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At first glance, the lack of positive news seems to be beneficial to short sellers, but it is actually targeting short sellers such as the Thunder.

The upward momentum of the index weakens, and Thunder's closing speed is limited. While the index does not rise, although it means that the upward trend is not good, it also eliminates part of the downward space.

Long and short, rise and fall, require not only kinetic energy, but also space. Compressing space is equivalent to eliminating volume energy.

In the current Korean capital market, the role that does not want to see an explosion in volume is the regulators. Compared to the profit-seeking long and short sides, the Korean authorities as managers want stability more. If it can be stable and slightly improved at the same time, that is Perfect situation now.

It’s just that both long and short parties must complete the hedging. No matter what the information is, big funds actually have the right to interpret the information. The same data can be bullish or bearish to find a basis.

"Just attitude is not enough to stop capital from launching an attack!" Everyone in the financial circle understands this truth.

On October 14, ignoring the Korean authorities’ goal of maintaining stability, the Korean capital market continued to hedge vigorously.

"Even in the face of all kinds of difficulties, South Korea has maintained an economic growth rate of 2.5%..."

"The political situation will always be stable, agreements will definitely be signed, and communication will definitely be restored. Maintaining economic data means maintaining upward momentum."

The market was immediately divided into three factions. Capital hoped to determine the outcome through hedging. The authorities' goal of maintaining stability was regarded as nonsense. The daily trading volume of the Korean stock market continued to increase. The capacity of institutional seats exploded. Capital expressed a "step aside" attitude toward the authorities. .

Regulators are helpless. The power gained from neutrality appears to be full of concerns when they need to go into battle naked.

But the regulatory authorities are also powerful. Whichever side they prefer, they can raise the royal flag at any time.

Seoul.

"Have the communication been completed?" At the Third International Financial Center, Mayor stared at Li Enjing nervously.

"The stock market rose, and the Korean won first appreciated and then fell. The authorities paid such a high price to stabilize the market. Mr. Kent thinks they will agree so easily?" Li Enjing's face was gloomy.

"It's better to go up than to go down. We can promise not to withdraw funds." Mayor felt a little guilty.

"The Plaza Accord is a lesson learned from the past." Li Eun-kyung complained, but the situation in the Korean market is not that serious now. It is just a conflict between financial institutions, which is far from the difficulties faced by Japan at that time.

Li Enjing was just trying to show his presence on behalf of Han Li and some chaebols in South Korea. After thinking about it for a while, he said: "As you said, going up is always better than going down. Everything will be business as usual."

"That's good." Mayor waved his fist: "Our dear Chinese friends, are you ready to face failure this time?"

There was laughter in the conference room.

Being manipulated by Lei Lei, the US and South Korean institutions were full of resentment. Originally, everyone planned well, and the capital tacitly held bullish positions, heated up the Korean market, and then harvested profits based on their ability.

Suddenly the Thunder announced that they would no longer play, and that they would jump into the air more often. What kind of fucking thing is this? This kind of counter-attack behavior really makes bulls feel as sick as eating dead flies.

What's even more annoying is that Mayor and others thought they had tricked the Thunder once, snatching food from the opponent's mouth and grabbing a lot of chips. They never thought that what the opponent threw at them was not food, but that they could not hold it back for a long time. Want to poop out.

When institutions form a tacit understanding, in an open market like South Korea, the position of regulators is actually very awkward. All the signals they release will be misinterpreted by capital.

But when big capital diverges, the role of regulators becomes very obvious.

South Korea did not revise its economic growth rate as planned. The authorities were trying to release their attitude. But just as Lei Hao expected, he could not get support from fundamentals because... Rather than letting the index fall back, South Korea hopes that the KOSPI index will fall back. Rise, preferably steadily.

Even if a rise comes at the cost of a slightly excessive currency depreciation, it is better than falling back and causing chaos in the market.

Hong Kong Island, Thunder.

"Without Thunder's selling, the index may not rise with the trend. The Korean stock market has deviated from reality." Lei Hao sat in the office and communicated with the other side on the phone: "President Park, my suggestion is, even if If you don’t sell short, you have to close your position. The Korean won may not appreciate, but the KOSPI index will definitely fall.”

"Mr. Lei, we..." Park Hae-wook's depressed voice came from the phone: "We didn't enter the market very early. Furthermore, isn't it a little early to sell at this time? Thunder's closing rhythm is not very fast either. Looks like it’s fast.”

"Two days, 10 billion US dollars, 10 trillion won." Lei Hao said a few numbers casually and asked: "Isn't this fast?"

"Uh, Mr. Lei, I have one more thing to remind you. Don't challenge the nerves of the Korean Financial Supervisory Service." Park Hae-wook said helplessly: "There must be no less things that should be declared. I'm sorry to tell you that we can't help you." Exerting too much influence.”

"It doesn't dare to check!" Lei Hao said decisively: "How to check? Is there any violation in Thunder?"

Park Haixu was speechless. The Thunder had too many violations, but he also knew that it was difficult to talk about these things on the phone, so he could only respond with silence.

Lei Hao obviously understood very well, but he still said: "It's a bad thing to find out. Now they don't want to break up, but after a while, they just can't break up!"

In the financial circle, regulators have countless ways to investigate and punish a financial institution. But at the level of Thunder, if you touch it, it is equivalent to telling financial institutions around the world that "our market is unfair" and will hinder frighten the enthusiasm of other institutions to participate.

For example, China often does this, but South Korea's market characteristics are different. They cannot do it, and if they do, the gain outweighs the loss.

It would be fine for the Thunder to play a sideways game in the early stage, but to close the position and go short in the later stage, it would be a negative for the regulators. In order to ensure the market attributes, they must also check both long and short positions, which would be a big negative. By that time, the Thunder would be completely When you are short selling, what else do you need to be afraid of?

"We are holding bilateral positions now. When the hedging point reaches, we should sell all the bullish chips, then expand the short exposure, and take advantage of the trend to suppress the KOSPI index." Lei Hao thought silently in his heart.

Thunder is also running in the prescribed direction.

When large institutions close their positions, they do not simply sell chips, but tend to establish reverse positions.

Especially for an institution like Thunder that prepares to sell short in the later stage, the way to close the position is not to sell. For example, if I own 100,000 stocks, I will not sell them directly. Instead, I will find a way to hold the stocks and sell the corresponding amount short, and wait for the index to reach At key points, sell directly and contribute to the decline of the index.

The former stage can be understood as a hedging-style closing of positions, while the latter stage involves directly selling the chips in hand without establishing a bearish position. In this case, the bearish risk exposure will slowly be exposed and gradually increase, while During this period, you are in the rhythm of selling one after another, which puts pressure on the corresponding index.

Therefore, Lei Lei’s so-called liquidation of 10 billion is actually not a lot of securities sold, but more of a reverse bearish position. The risk exposure is reducing, but if you count the total of bullish and bearish positions, Positions have been increasing.

Bilateral positions are preparations for unilateral positions.