My bizarre resurgence: My price is the ability to trade everything.
Chapter 34 Cost Economics
I rushed to the General Administration's analysis room.
Su Mingyue was frowning as she looked at a pile of data.
"What's going on?" I asked.
"Look at this," she said, pointing to the candlestick chart on the screen.
That's a price trend chart for lifespan CP.
Prices suddenly surged starting yesterday.
It soared from 4.2 yuan/CP to 6.3 yuan/CP.
The increase exceeded 50%.
"How could it have risen so much?" I frowned.
Su Mingyue pulled up the market analysis report.
"According to my investigation, this price increase is not a natural market fluctuation," she said.
"Instead, someone is manipulating things behind the scenes."
"who?"
"Return to the Void." Su Mingyue's eyes turned cold. "They're buying up large amounts of Lifespan CP."
"Acquisition?"
"Yes." She nodded. "Starting yesterday, Guixu simultaneously made moves on major exchanges, acquiring large quantities of Life CP at 15% above market price."
"This behavior caused panic."
"Ordinary investors, seeing that someone was buying at a high price, assumed the price would continue to rise and began hoarding their shares, reluctant to sell."
"When supply decreases, prices naturally rise."
I stared at the candlestick chart, lost in thought.
Why did they do that?
"Two reasons." Su Mingyue held up two fingers.
"First, hoarding and speculation."
"The large-scale acquisition of lifespan CP by Guixu will cause a shortage in market supply."
"Once prices reach their peak, they can sell off their inventory and make huge profits."
"Second, create panic."
"The rising cost of life expectancy will make people feel that 'life expectancy will become increasingly valuable in the future.'"
"This psychological expectation will encourage more people to buy in advance, further driving up prices."
"And Guixu can profit from this."
I frowned.
"Then why are they hoarding Lifespan CP? What use is Lifespan CP to them?"
"That's the second reason." Su Mingyue pulled up another report.
"According to intelligence, Guixu is conducting a secret project called the 'Guixu Engine'."
"This project requires a large amount of lifetime CP as an energy source."
"So they acquire life support companies globally."
"It's not just in Jiangcheng; CP prices are also rising in other cities."
"Global?"
"Yes." Su Mingyue nodded. "This was an organized and premeditated market manipulation operation."
I was silent.
Guixu has even started manipulating the CP market for their own plans.
This is a very big game.
"What do we do now?" I asked. "Zhao Tiezhu is still waiting for CP treatment."
"The price has increased by 50%, and our required CP has risen from 3000 to 4500."
"The gap has widened."
Su Mingyue looked at me with a determined gaze.
"Therefore, we must fight back."
"Counterattack?" I was taken aback. "How would you counterattack?"
"Utilizing market principles," Su Mingyue said, "Gui Xu's manipulation of the market itself violates market rules."
"They can manipulate prices, and so can we."
"How do I operate it?"
"Do you know why Guixu was able to successfully manipulate the market?" Su Mingyue asked rhetorically.
I thought about it.
"Because they have a lot of money?"
"It's not just about funding," Su Mingyue shook her head, "the more crucial factor is—the information gap."
"They had prior information; they knew the price would go up."
"That's why they dared to buy at high prices."
"Ordinary people, unaware of this information, can only passively watch prices rise."
"This is the advantage that comes from information asymmetry."
"But..." she changed the subject, "what if we could also obtain this information?"
"What if we could predict price movements?"
"Then we can profit from this volatility."
I stared wide-eyed.
"You mean... arbitrage?"
"That's right." Su Mingyue revealed a sly smile.
"The large-scale acquisitions by Guixu have led to a price increase."
"But this price increase is artificially created, not driven by genuine demand."
"Once their acquisition is complete, the price will naturally fall."
"If we can buy low and sell high in this process..."
"You can then profit from the price difference!"
I carefully considered the feasibility of this plan.
Guixu acquires shares → artificially inflates prices → creates panic → more people buy → prices continue to rise → Guixu profits.
The premise for this chain to work is:
Guixu can control the market rhythm.
But what if they stop the acquisition?
What will the price be?
"It will crash," Su Mingyue said. "Just like in the stock market, after the big players unload their shares, the stock price will plummet."
"The acquisition of Guixu cannot continue indefinitely."
"They have budgets and goals; they can't invest money indefinitely."
"The acquisition will stop when their funding runs dry."
"At that point, prices will fall rapidly."
"What we need to do is enter the market before this point."
"The moment Guixu stopped acquiring, I shorted the stock."
"Buy low and sell high to profit from the price difference."
I'm processing Su Mingyue's analysis.
Her thinking was very clear.
However, there are a few problems:
"First, how do we know when Guixu will stop acquiring?"
"Secondly, even if they knew, they might not actually stop, but would continue to manipulate things."
Third, we don't have enough capital on hand.
Su Mingyue nodded.
"I've thought about these three questions."
"First, Guixu's acquisition spree must have a budget. I need to analyze their cash flow and find out their limits."
