Future chat group

Cotton is a strategic resource. When supply exceeds demand, the state will open warehouses to receive goods. When supply is less than demand, the state will open warehouses for storage.

The strange thing is that this year’s cotton harvest is considered to be a bumper one. It stands to reason that the market is not out of stock. How about putting it in storage? Are you going to increase your reserves? what the hell is this? For what reason?

"Increase the intensity of purchasing and stockpiling while also increasing the intensity of stockpiling? Did the leaders of China Reserve Cotton decide the policy on their heads?" When Lei Hao came to the futures company, the news he received still did not completely dispel his doubts.

Increasing procurement and storage means collecting more cotton from this year's bumper harvest into storage warehouses, and at the same time releasing news that we will increase storage next year. It seems that the impact of the two directions is offset by hedging.

But that could lead to one thing: There's more of a human element to cotton prices.

Xiao Peijie and Chen Xizhi didn't think so. They were quite anxious.

The project team is targeting the cotton futures contract for May next year, which is completely affected by the stockpiling, which is completely negative for them.

Do you want to withdraw? This was a very serious issue, and Xiao Peijie and Chen Xizhi backed down for the first time.

"No, the cotton 05 futures price on the 23rd is 10,300. Relatively speaking, it has dropped a bit, but not too much. On the 7th of next month, it will rise back to 10,545. There is almost no drop." Lei Hao felt very strange.

"Mr. Lei, should we... withdraw and wait and see?" Xiao Peijie couldn't help but ask in the small conference room.

Chen Xizhi also said in agreement: "Our position is very light and we can exit at any time."

"No need!" Lei Hao waved his hand. The thoughtful look on his face did not weaken even a little bit, but he still said firmly: "I feel that it will continue to rise in the past two days. The work of building a position can be slowed down a little. When it falls a little more, we will Convert funds into positions.”

"Rising? This is impossible." Xiao Peijie opened his mouth wide.

"If it is the 01 contract, it may rise a little, and the 05 contract should probably fall." Chen Xizhi also expressed his opinion.

"It rises first and then falls. It increases the volume first and then shrinks. That's what I think." Lei Hao looked at the two people and said decisively: "This is a negative, but it can also be interpreted as a positive."

"Cotton is stored in warehouses, but the market demand for it is rigid. The intensity of storage will inevitably reduce the warehouse receipts. Maybe... it may rise instead."

The more Lei Hao thought about it, the more excited he became. The cotton was put into the reserve warehouse, and then what? The supply of goods in the market has become less. What should you do? As a fund that is optimistic about the future market price, you should take this opportunity to speed up the speed of building a position.

Then what? After the news of increased stockpiling is released, cotton-using companies will definitely reduce their inventories before stockpiling.

What next? Can cotton-using companies really get the orders released by China Cotton Reserve? Will traders get involved? The funds of the bulls are waiting for help.

And finally? If they can't get enough raw materials, cotton-using companies will definitely have to turn around and go to the market to scan for goods. What will happen then?

The whole thing is interconnected, and interests drive many market participants to weave a web.

Lei Hao feels that the targets that will be trapped will probably be cotton-consuming companies.

Thinking about the recent market situation, Lei Hao is now very curious, what tricks will cotton companies use, how will the market respond, and what strategies are speculative funds quietly laying out?

Xiao Peijie and Chen Xizhi felt that Lei Hao's analysis this time was unreliable. After the negative news came out, the price of the underlying security actually rose? The probability of this is very low.

"Although a slight decline is a good time to build a position, I'm afraid I won't see the bottom line." Back in his office, Xiao Peijie was very worried.

"The most important thing is to have a bottom." Chen Xizhi also lost confidence.

To put it bluntly, long-term position building means slowly converting funds into positions.

In a long-term bullish scenario, the price of the underlying security falls? It’s easy to handle. We continue to build positions, but our position building is actually to support the price. There is a degree that needs to be grasped.

When it starts to rise from 10600 to a high level, entering the long position means competing with others for funds, and it will add fuel to the market's bullish sentiment. This kind of operation is not suitable for the project team.

Lei Hao's advice was simple. When the price of the underlying security began to fall from a high, he asked the project team to start building a position.

10,500, one or two thousand hands? Received.

There are two or three thousand hands in 10400? Bought.

There are five or six thousand hands in 10300? wanted.

Each price will provide corresponding trading orders when it goes down. Lei Hao's purpose is to eat these selling orders and slowly exchange funds for positions.

He also knew very well that the worries of Xiao Peijie and Chen Xizhi were nothing more than the fear of not seeing the end, to be more precise, they were afraid that they would not see the end in the short term.

Although a long-term decline is conducive to attracting funds and building positions, what if it continues to decline? Ten thousand or twenty thousand hands dare to hold it, but what about thirty thousand or forty thousand? After holding tens of thousands of positions, does it continue to fall?

These are all costs, which will lead to book losses, and which will also lead to compression of profit margins.

Moreover, Lei Hao is not only doing long-term business here, his Thunder Investment is also doing short-term business.

The money given by Qingyu is for long-term use. Lei Hao is currently just building positions at the right price. Lei Hao’s funds are for short-term use and the position is not high, but he will definitely ship at a high price within two days. In other words, two days Within three trading days, Lei Hao will add a boost to the decline in the underlying price.

Knowing that the price will fall to around 10,300 on the 23rd, Thunder's funds have even decided to go short at the recent high, and then... these selling orders are likely to be taken over by Qingyu's funds.

According to Lei Hao's thinking, although Xiao Peijie and others did not speak, they knew very well that if there was even one mistake here, Lei Hao was using Qingyu's funds to fill a hole for himself and the market.

"My arms can't hold my thighs. Haha, if this is a Thunder project, what will Lei always do?" Xiao Peijie felt bitter in his heart: "The harder it is to see the bottom, the greater the pressure will be on us."

"Do your best and obey fate." Chen Xizhi could only do the same.

On this day, Lei Hao clearly felt that the two key figures in the project team, Xiao Peijie and Chen Xizhi, were always reporting to him.

The contents are all analysis of the market and personal opinions, and the purpose is very simple. They all feel that they should postpone opening positions because the underlying price is unlikely to bottom out in the short term.

Of course, Lei Hao could only reject it. His view was that the short-term bottom had been reached and he was optimistic about the market outlook. It was the right time to open a position at this time.

With his usual strength, Lei Hao pushed forward the project almost alone. However, after a few days, on Monday the 14th, he also felt that the eyes of several new subordinates were a little strange, as if... they suspected that he was harming the public and enriching himself. .