The Son of Finance of the Great Age

  Chapter 683 The most short squeeze in history (8)

  Man is a strange thing. When the price rises wildly, everyone thinks that the future is good, and then desperately holds the chips in their hands. Once the price fell, their mentality changed immediately, and they regretted that they did not sell at the highest point, and then they had the idea of ​​seizing the last chance to sell wildly, which in turn accelerated the price drop.

   Worst of all, this decline quickly triggered sell orders placed by sellers at lower prices. Before these sell orders were filled, the price fell below the defense line, forming an avalanche effect. This plunge intensifies the greed and fear of bulls, forming a vicious circle.

  Naturally, there are also people with calm eyes among them. They faintly feel that something is wrong, but with their meager financial resources, they can't support the market's decline at all. They can only watch the stock price of Volkswagen Group decline rapidly.

  950 euros, 900 euros, 850 euros... In ten minutes, the stock price fell from the highest point of 1058 euros to 712 euros.

"it's time!"

  Alan Howard roared, "Put a buy order, buy as much as you can."

  When the stock price began to plummet, he immediately realized that this might be another conspiracy. After yesterday's battle, he has realized that there is an invisible hand manipulating the market. But what shocked him was that other investors in the market did not see it, not only the long side, but even most of the short side did not realize this.

   When he estimated that his psychological price was approaching, he naturally couldn't let go of such a great opportunity, and immediately ordered traders to buy quickly and take in bargains to close out his positions.

   I have to say that Alan Howard chose the timing precisely enough and gave the order decisively enough, but it was still too late.

  The market changed again, and the stock price of Volkswagen Group suddenly jumped to 720 euros. When everyone reacted, they saw a super buy order for 6 million shares placed at 710 euros, abruptly stopping the plunge.

   Over 4 billion euros in super bills!

  Following yesterday’s large purchase order of 1.2 billion euros, this record was set again today, even three times the amount yesterday. Although the bulls were scrambling to escape, they were still easily taken over in the face of a huge amount of paying bills.

  The market was shocked, and most investors fell into a state of confusion, not knowing what to do. But some of them smelled something unusual.

   "It's the same wave of people!"

James Whitehead said categorically, "It is definitely the same group of people, even the group that broke through 300 euros yesterday. The same strategy, the same operation method, huge amount of funds, and psychological tactics of playing the market. They succeeded again! "

   "Your basis?"

  Alan Howard asked straightforwardly without any nonsense. In his heart, he faintly felt that there was some kind of connection between these two things, but he needed more evidence.

"Just before the price jumped to 720 euros, the selling column suddenly withdrew the selling order of nearly 2 million shares. The speed was very fast. If you didn't pay close attention, you might not notice it at all. Just as the selling order disappeared, the buying order disappeared. There was a huge amount of orders, and the downward momentum was stabilized immediately. If it is said that the two are not related, no one will believe it." James Whitehead analyzed calmly.

   "What's their purpose?" Alan Howard looked at the other traders, some nodded and some shook their heads. Obviously, not all of them saw what James Whitehead said.

   "This is an amazing guy, or an amazing team!"

James Whitehead did not answer immediately, but praised the other party sincerely, "It can use so much funds and manipulate them as freely as the fingers. I have to say that this is a very outstanding team. Logically speaking, in this situation The next person who can operate in this way is either a big short seller or the team of the Porsche Group. However, Porsche has just issued a statement, which negates the possibility of the latter. And the hedge fund that can train such a team , I can count them on my fingers.”

   "What the **** are you going to say?" Alan Howard lost his patience, and even burst out with swearing, "Also, what do you think we should do?"

"Just pay 800 euros, the situation is beyond our control now!" James Whitehead didn't dare to show off anymore, and quickly gave the answer, and then explained, "If I guessed correctly, this wave of people is It’s Quantum Fund. These two operations that subverted the market came from the hands of Soros. Yes, they are absolutely, and they are the only ones who have such a big hand, playing the entire market in the palm of their hands.”

   "You mean them?"

Alan Howard thought about it carefully, and felt that it made sense, but he was still puzzled, "But if the sell order that suddenly appeared just now was also theirs, wouldn't they sell the bargaining chips they had on hand? This is not their own Looking for a way to die?"

"This is exactly their brilliance!" James Whitehead expressed admiration, "In the case of the rapid rise in stock prices just now, only by throwing a large number of chips can the bulls abandon their illusions. And hundreds of Tens of thousands of chips are difficult for any single force in the market to swallow. In this case, they sell a large number of chips to induce an avalanche effect, and then take orders at a low position. Playing in the palm of the hand. After such a move, they believe that they have taken over half of the chips in the market, and there are not many left, so I asked the traders to buy in the market at a price far higher than the current price, hoping to Buy as much as you want!"

   "You mean..." Alan Howard's complexion suddenly became ugly.

"Yes, if my guess is correct, after the Quantum Fund's two rounds, most of the chips in the market have been absorbed by them. Even if the remaining people raise the price again, I am afraid they will not be able to buy enough chips. "James Whitehead's face was equally ugly, "It's a pity, it's a pity, if we dared to attack during the decline, we wouldn't have fallen to this point now."

