The Son of Finance of the Great Age

  Chapter 199 The third positive line (2)

   Before the analyst’s voice fell, an urgent news was interrupted on the TV screen: the negotiations between the labor and management of Chile’s state-owned copper industry collapsed, and the labor announced an indefinite strike from today until the management agreed to their conditions.

  Originally, the labor side and the management side planned to conduct the third round of negotiations on the next day. According to the news released from the previous two negotiations, the labor and management sides are very likely to reach a new agreement. It is said that in this new agreement, the employer will increase the salary expenditure by 5%. Although there is still a distance from the 10% required by the labor side, the market generally believes that the two sides are likely to reach a new agreement.

  The recent skyrocketing copper futures price has changed everything, making labor no longer satisfied with this little 5%, and their attitude has become extremely tough, insisting that the employer agree to their 10% condition. The labor side unilaterally declared a strike without waiting for the third round of negotiations to start.

  The timing they choose is also very particular. It is precisely during the London copper futures trading time, and this effect is what they want, because the price of copper futures rises again, and the employer has no reason to refuse.

  Currently, the price of copper futures has risen by nearly 300 US dollars compared with the time when labor announced that it would raise wages, an increase of more than 10%. Compared with about US$2,500 in August and September, it has risen by more than 15%. From the perspective of the beginning of the year, the increase has exceeded 20%. Under such circumstances, it is not too much for the labor side to ask for a 10% increase in salary.

The employers have their own considerations. They are well aware that the copper price is currently on a rising trend, and the sustainability of this trend is doubtful. No less, the copper produced by Chilean Copper may lose its share in the global copper market. In the end, it will not only hurt the management, but even the workers who have been clamoring for a wage increase may also be forced to cut their wages.

  In any case, the capital market immediately reacted to the news, and the price of copper futures rose immediately, reaching the $2,950 mark in less than five minutes.

   "Zhong Sheng, shall we close the position now?" It is obvious that the bears were not prepared enough for the news, and the defense at the high position was insufficient, so in such a short period of time, the bulls made an upward attack of more than 50 points. Of course, it is not certain that this is just the pull-up of the bulls, because when some bears hear this reason, they are likely to choose to close their positions immediately, which may also drive the price of copper futures to rise.

  Seeing the sudden change in the market, Andrew felt a little lost in his heart, eager to ask Zhong Shi to give him a general direction for trading. Now there are two paths before Zhongshi. The first is to continue to go long, and even raise the price of copper futures to 3,000 US dollars today. See this situation.

   "Wait and see how the other bulls react!" Zhong Shi couldn't make up his mind for a while, so he could only use such words to perfuse Andrew.

At this time, what he was thinking more in his mind was whether this was a trap set by some bulls. The "appropriate" news broke out at this time today, which is just conducive to the liquidation of this long position, or has other purposes.

If it is to close the position, then the rise brought by this news will not be sustainable, and the copper futures price will even fall due to the liquidation of the bulls. If the copper futures price continues to be pushed up, then the bulls will not close their positions. It is even possible to increase the position, and the price of copper futures will probably break through the historical mark of 3,000 US dollars in one fell swoop.

  The difference between these two situations, for Tianyu Fund, is the difference in profit, and the difference between the two even reaches tens of millions of dollars, which cannot be ignored by Zhong Shi.

  …

  Sumitomo Corporation, after hearing the news of the Chilean copper strike, Hamanaka Yasuo came to the trading room immediately, and he personally handled this emergency.

   "Open 1,000 more lots, the December contract, all sales orders at and below 2,945 US dollars have been cleared." Binzhong Tainan said calmly and expressionlessly.

  Having been immersed in the market for so long, Hamanaka Yasuo already has a more accurate concept of the number of market transactions at certain moments. In the current situation, there will definitely be a swarm of buying orders in the market, whether they are newly opened or empty, and these buying orders will quickly push up the price of copper futures in a relatively short period of time. Hamanaka Tainan made a little estimate, and fixed the number of hands at 1,000 hands below $2,945. According to his estimation, it would be considered good if half of the 1,000 lots were sold.

   Sure enough, three minutes later, the copper futures price reached $2,950, breaking through the highest price set by Hamanaka Tainan, and the copper futures price was still rising, but the rising momentum was not as fierce as when the news first came out.

   "412 lots were sold, less than half!" Oshima Kenjiro walked over, leaned over and said in Hamanaka Yasuo's ear.

  Binzhong Tainan nodded, and after a moment of silence, he suddenly said sonorously: "Gentlemen, it's time for you to witness the historical price of copper futures!"

