Chapter 53: Escape from a High Position
The integer point has a very special meaning in the financial market, take the current oil price of $19.00 per barrel, from the point of view of the number itself, it is an ordinary symbol, and 18.99, 19.01 and other numbers are no different, but on both sides, this is not only a number, but also a manifestation of confidence, is a watershed, is the king of the mountain!
To put it simply, if the bulls finally break through this number, then the sentiment of the entire market will be completely detonated, and the oil price will most likely stand at this price level or even higher on this day. If the bears firmly hold this price, then the followers and some of the main bulls who see no hope of breaking through are very likely to choose to settle down and close the originally established long positions. In this way, the closing order and the defensive order of the short will bring great pressure to the bulls, and even bury the good country that was played down before in one fell swoop.
The success or failure of both sides is here.
"Open 1,000 more hands and try how deep the water is here!" Zhong Shi, who knew the meaning of the integer point, ordered without hesitation. For the role of this multi-headed pioneer, he has been familiar with the role in the past two days.
Not surprisingly, this batch of buy orders entered the market was absorbed by the bears' defenses here within ten seconds. Crude oil futures for November delivery are holding firmly at $19.00, as if the previous large buy orders had not been placed.
Seeing that such a large purchase order did not last even a minute, most investors who followed the trend just sighed in their hearts and thought about what they should do now.
More than 1,000 lots. The margin is millions of dollars, so much money has not even made a splash on the short side, and it can be seen that the bears attach great importance to this whole number. Although there are not many lots on the selling side now, as long as investors who have been fighting in the futures market for a few days understand that behind the seemingly calm there is actually a sinister giant crocodile.
At this time, there was a divergence in the follow-up market, and a small number of people began to close the long positions in their hands one after another, and they were bluffed by the bears who instantly ate 1000 hands of more than 1000 orders, although in the case that the main force of the bulls did not make a move, these people still chose to leave.
Another group of people chose to continue to wait and see. They understand. It is not the bears that overwhelm the bulls. It is the bulls that overwhelm the bears, and if the bulls break through the defenses set up by the bears here, then their profits will rise further, and the bears hold on. They can also go short backhand. Put pressure on the bulls. Anyway, they have very few lots and are extremely flexible.
Zhong Shi's capital is a small bull, if it is said that both long and short are the main generals of both sides. So Zhong Shi's current role is Yan Liang, Wen Chou and the like, just jumped out and didn't have time to shout a few times, he was instantly beheaded by the other party, and he didn't even know if the role sent by the other party was a fierce general like Guan Yu.
As the follower market went to the poles, the number of hands on the selling order gradually increased, and it accumulated to 654 hands within one minute after Zhongshi's list was swallowed, and on the side of the buying order, there was still not much movement, and the number of hands stayed at more than 400 hands for a while.
"What's going on with them? Why hasn't there been any movement again? Seeing that the price was stuck at $19.00, Zhong Shi asked Li Mingyang in confusion.
"I don't know about this!" Andrew, who was next to him, hurriedly replied loudly, "The two of them have once again reached a tacit understanding, that is, let the followers choose to take sides, and when the team is almost over, they will start fighting." ”
Although the strength of the follower market is not enough, it is better to be flexible and durable. They opened positions in small batches, and even grabbed orders with the main force at certain prices, which gave the main force on both sides a headache.
Therefore, when the important points are important, the long and short sides will reach a tacit understanding, leaving enough time for the follower to choose, because they can not affect the overall situation, and may compete with the long and short sides for profits, so the main force will try to empty these "ants" before the start of the important battle.
"Buy 5,000 lots and try again!" Seeing that there was no movement for a long time, Zhong Shi simply had a heart, and ordered a little ruthlessly. 5,000 buy orders, corresponding to 5 million barrels of crude oil, the margin needs nearly 10 million US dollars, which is definitely a big deal, but it is difficult to say whether it can break through the defense of the bears.
Buy orders of 5,000 lots entered the market one after another, and the trading volume in the market quickly increased after a period of silence. "1150,548,970,1324,863......" Zhong Yi looked carefully, and quickly reported the large transaction numbers that flashed on the disk, "A total of 4855 hands, good guys, we have absorbed our many orders in such a short time." ”
Generally speaking, the number of transactions in front of the computer is refreshed every five seconds, but Zhongshi uses a higher level, where the authority is higher than that of ordinary investors, and the refresh is also once every three seconds. Just like the numbers just now, the average investor sees the number of transactions of more than 1,000 lots in three times.
Although there is not much difference in the final result, and the order was successfully eaten, it is precisely with such a little subtle difference that the main force can see more clearly at the critical time, and naturally make better decisions.
