I'm not interested in money or women.

Chapter 66 God’s Halo!

After kneeling down, Feng Xiaoxiao was shocked by her own actions.

Before she could react, she fell to her knees.

Why did I kneel down when he told me to?
Feng Xiaoxiao wanted to get up, but when she looked up and saw Lu Feng's serious eyes, she hesitated, but ultimately she couldn't muster the courage to get up.

Without giving her time to think, Lu Feng asked directly: "You just mentioned the K-line. Let me ask you, how do you see the turning point of the futures market from the K-line?"

"I... rely on technical analysis."

Feng Xiaoxiao subconsciously answered Lu Feng's questions based on what she had learned in school.

"Then how do you distinguish whether it is a rebound or a reversal?"

“…I can’t tell.”

"So you just guess?"

"almost."

"So what's the difference between this and guessing the size?"

After a few questions, Feng Xiaoxiao's forehead was already sweating slightly.

Under the tension, she gradually forgot that she was kneeling.

“When doing anything, you have to follow the trend to achieve twice the result with half the effort, and the same is true for futures.”

While opening the news website, Lu Feng explained: "To judge the market situation, we must first look at the fundamentals, judge the trend, and figure out the specific direction from a macro perspective before we can determine the entry point through technical analysis.

There is a saying that goes "follow the general trend to make orders, and go against the small trend to open positions". To follow the general trend, we need to look at the fundamentals, and to go against the small trend, we need to rely on technical analysis. Both are indispensable, but the most important thing is the fundamentals."

Feng Xiaoxiao's mind had been drawn into the topic by Lu Feng, and she subconsciously retorted: "But the fundamentals are too big! It's hard to fully understand them.

I can still use technical theories to study and judge K-line, but basic information covers everything, so how can I know how to judge the trend? "

"You still don't understand. Technology is just an aid."

Lu Feng sighed and patiently explained: "The K-line is drawn by the main force with money. The upper shadow line, lower shadow line, morning star, and large-volume breakthrough are all controllable by humans.

When you are big enough and have enough chips, you can draw the line however you want. This is called "one force defeats ten skills."

"You mean, the main force is the banker?"

Feng Xiaoxiao gradually understood what Lu Feng meant.

"Yes."

Lu Feng nodded: "In the capital market, what matters is size, and if you have size you have the right to speak.

Especially in the futures market, whoever is the banker has the final say.”

Feng Xiaoxiao has been working in the industry for several years and has witnessed many battles between the main players. She knows how much influence the main players have on the market.

But she couldn't agree with Lu Feng's absolute statement: "Isn't that necessarily true? Even if it's a banker, they have to use real money to guide the market, and the counterparty won't just sit there and watch themselves lose money. How can the market behavior be completely controlled by the banker?"

“It may not be the case abroad, but it is definitely possible in China.”

Lu Feng said calmly: "The domestic futures market is different from the foreign one. Everything must be done within the scope of the rules. You can't beat the strong with your arms, so just go with the flow. That's the flow."

After hearing this, Feng Xiaoxiao was able to follow Lu Feng's train of thought.

The domestic futures market is indeed different from that abroad. The exchanges are controlled from above and have a lot of say. They can adjust margins at will and can even force hedging and closing of positions, and forcibly terminate all spot deliveries, which is equivalent to pulling the plug on the Internet.

Under such strong control, any technical theory is useless.

However, she still did not completely agree with Lu Feng, and asked again in confusion: "But if that's true, then what's the point of speculating? Whether the market goes up or down depends entirely on the main force. Then those who do futures should just follow the main force. If the main force is bullish, buy more, and if the main force is bearish, sell short, right?"

As if Lu Feng had expected her to ask this question, he calmly explained: "Go with the flow, follow the flow, not go against the will of heaven. Going against the will of heaven is going against the way of heaven and against the laws of nature.

Policy is a force, a factor guided by human intervention. Although it is powerful, it still falls within the realm of human power.

But the premise of following the trend is to follow the way of heaven and the laws of nature. The laws of nature cannot be changed by any human power.”

Feng Xiaoxiao was confused by Lu Feng's words.

Aren't we talking about futures? How come the Heavenly Dao has come out? Seeing Feng Xiaoxiao's confused face, Lu Feng smiled and said, "Don't think this is a trick. In fact, this is the real theoretical basis. I'll give you an example and you'll understand.

