As a mage, I just want to pursue the truth

Chapter 109 Futures Storm
At the end of LS Street in Chicago's financial district is the Chicago Board of Trade Building.

This is the oldest futures and options exchange in the world, with a total of 3600 projects and commodities.

Kenny went to work in the exchange building as usual for the past twenty years, "Good morning! George!"

"Hello, today's nice weather means it's a harvest day! Lille!"

"Praise Sif! May your day be fruitful."

Kenny kept communicating with people along the way, and most of them were familiar faces as he has worked here for 20 years.

Sif is the goddess of harvest in Norse mythology. Since most of the transactions in the Chicago Mercantile Exchange are agricultural options, many people like to say a word of praise to Sif before starting a transaction.

Although Kenny doesn't believe this, it doesn't stop him from saying something when others say it.

The facade of the Chicago Board of Trade Building is made of Indiana gray stone, with the outline indented from bottom to top.

At the top stands a statue of Ceres, the god of the valley, overlooking the city.

Although it is a statue of the Valley God, not many people believe in the Valley God. There are rumors that those who believe in Xifu have a better chance of making money.

Later, fewer and fewer people praised Ceres, except for some very old traders. Compared with them, Kenny felt that he was still young.

The words "Chicago Board of Trade" are engraved in large English on the front of the building, and above the words is a huge clock.

"The futures indices of wheat, soybeans, and soybean meal have all risen very well recently." After sitting down, he glanced at the morning market and then went to pour coffee.

There is no way a trader can start a trading day without drinking coffee.

There is a very strong correlation between soybean and soybean meal futures prices and pork futures prices. Analysts can judge pork futures prices and even determine when the pig cycle will begin based on the futures price trends of soybean and soybean meal.

Some time ago, China's A-share market saw a sharp rise in pig companies because traders judged that the bottom of the pig cycle was about to end, or it would rise slowly.

"The current trend of soybean meal has not ended yet. Whether it is daily K, weekly K or monthly K, it is an upward trend."

"The bullish upward trend will not end so soon."

The American Soybean Meal Continuous Index has risen from a relative low of 10 in mid-October to the current level of 309.

The increase was more than fifty percent.

Kenny is a trader specializing in soybeans and soybean meal. The market has been very good recently, with little volatility and a steady rise.

Grasp the five-day moving average, and buy high and sell low around the five-day moving average. Kenny's trading skills over all these years cannot be described as sophisticated. Just this type of trading technique can be said to be a master.

"It's so stable, and the profits are steady. How nice it would be if I could make money every day while drinking coffee."

"Unfortunately, this good time won't last too long. I must withdraw next month. No matter how attractive the market is, I must keep my position empty next month."

"I won't trade until the Fed decides how many times to raise interest rates."

"There's no need to go into the sea and fight crocodiles before the environment becomes unstable." Kenny knew this clearly.

As a veteran trader of more than 20 years, he has experienced the previous two Fed rate hikes. At this time, futures fluctuated violently, which was not the time for a prudent trader like him to operate.

Many years ago, the trading method of the Chicago Mercantile Exchange was still offline shouting. Whoever shouted faster and louder could get the deal first. A good voice could be said to be Kenny's stepping stone.

Later, even though pure online electronic trading became possible, Kenny still liked to come to the Chicago Futures Building to trade, because this place was full of his youth and memories.

The joy of every successful transaction and the bitterness of every failed transaction. "Today the soybean meal index is rising, you can try to make a short-term emotional transaction."

Kenny thought, "Just push the position appropriately."

“It broke through the 485 line and stood firm on this line! Beautiful!”

“I don’t know if we can hold the 490 line today.”

The trading hours of the Chicago Board of Trade are from 9:30 a.m. to 1:15 p.m., Monday to Friday. Futures traders have very short working hours, but of course you need to bear the psychological burden brought by the corresponding high risks.

Not everyone has the qualifications to make a living from futures trading. The qualifications here require not only financial knowledge and a nose for the financial market, but also courage, the courage to admit defeat and leave.

There is no futures trader who has never experienced a margin call in his trading career.

"Eh? Why is there such a sudden drop in the price?"

"It pulled back again, and then fell rapidly again, back to 474.9. What happened today?"

"There is no special news on the news front."

Kenny was still drinking coffee calmly, and then he saw that the soybean meal index continued to plummet, and the intraday K-line chart returned to 450 points with almost no resistance.

Kenny almost spit his coffee onto the keyboard. He knew that this was not the time to be stubborn and should just close his position. The short position was too strong, so he should just close his position.

I took a look at the delivery note and found that all the profits for the past two months were lost in just two minutes.

Kenny slapped himself twice, "I was fooled by the resistance of the beginning of the decline."

For example, if a price stops falling and then moves sharply upward, this may be a trap to lure short sellers.

However, today's intraday K-line, suspected of inducing a short squeeze, only appeared twice, and then all the intraday K-lines were diving.

Kenny looked at the American Soybean Oil Index, which was also diving. The Soybean Index was also diving. "What happened? Why did all the soybean-related indexes suddenly dive?"

"There must be some news that I'm not aware of, and someone got ahead of me!"

"Fortunately, I don't like to add leverage, otherwise I don't know how many people would have their positions liquidated just because of this order."

He could already hear the shit and wailing coming from the trading room next door.

Kenny glanced at the Telegram group and saw that all the traders were asking what happened and why all the soybean-related indexes were falling wildly.

Everyone is looking for news like crazy, whether which country's soybean production has exceeded expectations, or whether the Federal Reserve is going to raise interest rates ahead of schedule.

The problem is that if the Federal Reserve raises interest rates ahead of schedule, all futures will fall, rather than just soybean-related futures indices falling like today.

After trading stopped at 1:15 pm, Kenny packed up and prepared to go home with a frustrated look on his face. He had wanted to have a steak outside, but now it seemed that he could only have a burrito.

"Chicago Board of Trade corn, wheat and soybean futures all fell"

“On the same day, the most active April contract in the Chicago Board of Trade corn market closed at $4 per bushel, down 3.185 cents from the previous trading day, a drop of 18.5%;

The April wheat contract closed at $4 per bushel, down 5.165 cents from the previous trading day, a drop of 17.75%;

The July soybean contract closed at $7 per bushel, down 7.495 cents from the previous trading day, a drop of 105.75%.

(End of this chapter)