Chapter 478 [Various flash crashes in commodity futures]

Style: Romance Author: Zhaoling SiyuWords: 2370Update Time: 24/01/18 08:59:51
Fang Hong had already made a decision on the long-term strategic layout of the global market. After that, the people below would draw up a specific executable plan, and once it was approved, it would be implemented.

This global strategy of Qunxing Capital is undoubtedly a long-term strategic layout with a five-year or even ten-year cycle. It must also cover up its true strategic purpose and cannot be seen by the outside world, especially Europeans and Americans. The old beauty saw through it.

In addition, the difficulties faced are also very great.

For example, when it comes to food, Fang Hong knows very well that once food development is launched in Africa, if you want to solve the famine problem in Africa, among the man-made obstacles, America will definitely become the biggest man-made interference factor.

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

America's so-called "balancing strategy" is to create regional conflicts, opposition, and divisions to achieve its own interests. It is a typical self-interest at the expense of others. The route taken by the big Eastern countries is completely opposite to it, and it is to promote peace, seek common ground, and put aside differences. Strategy to build a community with a shared future to achieve mutual benefit and win-win, hello to me, hello to everyone.

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

To some extent, the opposing strategies of both sides are destined to be difficult to reconcile.

But there is no doubt that those who win people's hearts win the world. America's operation is unpopular after all. When she is strong, she can really control the situation, but once she shows fatigue, it is self-evident that people's support is 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 stage forever, and time is destined not to be on America's side.

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



Stars Capital's long-term strategic layout plan is being formulated, and its current game in the global market has not fallen behind.

In the last few days of April, Hua Yu received instructions from his boss and informed the company's trading department to be fully short on several popular commodities such as crude oil, silver, and copper.

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

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

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

In more than eight months, the increase 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, WTI crude oil futures prices have reached a high of $114.

The overseas investment department of Qunxing Capital has also rapidly adjusted its strategy from long to short in the past few days. Its commodity holdings have been sold off and shorted, continuing to maintain the principle of making money silently.



Time enters May.

On Monday, May 2, silver futures crashed today. The price exploded from US$48.599 per ounce to US$42.2 per ounce. The intraday decline reached -13.67%, the largest single-day decline since 1980, and then fell sharply again. It rebounded to $46.084 per ounce, closing down -5.17% on the day.

It is the May Day holiday and the market is closed today.

Fang Hong is also paying attention to the trend of global commodities. Silver's plunge this week is just the beginning.

Many silver futures investors are looking for reasons for the frightening flash crash in the market. The reason for the decline is that there are two major air forces. On the one hand, Qunxing Capital is short-selling, and on the other hand, it is the hedge fund tycoon Soros. Short silver.

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

On the next day, Tuesday, May 3, the news came out. News that hedge fund tycoon Soros was shorting silver spread wildly in the capital market, triggering a panic in the market.

The price of silver futures fell sharply again today, hitting an intraday low of $40.6 per ounce, a drop of -11.90%, and finally closed at $42.585 per ounce, a drop of -7.59%. At the same time, the price of wti crude oil futures today It fell to US$111.05/barrel, a decrease of -2.17%.

On Wednesday, May 4, silver futures prices experienced a flash crash for the third consecutive day. Today’s price fell to $39.388 per ounce, closing down -7.50%. The price of WTI crude oil futures next door fell by -1.63% to $109.24 per barrel.

As time came to Thursday, May 5, the price of silver futures collapsed again. The lowest price that day fell to 34.25 US dollars / ounce. The intraday drop once again exceeded 13 percentage points. Finally, it closed at 36.24 US dollars / ounce, with an intraday drop of -7.99. %.

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

Silver prices plummeted by more than 25 percentage points this week, and crude oil fell by almost 10% that day. Such rare plummets usually only occur when emergencies occur, such as the Gulf War in 1991 or the 2008 Thunderbolt Mann Brothers suddenly collapsed.

The market plummeted and news media conducted interviews with more than 20 fund managers, banks and traders, but they were unable to determine the cause of the plummet. Market participants found no bank or fund orchestrating massive sales to settle positions, and there was no panic selling caused by bad trades like during the stock market's flash crash in May 2010.

As silver plummeted, institutions began to bet on crude oil, economic data was weak, the Fed's quantitative easing policy was about to end, and political risks were easing. This series of negative factors paved the way for the sell-off.

The most important thing is the change in computer positions, which plunges the market into a huge wave of deep selling.

In just four days, Stars Capital made more than US$2.8 billion in short-selling profits in the global commodity market.



Meditation in the 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 fall to 33 US dollars per ounce tomorrow, we will begin to close short positions and turn to long positions."

Tian Jiayi nodded, and she also made a rough calculation in her mind. If the silver futures price reaches 33 US dollars tomorrow, it will plummet by nearly 9 percentage points. This week, the world has dropped by more than 32 percentage points in five days.

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

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

However, Fang Hong knows very well that the price of silver will be in a bear market that will slowly decline in the coming years. If the company is short and long, it will only rebound in the next three months, with a rebound rate of about 25 percentage points.

And in September this year, the price of silver futures will usher in another three days of steep decline starting from September 22. In three days, the price of silver futures has dropped from US$40.44/ounce to US$26.17/ounce. The cumulative decline in three days exceeded 35 percentage points.