Su Yi had just finished speaking.
The next moment, the voting results for the fourth electoral district were also announced in a timely manner.
According to the final voting results from the fourth electoral district, North Warwickshire, the number of people supporting Brexit still exceeded the number of people supporting Remain, but the specific difference in numbers between the two was minimal, with only a few hundred more people supporting Brexit than supporting Remain.
"The final voting results from North Warwickshire are basically consistent with what institutions had previously expected."
Seeing the newly released final voting results for North Warwickshire, Frederick remarked with a smile in the main fund trading room of 'Aberdeen Asset Evolution No. 1',
"If the number of people supporting Brexit and those supporting Remain continue to have a narrow gap, then as more Remain-leaning voting district results are announced later, the trend of the pound's exchange rate could indeed easily reverse."
At this time, the major densely populated regions.
The voting results for core urban areas such as London, Edinburgh, Leeds, Manchester... have not yet been released.
The voting preferences in these large regions are the decisive factors that truly determine the ultimate breakthrough direction of the pound's exchange rate and the final outcome of the referendum.
"I don't think that after the overall long chip structure in the market loosens, the longs still have the ability to quickly reverse the market trend."
Hearing the cautious and conservative words of the three, Meng Shengfei still firmly stated,
"After a 'longs killing longs' situation forms, the market's long-side absorption power will become weaker and weaker. Unless the number of people supporting Remain in the core regions significantly exceeds institutional expectations, it's absolutely impossible for the market trend to reverse.
Considering the current trend pattern...
From the market perspective, primary buy long orders are becoming fewer and fewer, while forced stop-loss liquidation orders and active short-selling orders are increasing. With this ebb and flow, as trading time progresses. The market trend of the pound's exchange rate will definitely lean more and more towards a bearish stance.
Therefore, I believe this position is still a good entry point for continued short selling, and I will also instruct everyone to take this opportunity to increase short positions at this level."
With that, Meng Shengfei didn't wait for the three to respond.
He quickly turned his gaze to the various groups of traders in the trading room, ordering each trader to use one-fifth of the floating profit in their accounts to continue shorting the pound's exchange rate, increasing short positions.
Just as he continued to increase his short positions.
Wall Street short-selling capital, as the core bearish major players in the market, also began to significantly increase their positions after further comprehensively evaluating the referendum result leanings.
Among them, especially Citibank's foreign exchange investment department.
Foreign exchange investment manager Enoch directly instructed his major fund trading departments to increase short positions by over 100,000 lots at market price on the pound's exchange rate in just a few minutes.
Accompanied by the continued short-selling and position increases by various bearish capital institutions, and also by the stop-loss covering of numerous long capital.
After the pound's exchange rate lingered slightly around the 1.4580 level for a while, it rapidly plunged again, breaking below the 1.4500 level at 7:45.
"In less than an hour, it has fallen by nearly 500 pips. Should we take profits?"
Seeing the pound's exchange rate rapidly fall to around the 1.4500 critical level, while at the same time, a large number of primary buy long orders began to absorb, and many profitable short orders started to close and take profits, Xu Qiao, in the Shanghai Ultra-Short Gang Main Capital Group where Su Yi was located, questioned, facing the huge floating profit figures in his holding account.
After more than an hour of continuous sharp decline in the pound's exchange rate.
The floating profit in his pound short-selling trading account had already approached 2 million US dollars.
"The pound's exchange rate has fallen too fast. I feel we can take profits on part of the positions first and secure some gains," Lao Zhang said. "After all, only results from a few voting districts have been announced, and the gap between those supporting Brexit and those supporting Remain hasn't widened significantly. As more voting district results are announced later. I feel that the trend of the pound's exchange rate might still fluctuate.
Furthermore, judging by the historical trend of the past few days, I don't think the pound's exchange rate at this level has completely broken down, leaving the longs without any power to fight back.
In fact, the major long institutions in the market are clearly still waiting for a better opportunity to counterattack. Most likely, the pound's exchange rate will rebound and surge later, perhaps further increasing volatility, and it's not impossible for it to revisit the 1.5000 critical level once more.
Sigh... it's been a rollercoaster a few times. Considering everything, I believe it's a good strategy to first take profits on some positions at the current low level, reduce exposure, and then short again after the pound's exchange rate rebounds to resistance under the rapid counterattack of the major long players in the market."
