Market sentiment was reversed and the liquidity crisis spreaded lightning.

In a few minutes, this terrible situation spread to the entire mortgage-to-converting bond market, the most core 715 bonds, and its bond futures trading market.

The main bulls' institutions, whose crazy offensive posture on the market, were once again curbed around $90.

Short orders, main selling orders and short orders for filling and closing positions all surged to an extremely shocking and huge amount level, suppressing the price of 715 bond futures contracts downward.

Offline, among the main institutions of the long position, there are more and more financial institutions that intend to sell 715 bonds.

And, many are sold at a price cut.

In a blink of an eye, almost all financial institutions and investment companies that hold market mortgage-to-convert bonds are crazily selling these bonds and fleeing this market.

Invest in capital and desperately escape from this market.

This directly leads to a greater lack of market liquidity.

Many mortgage-to-replacement bond holding institutions have sold their money at a sharp discount, and have suppressed the price to a much lower price than the futures contract price for online trading.

Faced with this collapse.

No matter how much money the main institutions of the long-term institutions have, they dare not rashly fill in it. At this moment, they will welcome the unstoppable "flying knife" of the market.

"I'm careless, careless..."

Quantum Fund Trading Department, Bazer stared at the 715 bond futures trading market with his eyes intently, regretting: "I really didn't expect that they would suddenly avoid our sight and choose to use this method to ignite market panic and resolve our offensive."

"This is awesome, it's really amazing..."

"Our defense line can't stand it." Randall saw the trading market with the blazing momentum of short selling and the real-time trading interface. The overwhelming main short selling orders climbed up to his forehead. "Mr. Bazer, the market has collapsed across the board, and the next operation instructions..."

"Revoke orders, completely withdraw orders..." Bazer said anxiously, "If you can't hold on, don't waste your money anymore."

Randall looked at Bazel in shock and said, "The order is withdrawn in a comprehensive manner, and the main shorts will be in a state of 715 bond futures. Once they instantly take advantage of the situation and break through the market, we may have a risk of liquidation!"

"After withdrawing the order, rebuild the defense line between the $78 and $80 price points." Bazer said, "this is the correct position for market risk response and is also the limit of discount that most on-site financial institutions can accept. 715 bonds have no redemption risk issues for the time being."

"The current panic selling is just because the current discount level of 715 bonds seems overestimated compared to the overall market water level."

"And it's because of pure panic."

"After this wave of panic and building a defense line in the right position, we have not failed to fight back and regain the opportunity to dominate the market."

"The main short funds and market short orders have accumulated enough on the market at this moment."

"We will give up part of the market profit to them. At that time, many short investors who cannot hold back will definitely not be able to withstand the temptation of profits and choose to fill up positions."

"In a zero-sum game situation, driven by profit, any short force on the market is a potential future bull."

"At this moment, the situation is indeed critical, but we take the initiative to retreat, not at the forefront of this storm, fight against the main bears, preserve financial strength, wait for a low-level counterattack, but we can also resolve the crisis and wait for future opportunities."

"The main short-selling force, I really underestimated us by taking advantage of this sudden attack."

As the top trader in the global financial trading market, Bazer instantly calmed down after the initial shock and panic, and formulated compensation measures in time according to the changes in the market.

After quickly explaining Randall, he quickly connected the other main units.

He conveyed his thoughts just now.

At this moment, whether it is the main bulls or the main bears, there are huge positions trapped in it. It is not easy for anyone to appear or who wants to completely defeat his opponent.

Under the disadvantage, any party panic and fleeing will only increase their own losses and increase their advantages.

Therefore, no one is willing to give up if there is a glimmer of hope for a comeback.

With the connection between huge amount of capital and interests, no matter whether inside or outside the market, everyone will try their best to try their best to fight for the chance of victory in the first line.

After instant reminder from Bazel.

After thinking through the logic of the remaining bull-headed institutions of various departments, they began to implement this strategy.

The huge number of orders that hold on to the limit was instantly withdrawn from the 715 bond futures contract to the price range of US$89 to US$90.

At the same time, in the price range of US$78 to US$80 below, the huge number of long orders is constantly accumulating, and the moment when the bulls' defense line collapses.

