legendary trader

Chapter 140 Second Dip
Qi Qinghua was about to hang up the phone, when the anxious voice of the risk control team leader came from the microphone: "Mr. Qi, Mr. Qi, don't hang up. The shorting of index futures has been stopped over there. Mr. Qi, is Mr. Qi there?"

Qi Qinghua was shocked when he heard Xiaoye's anxious voice in the microphone, and immediately said to the phone: "I'm here, I heard, they stopped shorting index futures?"

Phone: "Yes, after the Nasdaq futures fell below 1650 points, they stopped shorting and there are still nearly a thousand empty orders. I didn't notice their situation when I was talking to you just now. I was just about to hang up. Found out on the phone."

Qi Qinghua: "Okay, I see, how many short orders have they made now?"

Phone: "69873 lots, only more than 8 lots less than the long order in hand."

Qi Qinghua: "I see. If there are any changes, I must be notified in time."

Phone: "OK."

Qi Qinghua hung up the phone, seeing that the Nasdaq index continued to fall at this time, he couldn't help feeling a little hopeless in his heart. Is the market really going to go bearish?

After the Nasdaq index fell below 1650 points, the rate of decline slowed down slowly, but the inertia formed was still strong. A large number of institutions that were originally in the bull camp were already doing what short sellers could do at this time, and kept selling stocks. Selling short futures orders, the market has returned to a bearish state.

The Nasdaq index fell all the way to 1606.61 points before barely stopping the decline and began to rebound slightly.

Qi Qinghua doesn't know how the company's core trading team operates. Although he still has great confidence in them, but with the plunge of the rice stock market, this confidence is also dissipating.

Qi Qinghua kept thinking in his mind, Chaofan Investment's investment in index futures has basically been liquidated, and that is hundreds of millions of funds. By the way, they still have more than 2 million stocks that have not been liquidated?

Why do you do this?If you are bearish, there is no reason to stop selling stocks at 1700 points, it should be liquidation and selling.

Also, they hedge their long positions by opening short positions. If they are short, why not choose long-term positions?

Qi Qinghua understands the analysis of Chaofan Investment a little bit. Knowing the benefits of the opponent's hole cards will be revealed at this moment, it is really easy to analyze the target's trading strategy.

Qi Qinghua was worried that the core trading team would make a mistake, temporarily put aside the possible impact afterwards, and called Xiao Yang, the leader of the core trading team.

The phone rang twice and then connected. Qi Qinghua said to the other end of the phone, "I'm Qi Qinghua."

Phone: "Hello Mr. Qi, I'm Xiao Yang."

Qi Qinghua: "The situation changed today, how did you deal with it?"

Phone: "Mr. Li contacted me when the Nasdaq was suppressed to 1720 points. Since then, we have been closing positions and leaving the market to lock in profits."

After hearing the words, Qi Qinghua thought for a while before saying: "I suggest that you keep your stock positions and only increase your short positions on index futures to hedge risks. You also inform Lao Li of my opinion. The final plan is still for you to discuss. That's it ,Bye."

Qi Qinghua heard that Mr. Li was also watching the market, and felt that he should not stretch his hand too far, so as not to affect the current relatively stable relationship of the management team. After simply expressing his thoughts, he hung up the phone and sat quietly for a while. After rebounding to around 1645, there were signs of weakening again, so I shook my head and got up and went back to rest.

In the core trading room of Chaofan Investment, Zheng Xiaopang and Chen Fan were having a heated discussion on whether to continue shorting.

"We haven't covered long orders yet, and the stock position will fall with the market, and the market value will decrease. If it really falls below 1600, even if it doesn't fall below 1500, we will have huge losses on our books."

Zheng Xiaopang said to Chen Fan angrily, "Let's stop when we hit 1600. This is the head office."

Chen Fan rubbed his temples, which were a little swollen by what Zheng Xiaopang said, and saw that the market had rebounded above 1640 points, and the strength of the rise had obviously weakened, while the Nasdaq futures were still around 1635 points. He glanced at the current position information and said : "You can place some more empty orders appropriately, but the quantity should not be too large, at most it cannot exceed 7, forget it, let's say 5. I am worried that if the bulls go crazy again, the intraday correction will end the bottoming, and our positions will be heavy. There is no way to close short positions."

Zheng Xiaopang shook his hands and said, "Don't you know the speed of Fat Master's hands?"

Chen Fan nodded and said: "OK, you guys do it, pay attention to controlling the total amount, and I will adjust the settings of the trading robot."

In the following time, the Nasdaq index has been stably oscillating above 1600 points. The regrouped bulls regard 1600 points as the dividing line between bulls and bears, and easily refuse to give up half a step. If the positions are closed smoothly, there will still be a certain profit, so the minds of short sellers are relatively light, and they are unwilling to rekindle the flames of war easily.

Because of the instability of the market, Zheng Xiaopang and Zhang Yang did not dare to spend large sums of money on short orders as before, and returned to the previous state of selling small orders, opening short positions little by little.

Chen Fan looked at the board calmly. It should be said that it is actually a weak consolidation. It stands to reason that such consolidation will not last long, and there will definitely be a breakthrough direction at that time.

Chen Fan kept switching his identities between long and short main forces, guessing their possible moves, and judging possible changes in the market outlook.

In the end, Chen Fan himself felt that he was a little nervous, because he didn't know the positions of the long and short main players at all, so how could he possibly think of how they would make a move? It was just a fantasy.

Although I don't know which direction the market will go in the end, Chen Fan still judges that the main force of the market should not make any more moves today. The highest probability is that it will close at 1600 points or fall below 1600 points, and it will be around 1500 points tomorrow. Vigorously fluctuate and clean the floating chips in the market again, so as to achieve the purpose of the second bottom.

Otherwise, if it only oscillates around 1600 points, it will not achieve the effect of washing the market, it can only be regarded as an adjustment after the rebound, and it will not be able to shake those investors who are not confident in holding shares, and they will not be able to truly wash out their chips.

When the time came to 3 o'clock in the morning, the weak market began to change. This time, it was not Chen Fan and the others who were taking the initiative to cause trouble.

An unknown source of funds began to throw a large number of empty Nasdaq futures orders to the market, and there was also a certain amount of selling pressure on the stock market to suppress the selling price.

The Nasdaq futures fell one after the other following the big sell-offs, and took the lead in falling below the 1600-point integer mark.

The latter sell-offs did not weaken at all, and they continued to suppress the futures index significantly. The Nasdaq futures showed a trend of breaking the platform, and the price fell sharply.

However, in the stock market, a large number of sell orders were pressed on the selling price, and the orders were gradually placed downwards, which gave the bulls a huge shock. Many funds saw that the short sellers made a big move again, and they wanted to fight back, but they were also frightened by the big selling orders at the selling price. Dare to eat easily.

Under the naked strength of the short sellers, the Nasdaq market began to turn around and go down. There were no long funds willing to suffer bad luck. Most of them chose to withdraw their orders and recover the front line.

(End of this chapter)