The Son of Finance of the Great Age

  Chapter 52 The longest day (6)

  When the time for the market break came, everyone breathed a sigh of relief, even though it was only for an hour.

  In the Morgan Stanley headquarters in the World Trade Center, the trading hall was dead silent, and even those who went out were walking lightly, for fear of making a sound. Sargent, the head of the trading department, was crying and staring at the last number that appeared on the board, feeling a bit at a loss.

  The tens of thousands of long orders he holds have already lost hundreds of millions of dollars. This figure has far exceeded his authority. As a last resort, he can only report to the managing director. At this time, Morgan Stanley is already considering tomorrow's settlement.

Jim is the managing director in charge of the derivatives department, with a sad expression on his face, walking back and forth in the spacious office, and after half a day, as if he had made up his mind, he asked Sargent in a deep voice: "What do you think the situation will be this afternoon? "

   Within Dalmore, there are also factional struggles. The investment banking department and the sales and trading department have always been at odds, and the bosses of the two factions are also fighting openly and secretly. However, these two departments are the most profitable departments, and the top management is willing to meet this kind of competition.

  However, if the trading department suffered such a huge loss this time, it would definitely not be able to hold its head up in front of the investment banking department. Such a very likely scene emerged in Jim's mind.

  The current situation is that Morgan Stanley has shorted part of the stock market, but it is far from profitable enough to make up for the loss on the futures index.

   "I think there should be a powerful person to speak out, even Mr. President. This is clearly a repeat of the stock market crash in 1929!" Sargent lowered his head and thought for a while, and said with some uncertainty.

   "What if not?" Jim frowned, his tone also full of doubts.

"Those foreign funds will not just watch their money go to nothing? There are so many listed companies, and they will not ignore the dive of their own company's stock price! I think they will soon announce a stock buyback plan! "At this time, Sargent only thought of making up for all the losses, and he was already a little out of words.

   What he said will be followed soon. Just a few minutes later, about hundreds of listed companies announced stock repurchase plans, which indeed injected a boost to the capital market.

"Our position is really too big, I don't know how to close it!" Jim sighed, and said a little sadly: "Just do what you said! If we are finished, it can only be God's Make it your will!"

   At the same time, at the Goldman Sachs headquarters a few streets away, the trading department was full of jubilation. Young traders threw their supervisor, Goldman Sachs senior partner Ed, into the air.

   "We made about 300 million U.S. dollars!" A disheveled trader yelled frantically, and his voice immediately caused another burst of cheers from the traders.

   "Boys, you did a good job!" Ed, who had just come down from mid-air, took a deep breath and said to everyone with a big wave of his hand. "If you keep working hard in the afternoon, everyone will get a generous bonus at the end of the year!"

  His words caused another burst of cheers from the crowd.

  These two distinct scenarios are happening to every market participant. At this time, no matter whether it is on the east coast or the west coast, whether it is a public fund or a hedge fund that is only open to private individuals, whether it is the Chairman of the Federal Reserve Alan Greenspan or ordinary citizens who have only invested a few thousand dollars in the stock market, they are all working for capital. Worrying about market volatility.

   This is not just a matter for investors, but a major event that is very likely to affect the entire American economy, and even the world economy.

  Even in several major countries in South America, including Brazil and Mexico, the capital markets have fallen sharply, and they cannot be alone.

   One hair moves the whole body, which is the best portrayal!

Zhong Shi, who was far away in Hong Kong, had a sleepy face, and was dozing off with his head drooping. Liao's father and son and Andrew beside him looked at him who couldn't stop nodding with incredible eyes, and no one thought of disturbing him. he.

With the stock market and futures market plummeting, Zhong Shi's short orders kept making profits. In just three hours, he made a sudden profit of nearly 300 million US dollars. billions of dollars of capital. Four hundred million U.S. dollars, or three billion Hong Kong dollars, made the three of them a little dumbfounded.

  In these years, Li Ka-shing and his two major listed companies have a market value of only tens of billions. According to Superman's shareholding, his net worth is only tens of billions.

   Doesn't this mean that Zhong Shi's current wealth is worth the hard work of others for a lifetime?

   "Huh? Is it over?" Zhong Shi suddenly felt the surrounding quiet down in his sleep, which made him very unaccustomed, and he woke up instantly, only to remember that today is "Black Monday" after a long while.

   "It's not over, the market is closed at noon!" Andrew said respectfully. By "noon" he meant US time, which is now midnight in Hong Kong.

   "Oh, that's it? How's the futures index market?" Zhong Shi tilted his head and thought for a while, then he came to understand that there is still a second half to go!

   "Big drop, now you have more than 400 million U.S. dollars in your account, do you need to liquidate some?" Liao Xiaohua quickly replied, he has truly seen the great power of these highly leveraged investment tools.

   "Let's see, wait until the end of the day!" Zhong Shi blinked, and then said expressionlessly, as if what he heard was not 400 million US dollars, but an insignificant figure.

