The Son of Finance of the Great Age

  Chapter 190 The use of copper

   "Specifically?" Andrew was not surprised at all. Zhongshi had already manipulated the market once in the first half of the year, and this time it was at best a comeback.

   Neither he nor Zhong Shi knew that it was not strictly speaking that they had completely controlled the market last time, because firstly, the demand for copper in the market did soar, and secondly, there were other main bulls pulling up the market.

  Andrew wants to know Zhongshi's specific operation strategy. Through observation during this period of time, he found that Zhong Shi just kept buying into long contracts, and the quantity was not large, which could not affect the market trend at all. As time goes on, their positions get bigger and bigger, but the price changes little.

  Zhong Shi had already finished his breakfast, picked up a coat and put it on, and then said calmly: "Did you forget that we still have 100,000 tons of cash copper?"

  "Spot copper?" Andrew suddenly remembered that in the first half of the year, Zhongshi asked him to quietly deliver the expired copper futures contract in the market, and finally received 100,000 tons of spot copper, which is still stacked in the leased warehouse. "But...but this part of the spot copper is only worth 4,000 contracts, and we can only sell short, which is exactly the opposite of what we are doing now."

   "Aside from short selling, don't we have any other options?" Zhong Shi smiled and asked disapprovingly.

   Andrew was stunned. He couldn't understand what Zhong Shi said. Could it be that Zhong Shi wanted to do cash copper trade? To be honest, he already feels a little inappropriate for this part of the cash copper accumulation. Under the current situation, this part of the cash copper mortgage can be exchanged for at least 200 million U.S. dollars in loans, and the money is put in the warehouse for nothing , It is really a pity.

"It's only for short selling, and I don't plan to get involved in the spot copper trade." Zhong Shi glanced at Andrew slowly, as if he could see what he was thinking, "Have you ever thought about the possibility that it is a sudden On a certain day, LME’s inventory suddenly increased significantly; or on a certain day, LME’s inventory decreased significantly?”

"Significant increase? Decrease?" Andrew couldn't turn his head around. He shook his head vigorously, forced his confused brain to calm down, and then analyzed with his fingers one by one: "If there is a substantial increase in LME inventory, Then it shows that the short sellers want to deliver on a large scale. In this case, those who hold long orders will definitely sell their contracts impatiently, and the price of copper futures will definitely fall immediately. And the inventory will increase sharply, and the market will definitely think that the bulls want to For delivery, short sellers have to worry about the liquidity of the contract in hand, and the price of copper futures will..."

Having said that, he suddenly came to his senses, looked at Zhong Shi in disbelief, and said with trembling lips: "Zhong Sheng, you don't want to..." After seeing Zhong Shi smiling and nodding, he immediately closed his eyes. On the mouth.

   "How is it? Isn't this a good trading plan?" Zhong Shi blinked at Andrew, who was already somewhat petrified, with a smug smile on his face.

"Uh..." Andrew, who came back to his senses, nodded his head like a chicken pecking rice, gave Zhongshi a thumbs up, and sincerely praised: "This plan is indeed the most genius strategy I have ever seen. One. However, there are still some details that may need to be considered again.”

   "Are you talking about the delivery procedure?" Zhong Shi smiled and said disapprovingly: "This matter is very simple, we just need to absorb contracts that are close to the delivery deadline in the market."

   "How does this work?" Andrew was already a little dazed, he couldn't accept such a large amount of information for a while, and his brain that had finally calmed down just now was a little swollen.

"Isn't that simple?" Zhong Shi nodded Andrew with his fingers, and said with a bit of hatred: "Use the account of Skyline Financial Company to sell 4,000 lots of contracts, and when the contract expires, the cash copper will be shipped to you." Entering the LME warehouse, and then carrying out delivery, doesn’t this give the market a false impression? This is the same operation as shipping in, and shipping out.”

   "There is only one problem, that is, the contracts near the delivery date must have sufficient liquidity, so that they can be fully traded. However, we have two accounts of Skyline Financial Company and Tianyu Fund, which are enough."

  Seeing that Zhong Shi was so thoughtful, Andrew was so shocked that he couldn't speak. His mouth was wide open, and he didn't even utter a word for a long time.

   "Let's go!" Zhong Shi looked at Andrew's appearance, shook his head helplessly, and strode out of the room.

  …

In the following two trading days, the price of copper futures continued to fluctuate around US$2,700. On the one hand, the bulls gradually closed their long positions in the near-month according to the previous agreement, and instead bought into the far-month contracts; The follow-up order of the long position will be closed at a low position, and then the corresponding opponent's order will be opened in the distant month, so that the active month of the copper futures contract will be transferred to November and December.

On November 9th, the price of copper futures opened at $2,675. After the market opened, the main force of long and short positions began to change hands frequently, and the trading volume also increased rapidly. Although the trading was very active, the price of copper futures did not show any signs of rising. Finally, the price of copper futures It closed at $2643.

On the following day, November 10th, the price of copper futures opened at $2,642, which was slightly lower than the closing price on the first day. As soon as possible to close out the November and December contracts held in their hands, they began to gradually increase the price of copper futures.

