As the peak period of crude oil and natural gas consumption approaches, international crude oil prices have fallen instead of rising, at one point falling from $120 per barrel to below $110.

This abnormal scene discouraged many investors. After all, counter-cyclical and counter-market operations put a great test on investors’ information sources and judgment.

If you are not a large business group or a professional financial institution, it is difficult to fully judge the real market situation through fragmented and specially processed information sources.

Faced with the ever-changing investment market, it is difficult for small and medium-sized institutions and individual investors to make correct operations in the first time, and it is inevitable that they are forced to become the targets of large institutions.

For example, the sharp fluctuations in energy prices that occurred before the 2013 Lunar New Year in the East caused countless people to lose their fortunes. The severity of the fluctuations was enough to make every participant unforgettable…

“Notify every financial institution that can be contacted to slow down the short selling.” After fully communicating with the visitors from Yanjing, Li Zehua issued the first decisive battle order at Qingyun headquarters.

Under his instructions, more than 400 financial institutions controlled by the Qingyun Group and its allies began to gradually reduce their resistance to orders, and the most direct manifestation was in the primary trading market.

The amount of capital investment from the Qingyun Group was greatly reduced. Affected by this, the international oil price rose slightly at the opening of the day, rising from US$110.25 to above US$115.5.

“Boss Yao, will there be any problems if we continue to sell?” The chief operating team leader in charge of the operation said with lingering fear as he looked at the rising international crude oil prices: “You know, we are the absolute main force in short selling.

If we suddenly withdraw from the battle without any warning, what if our competitors make a strategic misjudgment? “

“You ask me, who should I ask?” Yao Xiangjun spread his hands. Seeing that Li Zehua had no intention of explaining, he could only bite the bullet and continue to order a reduction in capital investment. “Listen to the boss, reduce the amount of funds by 80% and control the speed of increase.

Waiting for the next order at any time.”

After he finished speaking, he moved closer to Li Zehua and whispered, “Boss.”

“Wait a moment.” Li Zehua took out his cell phone and turned it off, then smiled and said, “Let the news ferment for a while.”

Yao Xiangjun was quite confused, but he didn’t dare to ask any more questions until he saw Liu Ziliang pushing the door in with a cell phone in his hand. Then he began to understand a little.

“Hello, my cell phone isn’t working? That doesn’t make sense. Oh, sorry, it’s out of battery. I’ll ask someone to charge it.” Li Zehua answered the phone and pretended to apologize before gradually getting to the point.

The people who called were either the heads of large institutions, presidents of large banks, or even the finance minister of a certain economy. Without exception, they all questioned the sudden weakening of the short selling momentum in crude oil futures.

Especially the White Elephant and the Foot Basin Chicken, they seemed to be ready to call for an explanation, but Li Zehua fought back one by one, saying some ambiguous words that left people confused.

Yao Xiangjun was also busy. His phone was flooded with calls. All of the calls were similar questions: “Why did the short selling suddenly stop? Is there something wrong?”

“It’s okay, it’s just a normal technical adjustment.” Yao Xiangjun was busy and exhausted. He finally managed to calm down the people who called for consultation. Then he was confused by his boss’s words.

While Li Zehua was on the phone, he suddenly came over and said, “It would be perfect if we could make everyone believe that there is a problem with our funds.”

“???” Yao Xiangjun was confused, “Will this work?”

“Why not?” Li Zehua asked back: “It’s only been half an hour since the market opened, haven’t you noticed that the short selling force in the market has dropped sharply? We are the absolute main force of short selling.

Dongda Capital contributed more than 45% of the external short-selling funds transmitted to the New York Stock Exchange and the Chicago Stock Exchange. Now that we stop, the funds of other domestic financial institutions will also stop.

Together with the traditional US capital that has turned against us, we control more than 6% of the positions.

But looking at it from the other side, 4% of the short positions in the primary market are still in the hands of other people, while the situation in the secondary and tertiary markets is completely the opposite, with at least 7% of the trading chips not in our hands.

