At the end of the day, the market reports were quickly delivered to the desks of major fund managers, who held a lot of positions in the copper futures market more or less in the futures. It has to be said that most of the time these elites are not specifically focused on a certain market, non-ferrous metals are only a part of their investment strategy, and their positions are only a small part of their total positions. It's like the famous Drucken Miller, who is not only responsible for the funding operations of the quantum fund, but also keeps an eye on his own hedge fund from time to time. However, no matter how busy they are, these people still pay close attention to the trend of the copper futures market.

There is no other reason than that the price of copper futures has risen too strongly this year, so that almost all hedge funds have set their sights on this market. From an average price of US$2,000 per tonne at the beginning of the year to US$2,600 per tonne today, copper futures have risen by more than 30%. In other words, if you simply operate with the leverage provided by the exchange, the return of a lot of contracts at the beginning of the year has reached an astonishing $15,000, while the margin only needs $4,500, a yield of more than 300%.

Such a yield is extremely conspicuous in any capital market, and it is no wonder that many fund managers have focused on the copper futures market. And more importantly, the copper futures market is very liquid, and even when it goes in the wrong direction, these hedge funds are able to stop their losses in time.

Of course, all of the above is ideal, in fact, the standard contracts in the copper market are three months, and at a certain time you need to change positions. It is not possible to hold it for a long time, and it is not possible to open a position at the lowest price when entering the market again, so even if you do it in the right direction, the return is not as exaggerated as it is ideally stated.

But for hedge funds in the United States, none of this is a problem, and they can use the leverage provided by the broker to expand their positions again, usually up to 30 times the leverage. If their account is profitable, the broker may provide more of its own funds for these funds, even with higher leverage.

CARL & PAUL ASSET MANAGER MENGTCOR. (KARL & PAUL ASSET MANAGEMENT) IS ONE SUCH HEDGE FUND THAT USES HIGH LEVERAGE SINCE THE BEGINNING OF THE YEAR. They made more than $5 million in the copper futures market. This is already a very good result for a fund with only $10 million in funds under management. Jackson, for his part, is already fantasizing about another fund of one or two in the coming year.

"Mr. Karl, this is the report you want!" The main transactions of the day are completed. It's already the beginning of the day. However, in the offices temporarily rented by Carl Paul in London. It's still a busy scene. Traders also have the responsibility of temporary analysts, who are responsible for summarizing and sorting out the trading data of major investment banks and brokerages on non-ferrous metals, and handing them over to Karl, who is responsible for formulating the next day's trading strategy. Jackson.

Cal. Jackson is the hedge fund responsible for commodities trading. And another fund manager, Paul. Rilke, who is responsible for investing in the US capital markets, specifically the stock market, did not come to London.

Goodman's report...... Oh my God, it's shit! "Carl. Jackson took out Goodman's commodity department's analysis of the day's market, and shouted very exaggeratedly after reading it for a while.

The traders who closed the trade were discussing the intraday situation with Carl, and when they heard Carl's words, several people couldn't help but glance at each other and showed a tacit smile.

Goodman's investment bank, one of Wall Street's biggest names and known for its expertise, made them a joke on Wall Street when their ace arm, Fixed Income, lost more money than the insurance industry, which had lost so much money the year before the hurricane.

The reason why Carl belittled Goodman's analysis report so much, in addition to the fact that Goodman's analysis report was very unreliable, was that he himself was born in Goodman's company, and it was only because of the power struggle within the company that their faction left en masse, which made him haunted his old employer.

In the case of a large copper price in the future, Goodman's research report mentioned several times that the price of copper futures has reached expectations, and further rise is purely speculative funds to promote, which is easy to generate systemic risks, so it is recommended that customers short and so on. The approximate meaning is that the price of copper futures has reached its peak, and those who are long should quickly close their positions, otherwise the risk will be very large.

