Panic Index Is High, Zheng Cotton Price Falls To Freezing Point.

At present, the outbreak of foreign epidemic trend, and no turning point, market sentiment fell to a low level, the Chicago investor panic index VIX has reached 80.85, the highest in the past 10 years. The impact of the epidemic on the US stock market, which leads the global capital market, is self-evident.

An interesting phenomenon is that Wal-Mart Store Inc stocks, one of the three major retail giants in the United States, are on the rise against the backdrop of global layoffs and wage cuts and the continuous melting of the stock market. WAL-MART, whose performance was under pressure, was pushed down overnight. Why? Snapping up just needed materials and continuous growth of retail giant shows that the severity and urgency of the US epidemic is more serious than the market expectation. The American people have prepared for a long period of war. Then the capital market and the US cotton market will be hard to come by. Last year, the US and China agreed to reduce taxes on the market to play a very weak role. It remains to be seen that evaporation is resumed under influence.

Today, Zheng cotton opened its trading limit. With the development and spread of foreign epidemic, CF2005 contract broke down to 10570 yuan / ton low point, and CF2009 contract broke to 11020 yuan / ton low. Whether there will be further exploration may not be enough for many enterprises. Now 3128B has reached 11859 yuan / ton, and now the main base is back to the 1200 high point after the Spring Festival in February 3rd. This is a very good opportunity for traders who are optimistic about the post epidemic situation and need to buy price, but it is a disaster for investors who do not stop in time or even do more.

At present, the value of commercial cotton has fallen far below the cost range, and Zheng Mian needs to be revalued according to historical market and bottom support level. Although industrial investors can drop to spot prices below the bottom of history, the demand for textile enterprises will not be too strong at this stage, so speculators should strictly control risks and control positions, guard against unexpected losses and wait patiently for the international inflection point and macroeconomic improvement outside the market.