The Son of Finance of the Great Age

  Chapter 133 Backhand Going Long

  The effect of opening positions on this day was not bad, fully absorbing more than 5,000 short positions. Although the final oil price was only as low as $18.05, Zhang Jiaqiang's team was considered a success.

  However, the number of trading lots on this day was less than 100,000 lots, which was a full 100,000 lots worse than the previous trading day, and the total number of positions increased by more than 5,000 lots, which left room for market observers to imagine.

  The number of transactions is the number of contracts traded every day, which reflects the activity of the market, and the number of positions is the number of long and short positions that have not been closed after the market closes, which is commonly known as overnight positions. The owners of these positions include hedging oil companies, institutions specializing in futures trading, and naturally some speculators with large sums of money.

It stands to reason that the last trading day was the last trading day of the October contract. If the number of hands soared by both the bulls and the bears in order to obtain the most favorable situation for the final settlement price, then Eleven The trading volume dropped so much on the first day of the month, which only shows that the long and short sides are only in a lose-lose situation in the October contract.

  The futures market is a zero-sum or even negative-sum game. Either the east wind overwhelms the west wind, or the west wind overwhelms the east wind. How can there be a situation where both sides suffer? This is mainly because some investors in the market cleared their hedging orders in the futures market after making profits in the spot market, and some speculative orders with large amounts of funds left the market after making profits, which led to the trading volume in November plummeted.

  Naturally, these funds will not leave easily, and they will continue to enter the market after the long-short trend of the November contract becomes clear.

According to the huge change in trading volume, market observers generally took a cautious attitude towards the market information of the next day. As expected, the market just opened on the second day. It opened slightly lower than the previous session's settlement price of $18.05.

   "Sell 1,000 lots, let's see what's going on!" In the trading room, Zhang Jiaqiang stared at the numbers that popped up on the screen, and said thoughtfully.

The 1,000-lot sell order was quickly placed, and the market reacted immediately. The oil price suddenly fell by five price points, and soon fell to $17.94. The real-time trend chart became almost vertically downward. During this period of time, 1,000 lots 485 short positions were traded. Obviously, the bulls did not set up a strong defense at these prices, otherwise it would not be possible for the shorts to trade so much so easily.

  There is an unwritten rule in the capital market, that is, the five-minute trend of a general trading product after the start of trading determines the daily trend. Although this rule is not absolute, it can easily affect the direction investors choose later.

   It is impossible for bulls to back down at this time, otherwise they will be led by the nose by others. Soon, their counterattack came, and the remaining 515 empty orders above the selling price were instantly traded, and the price of crude oil futures in November rose accordingly, rushing to the position of $17.98 in one go.

Seeing that he was about to regain the position of the opening price, Zhang Jiaqiang was about to speak, but he heard Zhong Shi who was watching from the sidelines say: "Attention, now is not the time to fight the bulls, aren't we still profitable now? Let's see first." Look at the reaction of other shorts. I need to reiterate that what we need at this stage is to establish a short position with a huge position. The higher the average price of this position, the better, understand?"

  Seeing that Zhang Jiaqiang deviated from his original goal, Zhong Shi had no choice but to speak. As for the purpose of this operation, it is estimated that only he himself knows.

  Although he was very puzzled by Zhong Shi's order, Zhang Jiaqiang strictly carried out his order, and asked his traders to stop opening new short positions, and started closing positions instead.

  It turned out that the short sellers in the market thought that the short sellers that appeared out of thin air yesterday would entangle with the bulls for a while at this price, so as to test their intentions and test their financial resources. But they never imagined that after a little testing, the shorts would turn to go long and start to equalize the short positions they had just established in the market.

Seeing a series of empty and flat numbers appearing, the short sellers were a little confused. Except for the long orders of small stocks that started to follow the trend in the market, three closing orders were successively thrown out in terms of buying prices, all of which were more than 300 lots. The attitude of accepting the good has pushed up the oil price to a certain extent. Under the pursuit of Zhongshi's liquidation order and the bulls, the oil price continued to rise. After recovering the price of 17.99 in one breath, it did not stop and continued to rush up to 18.00 Dollar.

  Seeing a green line drawn on the screen, the short sellers couldn’t sit still immediately, and successively sold a total of 3,000 short orders at the price of 18.05 and 18.07, which was able to keep the oil price at 18.07 US dollars.

  Currently the latest quotation form is, the bid price is 18.06, pending orders are 501 pieces, the selling price is 18.07, pending orders are 1054 pieces. It seems that this wave of rising market is difficult to stop here, and it may even fall as a result.

   "We... can we go long, push up the oil price, and then wait until a certain price is reached before leveling it out." Seeing this situation, Zhong Shi said a little uncertainly.

