Based on the lowest point of the Dow Jones index last night, the cumulative decline in two consecutive trading days has exceeded 15%, which is an excellent dip buying opportunity in the eyes of investors and traders who are long on dips. And this is only from the perspective of investors who are long at the low level.

If you look at it from the perspective of the bears who are short at a high level, even if you don't count the profits accumulated by the bears in the previous few trading days, based on the high of the Dow Jones on October 9, the profits of investors who were short at that point when the cumulative decline reached 15% before 9:40 p.m. yesterday was also quite considerable.

That is, last night this part of the bears had a huge impulse to close their positions at the lowest point. In this case, even if there are no bulls buying the dip, even the power of the bears taking profits and leaving the market to buy and close their positions at the lowest point of 7882 points last night will make the Dow Jones Industrial Index rise instantly.

This is perhaps the best reason to explain the Dow Jones' sharp rise of 5.0 percent in just a few minutes from 9:37 p.m. last night.

While eating breakfast, Xia Xiaona saw that Li Xin's face was no longer as excited as last night, so she asked, "Didn't you just look at the trend of copper prices last night, and what was the final closing situation?"

"The fall in copper prices in London was significant, reaching 13.9%, but the decline in the Dow Jones Industrial Average narrowed sharply, to 1.49%. ”

"Really, what does that mean?"

"Last night, the Dow Jones may have two situations, either it was really bad news, or it was caused by these international speculators who were short on dips and highs, seeking short-term profits. ”

"Do you want to close your position on Monday?"

Li Xin said: "I have thought about it carefully, I can't rush to close the position on Monday, at least wait and see for three or four days, otherwise, it is very likely to suffer the same loss as two and a half years ago." ”

"What did you suffer two and a half years ago?" Xia Xiaona asked curiously.

"In fact, it's not a loss, that is, I didn't close the position at the best time, and I didn't make the most lucrative profit in the last wave. ”

"How did I not know about this?"

"We were colleagues at the time, so you wouldn't know. ”

"Tell me about it. Xia Xiaona is very interested in this matter.

Li Xin said: "Two and a half years ago, in the process of rapid rise in copper prices, I was long on dips, and my opening point was very good at that time, but the point of exit was a little anxious. The highest copper price rose to about 85,500 yuan, but all the positions in my hands were closed below 70,000 yuan, and I didn't make any very rich profits in the middle of 70,000 yuan to 85,000 yuan. If you stick to it for more than a week, your profits will likely double. And even when the price of copper rose to the highest point of more than 85,000 yuan, it fluctuated at a high level for three or four days before officially starting to fall. There was plenty of time and a good enough price to get me out, but I didn't catch it and missed it. ”

"Do you think there is anything in common with the trend of copper prices now and what they did two and a half years ago?"

"Yes, didn't I just say that two and a half years ago, it took four or five days to build the top of the copper price of about 85,000 yuan. Last night, London copper prices and the Dow Jones Industrial Index smashed their recent lows at around 9:40, even if these two lows are the bottom of the next period of time, the price will not rise quickly in a day or two next week, and will definitely fluctuate near this bottom for a while. What's more, it is uncertain whether there is any major negative news now, if there is no major negative news, but investors in the market are short-term speculation on highs and shorts, then this bottom will be even more unstable, and it will take more time to shake back and forth at this bottom and confirm the verification. This process of oscillation and verification will definitely give me enough time and space to close my position. ”

Li Xin's gushing discussion made Xia Xiaona a little dizzy, she didn't have a clear opinion, so it was not good to interfere with Li Xin's operation decision, so she said: "Then you should be more careful." ”

"Well, okay. ”

Li Xin had a very tangled weekend. He paid close attention to the search of major portals and TV news, but he never found any major negative news at home and abroad this weekend.

He thought to himself: if this is the case, then the Dow Jones Industrial Average should only be an over-bearish rally and a wide range of lows on Friday night, and it should enter the downtrend again next Monday.

Under such speculation and judgment, he ushered in the opening of London copper prices at 8 a.m. on Monday, October 13.

London copper opened at $4,900 this morning, a significant increase of 6.17% compared to last week's closing point of $4,615!

