The Son of Finance of the Great Age

  Chapter 195 The first positive line (2)

1,500 lots of long liquidation orders appeared in the market, and immediately dealt a blow to the rapidly rising copper futures price. The copper price that just broke through 2,800 US dollars immediately stagnated, and then began to fall while everyone was stunned, and soon reached 2,800 US dollars. Integer pass.

   "What happened, are the shorts counterattacking?" Almost all long investors had such an idea in their minds, which made them stop the idea of ​​entering the market and wait for the situation to become clear.

On the short side, when the defense at $2,800 was breached for the first time, their response was to set up a new line of defense around $2,810, using the method of stretching the front to gradually consume the funds of the bulls, and wait until they are unsustainable. It's time to suppress the price of copper futures once again. Because the option bulls executed on this day are too fierce, their expectations for the market are not optimistic, and the price of psychological expectations is set at around $2,820.

But now that the market price has just broken through 2,800 US dollars, there are a large number of sell orders flooding the market, forcing the price down at 2,800 US dollars. Increase the position in the low position.

"Hamanaka-san, we encountered a sniper when we were pulling up. I don't know whether it is a long position or a short position. The momentum is very fierce and has already touched the defense line we set up." In the trading hall of Sumitomo Corporation, Kenjiro Oshima spoke quickly. Quickly report to Binzhong Thai Nanhui.

  At this time, the atmosphere here has reached a fever pitch, and the traders operate according to the strategy laid out by Hamanaka Yasuo. Their original strategy was to raise the price of copper futures when option bulls entered the market, and quickly build up defenses when the price of copper futures reached $2,800, and must maintain the price of copper futures above this position.

  In addition to the rising market, they also set up strategies for several changes in the situation, such as the decline and the confrontation between the long and short sides. Because they don't know the situation of the option announcement, they can only be prepared for various situations.

Because in November, various forces in the market are obviously active. First, because the traditional off-season is over, the trading of copper is obviously active. Speculative funds need a strong report card in the final months of the year.

Except for the sudden drop at the opening, other situations were expected by Hamanaka Tainan, and Zhongshi’s pull-up behavior was understood by traders as the actions of option bulls. They quickly opened large amounts in the market according to prior arrangements. The buy order of the number of lots pushed the price above $2,800 in one fell swoop.

But before the price was pushed up again, a large amount of sell orders appeared in the market. This situation was obviously beyond their expectations. In addition to urgently canceling the buy orders below the $2,800 position, the traders were waiting. Hamamaka Tainan's next transaction order.

   "Have you broken through our defense at the $2,800 position?" Tainan Binzhong sat on the sofa calmly, still in a calm posture.

   "Not yet, I just don't know how many short positions there are, and where is the specific price?" Kenjiro Oshima wiped the sweat from his forehead and said with a guilty conscience.

  He knows that today’s trading is not trivial, so after the current copper price rises to a certain position, according to the strategy they have formulated, they will start to close positions on a large scale, the specific number of hands is about 10,000. If you can't pull that position now, you will lose the protection of the newly entered bulls today, and it will be difficult to hit the predetermined position again.

   "Open a long position of another 1,000 lots and set it at 2,800 US dollars. We must protect our bottom line." Hamanaka Tainan thought for a while and decided to increase his defense at integer points again.

  According to the general market, placing a full buy order of 1,000 lots at a price is enough to set the price slightly above this price, but today's market is not as good as in the past, even Hamanaka Tainan has to be more cautious.

  …

   "Zhong Sheng, all of our liquidation orders have been sold, and the price has not dropped by $2,800. What should we do now?" Three minutes later, Andrew received a call from his broker and immediately reported to Zhong Shi.

  Zhong Shi has learned the situation from the market, and the price of copper futures has stayed at $2,800 for two minutes. Here, the bears who want to fish in troubled waters and the bulls who have no time to cancel their purchase orders have become cannon fodder. They are mixed between the two forces, just like pebbles thrown into the sea. Can not see the slightest trace.

   "Let's go long with all our strength!" Zhong Shi found out that there was another bull in the market, and the strength was very strong.

  With the pull-up of the two major copper bulls, the price of copper futures began to rise rapidly, breaking through 2810, 2820, 2830 and other barriers one after another, until the position of 2840 US dollars slowed down the upward trend.

   "What's going on here?" Seeing that the price of copper futures rose rapidly, and the short sellers didn't even have a decent resistance, and seemed to let the price keep rising, Andrew couldn't help asking a little puzzled.

  Zhong Shi frowned and didn't make a sound for a long time. He also noticed that except for a little resistance around $2820, the other points didn't seem to have much resistance.

   "Perhaps it is to lure the enemy to go deep?" Zhong Shi is not sure, and now I am afraid that this is the only possibility that can explain the abnormality of the market.

  What they didn't expect was that in this upward momentum, there were bears to blame. On the short side, some short sellers have foreseen that today's market will rise rapidly. Due to the pressure of losses and positions, they gradually buy contracts in the market to close their positions, and then choose to go long or short according to the situation.

   In this way, the short side naturally lost a small part of the allied forces. On the other hand, the bulls are very determined to go long. Almost all the bulls know that the allied forces entering the market today are powerful, and the rise of copper futures is a certainty. The only question now is what price copper futures will rise to.

