The Son of Finance of the Great Age

  Chapter 681 The most short squeeze in history (6)

   "We lost our entire position!"

   Rodney Jones walked to Soros and said solemnly. After thinking about it, I added another sentence, "Perhaps we may still lose more!"

   "That's why I'm shopping around 300 euros!"

  Soros’s face trembled slightly, and the corners of his mouth were tilted up, revealing a trace of disdain, "Only by dispelling the fluke mentality of the short sellers, can we achieve the psychological prediction of the bulls as soon as possible, and only by letting the bulls ship, can we make up for the losses as much as possible!"

"If I'm not wrong, by tomorrow's market close, the stock price of Volkswagen Group will far exceed the current figure." Soros continued with a sneer, "There is no need for any luck at this time. Since they don't know Know the situation, let me help them understand."

   It was also a blessing in disguise, because the large number of short positions made Soros realize the real situation of this long-short squeeze: Even if the bulls sell all their shares, the shorts in the market cannot close all their positions. Theoretically, what he encountered was an unlimited loss, which made Soros calm down and carefully calculate the strategy of closing the position.

The asymmetry of information allowed him to inadvertently grasp a lot of advantages, and at the same time drove up the price of short position liquidation, but in Soros' calculation, the final liquidation price was much higher than the current price, so even Quantum Fund lost money. A lot of money, but he didn't care at all.

   "The time is almost here, let's release the news!"

   It is difficult for Rodney Jones to understand all this. He has stayed away from the front-line trading market for a long time and concentrated on studying theories. Naturally, it is impossible for him to be as generalist as Soros. However, he is a person with strong execution ability. After hearing what Soros said, he straightened his face and winked at the traders.

   Soon traders started calling around.

  …

  At this time in the Frankfurt market, the stock trading of the Volkswagen Group has become the focus of the entire market. The surge of more than 100% not only stunned the traders on the floor, but also made the investors watching outside the floor speechless. They were even more shocked by the rapidly increasing trading volume at 400 euros, calling the whole market crazy.

  But at this time, a piece of news from an unknown source suddenly circulated in the market, which added fuel to this frenzy and made the market even crazier.

   It's just that this news is downright bad for the bulls.

"Porsche will take advantage of the current ultra-high stock price and take the opportunity to reduce its holdings of 5% of the shares of Volkswagen Group. When the time is right, they will cover their positions. They may earn tens of billions of euros in profit. It is said that the shareholding reduction plan has been submitted to the Frankfurt Stock Exchange, with the purpose of clearing the suspicion of insider trading.”

  Heavy news, absolute nuclear bomb news.

  For the bulls, if they can’t sell at the high price at this time, the market price will definitely drop immediately as soon as Porsche’s reduced stock appears. So they began to frantically sell their stocks without being confirmed.

   For the short sellers, this news strictly violates the previous intention of the Porsche Group to squeeze more short sellers. But when they thought of the real intention of the Porsche Group, which is to annex the Volkswagen Group, everything suddenly became clear. The long squeeze is just to drive away the vultures in the market, and it cannot really bring cash profits to itself. In this case, part of the bargaining chip can be sold to the vulture fund, and it can also make the Porsche Group earn a lot from the stock market. The cash required for the acquisition is simply killing two birds with one stone.

   Regardless of whether it is long or short, this is extremely important news. This "importance" is reflected in the market, and the direct reaction is: the number of sellers soared for a while, while the number of buyers became very few, and the stock price of the Volkswagen Group almost fell at a speed of free fall.

  The situation is reversed in an instant, and the changes are dizzying.

"what's going on?"

Alan Howard was also dumbfounded. This kind of ups and downs made him feel terrified. This was a long-lost feeling and made him feel extremely uncomfortable. "Where did this news come from? Is it reliable? reliable?"

"The authenticity of the news cannot be confirmed for the time being!" James Whitehead calmly analyzed, "However, the increase in the number of sellers is a good thing for us anyway. Why don't we take the opportunity to buy and sell our shares as soon as possible?" The position is closed."

  Currently, there are only two paths before most hedge fund managers. The first is naturally to take advantage of the current heavy trading, close positions as soon as possible, and completely admit defeat and leave the market. The second is to wait until the Porsche Group releases its bargaining chips. Although the market price will still be high at that time, it will never be as outrageous as it is now, and it will not be too late to close the position at that time.

  The difference between the two lies in the amount of loss, and the uncertain factor is whether the news is true or false. What is tested at this time is the overcoming of nature, that is, how much rationality can be left in the face of huge interests. In fact, according to subsequent statistics, even for the best investors, at this time most people still find it difficult to overcome greed and luck.

  Alan Howard is no exception, "Don't worry, let's take a look first, and wait until the market changes. Let traders place buy orders and buy in at any time."

   While talking, the stock price of Volkswagen Group has fallen to 340 euros, a full drop of 60 euros, and this sharp drop has exacerbated the panic of the sellers. At one time, a large number of sell orders were piled up in the sell column, and the number reached an astonishing 2 million to 3 million shares. In the column of buying, there are only 400,000 to 500,000 shares, which is seriously out of proportion.

