Chapter 479 [Various flash crashes of commodity futures]
Chapter 479 [Various flash crashes in commodity futures]
Fang Hong had already made a decision on the long-term strategic layout of the global market. After that, his subordinates would draw up a specific executable plan, and once it was approved, it would be implemented.
This global strategy of Star Capital is undoubtedly a long-term strategic layout with a five-year or even ten-year cycle. It must also conceal 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 development, 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 the United States to control the world.
America's so-called "balancing strategy" is to create regional conflicts, antagonisms, and divisions to achieve its own interests. It is a typical self-interest at the expense of others. The route taken by the Eastern powers is completely opposite to that, which 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 a certain extent, the opposing strategies of both sides are destined to be difficult to reconcile.
But there is no doubt that those who win the hearts of the people win the world. America's operation is unpopular after all. When she is strong, she can indeed hold the situation in check, but once she shows signs of fatigue, it is self-evident which side the people support, and no one is a fool.
Star Capital's long-term strategic layout plan is being drawn up, and at the same time, the current game in the global market has not fallen behind.
…
It is the May Day holiday and the market is closed today.
The most important thing is the change in computer positions, which plunges the market into a huge wave of deep selling.
…
The previous layout of commodities was to go long, and the long profits were huge.
Fang Hong is also paying attention to the trend of global commodities. Silver's plunge this week is just the beginning.
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.
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.
On the next day, Tuesday, May 3, the news came out that hedge fund tycoon Soros was shorting silver in the capital market, triggering a panic in the market.
The news hasn't spread yet, but Fang Hong, the time traveler, knows about it.
Stars Capital is deeply involved in commodities such as copper, silver, and crude oil.
In the last few days of late April, Hua Yu received instructions from Big Boss and informed the company’s trading department to be completely short on several popular commodities such as crude oil, silver, and copper.
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 US$46.084 per ounce, closing down -5.17% on the day.
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 collapse. Market participants did not find any bank or fund planning a large amount of selling to settle positions, nor did they find out.
There was no panic selling caused by bad trades like the May 2010 stock market flash crash.
Time has entered May.
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.
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.
Meditation Villa.
As silver plummeted, institutions began to bet on crude oil, economic data was weak, the Federal Reserve'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.
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.
According to the latest data, WTI crude oil futures prices have reached a high of $114.
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 unexpected events occur, such as the Gulf War in 1991 or the 2008 Thunder
Mann Brothers suddenly went out of business.
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.
The price of silver futures fell sharply again today, hitting an intraday low of US$40.6 per ounce, a drop of -11.90%, and finally closing at US$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%.
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.
On Wednesday, May 4, the price of silver futures crashed 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.
.
In just four days, Stars Capital made more than US$2.8 billion in short-selling profits in the global commodity market.
As time came to Thursday, May 5, the price of silver futures collapsed again. It fell to a low of $34.25 per ounce that day. The intraday drop once again exceeded 13 percentage points. It finally closed at $36.24 per ounce, a sharp intraday drop of -7.99.
%.
The crude oil futures market also collapsed today, falling below US$100. The price 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%.
In the study room, 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."
…
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.
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 goes short and goes 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 drop exceeded 35 percentage points in three days.
