Basis Calibration, Ongoing Volatility, Patience for Opportunities

This week’s trend can be described as “basis calibration” or “futures-spot alignment,” continuing the market’s oscillation since early October. Despite a brief disturbance from external factors, the market has returned to its volatile range.

Currently, futures are in a preparation phase, awaiting both internal and external conditions to align for a decisive move. Demand remains stable, supply-demand imbalances are minimal, and domestic policies have not undergone significant changes. The upcoming Central Economic Work Conference in December is still anticipated. On the global front, markets remain generally stable with no major fluctuations.

Our main strategy remains “sell on highs.” While a sharp decline seems unlikely in the short term, staying prepared for any sudden changes is essential. Patience and strategic action are key.

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