My Fintech Empire

Chapter 479 [Various flash crashes of commodity futures]

Regarding the long-term strategic layout of the global market, Fang Hong has already made a decision, and then the people below will draw up a specific executable plan, and implement it after approval.

This global strategy of Qunxing Capital is undoubtedly a long-term strategic layout starting from a five-year or even ten-year cycle. It must also cover up its true strategic purpose, so that it cannot be seen by the outside world, especially by Europeans and Americans, especially by Europeans and Americans. Seen through by Lao Mei.

In addition, the difficulties faced in it are also very great.

For example, the layout of food, Fang Hong is very clear that once you start food exploration in Africa, you want to solve the famine problem in Africa. Among the human obstacles, America will definitely become the biggest human interference factor.

Because food is one of the important means for Laomei to control the world.

America's so-called "balancing strategy" is to create regional conflicts, confrontations, and divisions to achieve its own interests. Strategies to build a community of destiny to achieve mutual benefit and win-win, hello, hello, hello everyone.

You want everyone to coexist peacefully and develop together, but he wants to create chaos at the expense of others.

To some extent, the divergent strategies of the two sides are destined to be difficult to reconcile.

But there is no doubt that those who win the hearts of the people win the world. After all, America's operations are unpopular. When she is strong, she can indeed hold the field, but once she shows fatigue, it is self-evident that the hearts of the people will be against her. No one is a fool.

It can be seen that America's failure is inevitable, because it is impossible to be at the peak forever, and time is not destined to be on America's side.

Fang Hong formulated a strategy for Qunxing Capital to lay out the African market, which is obviously highly consistent with the country's global strategic policy. The better the layout of Qunxing Capital over there, the more conducive it is to the country's global strategic layout, and the country's strategy The smooth advancement of the layout will in turn promote the development and operation of Qunxing Capital in the global market.

...

Qunxing Capital's long-term strategic layout plan is being drawn up, and at the same time, the current game in the global market has not fallen behind.

In the last few days at the end of April, Huayu received an order from the big boss and informed the company's trading department to be bearish on crude oil, silver, copper and other common commodities.

Qunxing Capital is deeply involved in commodities such as copper, silver, and crude oil.

The previous layout of commodities was a strategy to go long, and the profits of long positions were also huge.

It is worth mentioning that the price of silver futures has gone crazy since the beginning of the year, from $18 per ounce in early August last year to a peak of $49.56 per ounce on April 28 the day before yesterday.

The increase in more than eight months has reached +175%; copper prices have reached a cumulative increase of +67% from June last year to the present, and crude oil futures prices have also reached a cumulative increase of +77% from May last year to the present.

According to the latest data, the price of WTI crude oil futures has reached a high of 114 US dollars.

The overseas investment department of Qunxing Capital has also quickly adjusted its strategy in the past few days and turned more short. Its commodity holdings have been sold off one after another, and they have gone short, continuing to maintain the principle of making money silently.

...

time into May.

On Monday, May 2, silver futures crashed today. The price dropped from $48.599 per ounce to $42.2 per ounce. The intraday drop reached -13.67%, which was the largest one-day drop since 1980. After that, it fell sharply again It rebounded to $46.084 per ounce, closing down -5.17% on the day.

It is the May Day holiday, and today Big A is closed.

Fang Hong is also paying attention to the trend of global commodities. The sharp drop of silver this week is just the beginning.

Many silver futures investors were looking for the reason for the flash crash in the intraday market. The reason for the crash was because there were two major air forces. The short selling of Qunxing Capital was on the one hand, and on the other hand, it was Soros, the hedge fund tycoon. Do blank silver.

The news hasn't come out yet, but Fang Hong, a traveler, knows about it.

On the next day, Tuesday, May 3, the news came out. The news that the hedge fund tycoon Soros shorted silver spread wildly in the capital market, causing the market to panic and plunge.

The price of silver futures plummeted again today, with the intraday low falling to $40.6 per ounce, a drop of as much as -11.90%, and finally closing at $42.585 per ounce, down -7.59%. At the same time, the price of WTI crude oil futures today It fell to $111.05 a barrel, a drop of -2.17%.

On Wednesday, May 4, the price of silver futures crashed for the third consecutive day. Today's price dropped to $39.388 per ounce, down -7.50%. The price of WTI crude oil futures next door fell -1.63%, falling to $109.24 per barrel.

As time came to Thursday, May 5th, the price of silver futures collapsed again. The lowest price on the day fell to 34.25 US dollars per ounce, and the intraday drop exceeded 13 percentage points again, and finally closed at 36.24 US dollars per ounce, a sharp drop of -7.99 within the day %.

The crude oil futures market also collapsed today, falling below the price of US$100. The intraday low reached US$98.25/barrel, a drop of -10.06%, and finally closed at US$99.80/barrel, a decrease of -8.64%.

The price of silver plummeted by more than 25 percent this week, and crude oil fell by almost 10 percent on the same day. This kind of rare plunge usually only happens when there are emergencies, such as the outbreak of the Gulf War in 1991, or the 2008 Thunderstorm. Man Brothers suddenly went out of business.

The market's slump also caused the news media to interview more than 20 fund managers, interbanks and traders, but none of them could figure out the reason for the slump. Market participants did not spot a bank or fund that was orchestrating a massive sell-off to liquidate positions, nor did market participants find panic selling triggered by mistraded trades like the May 2010 stock market flash crash.

With the slump of silver, institutions began to be bearish on crude oil, weak economic data, the end of the Fed's quantitative easing policy, and the easing of governance risks. This series of negative factors paved the way for the sell-off.

The most important thing is the change in computer positions, which puts the market into a huge deep sell-off wave.

In just four days, Qunxing Capital has obtained more than US$2.8 billion in short profits in the global commodity market.

...

Quiet Villa.

In the study, Fang Hong told Tian Jiayi who was sitting next to him: "Notify the trading department that if the price of silver futures can drop to $33 an ounce tomorrow, we will start closing short positions and turn long positions."

Tian Jiayi nodded, and she also made a rough calculation in her mind. If the price of silver futures hits $33 tomorrow, it will plummet by nearly 9 percentage points again. This five-day world crash will exceed 32 percentage points.

Since the first quarter of this year, the price of silver has been skyrocketing. The previous rise was too strong and caused a huge bubble risk. The rise in one month has reached +34%. The speculative atmosphere is strong, it is too crazy, and over-digestion will bring the market. Correct the trend.

Secondly, the decline of silver price was fueled by Laden's death. This factor has a greater impact on market psychology, but it cannot be ignored.

However, Fang Hong is very clear that the price of silver will be a bear market that will slowly decline all the way in the next year, and the company will only rebound in the next three months if it is to open a long position, with a rebound rate of about 25 percentage points.

And in September of this year, the price of silver futures will usher in another three-day bloodbath from September 22. In three days, the price of silver futures will drop from 40.44 US dollars per ounce to 26.17 US dollars per ounce. The cumulative decline in three days exceeded 35 percentage points.

...

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