The Son of Finance of the Great Age

  Chapter 185 Trap Warning

   "Are there bulls building positions at low positions?" Hamanaka Tainan asked coldly. When the current copper price rose to close to 2,600 US dollars, the traders of Sumitomo Trading Co., Ltd. cheered. They have enough reason to cheer, because during August and September, they quietly established a bottom position in the market, and the price at that time was only slightly higher than the price of spot copper, and their average price was around 2,530 US dollars.

   In other words, even without the pull-up of Zhongshi, the people of Sumitomo Trading Co., Ltd. would not watch the price of copper fall below $2,540. However, with the pull-up of other bulls, the people of Sumitomo Trading Co., Ltd. are just optimistic.

  But Hamanaka Yasuo didn’t think so. His first reaction was that there were new bulls joining the market. Prior to this, he had inquired about the current bulls and shorts in the market, and he even had a little understanding of their operating methods and styles. Like today's practice of changing hands while pulling up, he knows that this is a very common method in the futures market. The important thing is that this kind of operation can only be short-term when there is not enough bottom position.

  So when he heard the news, his first reaction was that there were new long positions quietly building positions at low positions. This was obviously taking advantage of intraday price fluctuations, taking over at low positions, and then shooting through at key price levels.

And the way to test whether the bulls are the main force's capital scale is also very simple, that is, to suppress the price of copper futures to the position where they opened positions in a short period of time to see if the bulls can continue to support it. The bulls have limited funds, and the strong support at the low level shows that the other party has a lot of confidence in pulling up, in other words, there are a lot of funds.

   "Should we test it?" Oshima Kenjiro asked tentatively. After thinking for a while, Binzhong Tainan said leisurely: "Testing? Why testing? He raised his copper price, which is of great benefit to us, so let him continue to raise it. Let's see, who is it that dares to cause trouble under my nose!"

If this bull has strong financial strength, then he will definitely continue to rise in the next few days. As long as he reaches a certain position, Hamanaka Tainan does not mind giving up his position to this bull, even if it forms a huge bull. In exchange, but in exchange for real money and a reduction in positions. If this is the case, Binzhong Tainan can even change hands and short to form an opponent with the bulls.

  …

  What Zhong Shi didn’t expect was that his move not only attracted the attention of predators who were already lurking in the copper futures market, but also attracted the attention of other speculative funds.

Not every hedge fund has a capital scale like Quantum Fund. In fact, many hedge funds with a capital scale of only tens of millions also come to the copper market. With all their funds, they can only sell thousands of lots at most. In view of Zhongshi, these speculative funds are nothing but one of many "followers".

  However, these "following trends" are not easy. After all, they are also experienced fund managers, and they know the general promotion methods. In the process of pulling up and reducing holdings, Zhong Shi could clearly feel from the intraday that there were other long positions that were closed before him, which made his pulling up not as smooth as expected.

   But what does it matter? Zhong Shi throws out thousands of lots, or even tens of thousands of lots of long orders at any time, which can still raise the price of copper futures to an unbelievable position, but in this way, it is estimated that the liquidity of this market will be affected by him. Destroyed light. Just imagine, a force that can make people explode at any time is lurking in the market all the time, and anyone who operates it must be careful and careful, otherwise it may become cannon fodder in an instant.

On October 26th, Thursday, the copper futures market showed an upward trend as soon as the market opened. The long and short sides began to fight fiercely after a little contact. The strong support made the price of copper futures not fall much, and although the rise was slow, it was very firm.

   "Huh? Changed the style?" Hamanaka Tainan sighed in surprise when he saw the disk. In his view, although this force has not yet shown the size of its funds, the style of this fund manager can be seen from previous operations. At least in the short term, the traces of this operation are rooted.

  As for those small lot sizes that took up most of the trading time, he, like Zhong Shi, didn't pay attention at all. The difference from Zhong Shi is that he treats these small amounts of funds as fat sheep that can get whatever they want, and he will take a bite if possible.

The situation presented on the market today is that the long and short sides are fighting fiercely at first, but once the shorts suppress the price of copper futures to a lower price, the bulls will immediately appear with a large amount of buying orders, which will stop the decline steadily, and then The price of copper futures rebounded to the position where it did not fall again, and the two sides began to fight stalemate again.

  There are two possibilities for such a situation. The first is that the bulls who pulled up yesterday did not appear in the market, and the second is that the other party has changed their operating style. Hamanaka Yasuo thinks that the first option is the most likely, because a person's operating style cannot be changed at a whim.

Although a bit regretful, Hamanaka Tainan became interested in another force supporting the copper price. He knew that besides Sumitomo Corporation, there were several other forces quietly pushing up the copper price. One of them was the well-known Quantum Fund. .