  The market situation reversed, and the stock price of Volkswagen Group continued to fall, and soon approached 300 euros. At this time, nearly 5 million shares of sell orders have accumulated in the sell column, and there is no pressure to break through 300 euros. Buy orders, which firmly supported the downward trend, followed by large buy orders of more than 500,000 shares at prices such as 320 euros, 330 euros, and 350 euros. Although the price did not rise immediately, it was impossible to fall further. Too likely.

"How is this going?"

  Alan Howard rubbed his eyes, couldn't believe what he saw, and asked repeatedly, "How could such a large sum of money appear at this point? Don't they want to continue to fall?"

   "Hurry up and place a buy order, immediately!"

James Whitehead didn't have time to answer his question at all, but ordered the trader to place a buy order immediately, and then he had time to answer, "Boss, we have been cheated. The news just now must be fake news released by the big short sellers. It is to release market liquidity and close positions at low prices. If my guess is correct, I believe that the Porsche Group will soon have a move to refute the rumors.”

"what?"

  Alan Howard sat down on the ground, speechless for a while.

  He instantly figured out the joints involved, and indirectly confirmed the authenticity of the news just now. At this moment, his heart was full of annoyance. If he had been more rational just now, he might have closed his position and fled away by now. And now, he will once again step into the torment of living through the years.

  He punched himself on the head violently, with astonishing force. It wasn't until James Whitehead hugged him tightly that he stopped this crazy act of self-mutilation.

   Not only Blevin Howard Asset Management, but also many hedge fund managers, even the bulls were deceived by this news. And when Quantum Fund's large purchase order appeared, they immediately woke up, but it was too late. Quantum Fund has taken over more than 4 million shares of Volkswagen Group in the market and raised the price to more than 350 euros.

  The market has reversed again.

  The bulls are busy withdrawing orders again, while the shorts are buying frantically. Both sides are cursing the guy who disrupted the market, but no one knows who it is.

  Volkswagen Group’s share price quickly rose to 400 euros again. The difference from the last time it happened here is that the bulls don’t care whether the shorts lose all their bankruptcy, and are still reluctant to sell the few shares they have.

   The price rallied further, quickly breaking through €410, and showing no signs of stopping.

   "Nice job, gentlemen."

  In the temporary office of the Quantum Fund, there was cheering. Many traders quickly wiped out the liquidity released by the bulls because of the panic. Together with the chips swept at 300 euros last time, Quantum Fund has already closed nearly 40% of its positions. Although it is a loss, it is still no small achievement because of the hard work of the trader to make the loss much smaller than expected.

  Traders beamed with relief. It stands to reason that they have become accustomed to trading under heavy pressure, but this time the situation of inevitable losses is still unbearable for them. They high-fived each other, punched each other, and shouted loudly to vent their sulking.

   Soros praised everyone with a smile on his face, and ordered them to buy through free bidding. When he turned around again, his face became serious, without the slightest smile.

"This time we are taking a risky move!" He said to Rodney Jones indifferently, "Once this move is made, the capable people in the market can basically guess what is going on. The subsequent liquidation will become even more special." It's difficult."

"In any case, we can at least close half of the position!" Rodney Jones was speechless for a while when he heard this, and he barely said a word of relief, "We have lost more than 2.5 billion euros so far. Tomorrow should not It will be crazy to this point, even if it is twice as crazy, our loss will only be 7.5 billion euros."

Rodney Jones originally wanted to say something optimistic, but Soros frowned even higher, "Double insane? This is unlikely. If that's the case, our loss is very likely to exceed 10 billion euros. I The estimate is between 500 and 600 euros. Even so, our conservative loss is more than 7 billion euros. In this case, even if all of our profits today are basically filled in, the final performance will be very dismal.”

  Because of participating in the short-selling of several major investment banks in the United States, coupled with investments in indices, CDOs, CDSs, and commodities, Quantum Fund would have had a bumper year this year. But after this battle, even Rodney Jones knew that he was lucky to be able to reduce the loss to 50%.

   "Damn the Porsche Group, they are so vicious, it is really unexpected!"

  Soros scolded twice viciously, but was surprised to find that he was usually not such a role in the eyes of other people? Immediately shut up in embarrassment and do not continue.

   At this moment, the trader shouted: "Porsche Group issued a statement!"

  With half an hour left in the trading hours, the Porsche Group posted a statement on its official website, in which they sternly denied the market rumors and expressed their reservation to pursue the legal responsibility of the rumor makers.

  As soon as this statement came out, the stock price of the Volkswagen Group rose unstoppably. By the time of the market close, it had successfully broken through to an astonishing level of 500 euros per share. Based on the closing price of the previous trading day, it has risen by more than 200% all day. What's more terrible is that even though the short sellers have such a strong need to buy, most of them still haven't closed their positions.

   And tomorrow, the last trading day, they will continue this tragic fight.

   Thanks for the rewards of book friends Demon Dragon Warrior Ghost, Xiao Qi Civilization Miracle, cpower, and Blank Reading during this period of time! Thanks to 8112268536, Xiaowu's father, aassddffxx, Xingzhi 0 and other book friends for voting monthly! At the same time, thanks to all the friends who voted for monthly tickets during the holidays! Although there are many speechless in reality, I still have to persist in writing the book unswervingly. I hope the results of this book will improve, and I look forward to the support of more book friends! For many public chapters that cannot be displayed, and comments that cannot be posted, the author is trying to find a way to modify it... At the same time, the errors in the content will be corrected as soon as possible~

  (end of this chapter)