Chapter 179 [Fleeing in the air, chasing after the situation (guaranteed 1/2)]
In the next three days, the short army composed of various international hot money launched the most fierce offensive.
And Lu Ming also took action without reservation.
Everyone starts to stud!
The opponent came at once to suppress the situation. The offshore exchange rate hit a new low today and was pushed to the water level of 6.9874 by the enemy. Tiansheng Capital consumed US$17.2 billion of liquidity today, leaving only US$12.05 billion in liquidity.
.
Today we once again defended the enemy's fierce offensive, and after the close, the offshore exchange rate rose back to the level of 6.9695.
On December 30, the short army once again launched a second round of offensive. Compared with yesterday, this offensive was weakened and did not hit a new low. The lowest water level throughout the day only reached 6.9853, and the highest reached 6.9604.
The position was fixed at the water level of 6.9734 after closing.
The 7-digit integer barrier is still there solidly, as solid as a rock and unbreakable.
But all Lu Ming's funds have been exhausted. At this moment, he is on the phone with Deputy Director Wang, "Bureau Wang, Tiansheng Capital's liquidity of more than 560 billion yuan has been exhausted. I'm afraid it will be too late to cash out the US stock assets.
"
Bureau Wang on the other end of the phone replied: "It's not easy to hold on until today. Leave the rest of the cleaning work to us. You can rest well and watch this great show!"
Yangma has prepared sufficient liquidity offshore, which can at least meet the consumption for two to three days. This is assuming that the opponent's offensive today can be as fierce as it has been in the past two days.
Lu Ming said with a smile: "The so-called one-stop effort will eventually lead to exhaustion. Not breaking a new low today means that the opponent is on the verge of exhaustion. There may be a comeback tomorrow. After such a long period of fierce fighting and back-and-forth tug-of-war, today's market is
My intuition is that some of the short positions in the foreign exchange market may have been liquidated."
Director Wang said with great interest: "Oh? So, Comrade Lu Ming, do you think tomorrow is likely to be a moment of reversal?"
Lu Ming nodded and replied: "There is a possibility. They have been delayed for too long. The key is that the US index has also begun to lose the momentum of its previous rise. It has been around 103 for a long time. Whether it is strong or not is
Weak, without the support of more fundamentals and good news, the U.S. index can no longer continue to attack a higher position. In turn, the pressure on the relative depreciation of the RMB has lost a very key driving factor."
Lu Ming, who was holding a cup and taking a sip of water, smiled in a relaxed tone: "Without this key help, we have fallen into the quagmire of tug-of-war. The costs borne by the various international short-selling funds that have jointly shorted this time can be divided."
It’s not low. Their pressure is no less than ours, or even greater than ours. With the pursuit of profit as their highest code of conduct, they will definitely not let the RMB break 7 and suffer heavy losses in vain. They are here to make money.
"
Upon hearing this, Director Wang nodded in approval: "It makes sense!"
…
As we enter the new year of 2017, the three-day New Year's Day holiday is over and it's Tuesday, January 3rd.
Today, the international short-selling army gathered for the last time to launch a last-ditch effort against the RMB. The offshore exchange rate fell rapidly during the session, hitting the lowest level of 6.9874, and it could hit a new low with just a few drops.
But after reaching this level, the offshore exchange rate quickly rebounded, and it rebounded strongly all the way.
Today Lu Ming is already a spectator watching the show. Seeing the strong rebound in the offshore exchange rate, he knows that Yang Ma has already taken action!
I just hit the position of 6.9874 before taking action. This is Chi Guoguo’s taunting opponent!
Finally, on the first trading day of the new year, the exchange rate of RMB against the U.S. dollar rebounded to 6.9605 after the close. This position also meant that all the attacks of the international short forces in the last few days were in vain.
Hot money investors have realized that it is more difficult to continue to actively short the RMB, because as long as the mainland's onshore funds are blocked and unable to come out, they are frantically taking over again. There are fewer and fewer RMB in the offshore market, and there is a situation where supply exceeds demand.