  The reason for the gradual increase is to give a signal to the short sellers who are their opponents, so that they can also close the near-month contracts in their hands as soon as possible. The short sellers who heard Xianzhi's intentions immediately liquidated the contracts with delivery dates in the middle and late November on a large scale in the market, and the followers who had been kept in the dark were greatly relieved, even though the current market price is not good for them, But they were able to close out their long positions at a loss.

  …

   "The bulls have started to push up the price of copper futures, which is exactly as we expected." Looking at the immediate changes in the price of copper futures, Karl said proudly.

  Before this, although they had opened short positions in the market one step ahead, the price of copper futures fell in the next two trading days, so they did not absorb too many positions. So far, the position is only 300 lots. Since the previously set price was at $2,700, even if the price of copper futures continued to fall, they did not open any more positions.

   "Boss, should we build some long positions and take the opportunity to make some money during this rebound?" Jerry said taking the opportunity.

Carl thought for a while, then nodded, and agreed: "You are right, you can establish some long positions appropriately, but the dates of our short positions should be staggered, and they will be sold immediately after reaching $2,700. .”

  Jerry agreed, and then ordered the traders to buy long positions in the market, and then began to operate frequently. When the price rose by one or two positions, he began to sell. At this time, they have already made some negligible profits through frequent operations like most follow suits.

  …

In the following two trading days, the price of copper futures continued to rise. By November 11, the closing price had risen to 2688 US dollars, approaching the psychological expectation, and Karl also asked everyone to clear their long positions on this day. to the next trading day.

  On November 14th, the price of copper futures opened at $2,685. After the opening, the trading situation was stable for a while, but in the afternoon, the market suddenly changed drastically. Large buy orders continued to appear in the market, and the price of copper futures quickly rushed to around $2,700. The long and short sides fought fiercely at this price, but the strength of the bulls was stronger, and soon broke through the defense of the shorts at $2,800, and gradually pulled the price of copper to a position above 2,700.

   "Short open 1,000 lots!" In the trading room of Carl Fund, traders were staring at the data uploaded from the computer screen, and at the same time kept making calls to ask brokers for quotations. Carl yelled hysterically as the price broke through $2,710.

  According to the previously arranged strategy, the people of Carl Fund should open a short position at $2,700, but Carl saw that the market was rising so fiercely, so he temporarily decided to increase the price of opening a position.

After the order of 1,000 short positions was conveyed to the broker, it quickly aroused a reaction in the market. The price of copper futures, which had been rising aggressively, was immediately stopped, and then fell by two prices. rise.

   "It has broken through $2,735, and we have suffered a loss. What should we do?" Looking at the numbers that continued to rise, Jerry was already sweating on his forehead, and asked Caldao anxiously.

Under such circumstances, Carl showed the professionalism of a fund manager who is not surprised. He shook his head slightly without changing his expression, and stopped Jerry from saying, "Don't worry, the short sellers will not let the copper price rise wantonly. Now we You can also open another 1,000 short positions, which can raise our average price."

   "But this..." Before Jerry could finish his sentence, the copper futures price on the market had broken through 2,740 US dollars. "Now that the price has reached this position, do we want to increase our position?"

   "Yes, increase the position!" Carl said firmly. It's just that at this moment, his heart is not as calm as his face, and the price of copper futures has risen so sharply, which is not as expected. But this can also explain that the reason why the bulls are so frantically raising the price of copper futures is to throw away their November and December contracts at a high level.

  Seeing that Carl was so stubborn, Jerry could only shake his head helplessly, then picked up the phone and began to give orders to the agents.

  …

   At this time, the trading room of Tianyu Fund was also full of excitement. Zhong Shi loosened the tie around his neck, and confirmed to Andrew again: "Andrew, are you sure our bureau is all set up?"

   "Sure!" Andrew yelled without looking back, and then yelled at Ampit: "Close the long position of 100 lots, as soon as possible."

  In addition to the huge long positions established in the market, Andrew has a daily trading quota of no more than 1,000 lots. Now Tianyu Fund's small transactions are under his management, and several traders are currently under his management. Now that the price of copper is rising fiercely, he dare not delay for a moment, even if Zhong Shi asked a question, he just replied impatiently.

It is not Zhongshi's funds that are driving up the price of copper today. Specifically, it is the group of people who planned the Chilean copper industry. protocol. Now most of their positions are in November and December, they know the power of this news, if they wait until the Chilean side announces a settlement, then the price of copper futures will drop immediately, and then they will have to vomit all the money they bought earlier Come out, so they can't wait to raise the price of copper futures in the past two days, hoping to clear all their positions.

  The short-term price surge immediately attracted the attention of the entire market. Followers and other bulls naturally also noticed this situation. They started to buy long positions from the position of 2,710 US dollars, causing the bulls to gradually sell out a lot of positions.

This situation is naturally in the expectation of the main force of the short position. Like the main force of the long position, after the short position gradually closes the contract for delivery in late November, it also opens the corresponding opponent's order at a high position, so that the long position is pulling up while the position is rising. , and face the formation of new positions.

   Faced with this situation, it is natural to fight for the amount of funds on both sides. Although the bulls have sufficient funds, their ambition is not here. They can only sell their long positions frequently. Finally, when the market closes, they have sold out thousands of positions, and it will take another two or three trading days to completely sell their positions. Flat out.

   Thank you very much for making me think about it and continue to reward!

  (end of this chapter)