Hollywood Hunter

"As of yesterday's close, the Dow Jones index fell 508 points, and the overall federal stock market lost $503 billion."

"Is 1987 equal to 1929?"

"The panic continues to spread, and SEC officials urgently clarified that there is no plan to temporarily close the stock exchange."

"James Baker should resign for his improper remarks."

"CME Group's S&P 500 index futures have a long float of US$3.52 billion, and there is huge pressure on margin requirements."

"The Fed held an emergency meeting to require major banks to provide sufficient funds and credit to the exchange to avoid trading defaults aggravating the market crisis."

"The Chicago Mercantile Exchange Chairman Leo Melamed issued a statement: CME Group's clearing bank has received a total of 3.7 billion additional margin, and the exchange will open normally at 8:30 Central Time."

"..."

"..."

The plunge curve that was almost exactly the same as in 1929 made countless people sleepless all night.

A series of serious chain reactions, such as bank failures, factory closures, and farm desolation, caused by the stock market crash in 1929, led to the loss of any income for nearly one-third of the entire US population.In the most severe period, food shortages have even caused nationwide malnutrition.

From 1929 to 1933, in just four years, the number of deaths in the United States reached 7 million, equivalent to 7% of the total population of 100 million in the United States at that time, and the death rate far exceeded the average in normal years.

Now in 1987, the people standing at the top of the American pyramid still have a deep memory of the Great Depression.Therefore, in just one day, the federal government quickly launched a series of rescue plans at no cost.

In the early morning of October 20, the Federal Reserve Chairman Greenspan, who had just been in office for more than a month, decisively "opened the gate" and directly announced that he would significantly reduce the federal benchmark interest rate by 0.75 percentage points and purchase bonds in the form of major banks in North America. Provided $12 billion in cash reserves.

Subsequently, from the White House down to the local banks of the US states, they began to take substantial bailout measures.

Affected by this series of good news, after the market opened on Tuesday, the Dow Jones Index began to rebound, rising from 1738 points at the close of yesterday to a high of 2035 points within half an hour.

It's just that the stock market bubble that has accumulated for five years is not a remedy that can be remedied immediately.

After a brief rally, the Dow Jones Index turned sharply down again.

On the other side, the S&P 500 index, which is closely linked to the Dow Jones index, has almost the same trend after the opening.

The S&P 500 index closed at 201 points on Monday and opened on Tuesday. It also rushed to 245 points in half an hour, and then plunged again.

...

Los Angeles.

In Palisades's mansion, Simon closed 8300 short contracts yesterday at a low of 200 points to 210 points in the S&P 500 index, with a single-day profit of more than $350 million.At the same time, 3,500 long contracts were established between 200 and 210 points in Westeros' account.

Opening on Tuesday, Simon patiently waited for the S&P 500 index to briefly rise, and then decisively adjusted the closing range, locking the 220-point index upper limit to start selling, while continuing to build long contracts in the same range.

In addition, Simon also withdrew US$200 million from yesterday's profit, transferred to the New York Stock Exchange, and began to buy all kinds of stocks in the plan.

...

Chicago.

Time came quickly to Thursday.

At seven o'clock in the morning, central time, Noah Scott, who has rested less than five hours on average in recent days, hurried to the Lehman Brothers Chicago branch with two bloodshot eyes.

As the vice president of Lehman Brothers, Noah Scott separately manages a trading team of six analysts and has his own separate office.

I left my briefcase and today’s newspaper aside,

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 is also about 80% of Simon’s previous position. .

Noah Scott really wanted to bet on whether the man whom the classmates, including myself, were pursuing was fruitless, was really amazing.

then.

On Monday, Noah Scott realized the feeling of getting rich overnight.

55 contracts, all closed at the bottom of the 200 point of the S&P 500 index, Noah Scott easily earned 2 million US dollars.

However, Noah Scott was not happy at all. He kept thinking about the money that Simon withdrew from the Lehman Brothers account, more than $350 million, if it was still 80% Short positions, that is, nearly 20,000 short contracts.

Of 20,000 contracts, it is obviously impossible to close all positions at the lowest point of the S&P 500 index, but even according to the closing point of 259 points on Wednesday, the short held by Simon Westeros can generate a large profit.

What's more, as long as it is not so greedy, Simon Westeros can definitely close all positions for two consecutive days on Monday and Tuesday.Even if the backhand is used to establish a long position, the other party's earnings will definitely be able to increase substantially.

Noah Scott is a man of great self-control. After closing 55 contracts on Monday and earning $2 million, he decisively closed.

Although the federal government promptly adopted a series of powerful bailout measures, no one can be sure that the US stock market will continue to fall as it did in 1929.But at this time, looking back at the S&P 500 index curve from Monday to Wednesday, and then contacting the young man's past operations, Noah Scott is almost 100% sure that the other party will definitely re-establish a long position and make a backhand profit.

The gap opened lower on Monday and the S&P 500 index closed at 201 points.

After a brief surge on Tuesday, the S&P 500 index closed at a low of 212 points.

The gap opened higher on Wednesday, opening at 237 points and closing at 259 points, and the market stabilized.

So, if you are the young man, maybe you should complete the closing of all short contracts on Monday and Tuesday. If you build a long position backhand during the period, you will definitely receive a lot of money on Wednesday.

$350 million in principal.

80% of open interest.

right now.

Noah Scott increasingly wonders how much Simon Westero has earned in recent days?

One billion dollars?

Even if you can’t make that much, Simon Westero, the young man who was only 19 years old this year, should be a billionaire.

wrong.

Perhaps, there should be Janet Johnston.

but.

