Chapter 181 Closing the position and leaving the market

  The rise in several consecutive trading days made the price of copper futures rush to the position of 2,400 US dollars in one fell swoop, which made the long positions established by Zhongshi reap a lot. Although he liquidated more than half of his long positions in June, he still holds nearly 20,000 July contracts, because the price of copper futures contracts in June soared, which raised his average price to $2,180.

However, Zhong Shi does not plan to continue to operate in the copper futures market, because he has made enough profits as the short sellers conceded and left the market in early June, but the future direction is not so easy to grasp, although he knows that there are still risks in the market. The bulls are continuing to raise the price of copper futures, but the opponent's operation is extremely clever, and the intention is long-term. Because of the time difference, Zhong Shi couldn't continue to stay up late to operate, so he had the idea of ​​leaving the field.

  If the long position of 20,000 lots is liquidated in the market at once, it will inevitably cause violent fluctuations in the price of copper futures in the short term. Zhongshi has prepared another strategy for this.

  In his view, although copper futures prices will fluctuate in the short term, the future trend will undoubtedly continue to rise, but Zhong Shi does not know when this rising trend will end. However, he has enough time and patience. After research and analysis, he set the price at $2,500.

In the following month, the price of copper futures sometimes rose and sometimes fell, and the long and short sides showed a stalemate. However, with the entry of June option bulls, the bulls once again gained strong support. By June 22, the copper futures The price rose again, once rose to $2495 in the intraday, and finally closed at $2465, only one step away from the price of 2500.

   "Bryan, close 1,000 lots at the opening, and test the reaction of the bulls." On Thursday, June 23, shortly after the current copper market started, Zhong Shi ordered Brian to enter the market.

   "Piece 1000 hands?" Brian was speechless for a while, he didn't understand why Zhong Shi acted like this. According to his estimation, Zhong Shi currently has 20,000 long positions in his account, and the floating profit has reached 150 million US dollars. This figure is very scary, and anyone with a discerning eye can see that in the future, As long as the world economy continues to rise, the price of copper futures will hit new highs.

  Closing a position in this situation, in Brian's opinion, is pure unwiseness. The only explanation is that because July is approaching, Zhongshi needs to reduce the position in July and put the main contract on other distant months.

Zhong Shi intends to withdraw completely from the copper futures market, because the copper futures market is different from other markets. Data such as trading volume and contract date need to be paid attention to at all times, otherwise he will face delivery if he is not careful. What will he get then? To deliver, although he has part of the copper in the warehouse, but this amount of copper is not enough for one-tenth of his position.

   "Follow my orders!" For Brian's confusion, Zhong Shi didn't need to explain at all, and he didn't want to explain. Because in the eyes of the brokers, the more frequent the client's transactions and the larger the number of transactions, the more beneficial they are, and the profit and loss is not something they consider at all.

  1,000 lots of long position closing orders appeared in the market, which immediately caused the copper futures price, which opened higher, to go down by two prices, and the immediate price fell to $2,485. But soon the bulls took action, and gradually took over the liquidation order at several prices, but when the price fell to $2,480, the liquidation order was completely consumed.

Seeing this situation, Zhong Shi hesitated a little. He was 60% sure that the transaction was operated by the longs, because if it was the shorts, they were likely to buy them all in the first place, allowing other market participants to I saw the determination of bears to suppress copper futures. And this kind of gradual buying method has been seen many times in the market in May, and what followed was a sudden increase.

   It’s just that the bulls have taken so many positions, what are they going to do? You must know that these contracts are all in July. If you don't close your positions now, you will soon face the risk of delivery. Zhong Shi will not simply think that the bulls are preparing to use these contracts for delivery.

  If it is not used for delivery, then the biggest possibility is to close it in the last few trading days of June. Thinking about it this way, Zhong Shi understood the intention of the bulls. They were going to take advantage of the opportunity to change positions to force the shorts to double at a high position, and the previous pull-up was entirely to establish a good bottom position.

After thinking about it, Zhong Shi knew that today's price will not rise much. Firstly, facing the integer point, all kinds of moving averages will form pressure on the rise. In addition, it is the intention of the bulls, they will not spend any more effort to push up .

  Thinking of this, Zhong Shi no longer hesitated, and once again placed a total of 5,000 lots of liquidation orders on the market. When the liquidation order appeared, most of it was taken over by the short side. It seems that the short side also understood the intention of the bulls, and they also accepted the liquidation at this price, and the trading volume in the market began to increase continuously.

   "How many positions do we have at the end of June and early July?" On the side of Sumitomo Trading Company, Hamanaka Yasuo asked Kenjiro Oshima eagerly. In the process of pulling up in early June, they made another big profit, but in the subsequent market, they began to gradually close out these bottom positions, and instead built positions in mid-to-late July, August and even September. It is also the reason why the price of copper began to fluctuate after rising to $2,400.