"It seems that the bulls still haven't reacted!" Seeing that his many orders were eaten one after another, there was still no other follow-up on the purchase price list, Zhong Shi frowned and thought about it, and said decisively: "Since this is the case, let's force him out!" Close the position, close all the long positions! ”
"Closing a position?" At this time, not only Li Mingyang, but even Zhong Yi and the others, who had been pricking up their ears and eavesdropping, were greatly surprised, and they all looked at Zhong Shi, expecting to give a clear explanation.
You know, these people now have more than 10,000 long positions in their accounts, some of which were absorbed during the rise, and these long positions have made a profit of about $0.5 per lot. The other part is the new position opened during the attack on the bears, and this money has not been recorded even a penny until now.
This more than 10,000 hands of short orders will inevitably cause a sensation to the market, if the bulls can't catch it, then their previous long orders will also be reduced by a part.
This kind of behavior of cutting one's own flesh naturally made Zhong Yi, Liao Xiaohua and others not understand.
"Okay!" Or Li Mingyang and Andrew are experts, and they instantly understood Zhong Shi's intentions. Seeing that the market is almost the same, if the bulls don't attack, the direction of the wind will really change, so at this juncture, the bulls must be forced out no matter what.
In the crackling sound of the keyboard, this closing order of more than 10,000 lots was thrown. As Zhong Shi expected, the bulls immediately couldn't sit still, and they immediately opened nearly 10,000 buy orders on the sell list in a row, which was able to stabilize the oil price before the price of crude oil futures fell.
The volume that soared several times in an instant immediately attracted all the attention of the market, and sure enough, the bulls also set up a strong defense at the $18.99 position, so that Zhong Shi's "anti-bone" behavior did not succeed.
Now the market participants saw that the bulls set up a defense at the $19.00 level, and the bulls were not to be outdone and did not allow the price to fall to the $18 range. The followers understood it and closed their positions one after another, thanks to Zhong Shi's temptation.
A few minutes later, Zhong Shi's funds were all withdrawn from the November crude oil futures contract, and their book profit was about $2 million, excluding fees.
At this point, their positions were all emptied, from $18.50 to $19.00, which is a rare gain in the crude oil futures market, a full 3%, and a bigger battle is still brewing.
"Let's just wait to see the show!" After the bag was settled, several people sat in front of Li Mingyang, facing the scrolling numbers on the computer screen, expecting him to give them a real-time explanation on the spot.
"Look, the buy order has reacted, and 20,000 lots are opened!" Several people stared at it for a long time, and suddenly the buying price order jumped out of a five-digit number, and Zhong Yi reacted the fastest, and shouted out at once.
The market reacted quickly, and the bears also opened tens of thousands of short positions, and the two sides traded up to tens of thousands of hands, making the trading volume once again set off a climax after experiencing Zhongshi's backhand shorting.
Two minutes later, all these long and short positions were filled again, but it was clear that the bulls had the upper hand, and after sweeping away the short positions at the $19.00 level, they attacked to $19.01, but did not continue to attack, which shows that the bears also have a line of defense here.
After seeing that the bulls broke through $19.00, the market began to follow the trend again, and they also thought that this point was a flat in the past, at least to $19.10. Seeing that the market price broke through $19.00, they began to rush to enter the market again.
Under the repeated attacks of the followers and the main forces of the bulls, the bears held on for a while, and finally gave up the position of $19.01 and then retreated to $19.02. Today's bears are already fighting for every inch of land, even if it is a price change, we must do our best to defend.
The total position in November did not decrease much, which indicates that the bears did not intend to close their positions and admit defeat at all. In this case, the bulls have also become hesitant, and now the best way is to take advantage of the fact that the market is still there, and use the opportunity to close the newly opened long positions in their hands.
That's exactly what the bulls do. Follow the trend of the market pleased to find that in the market to absorb long orders become easy, they do not know, but driven by interests or so buy, as a result, soon after the main force of the bulls changed hands they became the opposite of the main attack of the bears, the result is self-evident, the trend of the market into the main force of the end of the market, is to lose and retreat.
In the end, the price of crude oil stayed at $18.90 on this day, and Zuihou still had the main force of the bulls to stop the main force of defeating the bears who followed the trend, and both sides had no intention of fighting again, leaving a loss of at least $0.11 and $0.12 to follow the trend and complain. (To be continued......)
PS: Thank you for the support of Tiger Anger, November, a20082209, and Gambler is not my monthly pass! At the same time, thank you for the reward that poisoned you thousands of times!