   "That's fine, that's fine!" This time Liao Chengde finally got the chance to speak, but the expression on his face was one of bewilderment, a bit incomprehensible.

   Several people ate something in a hurry, and continued to wait for the opening of the US market in the afternoon.

   At one o'clock in the afternoon in the United States, the stock market continued to trade.

At this time, a large number of sold stocks have accumulated among the floor traders, waiting for buyers to appear, and the voice of listed companies announcing the repurchase of stocks also appeared in the market, which did increase some investors' confidence. It has also been contained, and the index is slowly picking up, and everything looks good.

  This situation is undoubtedly the most difficult for professional brokers, because they have accumulated a large number of sold stocks in their hands. If they do not find a buyer, they will have to hold them all the time, so their liquidity will have a big problem.

  The stock market brokerage in the United States is a market maker system, and professional brokers are the leading force in the market, which is very different from the future China. It is also because of the existence of these professional brokers that investors can go long or short stocks and keep the stock price at an appropriate level.

The current situation is that brokers hold a large number of sold stocks, and when the trend in the afternoon is unknown, there are no investors wantonly short selling to earn the difference, and with their financial resources, it is difficult to shake the power of the short sellers .

  Ten minutes after the market opened, a terrible news suddenly began to circulate on Wall Street, and everyone told each other with their noses and eyes. It is said that the chairman of the SEC, David Luther, made a speech in Washington, DC, suggesting that the stock exchange would be suspended.

This news immediately caused a huge panic, because once the exchange is closed, the stocks held by traders cannot be traded, and their stocks will become waste paper, and there will be problems with liquidity in an instant, and they will not be able to get them out at the time of settlement. With so much cash, either choose to go bankrupt or be swallowed up by others.

   This time it's traders' turn to go crazy!

   Selling! Dumping is like selling! Sell ​​regardless of cost!

   No one is going to verify the authenticity of this news. At this time, everyone has become a frightened bird!

The Dow Jones Index, which had just started to improve, turned red in an instant, and continued to fall. A large number of sell orders appeared on the sell orders, and short sellers also saw the opportunity, and frantically lent stocks to traders to sell, which aggravated the market. burden.

  In this regard, the futures index fell even more crazily than the Dow, and it has always fallen a few points more than the Dow. It seems that everyone lost confidence overnight.

  The floating profit in Zhong Shi's account is growing rapidly! The profit is increasing almost every minute and every second, quickly crossing the 500 million or 600 million mark!

   At two o'clock in the afternoon, this momentum was finally contained, and the officials of the Federal Reserve made a public speech, clarifying that the chairman of the Federal Reserve did not say anything about closing the stock trading market, which stopped the rumors. But it was too late, the Dow Jones index has fallen almost to 1600.

   "This is an opportunity!" Zhong Shi jumped up and said loudly. Although he didn't know what happened in the United States at this time, he also knew that the Dow Jones index closed at 1738 points today instead of the current 1600 points. "All flattened, as soon as possible!"

  Andrew is undoubtedly a conscientious agent. Without asking why, he quickly connected to Chicago, while Louis on the other side of the ocean was stunned for a moment, and then typed out instructions on the computer.

More than 10,000 sell orders appeared on the selling order in an instant, and the transaction was completed at a very low price and at a fast speed. When the transaction was completed, many people had not recovered, and all the positions of Zhongshi were closed. Only more than 600 million U.S. dollars in the account were left.

   This was the worst time of the day. The S&P 500 index fell by more than 30%, which was even crazier than the Dow Jones Index. The appearance of this long order undoubtedly gave the market a signal that the bulls were about to counterattack.

   "Buy as many orders as possible according to the position limit!" Zhong Shi waited for the transaction to be completed, and then issued another order that made Andrew feel a little overwhelmed.

   Fortunately, Andrew is still a professional, so he continued to give trading orders to Louis on the other side of the ocean without asking why.

Another buy order of 10,000 lots appeared in the market, and it was easily traded as before, because there were too many short orders in the market at this time, and the prices were all at an extremely low position, so it was very important to open a long position. easy.

At this time, the Federal Reserve's refutation of rumors began to exert its power. Wait-and-see funds and repurchase funds entered the market one after another, sweeping up those stocks with extremely low prices, and investors who recovered their senses also began to tentatively buy stocks. Driven by this, the Dow Jones index began to rise.

   This situation quickly spread to the futures index market in Chicago, and the most volatile futures index investors withdrew their empty orders one after another and began to buy. This situation fed back to New York, and the markets in both places began to pick up.

   Soon, the Dow Jones Index began to rise strongly, breaking through one resistance line after another amidst the shouts of the crowd, and even at 2000 points, it rushed over after a little hesitation.

   Just when the Dow broke through 2000 points, those terrified traders and investors shouted loudly, trying to vent the panic they had suffered earlier. Many people burst into tears and couldn't control themselves. This may be something they have never experienced in their entire lives! (Special thanks to book friend 130412220253435 for the reward and evaluation ticket, thank you for your support!)

  (end of this chapter)