If we calculate the accounts this way, we have suffered a huge loss. We have worked so hard and in the end, we may not even get 35% profit. How can those international hot money that followed us and made a fortune win without doing anything? “

Li Zehua sneered, “Following the car to make money, and not paying a penny for protection, how can there be such a good thing in the world?”

“Boss, are you planning to teach a lesson to all the international hot money that followed the trend and shorted the market this morning?” Yao Xiangjun was stunned. He didn’t expect that on the eve of the decisive battle, Li Zehua still had the energy to set up a scheme to make extra money.

But when I think about the large number of international hot money that followed the trend being killed, what if it affects the overall layout?
So he quickly tried to persuade him, but before he could say a few words, Li Zehua interrupted him impatiently, “In the past, we needed hot money to carry the sedan chair, so naturally we had to give them a share.

But now, several superpowers are acting collectively, and they can win with or without these people, so why should they share the extra benefits? “

As he spoke, he took out a statistical report and threw it to him, saying, “The data of the secondary and tertiary markets are kept secret, but it doesn’t matter, after all, the main battle is in the U.S. market.

However, according to the short position size of the primary market summarized this morning, Dongda, Oumeng, Jiaobenji and traditional US capital only took up 85% of the short options.

Do you know how much capital we invested? More than 800 billion US dollars.

This means that at least more than 150 billion US dollars of short positions are not in our hands. The thought of success will cause hundreds of billions of US dollars of net profits to be swallowed up by the jackals outside.

Who can accept it? “

“Uh.” Yao Xiangjun was speechless for a moment, because energy futures are related, the leverage is often seven or eight times, and some are even more than ten times. Even if calculated based on the minimum of US$150 billion, without leverage, the profit from the decline (short selling) is 100%.

Taking into account the leverage, the starting point is a net profit of 100 billion US dollars (theoretically the maximum profit, after losing all the margin in the actual operation, the position will be liquidated). No wonder the boss decided to slow down the short selling.

Allowing crude oil prices to continue to rise will obviously lure more investors to buy while also hurting short-selling investors who follow suit. Once their positions are blown up or they close their positions early because they can no longer bear the losses, the vacated amount will become excess profits for large institutions.

At the same time, Li Zehua was also talking to his largest partner, traditional American capital.

Convince the other party with just a few words.

“…Don’t tell me that Wall Street hasn’t contacted you. Now let their main players enter the market and push up the price. It doesn’t matter whether it goes to 120 or 125. If we don’t let them make up for the loss, do you think they will obey obediently next?”

Li Zehua saw it clearly, “The plunge in international energy prices is an inevitable trend that cannot be reversed by an individual or a single economy, so now it is a matter of holding on for the last few seconds.

We are all smart people and know very well where the excess profits come from. If Wall Street is hit too hard, it is inevitable that the table will be overturned. Giving them a morning to adjust will not change the overall situation.

Besides, with their cooperation, we can make more money.”

“This is very risky.” Hunter said with a bitter face on the other end of the phone: “Pre-market trading is so fierce, investors from all over the world are involved, and hundreds of millions of funds are fighting every minute.

What if something unexpected happens, or even Wall Street takes advantage of the opportunity to make a decisive move? “

“Are you and I vegetarians?” Li Zehua asked back, “Don’t tell me that the amount of funds you prepared is not sufficient. Compared with the direct drop from 110 to 90 triggering the circuit breaker mechanism.

It is better to let Wall Street make a profit, and wait until the price rises to 120/125 US dollars, and then bring it down in one breath. Everyone will scramble for short positions based on their own abilities, and they will close their positions to reduce losses.

We continue to increase our profits, and everyone is happy, so why not do it? “

Hunter had no objection at all. He called to confirm the time of strategic reserves and public sales. After confirmation, he said nothing more and just arranged his trading team to quietly absorb long orders and make a profit.

In fact, other parties were operating in the same way. They were all experienced foxes. They immediately understood the problem as soon as they saw the Qingyun operation. It was obvious that they wanted to take a bigger bite. Wall Street was even more clear. They didn’t even take the initiative to call to inquire. They were all smart people. They took this opportunity to invest heavily in the main funds before the market opened.