   Hamanaka Tainan welcomes Quantum Fund’s entry into the copper futures market. After all, their general direction is to go long. Even when he didn't know the details of the other party, Hamanaka Yasuo unintentionally dug a hole for the Quantum Fund. It was in the copper futures market in June. Hamanaka Tainan forced option shorts to leave the market. Shortly after Zhongshi’s funds left the market, he also began to liquidate positions on a large scale. Taking advantage of the opportunity to attack, the double pressure of long positions and short positions was borne by Quantum Fund, the largest long position in the market at that time. Quantum Fund was eventually forced to take over a lot of long positions, which reduced their profits at that time. .

  Thinking of this, Binzhong Tainan snorted proudly: "It doesn't matter if you are a tiger, this market is my world. If you want to make money here, you must first ask me whether I agree or not."

   Now there are bulls pushing up copper prices, which immediately touched the sensitive nerve of Binzhong Tainan. As the so-called side of the couch, how can others snore and sleep, Binzhong Tainan thought of planning to cheat other bulls again.

   "Hamanaka-san, are we going to do something?" Oshima Kenjiro asked carefully when he saw Hamamaka Yasuo's face changing.

Binzhong Tainan shook his head and stopped him: "Don't worry for now, let's help the bulls raise the copper price first, so that he can operate with confidence. After reaching the position of 2,700 US dollars, we will transfer part of the position to other stocks. If you are long, then let them out in the market and force them to admit defeat at a low price, so that we can build a position at a lower price and wait until the future to raise it, isn’t it better?”

  Kenjiro Oshima saw that Hamanaka had already made plans, so he went out and ordered traders to do short-term long positions.

  …

  At this time, the price of copper futures has risen to the position of 2630 US dollars. Zhongshi enters the market every time when the price of copper futures fluctuates, and pushes the price of copper futures up step by step. After doing this several times in a row, other investors have come to understand that the low price of copper futures is supported, which allows them to go long with confidence, making the battle between the long and short sides more intense.

At this moment, there was a sudden change in the market, and a large number of buy orders appeared out of thin air, which immediately suppressed the long and short sides that were still fighting. In one minute, the price of copper futures was forcibly raised to $2,655.

   "This? What's going on here?" When Andrew saw a long green line appearing out of nowhere on the computer, he asked Zhong Shi very puzzled.

  Zhong Shi shook his head, curled his lips and said, "I don't know either." In his heart, he had already faintly felt that this might be a trap set by the main bulls, and the purpose might be to warn him of such backstopping behavior.

  The reason why it is a warning may be that firstly, he is not clear about his position and funds, and secondly, through this sudden behavior, he is telling him not to try to build a position at a low position.

   "End the transaction!" Zhong Shi shrugged and said helplessly. He already knew that if he continued to support the bottom, the other party would definitely continue to raise the price of copper. At that time, he might fall into the trap of the other party. He is in a dilemma. If you eat it, it is very likely to scare the snake. If you don’t eat it, the other party will make a loss in his backing behavior as long as he suppresses the price of copper futures to about 2,600 US dollars.

  Although a few traders were very puzzled, they faithfully carried out Zhong Shi's order and stopped the bottoming operation.

  …

When other investors in the market saw this sudden upward behavior, they no longer cared about the meaning behind it. They either closed their positions at a high level to maximize their profits; or they opened a new short position at a high level, because This sudden rise was followed by a sharp drop, and the price of copper began to decline rapidly under the joint forces of the two forces, and soon fell to the position of 2,630 US dollars, and then continued to fall.

   "Haminaka-san, you didn't take over the warehouse." Oshima Kenjiro suddenly pushed open the office door of Hamanaka Yasuo, and shouted out of composure.

  Hamanaka Tainan glanced at Kenjiro Oshima with dissatisfaction, and said disdainfully: "He won't answer, we will!"

  When the price of copper futures fell to 2,625 US dollars, Sumitomo Corporation’s funds began to enter the market. They firmly and slowly accepted long positions and short positions, and quickly stabilized the price to 2,630 US dollars.

  Seeing the bulls make another move, other long investors regained their confidence, and then they started fighting the shorts one price after another, unaware that the main bulls behind them had changed roles.

  The price of copper this day finally closed at $2,635, an increase of $49 from the previous trading day, because the intervention of two main bulls made the trading volume increase by a full 40,000 lots compared to the previous trading day.

   Thank you very much for the book friend Southern Autumn, who made me think about it! Thank you for your strong support recently, I hope you will continue to pay more attention, and the author will continue to work hard~

  (end of this chapter)