Chapter 121 (1/2)
”As of yesterday's close, the Dow Jones index fell 508 points and the federal stock market lost $503 billion as a whole.”
”Is 1987 equal to 1929?”
”Panic continues to spread, SEC officials urgently clarify: there is no plan to temporarily close the stock exchange.”
”James Baker should take the blame for his improper remarks and resign.”
”Zhishangsuo S & P 500 index futures long floating loss of 3.52 billion US dollars, margin pressure is huge.”
”The Federal Reserve held an emergency meeting to ask major banks to provide sufficient funds and credit for the exchanges to avoid the market crisis aggravated by trading default.”
”Chicago Mercantile Exchange chairman Leo Melamed announced that the clearing bank of Chicago Mercantile Exchange has received a total of 3.7 billion US dollars of margin call, and the exchange will open normally at 8:30 central time.”
“……”
“……”
almost as like as two peas in 1929, which made many people sleep all night.
In 1929, the stock market crash caused a series of serious chain reactions, such as bank failures, factory closures, and barren farms. At one time, nearly one third of the population in the United States lost any income. At its worst, food shortages have even led to national malnutrition.
From 1929 to 1933, in a short period of four years, the death toll in the United States reached 7 million, equivalent to 7% of the total population of 100 million in that period, far exceeding the average level in normal years.
Now, in 1987, those people at the top of the American pyramid still have deep memories of the great depression. Therefore, in just one day, the federal government launched a series of rescue plans at no cost.
In the early morning of October 20, Greenspan, the chairman of the Federal Reserve, who has just been in office for more than a month, decisively ”opened the floodgate” and directly announced that he would reduce the federal benchmark interest rate by 0.75 percentage point, and provided us $12 billion in cash reserves to the major banks of the North America by purchasing bonds.
Then, from the white house down to the U.S. state and local banks, they began to take substantive measures to rescue the market.
Affected by this series of good news, after the opening of the market on Tuesday, the Dow Jones index began to rebound. Within half an hour, it rose from 1738 points at yesterday's close to 2035 points.
is just a stock market bubble that has accumulated for five years. It is not a one or two shot at all.
After a brief rebound, the Dow Jones index went down again.
On the other hand, the S & P 500 index, which is closely linked with the Dow Jones index, has almost the same trend since its opening.
The S & P 500 index closed at 201 on Monday and opened on Tuesday. It also surged to 245 in half an hour, and then plummeted again.
……
Los Angeles.
In palisade's mansion, Simon yesterday flattened 8300 short contracts in the S & P 500 index from 200 to 210, earning more than $350 million a day. At the same time, there are 3500 long contracts between 200 and 210 in the accounts of Westeros.
At the beginning of trading on Tuesday, Simon patiently waited for the S & P 500 index to rise for a short time. He resolutely adjusted the closing range, locked in the upper limit of 220 points and began to sell. At the same time, he continued to buy long contracts in the same range.
In addition, Simon also drew $200 million from yesterday's profit, moved to the New York Stock Exchange, and began to buy all kinds of stocks in the plan.
……
Chicago.
Time flies to Thursday.
At seven o'clock in the morning central time, Noah Scott, who has only had an average rest of less than five hours in recent days, rushed to the central part of the Chicago branch of Lehman Brothers with two bloodshot eyes.
As a vice president of Lehman Brothers, Noah Scott manages a trading team of six analysts and has his own office.
Leaving his briefcase and today's newspaper beside him, Noah Scott sat down behind his desk and turned on his computer, but he was still a little dazed: how much did that guy make?
Some time ago, after James Robinson made a wait-and-see decision, Noah Scott secretly borrowed $1 million from his father and secretly bought 55 S & P 500 short contracts, which was also Simon's previous 80% position.
Noah Scott really wanted to gamble whether the man whom all his classmates, including himself, pursued fruitless girls was really amazing.
Then.
On Monday, Noah Scott had a little experience of getting rich overnight.
All 55 contracts were closed at the bottom of 200 points in the S & P 500 index, and Noah Scott easily made $2 million.
However, Noah Scott is not happy at all. He has been thinking about the sum of money Simon took from the account of Lehman Brothers, which is more than 350 million US dollars. If it is still 80% of the short position, it will be close to 20000 short contracts.It's obviously impossible to close all 20000 contracts at the lowest point of the S & P 500 index, but even according to the closing point of 259 on Wednesday, Simon westero's short position can generate a large profit.
What's more, as long as he's not so greedy, Simon westero will be able to close out his position for two consecutive days on Monday and Tuesday. Even if he builds a backhand bull, the other side's profits will increase immediately.
Noah Scott is a man with a lot of self-control. On Monday, when he tied those 55 contracts and made $2 million, he decided to stop.
Although the federal government decisively took a series of strong measures to rescue the market, no one is sure that the U.S. stock market will continue to fall as it did in 1929. But at this time, looking back on the S & P 500 curve from Monday to Wednesday, and connecting with the young man's past operation, Noah Scott is almost 100% sure that the other side will definitely establish a bull and make another backhand.
The S & P 500 closed at 201 on Monday.
On Tuesday, the S & P 500 index closed at 212 points.
On Wednesday, the market opened at 237 and closed at 259.
Well, if you are the young man, maybe you should finish the closing operation of all short contracts on Monday and Tuesday. If you build a backhand bull during this period, you will definitely get a lot of money again on Wednesday.
US $350 million in principal.
80% of positions.