Rebirth of the Capital Legend

"What the hell, what's going on? Another flash crash."

Seeing that the pound sterling exchange rate trend was like a flood bursting from a dam, breaking through the market support in an instant, traders who held long positions in the pound sterling exchange rate and hoped that the pound sterling exchange rate would rebound after hitting the intraday low on the online communication platform where global foreign exchange investors and speculators gathered could not help but exclaimed.

"It is clear that the market is still dominated by longs, and the overall open positions are still in a net long position. Why can the exchange rate trend continue to fall sharply?"

"Hasn't it been said that the Bank of England has already stepped up its market intervention and sold tens of billions of dollars of foreign exchange reserves to save the market?"

"Looking at the trend of the pound exchange rate, it doesn't look like there will be any positive news!"

"Alas, is it true that we can't go back to the previous shock platform?"

"Fuck! I just opened a long position ten minutes ago, and now it has already hit the stop loss. I am speechless."

"Looking around, the entire pound exchange rate market is full of positive news. Why is the exchange rate trend going in the opposite direction of the news? Is Wall Street's short-selling capital so fierce? Even the strong intervention of the Bank of England can't stop the market from falling."

"Looking at this situation, it won't fall below the 1.5000 mark, right?"

"The volatility of the pound exchange rate is really huge, with fluctuations of one or two hundred points at any time."

"This is clearly heading straight for the 1.5000 mark. If it falls below the 1.5000 mark... the many major long institutional groups in the market will probably step on their stop losses, right?"

“I want to stop loss now without falling below 1.5000.”

"These short-selling capitals on Wall Street are still too aggressive. I thought they were targeting 'Chinese institutions' before, but now it seems... they are clearly targeting the Bank of England!"

“Is history going to repeat itself?”

"Will the pound exchange rate tonight be like the one that happened on the night of the 'Swiss franc black swan'?"

"It's hard to say. With the market trend, I am getting more and more panicked holding the long positions I have."

"Yeah, I also feel that this trend is shaky."

"It depends on whether the 1.5000 level can be held. If it can be held, the bulls will have a chance to fight back strongly. If it continues to fall below, the long positions will have to be stopped unconditionally."

"I feel like we should be able to hold on, right? Doesn't that mean tomorrow's referendum result... is basically no surprise?"

"There is no such thing as certainty in the financial market. Who knows what the outcome of something that hasn't happened will be? What if?"

"The referendum result may not be surprising, but the trend of the pound exchange rate may still be subject to unexpected circumstances. The positive effects may also lead to negative effects!"

"That makes sense. Alas... I really shouldn't have bought above 1.5200. Now I'm stuck with 200 pips. The key is that as long as the 1.5000 level is not broken, there is still a chance for the bulls to fight back. I want to stop the loss, but I can't make up my mind. If I don't stop the loss and continue to hold, I'm afraid of a sharp drop and even more losses."

"Anyway, I just turned too much."

"Didn't they say that UBS International has also started to close its long positions on a large scale?"

"It's not just UBS International. As far as I know, many of the previous long positions are continuing to reduce their positions."

“Haha…Everyone used to mock Chinese-funded institutions, but I didn’t expect that this time, Chinese-funded institutions would actually stand on the same line as Wall Street short-selling capital.”

“It was definitely a little unexpected.”

"However, shorting at this position should be very risky, right?"

"At this point, both short and long positions are very risky. After all, there are such large-scale long and short positions accumulated in the market. Once one side is completely unbalanced, the pound exchange rate will either rise or fall sharply."

"That is to say, with huge risks comes huge potential profits."

"Risks and profits go hand in hand, that's for sure."

"Forget it, forget it. I have stopped losses three times in a row. I won't gamble anymore. I'll just watch and see how this battle between bulls and bears will play out next."

This was accompanied by heated discussions among many retail investors and hot money groups in the market.

The trend of the pound sterling exchange rate continues to approach the 1.5000 mark, and the market's net long position has further dropped to around 25 lots.

"Mr. Gu, the British pound exchange rate has reached the 1.5000 mark."

When the pound exchange rate began to further lean towards the short direction, many retail investors and hot money in the market began to stop losses on their long positions. At the moment when the bullish sentiment of the entire market was obviously weakened, in Hong Kong, inside Tianhe Capital, Xie Hongxing, the manager of the trading team, frowned and could not help but remind Gu Chijiang again: "The overall loss of our fund's holdings is still within the acceptable range, and although the bullish sentiment in the market has weakened, it has not yet collapsed or trampled on each other.