Take soybean meal for example. The country has introduced a policy of lowering tariffs to ease domestic supply and demand tensions, stabilize meat prices, and futures prices have turned bearish. This is a trend that is artificially created.

But if global warming leads to large-scale drought, soybean production will generally decrease and soybean meal prices will soar, this is force majeure and cannot be changed by any policy. "

"I understand when you say that."

Feng Xiaoxiao suddenly realized: "It's force majeure!"

"No."

Lu Feng shook his head and explained in a deep voice: "The general trend is macroeconomic regulation, and the way of heaven is the relationship between supply and demand. If you don't understand this sentence, remember it first. You will understand it one day in the future."

Feng Xiaoxiao seemed to understand but nodded anyway.

She knelt on the carpet, looking at Lu Feng with bright eyes.

At this time, she was already accustomed to this posture and didn't think there was anything wrong with it.

She just wanted to listen to Lu Feng continue talking. What Lu Feng told her were things she could never learn in school.

After taking a sip of the mineral water on the table, Lu Feng continued to speak and brought the topic back on track: "Now let's talk about silver again. How do we view the fundamentals of silver?"

"What do you think?"

Feng Xiaoxiao was completely absorbed by Lu Feng's words.

"Silver is an industrial product produced by humans and is little affected by the laws of nature, so it mainly depends on its precious metal properties and industrial product properties."

Lu Feng opened the silver candlestick chart in the software, pointed to the moving average price above, and explained to her: "The properties of precious metals are mainly affected by policies, so we must pay attention to the policy orientation and economic data of major economic countries in the world.

The attributes of industrial products mainly depend on market funds, physical buying, seasonality, and delivery conditions.

According to the wave theory, silver, like gold, is currently in the fourth sub-wave of the third wave.

If we look at the price trend of silver in the past decade, it first rose, then fell, and then accelerated its rise, experiencing three rounds of increases.

When it comes to annual rise and fall, the fundamentals mainly focus on analyzing price trends and internal reasons.

If you look at the first round of increases, it started after the end of 03.

This period of time happened to be after we joined the WTO.

Due to the rapid development of domestic manufacturing industry and the increase in demand for spot goods, silver has seen a relatively mild rise since the end of 03.

The core reason for this round of rise is the industrial product attributes of silver.

But there are also reasons that domestic manufacturing supply efficiency has improved, costs have decreased, and inflation and interest rates have entered a phase of accelerated downward movement.

This is also related to policy orientation.

Looking at the second round of increase, it started in 07.

07 was the year when the US subprime mortgage crisis broke out. The Federal Reserve started a cycle of interest rate cuts on September 07, 9, causing silver prices to rise faster, with the highest point rising 18 times from its low.

In 08, the financial crisis broke out completely. The tight liquidity caused asset prices to plummet, and the prices of gold and silver fell sharply.

But on November 11 of that year, the Federal Reserve launched its first round of quantitative easing, or QE25, to stimulate economic recovery, causing gold and silver prices to rise again.

On November 10, 11, the Federal Reserve launched QE4, causing silver prices to continue to rise, reaching a high of $2 per ounce, very close to the historical high in early 48.7.

After that, the effects of quantitative easing began to dilute and the prices of gold and silver began to fall.

Although the Federal Reserve launched a reversal operation on September 9 last year, the precious metals market still entered a state of adjustment, and continued to fluctuate and fall. The lowest point fell to May 21 this year. The lowest intraday futures price on that day was $5 per ounce, which was at this position. "

While explaining, Lu Feng pointed out the various price nodes on the screen and showed them to Feng Xiaoxiao.

Listening to his explanation, Feng Xiaoxiao looked at the wave-like K-line on the screen and felt for the first time that the K-line could be so clear.

In her eyes, the complex graph seemed to have gathered a huge amount of information from all over the world, but under Lu Feng's analysis, it was extremely thorough and clear, as if every price trend should be so, without any suspense.

At this moment, no words could describe the shock in her heart.

Just like a little monkey doing tricks on the street, she witnessed the Monkey King making trouble in Heaven for the first time. For the first time, she understood what God was!
At this moment, in her eyes, Lu Feng really seemed to be shrouded in a divine aura!
(End of this chapter)