Chapter 121

"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.

Now.

Noah Scott is increasingly wondering how much Simon westero has made in recent days?

A billion dollars?

Even if we can't make so much money, Simon westero, who is only 19 years old, should be a rich man with a billion dollars.

No.

Maybe there should be Janet Johnston.

But it's not.

A billion dollars!

In any case, Noah Scott knew that perhaps he would never be able to match the wealth of those two people in his life.

It's just, a billion dollars, what's that guy going to do with it?

Maybe.

Half a year ago, Simon westero and Janet Johnston heard that they were going to court because of the income distribution of "Lola Run". Now, such a huge sum of benefits, even if the two people fell in love before, in front of such a huge wealth, there may be a dispute next, right?

Thinking of this with some expectation, the door of Noah Scott's office was suddenly pushed open. One of his analysts came up in a hurry and said, "Noah, no, now the exchange is full of rumors. We will sell thousands of contracts after the opening?"

Noah Scott was still a little dazed and asked subconsciously, "what?"

Analysts said: "the quantum fund contract, someone in advance we will sell that batch of contract information leaked out."

At the beginning of October, Soros' quantum fund and Simon's westero company began to build positions on a large scale at the same time. However, quantum fund has bought more than 30000 long contracts in most of the month.

After the collapse, the quantum fund contract was forced to close a part of the position in recent days. After margin call, the situation stabilized yesterday and then closed a part of the position again. But at this point, there are 9000 contracts left in the quantum fund's account.

Even though the federal government's rescue measures began to bear fruit yesterday, everyone knows that the S & P 500 index is unlikely to return to its 300 point high again in the short term, and Quantum Fund has no other choice but to cut the flesh and leave the market.

Naturally, it is impossible for Lehman Brothers to have only Noah Scott as its trading team.

Quantum fund, a big client, is actually Noah Scott's top boss, a senior vice president of Lehman Brothers.

Hearing the explanation, Noah Scott relaxed and said, "Charlie, it's nothing to do with us, isn't it? Will messed up. That's his business So Noah Scott looked at his watch, clapped his hands and said, "OK, let's all come in. We're going to work soon. Let's have a meeting first."

It's 8:30.

When the Chicago Mercantile Exchange officially opened, Noah Scott found out how bad the news that Lehman Brothers was about to sell thousands of contracts leaked ahead of time.

Due to the news that Lehman Brothers was about to sell a large number of contracts in advance, after the opening, all other brokers in Zhishang office began to wait and see, and did not accept the orders from Lehman Brothers. As a result, under the accumulation of market selling pressure, the S & P 500 index plummeted again. In just 10 minutes, it plummeted from 256 points at yesterday's close to 197 points.

Los Angeles.

Palisade's mansion, is still early in the morning, has been a little numb Janet did not get up early today.On Monday and Tuesday, westero surpassed Noah Scott's 26700 short contracts, leaving less than 5000 today. Meanwhile, Simon re established a total of 7000 long positions between 200 and 220 points on Monday and Tuesday, and closed 2000 long positions at 250 points on Wednesday.

From the phone to hear the expected news of the S & P 500 index plummeting again, Simon decisively issued the order to clear short positions.

If the memory is right, Simon has less than three hours left. The S & P 500 index will pick up again in the afternoon central time, after the morning selling pressure is digested.

In a few days, several traders such as Goldman Sachs have been familiar with Simon's operation intention, so they don't need to talk much.

Simon then turned his attention to New York.

Two days ago, Simon drew a total of 400 million dollars, all of which were smashed in the New York stock market. His buying strategy is also very simple and clear, technology stocks.

Before the last layout, Simon had already compiled a list of technology stocks he planned to buy. Naturally, apple, Microsoft, Intel, Oracle, sun and other companies were quite a few. Naturally, Simon did not forget to add some "sand" to them.

In my memory, after a short decline, the North American stock market will basically show a steady upward trend until 2000. Therefore, the crash at the end of October 1987 was Simon's last chance to make a bottom.

With a very detailed plan in advance, Simon's investment of $400 million in two days turned into his own stock. After yesterday's close, Simon drew another $200 million from his futures account for today's buying operation. Simon will continue to invest money and continue to buy. Even if they don't hold it for more than ten years, after the crash, the North American stock market will recover quickly. In the next few months, these stocks will still generate very considerable profits.

The day of shock soon ended.

The next day was October 23, Friday, when death came out.

The S & P 500 index closed at 237 on Thursday. After Friday's opening, there was no bad news in the market, and the S & P 500 index rebounded to above 250. Short positions were cleared on Thursday, and Simon also cleared all the long contracts he had bought in a hurry in the previous few days.

So.

Finally, it's time for the final harvest of statistics.

It's a thrilling moment.

From October 19 to October 23, in five days, westero sold 26700 short contracts at 290 points between 200 and 220 points, making a total profit of $1.068 billion.

At the same time, during the same three-day low period, Simon accumulated 8000 long contracts between 200 and 220 points, all of which were closed above 250, making another profit of 165 million US dollars.

Taking into account the original principal of $387 million in westero's account and the five-month operation of stock index futures, Simon's initial $75 million has surged to more than $1620 million.

After detailed statistics of the final financial data, both Simon and Janet were stunned for several minutes.

In Simon's memory, there is indeed a rumor that 7 million will be speculated into 20 billion in the futures market. But at this time, seeing that in just five months, the amount of money in his hand has suddenly increased by more than 20 times, Simon still feels a little incredible.

Janet's reaction was more direct. After a long time in a daze, the woman came up to Simon and squeezed him curiously. Then she said, "little bastard, I regret it."