The Son of Finance of the Great Age

  Chapter 682 The most short squeeze in history (7)

  Although the transaction is over, many suspenses left to the market are still unresolved, such as who released the false news during the session, the size of the short position, and so on.

  But no matter what, it is an indisputable fact that the shares of Volkswagen Group have skyrocketed. Correspondingly, the shares of the Porsche Group also rose by more than 20% on this day, showing the market's strong expectations for the successful acquisition of the Volkswagen Group by the Porsche Group.

As for the short side, they have no time to reflect on day trading at all, and the stock price has risen far beyond most people's expectations. At this time, they can only desperately raise cash in anticipation of the final transaction tomorrow. Day can buy enough chips to close the position, after all, the time left for them is only one night.

  Some people laugh, some sigh, some cry. In the trading market of Volkswagen Group, all kinds of beings are happening, from Johannesburg in South Africa to Oslo in Norway, from Los Angeles on the west coast of the United States to Tokyo in the Far East, as long as the institutions involved in the acquisition of Volkswagen Group and Porsche are not allowed to spared.

On the second trading day, this kind of "all beings" reached its peak due to the surge of the Volkswagen Group, and its influence was no longer limited to Frankfurt and Europe. Even the US stock market on the other side of the ocean did not escape this wave. shock.

  October 28, the last trading day for the delivery of October futures, options, etc., all related trading varieties will be stopped and delivered tomorrow, which means that there is only one day left for short positions to close their positions.

  As soon as the Frankfurt market opened, all the focus of the market has been on the stocks of Volkswagen Group and Porsche Group. As the stock price of the Volkswagen Group soared yesterday, the German DAX index, which had been falling, turned red to green miraculously. This situation attracted the attention of investors in other stocks in the market, so investors' attention was naturally focused on these two stocks.

   What's more, even before the opening of the market, they placed many long orders of index futures, hoping to make a fortune in this wave of market conditions.

   "Is our cash in place?"

  London Financial Street, the trading floor of Blevin Howard Company, Alan Howard, with a pair of huge dark circles under his eyes, asked his traders wearily. Judging by the look on his face, I knew he must have had a hard time last night.

"It's done. I borrowed a short-term loan of 3 billion euros at the interest rate of LIBOR." Adrian Hilton, who is in charge of funds, said quickly, and finally explained, "Use our British government bonds, German government bonds and HSBC shares as collateral.”

"Well done, Adrian!" Alan Howard took a sip of his coffee, and after barely getting a little refreshed, he nodded and praised casually, "We closed some of our positions yesterday, as long as we can close all of them today Drop it, and it's done."

   "Close the position at this price?"

   Adrian Hilton was taken aback. Originally, Blevin Howard Company only shorted about 1 billion euros of Volkswagen Group shares, but yesterday this part of the position has been completely lost. Although about 6% of the total position was liquidated, the 1.5 billion euros it had prepared earlier have all been exhausted. voted in. Now that Alan Howard has prepared another 3 billion euros, isn't the price of closing the position...

  For a while, Adrian Hilton didn't dare to continue thinking about it.

   "Be prepared!"

  Alan Howard said something lightly, looked at Adrian Hilton's expression, and added, "Maybe it's not enough, of course this is just an extreme situation."

   Adrian Hilton was silent.

The facts are indeed as Alan Howard expected, the opening of the market is extremely unfavorable to the bulls, the stock price of the Volkswagen Group continues to rise wildly, and it is as difficult to contain as weeds that grow wildly. After just half an hour, it broke through the 600 euro mark , This figure stunned the entire market.

  From 160 euros at the opening yesterday to 600 euros today, Volkswagen Group has risen by more than 275% in just over one trading day. This increase is still extremely rare even in the history of world securities. What's more terrible is that the rally still has no end in sight.

  The bears’ hearts are bleeding, but they have no choice but to pour money into them one after another desperately, hoping to grab some of the few chips.

  600 euros, 650 euros, 700 euros... During the frenzy of the entire market, the stock price of the Volkswagen Group rose to 1,000 euros per share before it stopped embarrassingly.

This is not only because of the reluctance of the bulls to sell, but also because of the last madness of the bears in the entire market. Although various fund managers tried their best to raise prices, they still couldn’t buy the chips they needed. All they could do was to raise prices even more frantically. Hope to meet the expectations of the bulls.

  During this kind of game, they knew very well that the more the price skyrocketed, the more serious the bulls' reluctance to sell. But for bears, there is no choice at all.

During the whole process of skyrocketing, the market value of Volkswagen Group has been rising all the way. By the time it approached 1,000 euros per share, the market value of Volkswagen Group has risen to 390 billion euros, successfully surpassing Mobil Oil Company of the United States, and becoming the world's largest listed company by market value. company.

  The market was in an uproar.

   "Breaking through 1000 euros!"

   At this time, at the headquarters of Quantum Fund in Frankfurt, the traders were all downcast, and the atmosphere of yesterday was completely gone. Half of the price gouging in the market is done by them. It was only when the stock price of the Volkswagen Group jumped over 800 euros that they stopped this crazy behavior. But the momentum has been established. Even if they stop, the remaining short sellers cannot stop, and can only increase their prices one by one until they reach 1,000 euros per share.