The opening almost halved Friday's 13.9% decline, a vengeful rally after the plunge in copper prices in London on Friday night.

Even if Li Xin watched the Dow Jones Industrial Index rise sharply after 2 a.m. on Saturday morning, he had expected that the London copper price would rise this morning following the trend of the Dow Jones Industrial Index rising sharply at 2:00~4:00 a.m. on Saturday, but he was surprised by the 6.17% increase at the opening.

"Could it be that the price of copper has really reached the bottom?" Li Xin secretly speculated in his heart.

After opening at $4,900, the London copper price fell rapidly in just five minutes, falling as low as $4,795. Then the price met another wave of strong buying in this place, which gradually pushed the price up from the $4,800 position. By 8:15 a.m., the London copper price had basically stabilized at around $4,960, and the candlestick chart at this time was a small white candlestick with a long lower shadow.

Although the price of $4,960 is still below the 5-day moving average of $5,213 at this time, today's trend of opening with a sharp gap of 6.17% is not seen in the last three or four months.

Last Friday's decline was indeed very large, but today's gap has been standing above the opening price for more than 10 minutes, and the trend of closing a small white candle clearly indicates that today's lower buying is very sufficient.

The trend of copper prices in London makes it difficult for Li Xin to predict what the trend of copper prices will be after the domestic futures market opens at 9 o'clock today.

But as he told Xia Xiaona, he firmly believes that the bottom of the copper price cannot be formed in a day or two. The 4,000 hands of the short order in his hand are now quite profitable, even if you want to play, you can't play today, and you should have a chance to close the position after waiting for three or four days and the price stabilizes at the bottom.

Driven by such a mentality, although he was very apprehensive in his heart, he still tried his best to calm himself down and wait to see how the domestic futures market would open today in the case of wide fluctuations in London copper prices and the Dow Jones index on Friday and today.

At 8:59 a.m., the data of the call auction in the domestic futures market came out.

Just as Li Xin was stunned by the sharp fall and surge in just ten minutes after the opening of the Dow Jones Industrial Index at 9:30 on Friday night, the copper price in the domestic futures market today also made Li Xin stunned: the copper price opened at the fall limit of 41,690 yuan. Compared with the previous trading day, this price has fallen by 2,200 yuan, a decrease of 5.01%! And the quantity piled up on the sell order is more than 25,000 lots, and the quantity on the buy order is 0.

This result was an unexpected surprise for Li Xin.

If you look at the London copper price, it fell by 13.9% on Friday, even after the start of today's session, it rose sharply, reaching 6.2%. But by hedging Friday's losses with today's gains, London copper prices are still down 7.7% in two trading days. From such a point of view, even if the domestic copper price plummeted by 5.01% as soon as the market opened today, and was pressed on the falling limit, compared with the London copper price, the decline in domestic copper prices is still lagging behind.

And judging from these data after the opening of the domestic futures copper market today, there are 0 buy orders and more than 25,000 sell orders. This shows that the bulls have no confidence to take over in this position, but the bears are still fleeing in this position.

"I'll just say that this kind of decline won't stop instantly!" Seeing that the trend was developing in the direction he predicted, Li Xin secretly applauded and cheered himself up in his heart.

From October 6 to today, domestic copper prices have stepped out of 5 consecutive falling limits. In such a situation, how much profit the bears have accumulated, it is not difficult for Li Xin to guess when he thinks about the position in his hand. What is the situation with so many bulls? In these five consecutive falling limits, except for the falling limit on October 8, which was briefly opened a few times, it is basically a one-word falling limit. In this case, those bulls who were trapped before October 6 basically had no chance to play, and now every bull has accumulated huge losses in their hands. Even if the bulls want to carry it to the death, the futures company with which they open an account will not allow this to happen. Because if the longs who have been trapped in four or five falling limits continue to hold positions, not only will the customer suffer huge losses, but the futures company will also bear a lot of risks if such losses continue to accumulate.

In this case, the futures company will definitely require these customers who hold long positions to quickly place a pending order to stop loss and leave the market as soon as the market opens. This may be the fundamental reason why there has not been much buying after 5 consecutive down limits.