  Alan Howard's face is unavoidably a little feverish, but fortunately, the atmosphere is already hot, with a little blush on his face, no one will think he is ashamed. After calming down for a while, Alan Howard made a decision, "Get the plane ready, I'll go to the airport right away, let the people from the legal department meet me at the airport, and we'll fly to Frankfurt immediately."

   "After I arrive, if we successfully close the position, notify me to come back. If you can't close the position, you should tell me as soon as possible, and you can only ask the exchange for help!"

  He acted resolutely, picked up the windbreaker hat and walked outside, and ordered while walking, "Also, you are in charge of the overall operation here. Do your best, and now there is no strategy to talk about."

  James Whitehead nodded silently, did not speak, and had nothing to say at this time.

The same situation also appeared in the market. As the trading time passed bit by bit, there were fewer and fewer sell orders in the market. After the big buy order incident just now, more than 70% of the sell orders in the market were covered by this buy Sweeping through, the remaining sell orders were taken up by hungry buyers as soon as they appeared. While prices are still going up, sadly, even waving a check won't buy the stocks you want.

  A tragic atmosphere permeated Frankfurt, pervading among those investors who shorted Volkswagen Group. It didn't take long for Volkswagen Group's trading volume to shrink rapidly at a speed visible to the naked eye. Although the price was still high, for those hedge funds, the dispensable shares could no longer save them, and what awaited them would be a default tragic fate.

  When the trading was finally suspended, the stock price of Volkswagen Group stopped at the price of 854 euros per share. The buyer still piled up a mountain of buying orders, while the seller could not even see the single-handed selling order. The bulls sold all the stocks they had and squeezed the shorts as hard as they could, but they still couldn't do it.

   For the bears, they have no choice but to wave their checks and beg in the market. But even so, others took advantage of their luck and took most of the chips away from their mouths abruptly. It was a loss and a shame.

  Anyway, the day's trading is over.

The Frankfurt Stock Exchange began to settle various transactions, and the most important thing was naturally the equity transaction of the Volkswagen Group. Despite the help of the computer system, the processing of various data still kept the staff busy until 7 o'clock in the evening. The final result It shocked the Frankfurt Stock Exchange: there are still more than 4.7% of the short positions of the Volkswagen Group that have not flattened their positions.

  Based on the total share capital, this part of the position has at least 18 million shares of Volkswagen Group. According to the final price of today's transaction, the value of this part of the position is around 15.5 billion euros. Such a huge scale and number directly alarmed the Frankfurt Exchange. After holding an emergency consultation meeting, the Frankfurt Exchange decided to settle the matter.

   There is no way, such a huge amount of stocks or the amount cannot be handled by the exchange, even if all the assets of the Frankfurt Exchange are sold, it will not be worth so much money. Of course, it is impossible for the brokers to pay the money. If they were to bear the money, I am afraid that the general market makers in Germany would immediately declare bankruptcy.

   Of course, the breach of contract must never happen. If that happened, the Frankfurt market would basically lose its credibility, a blow that would be even more dire than an exchange bankruptcy. Because a financing pool cannot provide funds to the real economy, it even affects the real economy of the country.

  Kurt William Cole did not dare to be professional, and after unifying his thoughts with other senior executives of the exchange, he delivered the situation and handling opinions to the Prime Minister's Office. It didn't take long for the relevant approvals to be passed by the government, and then the exchange brought the two parties together to discuss a solution.

  Wolfgang Porsche and Weidekin were grandly invited to Frankfurt, and they arrived by private jet, which only took half an hour. Hedge funds that did not close their positions in time were contacted, video connections were connected one after another, screens lit up one after another, and complex faces appeared in the conference room of the Frankfurt Exchange.

  Alan Howard had just landed at Frankfurt Airport when he heard the news. Without further ado, he rushed directly to the Frankfurt Stock Exchange with the lawyers. When they rushed to the conference room, they were surprised to find that there were still many familiar faces. There are British counterparts, there are German counterparts, and there are some unfamiliar people. Although everyone was half acquainted, no one was interested in saying hello when they met on such an occasion, and many people even turned their heads silently.

  Alan Howard sighed, found a corner, sat down silently, and quietly waited for the arrival of the protagonist. At this time, he is like a fish on the chopping board, ready to be slaughtered. No, not only him, but most of the people on the field played this role.

   Wait until eight o'clock in the evening, in the eyes of everyone in astonishment, a big man familiar to everyone appeared, it was Soros.

Surprisingly, the person who came in with Soros was none other than Wolfgang Porsche who caused them to sit here at this moment. Smile, like a pair of old friends for many years.

   Thanks to the book friends Xiaoqi Miracle of Civilization, Heaven and Earth Kamikaze, Kalm God, Niu Xiaofan, aassddffxx, Jiang David for voting monthly tickets! I'm sorry that I didn't finish writing until midnight yesterday. If I can't write it before ten o'clock, I usually wait until the next day to update it. Of course, the author will try his best to arrange the time and try his best not to let other things delay the writing of the book.

  (end of this chapter)