One billion dollars!

In any case, Noah Scott understands that perhaps, in his life, it is difficult to match the wealth possessed by those two people.

It's just, $1 billion, how does that guy plan to spend?

perhaps.

Half a year ago, Simon Westero and Janet Johnston had reported that they were about to go to court because of the income distribution problem of "Rola Run".Now, with such a huge sum of income, even if the two were in love before, in the face of huge wealth, maybe there will be a dispute next?

Thinking of this with a bit of expectation, Noah Scott's office door was suddenly pushed open, and an analyst under his staff hurriedly came over and said: "Noah, no, now the exchange Everywhere there is news that we will sell thousands of contracts after the opening?"

Noah Scott was a little stunned and asked subconsciously, "What?"

The analyst said: "In the batch of contracts of the Quantum Fund, someone leaked the news that we will sell that batch of contracts in advance."

At the beginning of October, Soros's Quantum Fund and Simon Westero began to build positions at the same time.However, Quantum Fund has continuously bought more than 30,000 long contracts for more than half a month.

After the crash began, the Quantum Fund’s contract was forcibly closed in recent days. After the margin was added, it was closed again yesterday after the situation stabilized.But at this time, a total of 9,000 contracts remained in the Quantum Fund account.

Even if the federal government’s bail-out measures have begun to bear fruit yesterday, everyone understands that it is impossible for the S&P 500 index to return to a high of 300 points in the short term. Quantum funds have no second choice except for cutting off .

Lehman Brothers naturally cannot have Noah Scott as a trading team.

A large client like Quantum Fund is actually Noah Scott's head supervisor, and a senior vice president of Lehman Brothers is personally responsible.

Hearing his explanation, Noah Scott relaxed and said, "Charlie, this has nothing to do with us, isn't it? Will messed up, that's his business." So, Noah Scott He glanced at his watch and clapped his hands. "Okay, let everyone come in and work soon. Let's have a meeting first."

8:30 Central Time.

When the Chicago Mercantile Exchange officially opened, Noah Scott discovered how badly the news that Lehman Brothers was about to sell thousands of contracts was leaked in advance.

Since I learned in advance that Lehman Brothers was about to sell a large number of contracts, after the opening, all other brokers in the CME Group began to wait and see, and did not accept the sales orders thrown by Lehman Brothers.Therefore, under the accumulation of market selling pressure, the S&P 500 index fell straight again, and in just over ten minutes, it plunged from 256 points at the close of yesterday to 197 points.

Los Angeles.

In Palisades's mansion, it was still early morning, and Janet, who was already a little numb, didn't get up early today.

On Monday and Tuesday, Westeros far exceeded the 26,700 short contracts Noah Scott had imagined, and today there are fewer than 5,000 contracts left.At the same time, on Monday and Tuesday, Simon once again established a total of 7,000 long positions in the range of 200 points to 220 points, and completed the closing of 2000 long contracts at a high of 250 points on Wednesday.

Hearing the news of expecting the S&P 500 index to plunge again from the phone, Simon decisively issued an order to clear short positions.

If the memory is correct, Simon has less than three hours left.In the afternoon of central time, after the morning sell-off is digested, the S&P 500 index will rise again.

In the past few days, Goldman Sachs and other traders have been familiar with Simon's operation intentions, and naturally need not spend much time talking.

Simon then turned his attention to New York.

In the previous two days, Simon withdrew a total of 400 million US dollars of funds, all of which hit the New York stock market.His buying strategy is also very simple and clear-technology stocks.

Before the last layout, Simon had already calculated a list of technology stocks planned to buy. Apple, Microsoft, Intel, Oracle, SUN and other companies naturally had a lot of them. Of course, Simon did not forget to mix some'sand into it. '.

In memory, after a brief decline, the North American stock market continued to show a steady upward gesture until 2000.Therefore, this big crash at the end of October 1987 can be said to be Simon's last chance to bargain.

Because of the very detailed planning beforehand, within two days, Simon's investment of 400 million US dollars all became stocks.After the close yesterday, Simon once again withdrew $200 million from the futures account for today's buying operation.He will then continue to invest funds to continue to buy.

Even if it will not be held for more than ten years, after this crash, the North American stock market will pick up quickly. In the next few months, this batch of stocks will still produce very impressive profits.

The turbulent day soon ended.

The next day is October 23, Friday, the day "Reaper Is Coming" is released.

The S&P 500 index closed at 237 points on Thursday. After opening on Friday, there was no more bad news in the market, and the S&P 500 index rose back to more than 250 points.The short position was closed on Thursday, and Simon was also on this day, clearing all long contracts that had been hurriedly bought the previous few days.

then.

Finally it is time to count the last harvest of statistics.

A terrifying moment.

From October 19 to October 23, within five days, Westeros has sold 26,700 short contracts established at a high of about 290 points between 200 and 220 points, with a cumulative profit of 1.068 billion US dollars.Simultaneously, during the same three-day trough, Simon built a total of 8,000 long contracts between 200 and 220 points, and all closed positions above 250, again making $165 million in profits.

Counting the original $387 million principal in Westeros’ account and the five-month stock index futures operation, Simon’s initial $75 million had already skyrocketed to $1.62 billion.

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

In Simon's memory, there was indeed a rumor that 7 million was speculated in the futures market as 2 billion.But at this time, seeing just five months, the funds in his hand suddenly magnified more than twenty times, he still felt a little incredible.

Janet's reaction was more direct. After a long period of daze, the woman came over, curiously squeezed on Simon for a while, and then said: "Little jerk, I regret it."