1928: The rise of giant merchants

After October 5, U.S. stocks continued to fluctuate for a week and a half.

During this period, the Dow Jones Index has been declining, but the overall decline is very small. It closed at 315 points on October 5 and dropped to 311.3 points at the close of October 15.

Low-priced stocks have seen a larger plunge. Even the New York Stock Exchange, which has always been stable, has seen delisting stocks, and not just one or two stocks.

Except for Hartree Co., which was delisted last time, thanks to the surge in the market and the strength of U.S. stocks, no stocks have been delisted from the New York Stock Exchange in the past three years.

In the past week and a half, seven low-price stocks have been delisted. These seven companies are located across the United States and cover very different fields. There is no pattern at all.

But in Ye Luo's eyes, this is the best proof of the economic recession.

As for high-priced stocks and mid-priced stocks, these companies themselves are huge and have relatively stable fundamentals, so there is no need to worry about this at all.

During the big rebound on October 5, countless speculators celebrated their success and continued to inject money into the stock market, which also gave Ye Luo an opportunity to successfully sell the stocks of U.S. Steel and General Electric at almost their highest point.

Within a week and a half, he successively borrowed money from 18 high-priced stocks, and then sold them one after another at a relatively high position for ten days, completing the short selling of these 20 high-priced stocks.

This wave, under the influence of 20 times leverage, consumed more than 1.5 billion US dollars of his principal.

Livermore and four other people were also using similar operations to short other high-priced stocks, but their actions were more hidden and cautious. It was not until October 15 that the five people shorted 80 of the 100 high-priced stocks originally planned. Two branches.

There are still 18 teams in the wait-and-see period.

In fact, Ye Luo knows that the U.S. stock market has reached the critical point of collapse, and even if he lets his hands and feet go short, there will be no problems.

But other people who cooperate cannot predict the future and are still suspicious.

This way, when someone reviews it in the future, it won't appear too perfect and cause trouble.

October 16, the 18th year of the Republic of China (1929).

In the early morning, the sky was gray and the weather was obviously not good.

The speculators gathered on the trading floor of the New York Stock Exchange were in an even worse mood.

Ten days of fluctuations have made their nerves tense all the time. From the initial fanatical state of "hitting the ground and rebounding, you can buy the bottom" to the current Buddhist state of "uninteresting, no enthusiasm", these people look at the big blackboard At this time, his expression was a little dull.

But when the market opened, the Dow Jones index suddenly only had 305 points, which suddenly made them excited again.

This is the sharpest decline in U.S. stocks since the FBI investigation of the trading department and the delisting of Hartley Company!

A real bear market!

"Why did it fall so much!" Liu Xuenong, who was standing on the second floor, looked at the big blackboard and couldn't believe the data posted on it.

His two favorite stocks -

General Electric, United States Steel Corporation.

The former has now fallen to only $172.5, and the latter has fallen from the $200 mark. It has never risen in ten days and now only has $182.6 left!

Less than an hour after the market opened, these two high-priced stocks fell by $12 and $15 respectively!

There were bursts of exclamations and roars in the trading hall.

All kinds of American quintessences spewed out, and emotional speculators kept tapping the trading window, trying to get a satisfactory answer from the New York Stock Exchange employees.

"Liu, what's going on? They all seem excited?" Edward was living in a dream these days in Hollywood and Hawaii, hanging out with beautiful women while fantasizing about making a lot of money from the U.S. stock market, completely convincing his father of him.

Today I rarely accompanied Liu Xuenong to look at stocks, but I found that the atmosphere in the trading floor was not quite right.

"Uh, just some technical adjustments." Liu Xuenong hesitated, not knowing how to explain it to him.

"What do you mean?" Edward didn't understand stocks, but he was not a fool. He could still see the obvious problems.

When he asked, Liu Xuenong could only reply: "There are a few stocks that performed very well before, but they fell a bit fiercely today."

"What stock?" Edward became more and more curious.

Liu Xuenong glanced at the large blackboard that had been replaced again. General Electric fell to $158.3, followed by U.S. Steel at $182.4.

"Just General Electric, U.S. Steel, etc." Liu Xuenong's mind went blank, and he couldn't even calculate how much money he had lost.

There is no concept of a lower limit or a higher limit in the U.S. stock market. A stock can rise by tens of dollars in a day, or it can fall and be delisted in a day.

Of course, these are some extreme cases.

In general periods of volatility, high-priced stocks rise and fall within $10, let alone mid- and low-priced stocks.

In the previous hottest bull market, there was also a miracle of rising by more than 30 US dollars in one day, which can be recorded in the annals of history!

A big investor like him buys high-priced stocks in units of one thousand shares. If 1,000 shares rise by $30, the profit in one day is $30,000!

The cost is more than 100,000 US dollars, making 30,000 US dollars a day, and the return on investment in one week is as high as 100%.

Therefore, the U.S. stock market in its heyday was as profitable as the Great Smoking.

Today, just over an hour after the market opened, General Electric fell by almost 20 US dollars. If it continued like this, he couldn't imagine how much it could drop in a day?

"I didn't buy these stocks with my money." Edward lit up a cigarette and looked at Liu Xuenong with evil eyes.

Liu Xuenong knew that this guy was ruthless and shook his head quickly: "Of course not. I have avoided all these stocks."

He did not buy these stocks with the $5 million Edward later gave him.

This money did not even go into the stock market. Instead, he used it as dividends and distributed it to celebrities in the military and political circles of the Republic of China to silence them!

But he still suffered a huge loss.

Because after the previous loss from Hartley Company, he made a desperate move and invested all his remaining funds in the high-priced stock market.

Good or bad, U.S. Steel and General Electric are his two most optimistic high-priced stocks!

At this time, Liu Xuenong was completely confused.

Edward looked at him and felt something was wrong with the Chinese man, but he didn't say anything and just smoked in silence.

During lunch, Liu Xuenong came to his senses and there was no trace of Edward.

That's fine, he's always around, putting more psychological pressure on himself.

At this time, the atmosphere at the New York Stock Exchange was extremely tense. Speculators simply bought lunch boxes and squatted in the trading hall, waiting for the market to open in the afternoon. A solemn atmosphere filled the air.

After leaving the New York Stock Exchange, Edward got into a Ford car and asked his cronies to investigate the current situation of Hongxing United Group and the true situation of the stock market.

That was the hard-earned money he earned in the Republic of China, those big cigarettes, and the principal he later asked his father for. Taking into account the capital of other rich second generations, the total was 8 million US dollars!

"Please clarify the specific situation of the stock market for me! If there is really any problem, then the Chinese will not be able to see the sun tomorrow!"

Edward put out his cigarette butt, his eyes fierce,

"And that female boss, what is her name? Ask the local gangsters if they are interested in messing with her." (End of Chapter)