This kind of analysis is completely contrary to the trend of the market, but Goodman Investment Bank still issued similar reports one after another, Karl fully understands the intentions of his old club, such analysis reports are designed to deceive investors and some fund managers who do not know the truth, in fact, Goodman's commodity department is very likely to be quietly absorbing these long positions that have been dumped.

Is this kind of operation legal? It was clearly misleading to investors, but Goodman had never had a similar lawsuit, because the analysis they gave was a recommendation and had no legal effect, and the analysis was issued to all commodity funds, while Goodman's commodities division and internal clients were using a separate report, which was likely to be very different from this one.

There are so many nonsense analysis reports in the market every day, even if the regulatory authorities want to manage it, it is not easy. Because even if the same investment bank releases an analysis report on the market on a certain day, the content may be contradictory, for example, the content says that the growth momentum is strong, and then mentions paying close attention to systemic risks. I guess only God knows.

Analysts have the best experience in writing this kind of report, and some of them can even produce hundreds of reports a year, an average of one in two trading days. What's more, the "elite" who have the chief (cheif) economists and strategists are also unreliable, and some of their forecasts for the index can be accurate to two decimal places, and I really don't know if these guys are going to cross the future or are ready to manipulate the market to this level.

So Carl's traders smiled when they saw their boss's reaction, and they were no longer surprised by this situation. Although everyone works in Manhattan, these hedge fund guys have a natural sense of superiority over their investment banking peers, and they never fall behind when they laugh at them. Stanley's report...... Well, there is some truth in mentioning the aftermath of the Chilean incident, and it is recommended to hold it cautiously. Carl picked up another research report, another Wall Street giant, Stanley, as a former Goodman employee, he was quite dismissive of the investment bank that had always been a competitor, but now that he manages his own fund, it is natural to analyze the market's views comprehensively.

"Merrill Lynch's ...... Solomon's ...... Lehman Brothers' ...... German ...... There was a thick stack of paper on the broker's ......" table, Carl read the research reports one by one, and then patted the table, interrupting the heated discussion of the traders, and then said slowly: "Based on the reports of several companies, I found that they are mostly bearish on the outlook of the market, most of them believe that the price of copper will enter a period of adjustment, and there is little room for future rise, and as the Federal Reserve continues to raise interest rates, the Shijie economy is burdened with a higher cost of funds......"

"Boss, I don't agree with this point of view!" Before Karl could finish his sentence, a trader loudly interrupted him. Then the trader, named Jerry, saw that Carl did not mean to stop him, and continued: "In the last five trading days, the price of copper futures has risen in four trading days. According to my analysis, there must be a bullish backing behind the Chilean copper industry, and I believe that the recent rally is also responsible for them, and the price of copper is now up more than $100 per tonne from when the news broke. Believing that they are already satisfied with this price, if I guess correctly, they will carry out a large-scale liquidation in the next few trading days. ”

At this point, he paused, saw that the others had no objections, and continued: "When they start to close their positions, it's not too late for us to go long, because even in the process of closing their positions, they will still maintain a high position." After that, due to the position of this bulls, the price of copper futures may fall, and it is not too late for us to go short. ”

"What if a Chilean strike does take place?" As soon as Jerry's words fell, a trader immediately asked.

"No!" Jerry categorically denied that this could not happen, and even if there were manipulators behind the news of this strike, they would never have let the strike really happen, because they simply did not have that much energy, and the Chilean authorities would not allow the situation to get out of hand." ”

Economic analysis has always been inseparable from political factors, especially in South America, where the political situation is extremely volatile. Jerry studied international politics at university, so as soon as he said it, the other traders put away the topic and started asking other questions.

Fifteen minutes later, these traders asked almost all the questions, but they were all resolved by Jerry, and the reasons he gave were very good, basically convincing everyone, but the final decision was still in the hands of Carl, and all the traders' eyes were focused on Carl.

"Just do as you say. Jerry, you come up with a plan, and we'll do it in the next week. Be careful, be specific to each price and position! Carl thought about it for a long time to make sure that there were no loopholes in this analysis, and then decided on the final plan. (To be continued......)

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