Rebirth 76: Industrial Internet Empire

No matter how concealed Yang Mo was, both bulls and bears still noticed him as a spoiler!

Gary Raymond was just unhappy because Melo Asset Management made a wedding dress for others, but it was not a bad thing!

Kong Fang was extremely wary of this new force that suddenly joined in!

Being timid before fighting is a taboo for military strategists, and also a taboo in a long-short game without the smoke of gunpowder!

Entering October, Yang Mo accelerated the pace of short-selling the Dow component stocks, and Gary Raymond also felt more balanced. At least these "Japanese consortiums" have been consuming the opponent's funds, and they are not completely matched. Take a ride!

On October 10, the first large-scale decisive battle between the long and short sides kicked off.

After Melo Asset Management personally stepped down, Zhiyuan also increased its short-selling efforts, and the short side took the initiative. In just five trading days, the Dow Jones Industrial Average fell by 2612 points from 158 points, 10 The Dow closed at 9 points on March 2454.

In the week from October 10th to 12th, the Dow Jones stock index fell another 16 points. On Friday alone, the Dow Jones index plummeted 235 points, and bulls almost lost their ability to resist.

Monday, May 10.

There are only three days left before the settlement date of 8710 Dow futures, and the bears have begun their final offensive.

At 09:30 in the morning, after three rapid and dull "dang, dang, dang" bells, the New York Stock Exchange morning market opened.

The two consecutive weeks of bullish losses have cast a shadow over all investors, and an ominous premonition has arisen in their hearts.

The latest news from the Chicago Stock Exchange shows that the Dow Jones stock index futures have formed a 100-point scissors gap with the New York Stock Exchange, and the short side has not given the bulls a chance to close their positions and escape.

As expected, the Dow Jones Industrial Average fell 67 points at the opening due to the violent selling by the short side.

Investors' emotions were completely out of control. Panic markets stampeded on each other to escape, and there was no green light visible on the screen on the trading floor.The exchange suddenly fell into panic and chaos.

A large number of selling orders emerged, but no buyers could be found at all. At 10:30 in the morning, a rare scene occurred in the New York Stock Exchange: an hour after the opening of the morning market, the trading volume of 95 blue-chip stocks was zero...

The short side brought the Dow Jones Index from 2220 points to below 2000 points at almost zero cost. In the last hour before the market closed, due to the lack of buying orders, short-selling institutions began to place a large number of buy and sell orders to seize the electronic trading channel.

Huge amounts of transaction data poured into the system, and almost all of the 200 computers at the New York Stock Exchange were paralyzed as they had no time to process the transaction data.

As of the close of the afternoon market, the order conversion system in the New York Stock Exchange's electronic trading system was a full 75 minutes slower than the actual transaction. During the entire morning session, out of about 4 million shares traded, 1.2 million share trading orders were not electronically processed. System execution...

At 13:05 EST, SEC Chairman David Rudd gave a speech: "As a last resort, the Securities and Exchange Commission will discuss with the New York Stock Exchange to temporarily close trading..."

This speech was the straw that broke the camel's back!Investor sentiment was completely destroyed. They believed that once the transaction was closed, the stocks in their hands would become waste paper...

When the market opened in the afternoon, investors frantically lowered prices regardless of cost and tried to sell their stocks. The electronic trading system was blocked and collapsed again!

At 14:10, Securities and Exchange Commission officials slapped themselves in the face and came out to clarify David Rudd's speech: We are just describing a possibility and do not have any plans to close the exchange.

Encouraged by this news, many parties made a last-ditch struggle, and the Dow began to rebound with revenge, rising by 350 points and successfully breaking through the 2000-point mark.

The Chicago Stock Exchange was in mourning, and ordinary retail investors on both the long and short sides were forced to liquidate their positions...

Around 14:30, the rebound was blocked and the desperate struggle of many parties failed.

Almost at the same time, Li Heping received a call from Yang Mo: below 1750, every five points, 8710 and 8711 Dow contracts each opened [-] long orders...

"More than [-] lots?" Li Heping thought he heard wrongly and asked in surprise on the phone.

"Yes, execute it quickly! I will tell you the reason later, and close the position as much as possible to make a profit!" Yang Mo said without argument.

At 15:30, the short side launched the final attack. In just half an hour, 250 million shares were traded, and the Dow Jones index fell another [-] points.

Chicago Mercantile Exchange.

Gary Raymond is trying his best to launch the final attack, not giving the main parties a chance to close their positions and leave. The 8710 Dow Jones stock index contract has always maintained a scissor gap of about 5-10 points with the New York Stock Exchange.

Just after the Dow fell below 1750 points, a large number of buy orders suddenly appeared on the Dow 8710 contract. Gary Raymond did not take it to heart at all. He thought that like the New York Stock Exchange, this was the last desperate struggle of the main forces of many parties, and ordered all Swallow these long orders.

Half an hour before the closing, facing the swarm of long orders for the 8710 contract, Gary Raymond felt a little uneasy in his heart, but he didn't pay much attention to it. The overall situation had been decided, and the short side had become a unilateral massacre. What else could he do? What can't be reversed?

Gary Raymond did have reasons to be confident. As of the close, the Dow Jones Index plummeted 518 points, plummeting from 2226 points to 1708 points, setting a record for the highest one-day decline of 23% in the history of U.S. stocks.

Within one day, Dow Jones constituent stocks fell by an average of 30%, Westinghouse fell by 45.8%, Coca-Cola fell by 36.5%, General Electric fell by 33.1%... Industry hegemons such as Boeing and Microsoft were not spared.

..................................................................

"What? Are you sure the last long order belongs to the Japanese?" Gary Raymond asked with a suspicious look on his face.

"Yes, Mr. President! It has been confirmed that it is the same account that previously opened a large number of short orders for the Dow Jones stock index 8710 and 8711 contracts!" Mia replied affirmatively.

"Fake! These profit-seeking Japanese guys have no faith at all. They only know how to stab people in the back at critical moments!" Gary Raymond cursed angrily.

"The Japanese are closing their positions and taking profits. There are only three days left until the settlement day. What should we do?" Mia asked.

"Don't the Japanese still have the ZD8711 contract?" Gary Raymond asked.

Mia shook her head and smiled bitterly: "The positions have been closed. Taking advantage of the sharp decline in the stock market, all the short contracts in their hands were closed,"

"Farke! Damn Japanese guys! They have a lot of short-selling chips in their hands and need to redeem them to close their positions. This is very detrimental to us!" Gary Raymond cursed angrily.

"Now that the downward trend has occurred, they shouldn't be in a hurry to redeem it, right?" Mia said.

"We really can't infer them based on common sense! Who would have thought that they would close their positions and leave at a profit under such a one-sided good situation?" Gary Raymond said worriedly.