"Lao Zhang... have you reduced your positions?" Xu Qiao asked.
Lao Zhang replied,
"I've already cut half my positions around the 1.4550 level. I don't have a big picture; it's good enough to quit while ahead. Earning close to 1 million US dollars this time has already greatly exceeded my original expectations."
"Lao Wu, what do you think?"
Xu Qiao pondered for a moment, not rushing to reduce positions and cover, then asked.
Lao Wu thought for a moment and replied,
"Actually, we can follow President Su's trading. Just put yourself in his shoes: at this position, at this current timing, has 'Huayi Capital', managed by President Su, reduced its positions and covered?"
"I'm guessing certainly not," Xu Qiao said.
"You can't really make that analogy," Brother Chen replied. "'Huayi Capital', managed by President Su, holds extremely large short positions according to current market news. This is like stock trading; large capital has its own way of playing, unable to enter and exit at will, but small capital is different. I believe the trend of the pound's exchange rate, and the final referendum results.
Currently, a unilateral expectation has not yet formed, meaning uncertainty is still very high. Since a unilateral expectation has not formed, and the "longs killing longs" situation in the market has not led to a larger stampede, then it is highly probable that the pound's exchange rate, after falling to this level, will still not form an extreme unilateral crash.
Lao Zhang's analysis that the pound's exchange rate trend is highly likely to fluctuate repeatedly, and will rebound and surge amidst a large number of shorts taking profits and a massive long counterattack, I think is reliable.
Moreover, this type of trend has indeed occurred under the influence of various news events previously. Since the current trend of the pound's exchange rate is unlikely to form an extreme unilateral crash, it is highly probable to continue towards a large volatile oscillation.
Therefore, at this relatively low position, reducing and covering some positions, and timely harvesting some profits. I believe it is entirely reasonable and completely correct.
After all, only the results from four non-core voting districts have been announced, with over three hundred more voting district results pending. No one knows what the specific situation will be later. Currently, although the bearish major players have a certain advantage on the market, they have not yet delivered the final decisive blow to the long major institutions in the market."
"Hehe... Brother Chen's analysis is spot-on," Lao Zhang chuckled and said, "That's exactly what I was thinking."
Seeing that Brother Chen also felt it was more reasonable to take profits on part of the positions at the appropriate time, Xu Qiao pondered for a moment and then implemented the strategy Brother Chen mentioned, reducing and covering half of his short positions around the 1.4520 level of the pound's exchange rate, securing half of the floating profits in his account.
And almost exactly as Brother Chen and Lao Zhang predicted.
After Xu Qiao reduced and covered half of his short positions.
When 7:55 AM arrived, the voting results for the fifth electoral district, the Isles of Scilly, were announced.
The number of people supporting Remain in that voting district had returned to a significant lead, with the proportion supporting Remain in the entire district reaching 65%.
The pound's exchange rate quickly began to rebound around the 1.4520 level.
At 7:56 AM, in just one minute, the pound's exchange rate regained the 1.4550 level.
At 7:58 AM, amidst a large number of profitable shorts closing positions and taking profits, and numerous long counterattacks, the pound's exchange rate continued to rebound rapidly, recovering upwards to the 1.4580 level.
Subsequently, at 8:02 AM, when the voting results for the Isle of Yell were announced, the number of people supporting Remain in its voting district also significantly led those supporting Brexit.
Moreover, as an island in the Scottish region, Yell's referendum result showing 72% support for Remain was far beyond most people's expectations.
The pound's exchange rate began an accelerated rebound.
At 8:03 AM, the pound's exchange rate quickly broke through the 1.4600 critical level and continued to rebound upwards.
At 8:10 AM, more and more profitable short covering orders, combined with more and more longs following suit, caused the pound's exchange rate to continue rising to the 1.4650 level.
By this point... the pound's exchange rate had completed a rebound of nearly 150 pips in less than 20 minutes.
Furthermore, due to the pound's strong counter-attack trend.
The long sentiment, which had been on the verge of collapse, gradually stabilized again.
Many major long institutions that had clearly lost confidence before, as well as retail investors and speculative funds holding long positions at high levels in the market who had hesitated and not managed to stop-loss and exit, now found their confidence starting to recover, and their expectations for the market's future also became more positive.
Accompanied by the resurgence of long confidence in the market, and the continuous profit-taking and covering by shorts.
