Rebirth of the Capital Legend

Chapter 278 The grand plan of 'sniping short-selling capital'!

Since it is impossible to defeat the confidence of the bulls in the market in one fell swoop, we can only go with the flow.

Otherwise, with the bulls' vigorous counterattack, when the pound exchange rate rebounds quickly, their newly added short positions will fall into a loss.

This would not only drain their cash reserves.

It will also cause them to lose their current initiative in the market and fall into an obvious passive situation of holding positions.

After saying that, Su Yi immediately instructed Qu Zecai to have all the traders in the trading room start closing their short positions to take profits, reap the meager intraday profits, and recover funds to replenish the margin of the fund account.

At the same time, Su Yi and other traders were closing their positions.

Huayin International's Investment Department 1 and Investment Department , as well as Aberdeen Asset Management's main hedge fund trading department.

All major institutions have begun to take profits and close positions for the short positions newly added during the day.

As several major short-selling institutions in the market covered their positions and closed out new short positions created during the day, the pound sterling exchange rate trend was also changing dramatically.

The pound sterling exchange rate rebounded rapidly near the 1.5200 mark and continued to rise. In less than an hour, it rebounded more than 50 points from the intraday low and regained the 1.5250 mark.

"I thought the main bears would concentrate their efforts to break through the 1.5200 mark, further stimulating bearish sentiment and undermining bullish confidence, thus continuing to trigger a situation of 'buy killing buy'. I didn't expect... they would just give up like that." Noticing the sharp rebound in the pound exchange rate, at 5 p.m., during the European trading session, in London, in the UBS International Andrea Hedge Fund Trading Room, fund manager Andrea said with some surprise, "It seems that this bear force led by 'Chinese institutions' is just bluffing."

"In my opinion, this short-selling force active in the Asian session cannot determine the final direction of the pound exchange rate, nor is it what we should focus on." Enid, head of market analysis at Andrea Hedge Fund, said, "Under the current situation, the U.S. trading session is the most dangerous time.

Due to the weekend negotiation meeting, the expected positive news was not revealed.

In today's market.

A number of core capital institutions on Wall Street, such as Bank of New York Mellon, Blackstone Group, and Citigroup, have clearly switched from long to short positions.

Compare the financial strength of Huayin International, Huayi Capital, and Aberdeen Asset Evolution 1 Fund.

These major short sellers on Wall Street are the real big sharks.

If these giant capitals short the British pound exchange rate on a large scale at the current position, and at the same time are affected by some negative market news.

The pound exchange rate is still at a dangerous level today at 1.5200.”

"Although the weekend negotiation meeting did not produce the desired result, the most important factor affecting the recent trend of the pound exchange rate is still the referendum result on the 23rd." Andrea said with a smile, "This afternoon, the preliminary vote count results for London should be out, right? I think... if nothing unexpected happens, this will give the market a big boost to its bullish sentiment."

As she spoke...

Andrea Hedge Fund Market Intelligence Officer Evangeline has knocked on the door and walked into the trading room.

"Are the preliminary vote count results in London out?" Andrea looked at Evangeline and asked with a smile.

Evangelin nodded and said, "According to the latest market news, the preliminary vote count for the referendum on June 6, which is Thursday, has come out."

"What's the result?" Andrea asked hurriedly.

Evangelin responded happily: "According to the preliminary vote count, the votes in core cities such as London, Manchester, Liverpool, Sheffield, etc., all exceeded 50% in favor of continuing to stay in the EU. Among them, the votes in London in favor of continuing to stay in the EU exceeded 60%, reaching 60.75%, which is basically the same as market expectations."

"Great!" Andrea praised.

"However..." Evangeline paused and continued, "Except for many regions where the vote count has not yet been released, in the core cities of the regions where the preliminary voting results have been released, the voting results in cities such as Edinburgh and Glasgow in Scotland are not very ideal. The preliminary vote count in favor of continuing to stay in the EU is only around 49.5%."

"This Brexit referendum was originally instigated by Scotland," Andrea said. "The preliminary vote counts in cities like Edinburgh and Glasgow were not ideal, but that was within expectations. According to the preliminary vote counts... based on comprehensive statistical calculations, the probability of remaining in the EU should be over 90%, right?"

