Rebirth: The Financial Giant

In the next three days, the short army formed by various international hot money launched the most fierce offensive.

And Lu Ming made his move without reservation.

All start stud!

The opponent came in one blow, and the offshore exchange rate hit a new low again today, and was approached by the enemy to the water level of 6.9874. Tiansheng Capital consumed $17.2 billion in liquidity today, and only $12.05 billion in liquidity was left. .

Today, the enemy's fierce offensive was held again. After the close, the offshore exchange rate rose to the water level of 6.9695.

On December 30th, the bear army launched the second round of offensive again. Compared with yesterday, the offensive this time was weakened and did not hit a new low. The lowest water level in the whole day was only 6.9853, and the highest was 6.9604. The position was fixed at the water level of 6.9734 after the close.

The 7-bit gate is still solid there, rock solid and unbreakable.

But Lu Ming's funds have been exhausted, and at the moment he is on the phone with Deputy Director Wang, "Ju Wang, Tiansheng Capital's liquidity of more than 560 billion RMB has been exhausted, and it may be too late to cash out the stock assets in the US market. "

Wang Ju on the other end of the phone replied, "It's really hard to keep up until today. Leave the finishing touches to us. You can rest well and watch this good show!"

Yang Ma has prepared enough liquidity to go offshore, which can satisfy at least two to three days of consumption. This is still under the circumstance that the opponent's offensive can be as fierce as these two days.

Lu Ming said with a smile: "The so-called one-shot and three-failure, today's failure to break a new low already means that the opponent is on the verge of exhaustion. There may be a flashback tomorrow. After such a long battle, back-and-forth tug-of-war, today's board. My intuition is that the short positions in the foreign exchange market may have been partially liquidated.”

Wang Ju said with great interest: "Oh? So, Comrade Lu Ming, do you think that tomorrow is likely to usher in the moment of reversal?"

Lu Ming nodded and replied: "It is possible, they have been dragged for too long, the key is that the US index has also begun to lose its previous upward momentum, and the time around 103 is not short, it depends on whether it is strong or not. Weak, without the support of more fundamentals and good news, the US index has been unable to continue to attack towards a higher position, and in turn, the pressure on the relative depreciation of the RMB has lost a very key driving factor."

Lu Ming, who took a cup of water and took a sip, said with a relaxed smile: "Without this key help, and in the quagmire of a tug-of-war, the costs borne by the various international short-sellers who have jointly shorted this time are comparable. Not low, their pressure is no less than ours, or even greater than ours. They take profit as the highest code of conduct, and they will definitely not suffer heavy losses in vain in order to let the RMB break 7. They are here to make money. "

When Wang Ju heard this, he nodded in approval: "That makes sense!"

...

Entering the new year of 2017, the three-day New Year's Day holiday ended, and the time came to Tuesday, January 3.

Today, the international short army assembled for the last time to launch a last-ditch effort against the RMB. The offshore exchange rate fell rapidly during the session, hitting a minimum of 6.9874, and it can hit a new low after a little bit of it.

But the offshore exchange rate rebounded quickly after this water level, and it has rebounded strongly all the way.

Today, Lu Ming is already an outsider watching the play. Seeing that the offshore exchange rate has rebounded strongly, he knows that Yang's mother has already taken action!

Just hit the position of 6.9874 before shooting, this is Chi Guoguo's mocking opponent!

In the end, on the first trading day of the new year, the exchange rate of the RMB against the US dollar rose to the water level of 6.9605 after the market closed. This position also means that the last few days of the international short army's attack all came to nothing.

The hot money realizes that it is more difficult to continue to actively short the RMB, because as long as the onshore funds in the mainland are not able to come out, they are going crazy again. It shows that the RMB is a sought-after commodity in the short term and will inevitably rise.

Today's defeat again has finally made all the bearish forces unable to sit still.

Because shorting RMB needs to pay the cost of interest spread, which means that every day, short sellers have to pay a certain amount of interest. Breaking 7 is far away, as if caught 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 send money!

They know that this time they come back with vengeful anger, and they have to accept that it ends in failure again without admitting it!

After some thinking and analysis, these bears came to a conclusion: as long as Huaguo maintains its strong ability to intervene in the financial capital market and does not achieve complete freedom and opening of the financial market, shorting the RMB is a fool's errand!

This is the lesson the bears have learned after two consecutive fiascoes, but the price to pay for this conclusion is a bit high.

The onshore market is cut off from liquidity, and the offshore market is locked in liquidity, which makes the short sellers face the embarrassing situation of holding hundreds of billions or more of USD funds but unable to borrow RMB to sell short in the market.

Faced with this situation, stop loss has become the optimal solution under their compelledness.

As a result, in the next day, that is, Wednesday, January 4, various international short funds seem to have been negotiated in half, and they will retreat collectively today.

In order to be able to leave the field as soon as possible and reduce their losses as much as possible, at this time, they were all based on the principle of the dead daoist not dying, so they began to scramble to rush to run, like birds and beasts scattered, simply embarrassed.

On the same day, the offshore RMB exchange rate appreciated sharply and rose back to the water level of 6.8662. The appreciation on this day was a long-term phenomenon. It recovered all the depreciation since December last year in one trading day. It also declared that the international short army ended in a fiasco.

At the same time, the $81 billion invested by Tiansheng Capital turned a profit overnight.

In the past two days, the big A has also ushered in a post-holiday rebound. Yesterday, it had risen sharply. Today’s performance of the offshore exchange rate has made various domestic funds realize that the international short-selling funds have receded like a tide. The scrambling meat-cutters lost out.

It means that this time the currency war ended with a fiasco for the international shorts.

The risks in the external market were released, and Big A rose directly to 3158 points to celebrate today.

...

In the afternoon, Tiansheng Capital headquarters.

Lu Ming in the office saw the downtrend and made a phone call to Chivina, "You should immediately close the $20 billion in liquidity, and then take out $15 billion to leverage three times the leverage for a total of $60 billion. Putting options, although you should not hide the poor and not chase after returning to your teacher, but then again, take advantage of the victory to pursue and strike while the iron is hot, now it is our turn to short the US dollar, we need to hurry up and get it done today!”

Qi Wei on the other end of the phone said nothing, nodded and replied, "Understood, I'll make arrangements now."

A put option is a put option~www.novelmt.com~ is also a spread for earning premiums. Today, it directly sells $15 billion in short selling. After the US dollar index falls, the premiums will inevitably fall.

The profit of a put option is limited and will not exceed 100%. For example, there is an option contract on the US dollar index with a premium of 1 USD. At this time, to put it, that is, to sell the right to make a profit of 1 USD, and the premium will be paid a week later. When it falls to $0.5, buy an option contract from the market to close the position, excluding transaction costs, $1 minus $0.5, and the final net profit is $0.5.

To put it simply, 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, it can only be expanded by stacking leverage.

Reserve 5 billion as a margin, this time backhand short the US dollar index. Regarding the income target, Lu Ming's requirements are not high, and he can earn tens of billions of dollars.

The foreign exchange market is the real wealth harvester!

...