At 8:17 AM, Dundee, a city in the Scottish region, astonishingly also leaned entirely towards supporting Remain in its final voting results.
According to its final results, the proportion of local residents supporting Remain was over 70%, just like the Isle of Yell.
The consecutive announcement of voting district results leaning towards Remain.
Caused the previously leading number of people supporting Brexit to fall behind the number of people supporting Remain once again.
And the moment the number of people supporting Remain successfully surpassed those supporting Brexit.
At 8:18 AM, supported by these major positive factors, the pound's exchange rate initiated a further accelerated rebound, easily breaking through the constraint of the 1.4700 level and surging to around the 1.4730 level.
And this rebounding trend...
Is still continuing, with the warming of long sentiment and the strengthening of long confidence in the market.
It seems, from the market perspective, there's a strong potential to re-challenge the 1.5000 critical level, quickly squeezing out numerous capitals that had previously chased shorts.
"Damn it... don't tell me we're forced to cut losses at the lowest point again?"
Noticing the pound's exchange rate successfully rebounded above the 1.4700 level, in Hong Kong, within 'Tianhe Capital' company, Gu Chijiang, who had already been forced to cut losses on a large number of long positions between 1.4550 and 1.4650, couldn't help but look even more distressed.
At this moment, the main fund product he manages.
The overall holding loss had already been significantly reduced compared to an hour ago.
However, because a large number of short positions were heavily forced to stop-loss at low levels, even though the overall loss was reduced, he still felt extremely uncomfortable.
"Although the number of people supporting Remain has temporarily overtaken, it hasn't led by much,"
Xie Hongxing noticed Gu Chijiang's grim expression and replied,
"This indicates that market uncertainty is still very high. I believe there's no problem with us reducing positions and stopping losses under risk pressure, given that our holding losses were rapidly expanding."
Gu Chijiang frowned, sighed lightly, and said,
"Purely from the perspective of a trading strategy to control extreme risks and be forced to cut losses, it certainly isn't wrong. It's just that this trend... is a bit too volatile."
"Let's wait and see," Xie Hongxing said. "Our fund doesn't have much reserve capital, and after several ill-timed operations, we've incurred significant losses. Even though the pound's exchange rate is rapidly rebounding now, and market expectations and sentiment are warming up, it's impossible for us to continue going long at this position.
Even if we were to continue going long, we would have to wait for definite right-side opportunities. Judging from all the current information and market trends, I believe that unless the number of people supporting Remain and those supporting Brexit has a gap of over 100,000.
The pound's exchange rate will most likely still form a volatile oscillating trend, making a unilateral breakthrough difficult."
"Yes, we can only seize right-side opportunities," Gu Chijiang continued with a sigh. "Several consecutive erroneous operations have significantly lowered our fund's trading fault tolerance."
"There's nothing we can do," Xie Hongxing said helplessly. "We can only hope that the major long players in the market can capitalize on the current warming sentiment and the moment when the number of people supporting Remain temporarily overtakes those supporting Brexit, intensify their counterattack, force out all the capital that just massively chased shorts, and further stimulate the market's upward trend."
However, even as he spoke.
At 8:23 AM, the final referendum results for several relatively core voting districts, including Swindon, Northamptonshire, Southampton, and South Tyneside, were simultaneously announced.
And according to the final referendum results from these relatively core districts.
The number of people supporting Brexit generally exceeded those supporting Remain, with Brexit support rates all around 62%.
The referendum results from these relatively core districts instantly exploded like a bombshell, sending countless long capital and many major long institutions into a daze.
Because after the voting results from these major districts.
Overall, the number of people supporting Brexit not only surpassed the number of people supporting Remain once again but also directly widened this gap to over 80,000 people.
In other words, the number of people supporting Brexit now exceeded those supporting Remain by a full 80,000.
This result, in an instant, severely dampened the spirits of the longs who had just been vigorously counterattacking, causing long confidence in the market to collapse dramatically and short confidence to soar unprecedentedly.
After that, before too many people could react.
In the blink of an eye, the pound's exchange rate, which had just been rapidly rebounding, came to an abrupt halt.
As if cut in half by a sharp blade, it turned around and plummeted straight down again with even greater speed than its rebound, breaking through the previous low of 1.4520 in just tens of seconds.
(End of chapter)