Chapter 1885 Chain Reaction

In the afternoon, oil prices did not continue to plummet, but rose slightly, from 103.38 per barrel to more than 105 US dollars, but never exceeded 110 US dollars.

Everyone knows the current oil price of 110 US dollars.

Oil prices can fluctuate greatly within a day, but if the closing price plummets by 40% or 50% compared with yesterday, then the entire oil market will enter a sharp deterioration, and a direct collapse may be possible.

No matter how tyrannical the US government is, it will not want to get everyone to die together.

Even if it is to make those speculators and hoarders suffer huge losses, it has to be done slowly, and it will be in place all at once. I am afraid that there are countless people who simply don't feel ashamed.

In addition to the U.S. government supporting the market, oil-producing countries in the Middle East have also begun to make efforts.

Unlike consumers who hope that the price of oil will become cheaper and cheaper, they hope that the price of oil will remain at around 100, but seeing the trend of falling below 100 US dollars on the first day, they can't sit still.

At 3:00 p.m. on the {top} point {small} in the Eastern United States, OPEC, the organization of petroleum producing countries, announced that starting today, it will reduce crude oil production by 8 million barrels per day in order to maintain the stability of the oil market, and it does not rule out further large-scale production in the future. Possibility of volume reduction.

It is well known that when oil-producing countries cut production, there will be less oil circulating on the market.

Compared with the reduced amount of oil in circulation, even if everyone needs less oil, the pressure on the inventory of the entire market will not be great, and naturally there will be no room for a sharp drop.

Since the existence of the OPEC organization, the tactic of reducing oil production has been prepared to cope with the decline in oil, and it has been absolutely tried and tested.

But it can force OPEC to cut production by 8 million barrels per day at a time. It can be regarded as the first time in the world.

Sure enough, after the news came out, the price of oil rose steadily a lot immediately. At the end of the trading day on the 11th, it had risen to 127.87 US dollars, a drop of more than 12.5%. It can still be called a tragic crash, but it did not crash after all.

Just like in the previous life, after the stock market and commodity exchanges closed in the afternoon, talents from investment banks and fund companies such as Goldman Sachs and Morgan came out of the Federal Supreme Court.

There are no substantive allegations in this inquiry, and they are only actively explaining and assisting in the investigation.

But they all know that if they don't take substantive actions and cooperate with the U.S. government to suppress oil prices, then their lives will be difficult, and their prosperity and wealth will not be preserved.

Let people die. It is never the best way to deal with disobedient people. Give him the most severe deterrence so that he can do things according to your wishes and bring you the greatest benefits. This is the most beneficial method for you.

Now this group of predators on Wall Street are frightened. Of course they dare not play tricks. They can only work hard for the government honestly, and dare not think about anything else for the time being.

Of course. Not daring to think about it now does not mean not daring to think about it all the time, it just means that we have to follow the baton of the US government now.

Such a tragic day in the global stock market and oil futures market. Many people have not noticed that there is actually another very important change, that is, in the New York Mercantile Exchange, people have begun to sell bulk futures commodities.

The so-called bulk commodities refer to those products that are generally not circulated in the retail link, and the transaction volume and price are huge.

Oil is one such commodity, and others include iron ore, coal, wheat, soybeans, and more. It is also an international commodity.

These futures commodities are definitely only qualified to be traded by the world's top 500 companies, or directly operated by the relevant departments of a country.

Now everyone is selling bulk futures commodities, which means that it is at the high-level company level and at the national level. They are all very pessimistic about the futures market in the future market, and want to get out early and have a look before making a decision.

Up to the present, oil futures are no longer representative of itself. Oil futures, which account for more than 30% of the total trading volume of the futures market, have become the wind vane of the futures market.

If oil futures are hit hard, then other commodity futures will not feel better and will definitely fall.

Now they realized immediately that selling large quantities of commodity futures was originally a good thing, but the problem is that there are more than one smart people. When large quantities of commodities are sold, prices have inevitably fallen.

This is the case with many things. Small failures and declines will lead to more crashes.

It is said in "Wei Liaozi's Art of War" that if one tenth of the soldiers die in battle, and the army can maintain an undefeated army, that is an absolutely strong army.

This is especially the case in the stock market and futures market. Now that commodities have entered a downward trend, at least in the next few months, or even a year or two, the weak trend has already been determined.

Xiao Qi didn’t short the oil futures market because his goal was too big. If he went short at this time, not only the United States would hate him, but also the oil-producing countries in the Middle East, Russia, South America, etc. They will all regard Xiao Qi as an enemy.