   "About 8,000 lots. Just now, long positions have started to be closed. According to the estimates of our traders, there should be around 4,000 lots." Kenjiro Oshima shuddered and replied quickly.

Binzhong Tainan is not afraid that he will not be able to get rid of it, because he still has some cash in the copper warehouse, but the position of 8,000 lots is still not a small amount. copper number.

   "Don't liquidate for the time being, raise the price again, and see the reaction of the short sellers." After pondering for a moment, Hamanaka Yasuo decisively issued such an order.

  Kenjiro Oshima was dumbfounded immediately. He never expected that the bulls and the bulls had a preliminary tacit understanding on the closing price. Why did his boss want to raise it again? However, out of professionalism, he tactfully shut up and turned to give trading orders to traders.

  As the bulls pushed up the copper price again, the copper price suddenly turned from falling to rising. It started to rise from $2,475 just now, broke through $2,490 in just a few minutes, and approached the integer point of $2,500 in the blink of an eye.

  …

   "What are the bulls doing?" When Zhong Shi saw the situation on the board, he couldn't help but feel a little bit puzzled. He just threw out a 5,000-hand liquidation order, which was almost equal to the short side. As a result, under this circumstance, the bulls here made another surprise move and started to raise the price of copper futures again.

  There are only two possibilities. One is that the bulls think that the other bulls are almost flat, and they just entered the market to pull up. The other possibility is that the bulls have already completed the swap, and they are now laying the foundation for the next month.

  No matter what, Zhong Shi was very happy to see this situation. He immediately dialed Bryan's phone number: "Open 1,500 more lots, entrusted at market price, and the time is from late July to August."

  Hearing Zhong Shi's order, Brian felt a little insane. Just now, this client closed a total of 6,000 contracts, and now he opened a new long position. What the **** is he going to do?

   The upside bulls had their allies, and instantly broke through the defense line set up by the bears at $2,500. In fact, the bears did not set up much defense at this position, because in their view, $2,500 is an acceptable closing price for both parties. As a result, the bulls did not abide by this tacit agreement, and the bears caught off guard were caught off guard and could only watch the price of copper futures rise to $2,507, which had already set a new high.

"Close all the remaining 14,000 long positions, in June and early July, the speed must be fast!" Zhong Shi did not expect that the price of copper futures rose to this position. In his opinion, the short position will definitely be set at an integer point With a strong line of defense, 2500 was penetrated at once, which made him a little speechless. But after being speechless, he quickly reacted and quickly gave Bryan a trading order.

Tens of thousands of long liquidation orders suddenly appeared in the market, which immediately stopped the price that had just risen, and quickly reversed downward. Following the trend, thousands of liquidation orders were taken, and the short sellers also took the opportunity to issue some liquidation orders. The trading volume of Shuangping continued to increase around 2,500.

  However, the number of Zhongshi’s liquidation orders is too large. Even though short positions and follow-up orders took over, the price of copper futures still fell below $2,500.

  …

On the side of Sumitomo Corporation, when the traders saw that the copper futures price they had just raised was suppressed by the liquidation order to below $2,500 within a few minutes, they couldn't help being a little angry. The bullish forces took advantage of this opportunity to flee, and in large numbers.

"In this case, let's close our positions too!" When Hamanaka Tainan heard the news, he knew that today's pull-up was impossible, because with the departure of the bulls, there was no way to follow suit. He lost his confidence, and he also has a lot of positions that need to be closed, and the short sellers will not give him a second chance to break through $2,500.

  The two sides began to close their positions intensively in the range of 2490 to 2500 US dollars. When all the positions of Zhongshi in late June and early July were all closed, the price of copper futures was also firmly pegged at around 2490 US dollars. This is also the closing price on this day, and the trading volume has reached 100,000 lots, most of which are the contracts of June and early July between the long and short sides.

  The average price of all contracts that Zhong Shi closed on this day was $2,494, a total of 20,000 lots, and the average price of opening positions was $2,180, making a full profit of $157 million. On the one hand, it is because of his unique vision that he established a considerable number of low positions as early as April and May; So far, except for a few unbalanced contracts, he has no large positions in the copper futures market.

In nearly half a year, he has earned a total of nearly 200 million U.S. dollars in income in the copper futures market. This achievement is already very impressive, but Zhong Shi does not intend to continue, because in his opinion, there is not much room for future copper futures to rise. Big, even though he knows that the bulls are still pulling up.

   Thank you very much for the support of the book friend Red Golden Armored Knight! Today is the Lantern Festival, thank you for your attention to this book, and wish you all a happy holiday!

  

  

  (end of this chapter)