"Secondly, if they continue to manipulate the market, we can continue to go long. As long as we're not greedy and take profits when we see them, we can make money."
"Thirdly, regarding the principal..." she looked at me, "you'll need to resolve that yourself."
"I?"
"You are the balancer," Su Mingyue said. "Your cost-balancing scale can be integrated into the market system."
"Moreover, the scales have an advantage that ordinary people don't possess—the record of costs."
"A record of costs?"
"Yes." Su Mingyue nodded, "You can record detailed information about every CP consumption and gain."
"This is something ordinary people can't do."
"By analyzing this data, you can find more efficient trading strategies."
"That's your strength."
I opened the market interface of Tianping and began to study it.
Cost Records - Market Analysis
After clicking, a series of transaction data appears.
This includes my records of every CP transaction I've ever made, including profits and costs...
"I see..." I murmured.
With this data, I can analyze my trading habits, profit/loss ratio, risk appetite, etc.
Then develop a more optimized strategy.
"If you can earn enough CP during this manipulation of the Void..." Su Mingyue said, "you can not only save Tiezhu, but also make a fortune."
"But the prerequisite is that you have to be careful enough."
"Investing in the market involves risks; please exercise caution."
"I know." I nodded.
Then, I started studying market data.
That night, I stayed alone in the analysis room and studied the data all night.
Cost economics.
This is the name Su Mingyue gave it.
The study focuses on the trading patterns of CP, a special commodity.
She summarized three main patterns:
Rule 1: Supply and demand affect prices
This is the most basic principle.
When demand exceeds supply, prices rise; when supply exceeds demand, prices fall.
Just like a regular commodity market.
However, the special feature of the CP market is that the supply is limited.
Because CP essentially originates from human "consumption".
Human lifespan is finite, memory is finite, emotions are finite...
Therefore, the supply of CP is not unlimited.
This means that if someone buys a large number of CPs, the market will quickly fall into a state of supply shortage.
Prices will skyrocket.
Rule 2: World events affect exchange rates
Like other commodities, CP is also a form of "currency".
Since it is a currency, it has an "exchange rate".
In this bizarre world, the exchange rate of CP is affected by world events.
For example, when strange events occur frequently, people's demand for CP increases, and the exchange rate rises.
During peacetime, as demand for CP decreases, the exchange rate will fall.
This is what is meant by "world events affecting exchange rates".
The "Guixu Engine" project of Guixu is essentially a "world-class event".
They need a lot of CP as an energy source.
This will change the supply and demand pattern of the global CP market.
Rule 3: Cognitive bias creates arbitrage opportunities
This is Su Mingyue's proudest discovery.
She said that people often develop cognitive biases when faced with uncertainty.
For example, when prices skyrocket, people panic and chase after the rising prices.
When prices plummet, people panic and sell off their shares.
This irrational behavior can cause prices to deviate from fundamentals.
Clever people can use this deviation to make money.
"That's arbitrage," Su Mingyue said. "It's buying low and selling high by exploiting price differences created by cognitive biases."
"In theory, as long as you can accurately predict market trends, you can consistently profit."
"But the problem is, no one can predict the market 100% accurately."
"Therefore, arbitrage also carries risks."
"You need to manage your position size and set stop-loss orders..."
"Keep the risks within an acceptable range."
As dawn broke, I finally finished processing all the information.
"I have a plan," I said to Su Mingyue.
Tell me about it.
"Guixu is acquiring CP in large quantities, causing prices to rise."
"But this surge is artificially created and won't last long."
"The acquisition will stop when their funding runs dry."
"Before that, what we need to do is not blindly chase the rising prices."
"But..."
"wait."
Su Mingyue raised an eyebrow.
"wait?"
"Yes." I nodded. "The goal of Guixu is to accumulate CP, not to drive up prices."
"They will control the pace of the acquisitions and prevent prices from rising too drastically."
"When prices rise to a certain level, their acquisitions will slow down, or even stop."
"At this point, prices will stabilize briefly."
"What we need to do is enter the market at that point."
"Go long?"
"No, short selling."
Su Mingyue was stunned for a moment.
"Short selling?" She frowned. "You mean...?"
"When Guixu suspends acquisitions, prices will lose support," I explained. "At that point, the market will experience a brief period of panic."
"Many people who bought in following the trend will sell."
"Prices will drop rapidly."
"What we need to do is short the market before it falls."
"Wait until the price hits rock bottom, then reverse your position and go long, closing the position to take profits."
"This way, we can make two rounds of profit."
Su Mingyue stared at me for a long time.
"Your thinking... is more mature than I imagined," she said.
Are you sure this is your first time doing something like this?
"I'm sure." I smiled. "It was just something I thought of on the spur of the moment."
"But I think this line of thinking is correct."
"The purpose of Guixu is to accumulate CP, not to hype it up."
"Their acquisition spree cannot continue indefinitely."
"As long as we can find that critical point..."
"Then we can turn around and harvest their profits."
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