With the actions of major Wall Street investment banks and the tacit approval of all parties, international oil prices began to rise sharply at once, breaking through $155.5-116, $117, and $118 almost without any hindrance.

Previously, it took all parties half a month to negotiate the price from 120 to 110 US dollars, but now, Wall Street has recovered all the lost ground in just one morning.

However, when the price reached above $120, the pressure suddenly increased. All parties, including the top investment banks on Wall Street, were scrambling for short-selling shares. Fortunately, there was a large group of people clamoring for international crude oil prices to remain strong.

Mainly composed of international hot money and small and medium-sized financial institutions that made misjudgments, this group of fearless guys rushed into the market waving money and screaming, becoming the last scapegoats.

Li Zehua watched all this calmly, just as he said during the call with Yanjing, “At this stage, the amount of funds we have invested in the US primary market is too large.

Once oil prices collapse as expected, the first-period profits after the opening of the U.S. stock market alone will be as high as $500 billion (a little more than 800% of $60 billion), and the profits of the secondary and tertiary markets will be almost several times that.

Moreover, the big investment banks on Wall Street are destined not to give up. According to the existing information and data, there is sufficient evidence to prove that Goldman Sachs, Morgan Stanley and Citigroup have transferred more than one-third of their positions to large-scale big cat funds.

Once the market collapses, they will inevitably add margin at all costs, making a last-ditch effort for the main funds to flee.

By then, the profits will reach an astonishing scale. Citigroup has sent someone to contact me and expressed its willingness to sit down and talk. To put it bluntly, it has noticed the biggest risk and is ready to play a trick of pretending to build a plank road while secretly attacking Chencang. “

The private communications were even more explicit, and had even reached the stage of negotiating rebates and commissions. To put it bluntly, huge amounts of U.S. capital were involved, and they would not be able to close their positions smoothly in a short period of time.

Selling short in the open market means facing competition from hundreds of financial institutions in various economies. No matter how foolish American capital is, it dare not play tricks in public.

Putting aside the question of whether giving priority to short-selling orders from large U.S. institutions would be effective, the chain reaction caused by the exposure alone would cause the major Wall Street investment banks to lose all their deposited funds.

This is because all the people in the world who can do financial transactions are extremely smart. Once everyone knows that the U.S. market is openly cheating, they will cheat in the opposite direction (the media and funds controlled by U.S. capital have been long).

There is no need to think about the ending. The market will surely collapse in an instant. No one who shorted it will be able to escape. Losing all their money can be considered a blessing from their ancestors. The final outcome will be liquidation and claiming margin compensation.

As for how much to add, it all depends on luck!
Once any investment leads to a unilateral escape and stampede, it will not be as simple as losing all the principal. If we let all parties speak based on their capital strength, then there will be no problem with negative oil prices.

Wall Street obviously knows the seriousness of the matter, so it has made a lot of efforts in private. Transferring long orders to big investors and other economic funds is one thing, and actively contacting various short-selling institutions is another.

Unfortunately, the secondary and tertiary trading markets of various economies have been notified in advance that any buy and long orders do not need to enter the exchange directly, but will be intercepted and executed over the counter.

Then, the transaction display of each buy and sell in the background enters the second or third level trading platform, and no matter how much money outsiders spend, they cannot match the order.

The American capital is completely out of options and can only use the threat of overturning the table as a bargaining chip in exchange for limited compromises from all parties, that is, selling part of the short orders and transferring part of them to major Wall Street investment banks at a premium to the market price to help them reduce their losses.

At the same time, everyone tacitly prepared to cover up the truth before the unprecedented collapse and give a little shock to the international hot money that followed the trend and shorted the market.

Other economies are already on high alert and a 10% increase does not matter because on the one hand they buy part of the stocks to hedge the risk and on the other hand they are so large and powerful that they do not care about the book losses at all.

As a result, those small and medium-sized institutions that shorted the market will be in trouble. The market has been rumoring that the world’s major energy-consuming economies will release strategic reserves in the near future.

There are even well-informed people who have obtained the exact strategic reserve data of various countries, but it has never been recognized. This does not prevent them from rushing in and shorting.

