trading Co., Ltd., while Quantum Fund has not exerted its full strength. They are still silently digesting the inexplicable bullish intentions that appeared yesterday. Because their main strategy is to pull up for a long time, they don't care about this change in one or two days.

  As for Zhong Shi, due to frequent staying up late recently, he did not enter the market directly on this day. He is very clear that if there is a sharp drop, option shorts will take the opportunity to unwind and leave the market, so the bulls will never allow this to happen, and the price of copper futures will only rise steadily.

  Friday, May 20th, Zhong Shi, who had rested for a day, finally regained his strength. He came to the apartment early to prepare for the day's trading. He had already prepared for today's strategy.

   "Bryan, close the long position I established the day before yesterday!" The first call was to the broker, and Zhong Shi ordered in a flat tone.

   "What? Flatten?" Brian was a little surprised, and hurriedly asked.

Regarding the position of Zhongshi, Brian is well aware that he holds more than 30,000 long positions below $2,000. This part of the profit is already an astronomical figure. In the last two days, they even increased their long positions by 10,000 lots in one fell swoop. Although more than half of them were liquidated in the end, they still held 5,142 lots of long positions, with an average price of 2,140 US dollars.

At present, the average profit per contract of this part of the long position reaches 110 US dollars per lot, and the calculated profit is about 1.4 million US dollars. If it is closed now, it will definitely lose a large part, especially in the fierce game between the long and short sides. Under such circumstances, let alone 1.4 million US dollars, even the seven-figure profit can be kept.

  When he heard Zhong Shi's order to liquidate this part of the position, he couldn't believe his ears, so he hurriedly asked.

   "That's right, it's flat!" Zhong Shi repeated firmly, and then hung up the phone. Immediately, he connected the Tianyu Fund here, and said to Andrew: "Andrew, today's strategy is to go short. You open a short position of 3,000 lots at the market price, immediately!"

   To liquidate a long position means to sell the contract. The transaction method of this part of the contract is either that the long position is followed by a long exchange, or the short position is followed by a double balance. In this case, the new short positions are combined with the liquidation of the long positions, exerting double pressure on the supporting long positions.

   "Okay!" Andrew agreed casually, and then realized that he was shorting. He smacked his lips, didn't say anything, turned around and immediately issued a trading order.

Two short orders of nearly 10,000 lots hit the market, which immediately caused an uproar. A long red line appeared on the computer. The price of copper futures soon fell below the opening price of 2,250 US dollars, and soon fell to 2,230 US dollars. around, and it's still going down.

"What's going on here?" In the trading hall of Sumitomo Trading Co., Ltd., the traders watched the changes in the market with dull expressions. They couldn't react for a while. They set up 500 lots of defense at positions such as 2240 and 2230 US dollars. In the end, there was no reaction at all, and it was swallowed up in an instant.

A minute later, everyone realized that there was a big empty order thrown out, and they panicked immediately. Let alone how much the empty order was, it was the wind direction caused by the empty order. The coming changes are enough to make them frightened.

Sure enough, driven by this generous sale order, followers entered the market to sell short one after another. At that time, the number of sell orders accumulated more and more, and the main short sellers also took the opportunity to issue liquidation orders, which made the copper futures price bear more and more pressure. bigger and bigger.

"Don't worry about the above, open a defensive order of 5,000 lots at the position of 2,200 US dollars, and be sure to keep the price at 2,200 US dollars!" Just when the traders were at a loss, Hamanaka Tainan appeared in front of them appropriately , I saw that the minister who was not tall gave a trading order calmly, and it was still a huge amount of 5,000 lots. A big stone suddenly fell in the hearts of the traders. At this time, what they need most is confidence.

In the United States, seeing the sharp drop in market prices, the traders of Quantum Fund did not get specific trading strategies from the big boss. They could only open some small trading lots through their own authority, and many of them opened Short positions, together with the main forces of the market, put pressure on the bulls.

When the price of copper futures fell to 2,210 US dollars, the short-selling forces began to diverge. Some short sellers began to close their positions, while the other part of the short sellers were firmly short-selling, expecting to further suppress the price of copper futures. The price of copper futures plays a role in different strategies. began to slow down the rate of decline.

   "Bryan, how is your situation?" Seeing this situation, Zhong Shi estimated that the market might rebound, but so far he has not seen the emergence of the main bulls, which made him a little restless.