It is not too late for us to reduce our positions, close some long positions and reduce the risk of holding positions.

If we wait until the pound exchange rate effectively falls below the 1.5000 mark.

That will inevitably lead to the collapse of bullish sentiment in the market, and a stampede of stop-loss orders by many long position holders. In that situation... the market's long positions will be sharply reduced, and coupled with the continued selling of short positions, I'm afraid we will have to pay a huge price if we want to close our positions and stop losses again."

"Do you think the pound exchange rate can't hold the 1.5000 mark?" Gu Chijiang asked.

Xie Hongxing responded: "Looking at the market trend, it is obvious that the intervention measures taken by the Bank of England have not been able to reverse the trend of global capital runs and selling of the pound. Moreover, the preliminary vote count results announced by the city of Leeds are also seriously below the expectations of major institutions.

This has cast a shadow of uncertainty over tomorrow's referendum.

Once the speculators and investment funds from all parties involved in the market change their expected results of tomorrow's referendum.

Then, the short-selling institutions led by "Wall Street Capital" will try even harder to short-sell and suppress the market, completely triggering the stop-loss stampede of the long-selling institutions in the market.

Also, the market trading time is about to enter the US trading session.

According to the past trend of the British pound exchange rate, the British pound exchange rate has shown a downward trend in almost every US trading session.

This also proves that the main short-selling force in the market is the short-selling institution led by "Wall Street Capital".

Based on these changing factors...

Mr. Gu, I think it will be difficult for the pound exchange rate to hold at the 1.5000 mark. "

"But at this point, we have to close our positions on a large scale to stop losses..." Gu Chijiang frowned, hesitated for a while, and said, "I still feel a little unwilling!"

Although the long positions held by their fund are currently losing money, it is still within the acceptable range.

But the amount of loss has already reached tens of millions of dollars.

Under the premise that the pound exchange rate has not yet completely fallen below the important bullish mark of 1.5000 points, the referendum result has not yet been announced, the Bank of England is still vigorously intervening in the market, and the main bullish institutional groups in the market still have strong counterattack power, he is really reluctant to reduce his positions and stop losses at this position and in a losing state.

However, he could not deny that Xie Hongxing's analysis just now did make some sense.

"It is a pity to reduce positions at a loss," Xie Hongxing said, "but we still have to respect market trends and control operational risks within an acceptable range."

"Okay!" After hesitating for a long time, Gu Chijiang finally nodded.

Xie Hongxing received Gu Chijiang's approval and nodded slightly. He quickly issued trading instructions to each group of traders in the trading room to close and stop losses on some long positions.

Along with the issuance of relevant transaction instructions...

Traders quickly closed their positions at market prices.

However, at the critical moment, Tianhe Capital could not bear the pressure of holding positions and was forced to reduce some of its long positions.

At 8 pm Yanjing time, when the European trading session was about to close.

Birmingham, another important city in the UK, also announced preliminary vote counting results.

According to the preliminary vote counting results released by the city, people who supported continuing to stay in the EU accounted for nearly 60% of all votes in the city.

This data performance far exceeds the expectations of previous institutions.

This makes the result of tomorrow's referendum, which had just been shrouded in a shadow, become clear again.

After all, Birmingham has a population of nearly one million, while Leeds has a population of only over 70. This means that the extra votes in Birmingham in favor of continuing to stay in the EU will be enough to offset the votes in Leeds choosing to leave the EU.

"Haha... I knew it was just a false alarm. The market trend is still fully leaning towards bulls."

After learning the preliminary vote count results in Birmingham, in the trading room of 'Huifeng Global Hedge Fund' in Hong Kong City, Godfrey, who had been tense, relaxed instantly.

He didn't have time to calm down.

He quickly turned to Gerald, the head of the trading team, and ordered: "Go long, go long, continue to buy long orders for the pound exchange rate. There will definitely be a very fierce expected repair at this position."

Gerald heard what Godfrey said, nodded, and quickly instructed the traders to continue to increase their long positions.

And just as traders were quickly buying and increasing their long positions.

As preliminary voting results from Birmingham spread.

There have been unusual movements in the pound exchange rate market.

When the pound sterling exchange rate hit a low of 1.5013, it rebounded suddenly and rapidly, with a counterattack trend, expanding by more than 140 points in a straight line. However, in just two or three minutes, it returned to 1.5150 points.