They used leverage of ten or eight times and dreamed of getting rich overnight, but today they were suddenly hit hard. Wall Street and various economies joined forces to set up a conspiracy, pushing the price up from $110 to above $120 in one breath.

If margin calls are not taken into account, most of the airdrop orders held by individual investors and small and medium-sized institutions have been liquidated, and most of them have been scared off by the drastic increase.

Then they follow the bulls and continue to invest funds in an attempt to reverse the loss situation.

But today is destined to be a carnival of capital.

The pre-market trading in the Eastern world during the day recorded huge trading volumes, but when it was close to the end of the working day, many small and medium-sized economies, including Greece, suddenly came out to make public statements.

It means that the energy reserves of the economy exceed the amount of energy that the economy will use in the next 60 days, and due to the inability to transport in the delivery market, the economy also has a large amount of additional crude oil reserves.

Now the international oil price has once approached 122 US dollars. In order to protect the security and stability of the domestic energy market, we have released 30 days of energy reserves plus additional delivery to the market.

Affected by this, the rising trend of crude oil in the global primary energy trading market was instantly curbed.

Soon after, sufficient funds prepared in advance from various economies, including self-insurance funds from traditional US capital and major Wall Street investment banks, began to rush into the market unscrupulously, and in line with the news, swept away all visible long orders.

The bulls who were originally unable to close their positions did not care, because they knew that the result was doomed to be unchangeable. They just took advantage of the daytime (daytime in the east) to frantically sell and close their positions to reduce losses.

But those small and medium-sized institutions that had been shorting in pre-market trading were caught off guard by the sudden attack and almost lost all their margin, now they are collectively in tears!
Because of a 10% surge in one day, they almost lost all their judgment ability. In order to stop the loss, they not only stopped the original short-selling contract, but also turned around and bought long in order to follow the trend and make a big profit.

As a result, short sellers are being slaughtered, and long sellers are also being beaten badly. No matter which choice you make, it is a dead end.

“This is impossible, everything is fake. Yes, super economies including Dongdajiaobenji and Hans Gaul have not yet ended, this must be a rumor.” Some financial institutions that have invested huge amounts of money to follow the trend can no longer sit still.

“We suffered a huge loss due to the sudden surge in the market before and failed to adjust our positions in time. We finally managed to short sell to make up for the losses. Now they are trying to trick us into short selling again.

I don’t want to serve you anymore. At worst, I’ll add margin to hold on till the end.”

In fact, they still had a chance to escape at this time, but during the sudden surge during the day, many people lost almost all their previous short-selling profits, and also lost a large amount of principal.

Now they have finally made some money by going long, but it is still far from making up for the losses. Most of their money comes from investors. If they close their positions now, investors will inevitably withdraw their funds and leave the market.

Therefore, in order to avoid being liquidated, small and medium-sized institutions can only bite the bullet and continue to hold their positions. Moreover, the market has not yet experienced a sharp drop, but has only slightly dropped to US$118-119.

But they had no idea that today was destined to be a special day for both long and short losses. The reason why the market has not fallen now is entirely because Wall Street is still actively saving itself.

While they were frantically selling to close their positions, they were also manipulating the oil-producing countries’ entrusted (pledge of allegiance) to funds controlled by Wall Street to buy frantically, otherwise the oil price would have plummeted long ago.

In order to prevent the fighting from being fierce enough, US capital once again required all parties involved in energy trading to increase their margin to 20% at the close of the market at noon. This was the most insidious killing move.

Because it means that every party involved in the transaction will take out the last chip in the bottom of the box and prepare for the final blow.

All parties are happy with this. Once they have collected their chips, they will collectively greet the economies of their respective countries, demanding that they disclose data publicly and deliver strategic reserves to the market.

As a result, the most bizarre thing in the world happened: oil-producing countries were restricting production capacity and reducing exports, while the original consumer countries opened their warehouses and frantically delivered strategic reserves to the market.

The direct result of this was that oil prices completely collapsed. The moment the U.S. market officially opened, it fell by more than 10% (based on the previous daily limit of $110), and then directly triggered the first circuit breaker… (End of this chapter)