Evangelin replied: "It's hard to say. After all, there are still huge uncertainties in the vote counting results in many areas, especially non-core cities, and marginal and remote areas. In addition, in order to ensure the fairness and openness of the referendum, the vote counting data and voting results will not be summarized until the 23rd, so the probability of unexpected results still exists."

"As long as the preliminary vote count in London is above 60%, I think it is unlikely that there will be any unexpected results in the referendum," said Enid, head of market analysis. "After all, the total voting results are summarized based on the number of people. There will always be differences in the voting results in other regions, but the difference will not be more than 10%."

"Yeah, I think so too." Andrea nodded.

"The biggest variable right now is Scotland," said Evelyn. "Several major islands in Scotland, as well as marginal and remote areas, have been in a state of turmoil recently. In addition, there is a plan for an independence referendum. The voting results are not expected to be optimistic. The final vote count may not come out until the morning of the 23rd. This has given the market expectations great uncertainty."

"It seems that the final battle between bulls and bears will have to wait until the referendum day." Andrea sighed.

"But judging from the current market trend..." Enid stared at the big screen in the trading room and noticed that the pound exchange rate was still soaring. She smiled and said, "The market feedback is still relatively good. This means that everyone believes that according to the preliminary vote counting results, it is still clearly positive for the pound exchange rate trend."

"But this little bit of good news and the change in expectations are far from enough to completely suppress the main short-selling forces in the market, or even change the long and short expectations and strategies of the main short-selling institutions in the market." Andrea said, "However, it is still good to be able to continue to take the initiative in the market under the continuous changes in the news."

As she spoke, she began to talk about the several major trading groups in the trading room.

Continue to follow up and increase long positions, increase the number of long positions of the fund, and induce a further surge in bullish sentiment in the pound exchange rate market.

This comes at a time when UBS International Andrea Hedge Fund continues to increase its long positions.

Barclays Bank Foreign Exchange Trading Center, also located in London, and the hedge fund trading department of 'Lion International'.

Claude, the fund manager who had already withdrawn from the pound exchange rate trading market and closed all long positions, had his eyelids twitched after seeing the preliminary voting results. He clearly felt something was wrong. After thinking for a while, he asked Alex, the head of the fund's market research department, "What do you think of this preliminary voting result?"

Alex responded: "It seems to be completely in line with market expectations, except that nothing has exceeded expectations or happened beyond expectations. Based on this preliminary voting result...it is estimated that the long and short sides of the pound exchange rate market will continue to be deadlocked until the news and market expectations are further clarified."

"I think this preliminary voting result is obviously biased towards the negative direction." Claude sighed and said, "In the current market, everyone has too high expectations for the trend of the pound exchange rate and the referendum result on the 23rd. If something that meets expectations is too high, once an accident happens, it is very easy to cause a stampede of bulls in the market, and it will also cause the positive to turn into negative after it is implemented. If market investors have too high expectations, and the market news results do not exceed expectations.

The final feedback can easily fall short of expectations.

Fortunately, the central bank has been conducting continuous open market operations recently, providing a certain degree of support for the upward trend of the pound sterling exchange rate.

Otherwise... this market trend will still be quite dangerous!"

"Do you think...something unexpected will happen?" Alex asked.

Claude thought for a moment and responded, "Currently, less than half of the regions and cities have preliminary vote counts. It's hard to say what the unexpected result will be. At least in this position, if I were to choose, the chances of winning by going long would probably be lower than the chances of winning by going short. This is probably the reason why many Wall Street institutions have begun to switch from long to short."

"Then... why don't we take part in the bet?" Alex smiled and said, "No matter what, such a large number of long and short positions accumulated in the market will definitely trigger extreme market trends. If we bet on the right direction and someone forms a stop loss, the profit will still be very substantial."

"Forget it." Claude waved his hand and said, "My luck in gambling has never been good. I'd better just watch the show."

"I heard that Huifeng and UBS are both increasing their long positions." Alex said, "Now in the entire pound exchange rate market, the long and short bets are getting bigger and bigger."

"It's not just these two institutions," Claude said. "Our central bank is also a bull in the market."