  In his strategy, the purpose of closing positions and opening new short positions today is to force the emergence of some main bulls. As a result, his goal has not been achieved so far. Of course, he has to ask about the current position situation.

   "3,210 positions were closed, and there are still 1,932 odd positions that have not been closed!" Brian said guiltily, touching the sweat on his forehead on the phone.

  He carried out the matchmaking according to Zhong Shi's order, and saw the price of copper futures drop one after another, and the profit decreased step by step. The large number had already made him numb. In his heart, Zhong Shi has already been regarded as the second generation ancestor, or an investor who only has money but no brains. However, he obviously forgot that Zhong Shi had made hundreds of millions of dollars in other long positions.

   "Continue to entrust the market price, and open another 3,000 new empty orders!" Zhong Shi thought for a while, and continued to increase the intensity of short selling.

   On Andrew’s side, nearly half of the 3,000-hand empty orders were sold. Zhong Shi asked him to release them slowly.

  Another 5,000 lots of sell orders appeared in the market, and the price of copper futures responded quickly, and the prices of 2209, 2208, etc. were instantly swallowed up, and the price quickly reached 2,200 US dollars.

Everyone knows that integer points have a symbolic meaning, and it also means a watershed in prices. Followers start to gradually close their positions at this price. In their strategy, when encountering this situation, they have to wait until the two sides fight It is ready to enter the arena again after it is out of your life.

  Zhong Shi sold 3,910 lots at this price. In addition to the previously suppressed number of lots, all his orders have been filled. He currently holds 3,000 short positions, with an average price of $2,200.

  The bulls were consumed 4,000 lots of defensive orders at once. At present, there are only more than 1,000 lots of buy orders placed at this price, but this number of hands is not something that ordinary investors can shake. Just when people thought that the market was about to rebound, the price of copper futures fluctuated again, and another short seller entered the market, throwing out a short position of 3,000 lots, instantly breaking the long defense of $2,200, and the price of copper futures fell below $2,199 .

   "Uh... was pierced?" Not only the participating investors, but even Zhong Shi was a little stunned. He never expected that the main bulls would be pierced so easily in this position. What he didn't realize was that this was thanks to the fact that he absorbed a large number of long defensive orders in this position, that is to say, he acted as the main short seller today.

   Once the price of copper futures falls below 2,200 US dollars, the market will become clear, and followers will start to enter the market again to short. But Zhong Shi took the opportunity to start closing positions, and his closing positions were gradually small amounts, trying not to attract the attention of the main short sellers.

  The smug short sellers frequently set new lows in copper futures under the crowd of followers, and quickly suppressed the price to $2190. At this time, Zhong Shi had already closed half of his position. He breathed a sigh of relief, knowing that this day's operation was almost like this, and the rest was fighting for other funds.

At the position of 2190 US dollars, some of the main short sellers began to close their positions. Some of them were option short sellers who entered the market two days ago. With a clear goal, the liquidation line of some funds is set at 2200 US dollars, and now it has exceeded their expectations at 2190 US dollars. This is a rare opportunity to leave the market.

  The closing order of the shorts and the support of the bulls made the price of copper futures stay at a minimum of around 2185 US dollars. At this position, the main force of the bears was unable to attack down, and the bulls took the opportunity to attack, and the price of copper futures began to reverse again. During this process, Zhong Shi closed all the remaining positions. On this day, he added a profit of 640,000 US dollars to his account, which was the profit of the previous long position, while the newly opened short position had no profit at all. made money.

  On the contrary, Andrew, the short position established at a high level, lasted until the position of 2,197 US dollars and then began to gradually close out, making their profit reach a historic high of 400,000 US dollars.

  The most important thing is that Zhong Shi has tested the intention of the bulls through his own operations. If his prediction is correct, tomorrow, the bulls will forcefully pull up! Today's operation was carried out by him instead of the option short position. The purpose was to test the bottom line for the long positions to be allowed to close. As a result, Zhong Shi accidentally broke the long line and allowed the option short positions to level at a lower position. Part of it fell off.

Of course, seeing that the bulls are so "vulnerable", the other option shorts are likely to stay in the market, and the bulls will not push up again. Zhong Shi can even realize that the subsequent transaction is bullish. Slowly pull up the price of copper futures, and finally the price will stay around 2200 US dollars, leaving unlimited room for imagination for option shorts who have not closed their positions, and this room will become a disaster tomorrow!

   The author has been working hard to code words, I hope everyone will support, thank you~

  (end of this chapter)