  …

   "Carl, we have raised the average price to $2,780, what should we do now?" Inside the Carl Fund, Jerry looked at the current price and asked Carl very worriedly.

In the past half a day, these traders have worked hard to raise the average price to $2,780. In addition to paying a loss of more than two million U.S. dollars, they landed at more than $2,820. Continue to open 1000 new positions one after another. However, in the current situation, the reserve funds have been exhausted, and the remaining operations can only be closed step by step.

   "Continue with the operation in the morning. I don't think this rally will last long. We will definitely make a profit after today." Carl said weakly. Up to the current situation, he is already in a difficult situation. If he closes the position now and closes the position at the market price of 2,840 US dollars, it means that each contract will lose 1,500 US dollars, and the 2,000-lot contract will be 3 million US dollars, plus the previous loss. More than 2 million US dollars, a total of more than 5 million US dollars in losses, which means that everything they did before was in vain.

   "But what if it still rises? The broker..." Jerry asked.

  Carl frowned and thought for a long time, then looked at the market, then gritted his teeth suddenly, and said with great heartache: "It will be closed at $2,850! Put the extra funds into the short position, and you must keep the position."

  Although Jerry disagreed in every possible way, he still had to resolutely carry out Carl's order. At this time, in his heart, he was also not optimistic about the market outlook, so he reluctantly agreed to Carl's idea.

  …

   Trading continued, and the price of copper futures quickly rose to the position of 2,850 US dollars, where the bulls encountered great resistance. The short side has accumulated enough funds through continuous liquidation. Although the losses are very serious, they have already set their targets for the next few trading days, so they have set up a very strong defense at the position of 2850 US dollars, and the accumulation is here The selling orders exceeded 2,000 lots. They have already estimated the operation of the bull side through the changes in the market. During the previous pull-up process, the bull side did not appear to have an obvious liquidation situation. At this time, the bulls must have accumulated a large amount. It is a good opportunity for them to counterattack at this time.

The price of copper futures has just risen to the position of 2850 US dollars, and then began to stop. Although the bulls attacked upwards several times, they could not shake the defense of the shorts at all, but the bulls were not reconciled, and the price stalemate at 2848 and 2849 US dollars for a while up.

"Zhong Sheng, what should we do now, close the position?" Seeing the stagnant market, Andrew lost his mind again. He and the trader team opened 500 lots of long orders here, but nothing changed Copper futures price in the market.

   "In this case, let's close the position, liquidate part of the low-priced long position, and return the funds." Zhong Shi couldn't think of a good countermeasure for a while, and after thinking about it, he could only retreat temporarily.

Although he had a good idea, he just threw out 1,000 lots of liquidation orders, and they were all eaten up in almost a minute. The bulls even set up a lot of defense at the position of 2840 US dollars. A dilemma.

   "Since there is no way, let's attack!" Now Zhongshi's position has reached 32,000 lots, and the average price is around 2,690 US dollars. Except for delivery, he is not afraid of other situations at all. "3000 more hands open, eat it for me!"

Almost at the same time, on the side of Sumitomo Trading Co., Ltd., after confirming that the price of copper futures was stabilized above US$2,840, Hamanaka Yasuo showed a look of satisfaction in his eyes. When he heard that the short seller was going to fix the price at US$2,850, a trace of With a look of disdain, after waiting for five or six minutes, the price of copper futures in the market still remained unchanged, Hamamaka Yasuo said coldly to the trader: "Open 2000 lots, give me another pull, and withdraw the order after the breakthrough. "

A total of 5,000 buy orders once again hit the defense line of 2850 dollars. After a moment of silence, the trading volume increased instantly. The sell orders below the 2850 position were matched almost instantly, and then the long and short sides fought fiercely at the 2850 dollar position. Words such as multi-change, empty-change, and multi-equal quickly came out on the computer screen, but soon the screen was filled with words of double opening.

It lasted for five full minutes, and the $2,850 mark was finally broken. After all, the bulls had the upper hand. Seeing the number 2,851 jump out, the market knew who had won. Before they could get too strong, the bulls started to retreat.

  The rest is time for garbage trading. Copper futures prices began to fluctuate in the range of 2850 to 2860 US dollars. The main short sellers had no counterattack power for a while, and the main bulls also died down. Both sides stopped making moves. The final copper price was fixed at US$2,860, a full increase of US$102, or 3.7%, from the previous trading day, and the trading volume reached an astonishing 160,000 lots.

   On the Carl Fund side, although they worked very hard to raise the average price of the entire position to 2800 US dollars, but after excluding the loss part, they lost a full 6 million US dollars, and the position size was also reduced to 1500 lots. The most tragic thing is that they are currently losing more than 2 million US dollars, which means that they only have about 8 million of all funds left.

   "Carl, the brokerage company's call, they asked us to call for the deposit." The trading room was full of gloom, Jerry hung up the call from the brokerage company, and said to Carl weakly.

   Thank you very much for the monthly support of book friends angel-steel, shadow k, tgg, and Sudao Duanyou! Thank you very much Aline for your tip!

  (end of this chapter)