A new bullish defense line is forming.

Noting that the 715 bond futures contract range of 89 to 90 US dollars was being broken by the thrilling main short orders and countless rebound stop loss orders. In the New York trading room of the 'Bentayga Capital', Wu Heng breathed a sigh of relief and reported to Chen Yuhe: "Manager Chen, the main bulls have retreated, and we have re-dominated the market."

"Observers of offline markets sent back news that the main institutions of the long have given up taking over the 715 bonds." Cui Xianshi stood beside Chen Yuhe and laughed, "It seems that the market panic spread. They found that they could not bear so many selling, and they were afraid in their hearts, so they chose to give up."

"As soon as they gave up, the bold words in the morning trading became jokes."

"Haha... It's really rare to see Wall Street Capital making such a big joke, and we slapped the scene in the face in their own market."

"It's quite rare." Chen Yuhe saw that the main bulls were all giving up resistance online and offline, and couldn't help but relax and smiled, "Liu Fangping, the bulls' defense line was defeated. Take this opportunity to continue to guide the market's panic and huge followings, the bulls' stop loss, and continue to expand the results."

Liu Fangping responded and quickly executed Chen Yuhe's instructions.

After explaining to Liu Fangping, Chen Yuhe quickly connected to the other two main institutions, conveyed her ideas, and expressed her gratitude.

The main bulls were defeated, and the entire mortgage loan was converted into bond market, and the situation took a sharp turn for the worse.

As short parties, they can gain a large part of the profits given by the market from the longs who are losing money.

Although the other two short-selling institutions were a little uncomfortable when they cooperated with Chen Yuhe under the tough orders of their superiors, they felt a little uncomfortable when they tasted the sweetness and looked at the investment account and the rapid expansion of profits, they instantly completely let go of this slightest rift in their hearts and were very excited.

I also admire the investment choice of "Bentayga Capital".

In the midst of excitement, the main shorts led by Bentayga Capital, after defeating the defense line built by the main longs in the range of US$89 to 90, was swept up with market panic and continued to use the sharp increase in follow-up and longs to cover the stop loss, and continued to sell downwards until midday.

Until around 1:30 pm, I issued a statement again at several bond issuing institutions to stabilize my mood.

The 715 bond futures contract is approaching US$80, with a discount rate of more than 23%, and the future potential yield of holding bonds exceeds 25%.

The bears' journey of selling all the way has finally encountered a strong obstacle from the bulls.

"Manager Chen, the volume is expanding continuously again." Liu Fangping, the leader of the three trading team, sat in front of the computer and continued trading, said, "In this position, the power of the bulls' counterattack has become tough again."

"Continue to sell down and break this threshold, and then break the mark, a huge amount of liquidated positions will be formed, resulting in a situation of more and more kills, and it will be completely formed." Chen Yuhe stared at the market and said, "If the bulls don't try to counterattack here, there will be no chance. This is the last line of defense for the bulls."

"Then are we... continuing to advance?" Liu Fangping asked.

Chen Yuhe pondered for a moment, but did not speak, but turned to the trading room. Zhang Li, the leader of the market sentiment observation group, asked: "Xiao Zhang, are the market panic, and the market panic, still expanding?"

"It has been slowed down." Zhang Li stood up and replied.

"It seems that the market has reached this point, and without a real redemption crisis, it is already very attractive for bond holders to a future expected rate of return of up to 20%. " Chen Yuhe said, "Risks and returns are almost at a equilibrium at this position."

“There is no new major negative support for us, and there is no panic of continuous expansion to help.”

"It is very difficult for us to go further, completely break through the market, and smash the positions of the main long institutions."

Chen Yuhe considers the long-short situation that should be seen after the rapid changes in the market, and the correct operating strategy at this moment, and is preparing to let everyone stop when they see the situation is good, first close the position and stop some of their positions, and then wait for the emotions and negative factors to brew again.

But when she raised her eyes, she saw the entire trading room, everyone's expectant eyes.

And the opportunity to win as if within reach, just a short distance.

Knowing this decision to 'stop when you see it', it might be difficult for me to make it, so I quickly changed my words: "Let me ask the chairman's opinion first!"