  Zhang Jiaqiang was very speechless. When he met such a wonderful employer, he still pretended to be smart and ordered randomly, but he still had to do it. He really wanted to know if Zhong Shi knew, what he said was completely opposite to what he did yesterday, and he might even close out all the positions.

   Having said that, Zhang Jiaqiang quickly thought of a way, that is, to go long in December, so as to keep the short position in November. Only in this way, the contracts of two different months formed a hedge.

"Buy 1,500 lots, CONZ, break through the 18.10 mark first, I believe that under the impetus there in November, the bulls will respond soon." Zhang Jiaqiang thought for a while, and then issued an order to the traders waiting on the side ordered.

  At present, most of the main funds are concentrated in the November contract and the December contract. There is not much difference in price between the two, and the relationship is very close, and the trend is naturally roughly the same. The discount of the November contract to the December contract is about 0.5 US dollars, so when the November contract hits the position of 18.06 US dollars, the December contract is staying at the price of 18.10 US dollars.

With the addition of 1,500 new buy orders, the defense line set by the bears at the price of 18.10 was shaken in an instant, and the trading volume began to increase. The bulls who were still a little hesitant saw that someone launched an attack first, and immediately followed up with a follow-up wave. In an instant, the buy order suddenly increased to more than 3,000 lots.

  The sudden attack broke through the defense line of the bears at this price immediately. After breaking through the price of 18.10, the oil price skyrocketed, and it did not meet the defense line reset by the bears until 18.15, and then slowly stopped.

   "984 lots were traded, 516 lots were unsold, and the average price was $18.12. What should I do next?" After the oil price temporarily stabilized, the quoter asked Zhang Jiaqiang after unifying the positions of all traders.

"Leave two people, and slowly close the December contract, regardless of profit or loss. The other people, all transferred to the November contract, and started to open short positions." After Zhang Jiaqiang finished speaking, he looked at Zhong Shi beside him, Seeing that he had no objection, he added, "Be quick!"

  Stimulated by the December contract, the price of crude oil in November also went up all the way. The bulls broke through the $18.10 barrier in one go, and finally kept the oil price at $18.13.

It’s just that this is the highest point of crude oil price in one day. Originally, the bulls thought they could rush to the position of 18.15 dollars, but immediately there were a large number of empty orders in the market, and the momentum was extremely fierce. First, the bulls were placed at the position of 18.13 dollars. The list was wiped out, and then the bulls were cleared at $18.12, then the longs at $18.11, and finally pushed the bulls back to the psychological barrier of 18.10.

In another month, two traders placed long orders of 984 lots. First, more than 50 lots were traded at the price of 18.15, then more than 400 lots were traded at the price of 18.14, and then all orders were sold at the price of 18.13. position. In the end, this wave of long positions, which was almost a blitzkrieg, made a profit of less than 10,000 US dollars.

  In November, a total of 3,185 short positions were traded at three prices, with an average price of $18.12. Some of these contracts were newly opened long positions, and some were short resell positions.

The market's decline has not yet ended, and the big shorts have not yet made a move, they saw Zhong Shi's funds "messing around" for a while, and the effect was very good, but what they didn't expect was that this sudden rise was caused by this caused by the stock capital curve.

As the saying goes, "I will kill you while you are sick." After Zhongshi's funds suppressed the oil price to $18.10, the short sellers began to exert their strength, and successively threw five empty orders in the market, all of which were more than 1,000 lots. Directly penetrate the line of defense accumulated by the bulls in one fell swoop.

The next important hurdle may be 18.05. Looking at the menacing posture of the bears, I am afraid that the bulls will not last long. Just when Zhang Jiaqiang was about to further expand the results of the battle, Zhong Shi suddenly said: "Pause, today's That's the end of the deal!"

   "What?" Zhang Jiaqiang and all the traders were stunned. This is a good time to take advantage of the victory and pursue it. How could it be possible to just stop? All eyes turned to Zhong Shi, expecting him to give a reasonable explanation.

Faced with the gazes of so many people, Zhong Shi just shook his head slightly, and ordered unreasonably: "Clear all short positions gradually, and further increase the price of oil!" Then he turned his head and explained to Zhang Jiaqiang : "Such an average price is really a bit low, we have to change the previously formulated strategy."

   "Why?" Zhang Jiaqiang argued loudly. The next moment he realized his gaffe, he hurried to Zhong Shi's side, lowered his voice and asked, "Zhong Sheng, can you tell me what exactly you mean?"

   Thanks to book friends 080517140828477, 13907990067, for making me think, Monk Hua, Lu Zhiseng, and a20082209 for voting monthly for support! The monthly tickets for these two days are very powerful, and the author's emotions have also been mobilized. At the end of this month and the end of the year, the author is going to write overnight to try to get another chapter tomorrow. I hope everyone can vote more actively on the last day to support ,thank you very much!

  (end of this chapter)