The Son of Finance of the Great Age

  Chapter 138 Opening a High Position

  A total of 220,000 lots were traded on this day, a full 110,000 more than the previous trading day, and the trading volume doubled. In addition, the open interest has also increased by more than 10,000 lots. It is obvious that some people are optimistic about the future trend, so they boldly hold the overnight position.

The other fierce battle between long and short has nothing to do with Zhongshi. Such a trick of fleeing at the $19.00 position is enough to arouse the hatred of bulls. It has been missed by bulls for a long time.

  You must know that there are countless examples of people dying for money, birds dying for food, suffering big losses in the financial market and then retaliating in reality. Take the famous treasury bond futures incident that led to the collapse of Wanguo Securities as an example. It is rumored that a certain general manager of the last long winner was assassinated by an unknown person a few years later. Although he survived, he had to flee overseas in order to save his life. .

  The next day, crude oil futures opened higher by US$0.03, and the bullish sentiment in the market was still very strong. It must be known that the previous day broke through 19.00 US dollars, and today it is very likely to break through again, and even the final settlement price will stand above 19.00 US dollars. When everything happens for the first time, it will appear again and again. Sure enough, shortly after the opening bell, oil prices rose again towards the $19.00 mark.

   This time, the main bulls in the crude oil futures market are not in a hurry to break through this barrier. They are very worried that the scene of yesterday will reappear, that is, the forces with a large amount of funds left the market with profits, causing great pressure on the rise. After following the trend for most of the day, they were convinced that another group of bulls would not take the opportunity to make trouble, and then gradually launched an upward attack, and the price of crude oil futures also broke through the $19.00 mark following their attack .

   The bears obviously didn't set up much defense at this price. They just gave up after some symbolic resistance. Obviously, yesterday's attack made them lose their strength, and they had to give up an integer point again.

  In addition to these, the total open interest in December and January 1994 also increased slightly. This is obviously a short seller who is preparing to shift the battlefield and trade time for funds.

  Although it is not sure whether the short sellers intend to admit defeat, after all, there are still some days before the delivery of the November contract, but the increase in positions in the far month is undoubtedly a signal, that is, the bears are somewhat unable to resist.

Stimulated by these signals, the bulls undoubtedly increased their confidence. They began to place long orders with large lots frequently. jump up.

   "What kind of price are we going to raise to?" In the trading room, Zhong Shi never issued a trading order, Andrew and the others couldn't sit still, and looked at Zhong Shi in unison.

"It's almost reached my psychological expectations. But now that the bulls are aggressive, it's not easy for us to enter the market. I think that when it reaches $19.10, the shorts will definitely make a move. At that time, we will work together with the shorts to suppress the price!" Holding a steaming cup of coffee, Zhong Shi said calmly.

  During the conversation, the price of crude oil futures reached 19.09 US dollars. Seeing that the number of lots on the purchase price list was still high, Liao Xiaohua was the most impatient, and couldn't help asking: "Then how far are we going to suppress the price of oil?"

"It can't be said to be suppressing, otherwise we will become manipulators of the market." Zhong Shi frowned and corrected Liao Xiaohua's statement, "The goal is still the same as before, try to absorb the empty orders of high-level crude oil, and by the way, also in other oil contracts. Absorb the corresponding empty orders, and when the right time comes, let's do it."

The price of crude oil futures finally rushed to 19.10 US dollars. At this time, a sell order of 5,000 lots suddenly appeared on the selling price list, and all the buying orders placed by the bulls at this price were cleared in almost a minute. Just when the price was about to fall At the same time, the bulls also began to exert their strength, throwing out a total of more than 3,000 buy orders one after another, and stabilized the price together with the trend.

   "Let's do it!" Seeing this scene, Zhong Shi said lightly, "First open 1,000 lots at the market price, to prove our existence!"

  Following his order, several people who had been preparing for a while began typing on the keyboard quickly, and a few seconds later, an empty order of 1,000 lots appeared on the side of the selling order.

  For the sudden large amount of empty orders, the bulls were obviously mentally prepared, and almost immediately after the appearance of the empty order, they sold a buy order with a similar lot size, which made the crude oil futures price stay firmly at $19.10.

  They have long been prepared for yesterday's fund betrayal, after all, they have learned from the past. But they can't blame others, because everyone is doing it for a profit, and no one can accuse the despicable behavior of betraying water.

The bulls sold more than 10,000 hands in the first contact, which made the follow-up market confident. Most of them hoped to repeat yesterday's market, but this is absolutely impossible, and the shorts may come back again. Some concessions, but two days are enough for them to mobilize a new batch of funds to enter the market.