As he said that, Chen Yuhe turned around and called the phone connected to the Port City Trading Room.

After listening to Chen Yuhe's opinion, Su Yue said: "When you defeated the bulls, from $89 to $90, you did not release volume on a large scale. This shows that our opponents are actively retreating, not panic, trampling on each other, or defending hard and stubbornly, and you are completely defeated by you."

"That is to say, at the last moment, they chose to preserve their final financial strength, transfer profits, actively release market risks, alleviate emotions, and stick to the bottom line of liquidation in order to achieve future chances."

"Now, market risks are released, sentiment is alleviated, market risks and future profit expectations are once again at a equilibrium."

"It's really difficult to take advantage of the victory and defeat the last line of defense here in one fell swoop."

"It seems that they are forced to liquidate positions with the bulls on the court, and there is only one line, but this last line of defense is also the most difficult to break through."

"Not to mention that at this moment, a large number of investors who follow the trend and short sellers have already had enough profits. As long as you continue to sell down and are strongly blocked, these short investors who make profits on the market can instantly cover up and close positions and stop profits, and convert them into market bull power."

"The futures trading market is always a zero-sum game, with long and short forces rising and falling."

"This must be remembered."

"Manager Chen, I agree with your point of view. Here, while it can still gather some panic in the market and a large number of follow-up short-selling markets, without waiting for the bulls to counterattack, take the lead and quickly cover up, take some of the positions, lock in huge profits, and recover large-scale funds."

"With the overall investment strategy unchanged, we will follow the trend, constantly adjust our strategies, and always take the initiative in the market."

"It's the most important thing."

"Our opponents are smarter and much harder than we think. They will seize every possible opportunity to turn the disadvantages, so we can't make mistakes from now on."

"The 'sub-prime mortgage crisis' is gradually deepening and the trend of spreading to a comprehensive 'financial crisis' is now in reverse."

"Time is always on our side, and the liquidity crisis of small financial institutions will slowly spread to the big financial giants."

"Now, through a sudden counterattack, you have broken the siege of the main bulls institution against you."

"At the same time, holding huge profits, it completely takes the market initiative. Then... just suppress the price of the 715 bond futures contract in the range of US$80 to US$85, and wait for further market negative news and further brewing emotions."

"No need to defeat it, just trap the main bulls and keep the market risk water level line at this position."

"Then, when the time comes, they will naturally collapse and collapse."

Chen Yuhe responded and said hesitantly: "The Chairman's original intention was to use the mortgage bond trading market to set off a credit crisis in the mortgage loan market. Now we stop here, occupy an active position, and confront the main force for a long time. It may be difficult for the Chairman's intention to achieve this."

"You have broken down the core defense line between the main long institutions from $89 to $90, causing 711,726,735,742... multiple bonds collapsed, causing the entire mortgage conversion bond market to generally expand the discount rate to more than 20%. It has been considered as completing the task and triggering a credit crisis in the mortgage market."

"Where does this start?" Chen Yuhe was a little puzzled.

"Comparing with the initial investment purchase price of major financial institutions, the overall discount rate has expanded to more than 20%, which means that major financial institutions are in a state of huge losses in this type of investment."

"Besides, the bond market is originally a market that seeks stability."

"Today's liquidity dilemma and the trend of rapid decline have already brought this market into the risk market, and have also converted all mortgage loans into the risky bonds."

"In the face of risky assets, the crisis is aggravated and the economy is bad, and capital will only continue to withdraw."

"Capital withdrawal and the continuous outflow of investment funds in this market will aggravate the vicious cycle of this market, causing more capital to stay away from this market, stay away from mortgage loan conversion bonds, and even such business investments."

"The first domino, today, you have already pushed it down, and in the future... just wait for the capital's nature of "seeking profits and avoiding risks" to continue to be exposed and deepened."

Su Yue said this and smiled: "The main bulls should not understand for the time being. They seem to have only taken a step back and retained the hope of continuing to seek a turnaround in the future, but they pushed the entire mortgage derivative trading market into the abyss, indirectly triggering the outbreak of subsequent credit crisis."
Chapter completed!