So all along, Xiao Qi didn’t directly go short on oil, but just bet against several major investment banks twice. This is equivalent to a personal grievance, which has little to do with the interests of oil itself.

In this world, successful people are those who are good at protecting themselves. If they are desperate for money, they will never be able to enjoy themselves for a long time.

The last time Xiao Qi shorted the subprime debt, he also followed giants such as Goldman Sachs, JPMorgan Chase, Morgan Stanley, fund companies, etc., and he did it very carefully. Tong Wencong was just one of hundreds of people who made money in it. No one knows that the amount of money he and Xiao Qi earned is far more than that "king of hedge funds" Paulson, who made a big splash.

Therefore, this time, Xiao Qi will not do oil, nor will he do sensitive commodity futures such as ore and grain, and it is even more impossible to do dollar, but gold!

After oil plummets and bulk futures commodities are sold off in large quantities, people usually turn to large-scale holdings of U.S. dollars to avoid risks, so the U.S. dollar will continue to strengthen for a period of time in the future.

Corresponding to the strengthening of the US dollar, the price of gold will inevitably fall. This is the correct market law!

First came oil, then commodities, then the dollar, and finally gold.

Under the chain of links, the final impact is the price of gold, and shorting gold in advance is naturally a most secretive thing.

As early as June, Xiao Qi asked Tong Wencong to start the layout. Before Xiao Qi came to the United States in early July, Xiao Qi and Tong Wencong invested 9 billion US dollars, entering the gold futures market one by one.

Among them, Xiao Qi invested 8 billion US dollars of profits from the subordinated debts. Tong Wencong not only invested the 500 million US dollars he earned during this period, but also posted 500 million US dollars himself.

For him, missing out on the super high profits of the subprime debt has already made him regretful, and now if he wants to miss out on the gold futures transaction, it is really because he does not know how to cherish the opportunity.

Gold is one of the precious metals, but it is unique in its own way. After all, you say platinum and diamonds are good things, but when the time of disaster comes, you should see whether gold can be exchanged for things, or these shiny things. What can be exchanged for other things?

Gold in troubled times.

The habits of thousands of years cannot be changed in a short time, let alone people never intend to change.

Therefore, speculating on gold futures is a normal speculative operation, which has nothing to do with people's daily life and will not be talked about.

Even so, Tong Wencong was still very careful when making the layout. For more than half a month, people in the fund company used countless small accounts to operate, and finally completed the entire layout last weekend.

After a successful layout, all that's left is to wait.

Fortunately, this did not make Tong Wencong wait long. Just a weekend passed. Ruby Nader, like an angel on earth, stepped forward to defeat the price of oil, and suddenly turned the oil futures, which had been soaring, from now on. The head will slowly fall all the way.

After seeing the performance of oil futures and bulk commodity futures today, when Tong Wencong called Xiao Qi, his voice was trembling.

"Qi Shao, we sent it! You are really the messenger of God!" Tong Wencong said with great excitement and piety: "Being able to do these two deals under your command, I, Tong Wencong, have no regrets in my career. Already!"

"You can't say that." Xiao Qi smiled, "Old Tong, the next few years will be the time for us to show our strengths. I still count on your continued efforts to make our wealth continue to grow!"

"I will definitely obey your wishes!" Tong Wencong said solemnly: "In the financial market, I am your pawn, and I will fight wherever you point!"

Tong Wencong's mood was agitated until he hung up the phone.

What is the most important thing for a fund company like him?

Isn't it the ability to predict things like a god?

He who has always been at a low level, seeing Xiao Qi's understatement turning his hands into clouds, turning his hands into rain, and billions or even tens of billions of profits in his hands so easily, how could he not admire this genius boy ?

If the matter of subprime debt is a coincidence, what about the current gold futures?

To be able to judge the trend of the entire market so accurately, and thus to notice this gold futures market that has been strong all the time, and after spotting it, pour huge sums of money into it without hesitation, how can this kind of courage and heart be possessed by ordinary people? ?

Follow Qi Shao, there must be meat to eat!

At this moment, this concept has already taken root in Tong Wencong's heart, and it is impossible to get rid of it! ! (To be continued..)

ps: Someone said some time ago that the price of gold is close to the cost of mining, and it is impossible to fall any further. But if a market is in panic, does it matter if the cost is not the cost? Looking at these international commodities, including oil, our country's participation is really low, and the United States is indeed powerful!