"what should we do?"

  Rodney Jones had long since lost his mind, and only cared about walking up and down the trading floor. When the price finally broke through 1,000 euros, he stomped and pushed open the door of Soros' office.

"George, we have to do something. Otherwise, if this continues, we can only watch the losses expand step by step, and if this continues, we will be doomed!" Jones almost roared, he was very anxious, and was about to lose his composure edge.

   "Yesterday I made a fool of them, today is their revenge."

Soros sat on the sofa chair, looked at the computer screen in front of him, and calmly analyzed, "For the entire bulls, they are already aware of the situation of multiple short squeezes, which is caused by me. In fact If we didn’t play that one, we wouldn’t be able to buy so many chips.”

"What's the use of saying this now?" Rodney Jones muttered in his heart, but said in his mouth, "George, what should we do now? If it exceeds 100 billion euros per share, our loss may exceed 10 billion euros. This is really terrible!"

The rapid price rise has far exceeded Rodney Jones' expectations. He originally estimated that the loss of Quantum Fund in this transaction was around 7 billion to 8 billion euros, but now it seems that the loss figure has endangered To the life and death of Quantum Fund.

   "So I'm going to do it again!"

  Soros gave Jones a dissatisfied look, and said lightly while the other party was stunned, "I decided to sell some of the shares of the Volkswagen Group!"

"what?"

  Rodney Jones was so surprised that his hair stood on end, he muttered to himself, "You are crazy! You must be crazy! How is this possible? This is absolutely impossible!"

"We have worked so hard to collect so many chips from the market, how can we sell them all at once? George, you should understand that even if we sell them to get some cash, we can't get them from the market anyway. More bargaining chips. At present, we can only get a part of the balance, so how can we vomit it out?"

  Jones said almost roaring.

"You're not wrong, we really can't close the position successfully!" Soros listened to Jones with a blank expression, and then said lightly, "No matter what, we will default. But for the breach of contract The amount is less, so I will take the risk. Don't get excited, just listen to me slowly."

"The current situation is basically clear. The party holding the stock is not willing to sell the stock at hand. The more the price rises, the more reluctant they are to sell. Under such circumstances, the stock price will only grow higher. If we want to break this In such a situation, someone must take the lead. This person must not only sell stocks first, but also sell heavily, so as to break the 'alliance' of the bulls. With this explanation, you should be able to understand, right?"

Rodney Jones suddenly became quiet, "You mean... the current price has reached some people's expectations, so some of them began to sell stocks. For others, if they don't sell now , once the price falls, they will not get the current profit?"

   "Yes, that's exactly it!"

Soros had a strange smile on his face, "Thanks to the market, they don't know whether the people who sold the stock are long or short. If my guess is correct, after we sell, the stock price will fall rapidly, and we may still Can make a fortune."

"But..." Rodney Jones wanted to say something, but Soros didn't give him a chance to continue, "immediately ordered the traders to sell the stocks in hand, and the total number was set at 5 million shares. Once the price dropped to If it is below 700 euros, stop selling immediately and re-absorb chips in the market.”

   "Don't worry, the exchange will help solve the problem of not being able to close the position in the end." Soros calmly explained Rodney Jones' last question.

During the conversation between the two, the stock price of Volkswagen Group has jumped to 1,050 euros per share. Stocks exceeding 1,000 euros are extremely rare in the market. The breakthrough of an important psychological threshold is a strong stimulus for bulls, while shorts It's like the sky is falling, because this price is enough to crush many hedge funds.

Just when the market sentiment was extremely polarized, another change occurred in the market. The bulls who had been reluctant to sell began to place large-scale sell orders. A sell order of up to 200 shares was first thrown out, followed by two sell orders of 1 million shares, a total of up to 4 million. The sell order of the stock instantly fixed the price at the level of 1058 euros per share.

  At the same time, another piece of news came out of the market: Porsche Group may be involved in market manipulation and false disclosure, and the Frankfurt Stock Exchange is considering investigating it.

  The day-to-day sell order and this news worked together, and the rally of Volkswagen Group suddenly came to an abrupt end. Although there is a strong demand for short buying in the market, such a large selling order cannot be digested for a while, and the price begins to fall. But to everyone's surprise, the prices of these big sell orders were immediately revised and listed at the latest market price.

   "Bulls can't wait to ship!"

   "Did you get any news beforehand?"

   "Oops, if we let them ship, what else do we earn?"

  …

  All kinds of ideas quickly appeared in the minds of investors in the market, especially the bulls, because they saw that the main force had a strong willingness to sell orders, which seriously stimulated them. On the one hand, they cursed this bull who didn't understand the "rules", on the other hand, they also started to sell crazily, hoping to sell more stocks at a high level.

  The stock price of the Volkswagen Group did not rise but fell, and began to fall rapidly.

   Thank you book friend apo11o for voting for the monthly ticket! I hope that everyone's enthusiasm for supporting this book will continue. The author will continue to find ways to modify it, and strive to release the disappeared ones. A lot of them have disappeared. After the holiday, new book lovers can't read them all... This is not a problem with H, it is probably Z , so hard to change...

  (end of this chapter)