At the end of Leller Street in Chicago's financial district is the Futures Exchange Building.
This is the oldest futures and options exchange in the world, with a total of 3,600 items and commodities.
Kenny went to his office in the Exchange Building as usual for twenty years, "Good morning! George!"
"Hello, today's nice weather means it's a harvest day! Lille!"
"Praise Sif! I wish you a fruitful day."
Kenny kept talking to people along the way, and most of them were familiar faces after working here for twenty years.
Sif is the harvest goddess in Norse mythology. Since most of the Chicago Board of Trade trades agricultural product options, many people like to praise Sif before starting a transaction.
Although Kenny doesn't believe in this, it doesn't stop him from saying it himself when others say it.
The Chicago Board of Trade building's facade is made of Indiana gray stone, with its outline indented from bottom to top.
At the top stands a statue of Ceres, overlooking the city.
Although it is a statue of the God of Ceres, not many people believe in the God of Ceres. There are rumors that people who believe in Sif have a greater chance of making money.
Later, fewer and fewer people praised Ceres, except for some particularly old traders. Compared with them, Kenny felt that he was still young.
The front of the building is engraved with the English characters "Chicago Board of Trade", and above the characters is a huge clock.
"The futures indexes of wheat, soybeans, and soybean meal have all risen very well recently." After sitting down, he glanced at the morning market and then went to pour coffee.
Traders can't start their trading day without drinking coffee.
There is a very strong correlation between soybean and soybean meal futures prices and pork futures prices. Investors can judge the pig futures price based on the futures price trends of soybeans and soybean meal, and even determine when the pig cycle begins.
Some time ago, pig companies in China's A-share market rose sharply because traders judged that the bottom of the pig cycle was almost over, or it would still rise slowly.
"This trend of soybean meal is not over yet. Whether it is daily K, weekly K or monthly K, it is an upward trend."
"The upward trend of bulls is not going to end soon."
The Americen Soybean Meal Continuous Index has risen from a relative low of 309 in mid-October to the current level of 474.90.
An increase of more than 50 percent.
Kenny is a trader specializing in soybeans and soybean meal. The market has been very good recently, with few fluctuations and has been rising.
Seize the five-day moving average, sell high and buy low back and forth around the five-day moving average. Kenny's trading techniques for so many years cannot be described as proficient. He can be said to be a master in this category of trading techniques alone.
"It's so stable, and it's a steady profit. It would be great if I could make money while drinking coffee every day."
"It's a pity that such good days will not last long. We must withdraw next month. No matter how attractive the market is, we must remain short positions next month."
"I will not trade until the Fed decides on the number of interest rate hikes."
"There is no need to go to the sea and fight crocodiles before the general environment is unstable." Kenny knew very well.
As an old trader for more than 20 years, he has experienced two previous Fed interest rate hikes. At this time, futures fluctuate violently, which is not the time for a steady player like him to operate.
Many years ago, the trading method of the Chicago Board of Trade was to place orders offline. Whoever shouted quickly and loudly would be able to complete the transaction first. A good voice can be said to be Kenny's stepping stone.
Later, even if pure online electronic trading became possible, Kenny still liked to come to the Chicago Futures Building to trade, because it was full of his youth and memories.
The joy of every successful trade and the bitterness of every failed trade.
"The soybean meal index is rising today, so you can try to make a short-term emotional trade."
Kenny thought to himself, "It's appropriate to push the position."
"Breaked through the 485 line and stood firm on this line! Beautiful!"
“I don’t know if I can stand firmly on the 490 line today.”
The trading hours of the Chicago Board of Trade are from 9:30 am to 1:15 pm, Monday through Friday. The working hours of a futures trader are very short, and of course you need to bear the psychological burden of the corresponding high risks.
Not everyone has the qualifications to make a living from futures trading. The qualifications here are not only financial-related knowledge and a sense of the financial market, but also courage, the courage to admit defeat and leave the market.
There is no futures trader who has not had a blown position in his trading career.
"Eh? Why did it suddenly drop so sharply?"
"It's pulled back again, and it's falling rapidly again, back to 474.9. What's going on today?"
"There is no special news coming from the news."
Kenny was still drinking coffee calmly, and then he saw that the soybean meal index was venting wildly, and the time-sharing K-line chart returned to 450 points with almost no resistance.
Kenny almost sprayed coffee on the keyboard. He knew that this was not the time to be bullish, so he closed the position directly. The short position was too strong, so he closed the position directly.
I looked at the delivery receipt and saw that all the profits for the two months this year were lost in just two minutes.
Kenny slapped himself hard twice, "I was fooled by the resistance that started to fall."
For example, if the price stops after falling and then reaches a sharp upward time-sharing K-line, this may be short-selling.
But today's time-sharing K-line, suspected short-selling only appeared twice, and then there were all diving time-sharing K-lines.
Kenny looked at the Americen soybean oil index, which was also diving, and the soybean index, which was also diving. "What happened? Why did all soybean-related indices suddenly plummet?"
"There must be news that I don't know about, and someone jumped the gun in advance!"
"Fortunately, I don't like to increase leverage, otherwise I don't know how many people would have liquidated their positions just with this order."
He could already hear the shit and wailing coming from the trading room next to him.
Kenny looked at the telegram group. All the traders were asking what happened and why all soybean-related indices were falling crazily.
Everyone is looking for news like crazy, which country's soybean production exceeds expectations, or whether the Federal Reserve is going to raise interest rates ahead of schedule.
The problem is that if the Fed raises interest rates ahead of schedule, all futures will fall, not just the soybean-related futures index that is falling like today.
After trading stopped at 1:15 p.m., Kenny packed up his things and prepared to go home with a depressed look on his face. I originally wanted to eat steak out, but now it seems I can only eat a burrito.
"Corn, wheat and soybean futures prices fell across the board on the Chicago Board of Trade"
“On that day, the most actively traded April contract in the Chicago Board of Trade corn market closed at $3.185 per bushel, down 18.5 cents or 3.47% from the previous trading day;
The April wheat contract closed at US$5.165 per bushel, down 17.75 cents or 2.48% from the previous trading day;
The July soybean contract closed at $7.495 per bushel, down 105.75 cents or 12.67% from the previous trading day. "