Alex nodded and said with a smile: "That's right. I feel that this Brexit referendum and the battle between long and short positions in the exchange rate market will have a far-reaching impact on the future destiny of our country!"

"It does have far-reaching implications," Claude said. "This is both a crisis and an opportunity for our country."

"What?" Alex asked.

Claude smiled and said, "In the current pound exchange rate market, the number of short positions has reached 300 million, right?"

"The scale has exceeded 300 million lots," said Alex.

"300 million lots, calculated based on the market value of standard contracts, is almost $3000 billion," Claude said. "With such a large number of short orders, once the shorts are stampeded and the longs are forced to sell, and the pound exchange rate fluctuates downward by 3000 points, it means that at least $1000 billion will be harvested.

You said, if the government and the central bank are determined to set up a scheme to reap this short-selling capital.

The short-selling capital led by Chinese capital and Wall Street capital, with losses flowing into my country, can it bring a greater boost to my country's economy? Is this a huge opportunity? "

"But the referendum result is uncertain," Alex said. "How can it be controlled?"

Claude said: "As long as there are enough related interests and many people in the important government are willing to do this, what's the difficulty in controlling the results?"

And just as Claude secretly guessed and calculated.

At this time, analysts within the Bank of England, the central bank of the United Kingdom, and the National Treasury had already seen a good opportunity to hunt down the huge short-selling capital in the pound exchange rate market, and proposed a plan to the leaders of the central bank and major officials of the Ministry of Finance to use the referendum to harvest the market's short-selling capital and enrich the country's wealth.

“This is truly a huge opportunity.”

British Treasury Secretary Andrew looked through the plan of "sniping short-selling capital" proposed by his subordinates and sighed.

"If we can determine the referendum result in advance, it is not impossible to implement this plan." Hearing Andrew's sigh, the Governor of the Bank of England, Brian, the governor of the national central bank, responded, "But for now, the referendum result on the 23rd should still be uncertain, right?"

"In the face of national interests, the referendum result can still be discussed." Andrew smiled and said, "The key is if the long-short war over the pound exchange rate is expanded, do you have a chance of winning? Although Chinese capital is a soft persimmon in the financial market, Wall Street capital is a group of wolves."

"If the referendum result is confirmed, then we will naturally have a chance of winning," Brian said. "However, our central bank cannot directly intervene in the foreign exchange market. Only the investment departments of various financial institutions can participate in the market game. But this is not a problem. We can inject funds behind the scenes. The key is what the referendum result will be on the 23rd."

"The vote count is not out yet," Andrew said. "I will meet with the Prime Minister tomorrow to find out. The main area of ​​uncertainty right now is in Scotland."

"Well, this is something everyone can predict," Brian said. "I heard that the current Scottish First Minister Salmond is not easy to deal with, and I heard that he has been inciting Scottish independence. The key is that he is a member of Parliament. If you want to control the vote count, he will be the biggest obstacle."

"Sadmon is indeed an old stubborn man." Andrew said with a headache, "But dealing with him is not something we should consider. We have the people in the parliament. Besides, the plan to snipe short-selling capital is not decided by the two of us. In the end, the Prime Minister has to make the final decision."

"Okay." Brian said, "Then wait for good news from the adults."

After saying that, Brian stood up and walked out of the Finance Minister's office.

At this time in the pound exchange rate market, stimulated by the latest news, the bulls in the market have taken the full initiative.

The pound sterling exchange rate soared rapidly and has already rebounded to a level close to 1.5300.

At the same time, the net long position in the market once again climbed to 80 lots, with the continuous increase in long capital and the assistance of countless market speculators following suit.

However, although the pound sterling exchange rate has returned to around the 1.5300 mark after continued violent fluctuations.

However, the overall loss of short positions held by institutions such as Huayi Capital, Huayin International and Aberdeen Asset Evolution No. 1, which are the main short sellers in the market, has actually decreased a lot compared to the last time the pound exchange rate was at the 1.5300 mark after covering and closing a lot of intraday short positions.

That is to say...

Although the pound sterling exchange rate rebounded rapidly, the bullish capital in the market fought back strongly.

However, they still firmly hold the initiative in the market and are not afraid of the continuous short squeeze and fierce counterattack by the bulls in the market.

(End of this chapter)