In addition, although the bulls have made a lot of profits in the past two days, they have different views. Some bulls may hope to take advantage of the victory to pursue, while others may close when they see a good deal. Those who close when they see a good deal are bound to close their positions , This puts pressure on the bulls who are focused on attacking, and this pressure is reflected in the number of turnovers on the market.

But the situation is not blindly favorable to the short sellers. It is the short sellers who lose the most money now, and in this case, some short sellers with small funds are very likely to admit defeat and leave the market, or even turn back and go long. sure thing.

  But for the main long-short hedgers who are really hedging, they have heavy positions, large hands, and great influence in the market, so they don't have many opportunities to choose. Although the number of trading hands in the market reaches 100,000 hands every day, it is difficult for them to convert positions of tens of thousands or even hundreds of thousands of hands in a short period of time.

  Since there is no way out, you must fight every step. The best result is to change the direction of the market and make the market follow the trend to your side. Although the amount of funds in the follow-up market is not very large, due to their frequent transactions, they are required to charge forward at unimportant positions.

The position of $19.10 has been entangled for a while, but the bulls have not broken the defense of the bears for a long time, which makes the wind direction start to change a little bit, and the strength of following the trend is not as fierce as before. The intensity is getting stronger and stronger.

Under such circumstances, the main force of the bulls is naturally the most anxious. After being silent for a long time, a large purchase order of 20,000 lots suddenly appeared in the buying order, which immediately marked up two short positions that had just emerged. The short positions at these prices were wiped out, and the price of crude oil futures jumped to $19.12 in an instant.

This is the shrewdness of the bulls. Seeing that the follow-up market is unable to break through, they attack with lightning speed at the critical moment, breaking through the defense line set up by the short-sellers in an instant, which makes the confidence in the follow-up market soar, and the buy orders with small lots follow suit again. more up.

   "Sell 1000 lots!"

   "Sell 3000 lots!"

   "Sell 5,000 lots!"

  Seeing that the price of crude oil futures rose by two points suddenly, Zhong Shi was a little confused, not knowing what the bears were thinking. What he didn't know was that the short sellers had set up as many as 50,000 lots of heavy soldiers at the position of $19.15, while they had only scattered more than 30,000 lots of empty orders at the previous price levels.

The wishful thinking of the bears is to absorb most of the attacks of the bulls at the first few prices, and then counterattack aggressively under the premise that the bulls are unable to attack at $19.15. Although there is a price to be paid for this trick to lure the enemy deep, since the short settlement yesterday A large sum of money has been invested, and they have buried a big hole for the bulls in front.

It’s just a little dramatic that before the bulls reached the pit, they were attacked by Zhongshi. After opening a new short position of 9,000 lots, Zhongshi and the short order previously set by the bears held down the bulls at $19.14 position. Seeing that the bulls were weak in attacking, the bears who were still lurking behind immediately reacted, and immediately entered the market to sell a large amount of empty orders.

At this time, the advantages and disadvantages of the strategies of both sides are shown. After the long position that breaks the integer point is closed, the long position does not have enough funds to open a new long position. After all, they still need to reserve part of the funds for defense purposes. , and the short sellers only need to attack blindly, because they can see that another short seller has appeared in the market, and judging from the two-day operation, the amount of funds is not small.

Following the trend is the most tragic situation at this time. Their new long orders are often immediately eaten by short sellers. When they are still immersed in grabbing the main long orders, the crude oil futures price suddenly drops several prices, and instantly recovers. At $19.10, their self-satisfaction turned to frustration. The smarter among them chose to cut their flesh and leave immediately, which was a wise choice. Others choose to wait for the bulls to attack again.

This is destined to disappoint them. The bulls have already exhausted almost all of their liquidity when the price of the oil index was raised yesterday and today. Although they have a lot of floating profits, they can't open many long orders with this money. , which is very different from a short position with a new force. Under the combined force of the original short sellers and Zhongshi two funds, the price of the oil index was finally suppressed to 18.80 US dollars, which was also the lowest price of the day.

Naturally, in this process, whether it is a new long position, a short exchange order, or a long liquidation order, they are all eaten up by the main short positions and follow suits, and they naturally absorb a large number of hands in the process. , Occupying a lot of their margin, after showing a little fatigue, the bulls who closed some of their positions began to attack again.

  The two sides of the market saw each other like this, and the final price stayed at $18.99, an increase of 0.47%. However, the offense and defense of this trading day were not inferior to those of the previous trading day. In the end, it was the bears who spread the funds of the bulls at various prices, and finally forced the upward momentum at the price of $19.14.

  The market is about to reverse.

   Today, I would like to thank the book friends for their monthly ticket support tonight, I am blooming like a flower in the epiphyllum, making me think, smile...!

  (end of this chapter)