  The traders were stunned for a while, and soon they realized what Hamanaka Tainan meant. These traders exchanged glances quickly, and almost all of them had expressions of extreme excitement on their faces. They knew that their bosses had reacted to the sudden situation by pushing the price of copper up to $3,000.

The position of Sumitomo Trading Co., Ltd. has not been leveled much in the past two days. Originally, they could have gradually leveled out after 2,900 US dollars like Zhongshi, and then gradually changed the contract to the contract with the trading peak in December and January next year. . But Hamanaka Tainan is not satisfied with the current profit situation, so even if he has made a huge profit, he has no plans to close the position.

   Now that there is this once-in-a-lifetime opportunity to push up, according to Hamanaka Yasuan's character, he will definitely not miss it. Because in this case, their closing price will be much higher in the future, and Hamanaka Yasuan will not let go of any opportunity to expand profits.

   It’s just that the price of $3,000 is a bit inflated, so even though the traders were mentally prepared just now, they were extra excited when they actually heard the announcement from Hamanaka Yasuo.

  …

  Consecutive large-amount buy orders entered the market, which immediately erupted the hesitant bullish sentiment in the market. Followers knew that the main funds finally responded, and this reaction was to continue to raise the copper price, which was already somewhat inflated. They are naturally scrambling to enter the market to do more, hoping to get a share of this wave of market prices.

   "It's already US$2,984, Zhong Sheng, we should make a decision sooner!" Seeing that Zhong Shi still looked like an old well, Andrew became even more anxious. In any case, Tianyu Fund must make a certain response, no matter whether the response is to continue to do more or to close the position.

   "Close the position, we don't go long, the risk is too great now." Zhong Shi turned around, stared at Andrew with piercing eyes, and said word by word.

"What?" Andrew was taken aback, and looked at Zhong Shi in disbelief, but seeing Zhong Shi with a resolute face, he couldn't help but feel a little discouraged, and swallowed the words he wanted to dissuade, and could only reply dejectedly: " Well, let's take a look at a part."

   A sell order of 1,000 lots just appeared on the market, and it was swallowed up in less than two minutes. Copper futures prices did not even drop a dollar, but rose again after a two-minute pause at $2,985.

"Why didn't the short sellers respond?" Andrew couldn't help but wondered. Seeing 1,000 sell orders appearing in the market without even a splash, he didn't dare to blame Zhongshi, but could only complain about the invisible and intangible short sellers. .

Zhong Shi smiled slightly, and said indifferently: "Andrew, you are so confused, we are short now!" He pointed to the numbers on the screen, and said meaningfully: "You know how we make deals Is it right? If I guess right, part of it is the liquidation order of panicked short positions, that is, double-even; ?”

   "Can't bear it anymore?" Andrew shook his head and asked back in surprise.

"Not bad!" Zhong Shi nodded and continued, "Don't look at the current rise in copper futures prices. Most of them are short positions. Some bulls choose to continue to increase their positions at this time. The resulting situation is The short position in the market is hard to buy, and this situation has exacerbated the price increase. If my guess is correct, it is very likely that some bulls are at work."

"I believe that when it reaches around $2,990, the bulls will exert their strength, and it is very likely that they will break through the $3,000 mark in one fell swoop. Of course, the bears will not sit still, and will definitely set up a strong defense at $3,000. At that time, there must be a battle between the two sides. Fierce battle."

   "What about us?" Andrew asked.

  Zhong Shi smiled and did not answer. He already understood what Andrew meant, but he did not intend to continue to do more, but took advantage of this golden opportunity to close his position as soon as possible. Although several traders didn't understand, they could only operate according to Zhong Shi's order, and quickly threw out liquidation orders in the market.

With a steady stream of liquidation orders, the short side also has enough funds to return. Although Sumitomo Corporation continues to open long positions, Zhongshi also continues to throw out liquidation orders, and the price of copper futures has become two big. The bulls fought against each other, and the shorts who were eager to close their positions were not to be outdone, and they also snapped up multiple orders to close their positions in the market. The three forces started a battle around $2,990.

After closing out a full 15,000 lots of long positions, Zhong Shi’s operations finally stopped. On the one hand, it was because the long positions that were constantly taking over had shown signs of not continuing to take orders; The funds continue to open new short positions at high levels. If this situation is allowed to continue, I am afraid that the price of copper will fall in the long term, which is definitely not in Zhongshi's interest. Therefore, when it reached $2,992, Zhongshi decisively stopped closing positions, and instead began to go long slightly.

  When the large selling orders disappeared in the market, the price of copper futures began to rise again, and soon approached the mark of 3,000 US dollars.

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  (end of this chapter)