This shows that the RMB is a hot commodity in the short term and will inevitably rise.
Another defeat today finally made all the short-selling forces unable to sit still.
Because shorting the RMB requires paying the interest rate cost, which means that every day, short sellers have to pay a certain amount of interest. Breaking 7 is far away, as if they are trapped in the "Vietnam War Quagmire" of the currency war version, and they have to pay every day.
Pay interest.
The purpose is to make money, not to give money!
They knew that this time they were coming back with vengeful fury, and they had to accept that it would end in failure again without admitting it!
After some thinking and analysis, these short sellers came to a conclusion: As long as China maintains its strong ability to intervene in the financial capital market and does not achieve complete freedom and openness of the financial market, shorting the RMB is a fool's errand!
This is a lesson learned by short sellers after two consecutive disastrous defeats, but the price paid for reaching this conclusion is a bit high.
Liquidity was cut off in the onshore market and liquidity was locked in the offshore market. This left short sellers facing the embarrassing situation of holding hundreds of billions or even more US dollars in funds but unable to borrow RMB to sell short in the market.
Faced with this situation, stop loss has become the best solution for them as a last resort.
As a result, in the next day, that is, Wednesday, January 4, all international short-selling funds seemed to have half-thought together and unanimously retreated collectively today.
In order to leave the field as soon as possible and reduce losses as much as possible, we adhered to the principle of "dead Taoist friends don't die of poor Taoists" at this time, so they began to scramble to get away, like birds and beasts scattered, it was simply embarrassing.
On that day, the offshore RMB exchange rate appreciated sharply by +1.33%, returning to the water level of 6.8662. This day's appreciation was truly overwhelming. In one trading day, all the depreciation since December last year was recovered, and it also announced that the international short-selling army had finally ended in a disastrous defeat.
end.
At the same time, the US$81 billion invested by Tiansheng Capital turned losses into profits overnight.
Big A has also experienced a post-holiday rebound in the past two days. It had already risen sharply yesterday. Today's performance of the offshore exchange rate has made domestic funds realize that international short-selling funds have receded like a tide, and they have
The scrambling meat cutters lost money and were eliminated.
This means that this time the currency war ended with a disastrous defeat for the international short sellers.
The risks in the external market have been released, and Big A celebrated today by rising directly to 3158 points.
…
That afternoon, Tiansheng Capital Headquarters.
In the office, Lu Ming looked at the market trend and directly made a call to Qi Weina, "You immediately liquidate the liquidity of 20 billion US dollars, and then use 15 billion US dollars to leverage 3 times the leverage for a total of 60 billion US dollars."
When it comes to putting options, although it is said that when you return home, you should not hide your weakness and pursue the enemy, but then again, it is better to seize the opportunity to strike while the iron is hot. Now it is our turn to short the US dollar, and we must do it quickly, and we must do it today!”
Qi Wei on the other end of the phone didn't say anything, just nodded and replied: "Understood, I'll make arrangements right away."
A put option is a put option, and it is also the price difference that earns the premium. Today, we directly invested 15 billion US dollars in short selling. After the U.S. dollar index fell, the premium will inevitably fall accordingly.
The profit from a put option is limited and will not exceed 100%. For example, there is a U.S. dollar index option contract with a premium of 1 US dollar. If you put it now, you will sell the right to make a profit of 1 US dollar. The premium will be paid one week later.
If the price drops to US$0.5, buy an option contract from the market to close the position. Without calculating transaction costs, US$1 minus US$0.5 will result in a final net profit of US$0.5.
Simply put, the buyer of a call option has unlimited profits and limited losses, and the seller has limited profits and unlimited losses; the buyer of a put option has unlimited profits and limited losses, and the seller has limited profits and unlimited losses.
With limited profits, you can only expand your profits by adding leverage.
He set aside RMB 5 billion as a margin to short the U.S. dollar index this time. As for the income target, Lu Ming's requirements were not high, as long as he could earn tens of billions of dollars.
The foreign exchange market is the real wealth harvester!