At the same time, almost in an instant.

A large number of short positions were covered, causing the net long position in the market to once again surge to the 50-lot mark.

"What the hell, what the hell, long positions are stopped out, short positions are also stopped out."

Faced with the extreme volatility of the pound sterling exchange rate, at this moment, many speculators who do day trading have expressed similar helpless feelings.

As there were huge losses around 1.5000 points, we insisted on reducing our short positions.

Gu Chijiang, who was unable to bear the pressure of holding positions and had no choice but to make a stop-loss operation, was looking at the rapid advance of the pound sterling exchange rate, which was still heading towards the 1.5200 mark. For a moment, he was so angry that he vomited blood.

Of course, Xie Hongxing was the one who proposed the strategy of reducing positions and stopping losses.

At this moment, he was staring at the trend of the British pound exchange rate, and was obviously a little dazed.

"Mr. Gu, Mr. Sato... Once the preliminary vote count in Birmingham comes out, it basically means that the result of tomorrow's referendum has been determined." When the pound exchange rate trend reversed again, the bulls in the market continued to increase, and more and more shorts were closed, Godfrey once again connected the instant messaging of the two major affiliated institutions, Mitsui Yoshitomo Investment Company and Tianhe Capital, and said to the two with a smile, "I have said it before, no matter how hard the bears in the market struggle, no matter how hard they fight back, they can't change the existing market trend."

"Mr. Godfrey's judgment is indeed amazing." Sato said with a smile, "To be honest... at that moment just now, if the pound exchange rate had fallen below the 1.5000 mark without resistance, I would definitely choose to close my position and stop the loss. Fortunately... all this did not happen in time, otherwise I would be extremely regretful right now."

Hearing what Godfrey and Sato said, Gu Chijiang felt completely bitter at the moment.

Unable to withstand the pressure, he closed his positions early to stop losses, causing him to lose millions of dollars in just a dozen minutes.

"There shouldn't be any more accidents, right?" Gu Chijiang couldn't help but ask.

Godfrey responded: "Once the result of Birmingham comes out, the overall situation is basically determined. Most of the areas and cities that have not announced the preliminary counting results are sparsely populated marginal areas and cannot play a decisive role in the referendum results. As long as there are no surprises in the referendum results tomorrow and the Bank of England's determination to stabilize the market exchange rate is not shaken, then we can be confident and bold to go long."

"After the referendum result comes out tomorrow, many people who sold their pounds today should get their pounds back, right?" Sato said. "After the Bank of England has already recovered about $200 billion in pounds, which has greatly reduced market liquidity, it is reasonable to speculate that the referendum result is within expectations, and the pound exchange rate will definitely rebound in retaliation."

"That's for sure," Godfrey said. "The major institutions that are shorting the market have reached their demise. Now... our correct strategy is to go long, go long, and continue to go long unconditionally."

"Since the result is becoming more and more certain..." Sato watched the pound's exchange rate rebound more and more fiercely, almost reaching the 1.5200 mark. The previous fear in his heart not only completely dissipated, but also a surge of greed. He gritted his teeth and said, "Then our agency should also put all its chips on the line."

Having said that, he immediately ordered Yamamoto Hisaichi behind him to quickly pursue the long orders and increase the weight of the institutions' long positions in the pound exchange rate market.

Seeing that the main fund products managed by Godfrey and Sato were rapidly increasing their positions, Gu Chijiang cursed himself inwardly and quickly adjusted his strategy. He asked Xie Hongxing to buy back the long positions that he had lost at the low level near 1.5200 points.

Moreover, they are eager to recover the unnecessary losses caused by previous erroneous operations.

Gu Chijiang even ordered Xie Hongxing to buy up the institution's long position in the pound sterling exchange rate to an excess level in one go.

Fortunately this time...

After he completed the relevant operations, the trend of the pound exchange rate did not disappoint him.

As he continued to pay attention, at 9 pm Yanjing time, when the market trading time began to gradually transition to the US trading session, the pound sterling exchange rate successfully stood above 1.5250 points. In just one hour, it rebounded by more than 200 points from the bottom.

At this point, the trend was extremely intense during the European trading session.

The massive number of traders around the world who speculated on the pound exchange rate during the day, both long and short, were strangled.

However, while the intraday speculative positions were being harvested back and forth and countless intraday speculative traders were complaining, the real bulls and bears in the market were still fighting fiercely and it was still difficult to determine the winner.