Chapter 156

Chapter 156: Wall Street every day

After the phone call.

Abel silently stood up and walked towards the wine cellar next to the desk.

The wine cellar and the wine in the cellar are all prepared by Merio.

There were about a dozen bottles of red wine and five or six bottles of foreign wine. Abel randomly chose a bottle that was suitable for him.

After taking it out, I discovered it was a bottle of Margaux Pavillon Blanc. Opening the red wine, he poured himself a glass of Margaux Blanc.

Château Margaux has been a leading wine producer known since 1855 and its history of white wine production dates back to the late 17th century.

In the 19th century, this wine was sold under the name "Margaux Sauvignon Blanc" and it was not renamed "Pavillon Margaux Blanc" until the 1920s.

Abel doesn't like drinking alcohol, so he just took a sip of premium Margaux Blanche worth thousands of dollars and placed it next to him.

He then arrived at the trading room on the third floor, and his appearance caused the traders who had been here for nearly a week to applaud. David Mellon rushed forward, Abel noticed that the whites of his eyes were bloodshot and his pupils were slightly dilated.

David looked excited and told her excitedly: "Look at the trend board, look at the latest trend board!

Abel smiled, under the gaze of hundreds of people, he walked towards the price quotation wall of screens at the market.

Abel sees the GBP/USD trend chart and the GBP/USD daily chart as a huge Positive line.

It is still on the rise.

And there's still a little tail sticking out underneath. Clearly, the GBP/USD uptrend took a huge dose of drugs today.

Abel knows this, so of course he won't be as excited as David.

He said calmly:

"David, tell me about the exchange rate between British pound and British pound from yesterday to today."

David sat up straight and said excitedly: "Boss, today is the day the pound exchange rate skyrockets!"

"Boss, yesterday on the European market, the US dollar index fluctuated and fell. Now the US dollar index is around 80.55."

"And during this period, investors' attention has certainly been focused on the Bank of England's quarterly inflation report."

"Finally, the Bank of England did not adjust the threshold to an increase in the unemployment rate as some market participants had hoped but instead raised the country's economic expectations in the report."

"Influenced by this risk event, GBP/USD briefly increased several hundred points, reaching a two-week high of 1.4647!"

"Later, the Bank of England also raised its forecast for UK GDP growth in 2000, from 2.8% to 3.4%."

"The UK GDP growth forecast has increased from 2.3% to 2.7% in 2001 and GDP growth in the fourth quarter of 2000 is expected to be 0.9%."

Abel nodded with satisfaction.

That's the Bank of England boasting about accelerating its currency!

It was also during this period that God's agitator actually had a certain economic power. As a global financial center, this kind of virtual financial power is very beneficial in this regard.

Let's look back at Sister Lizhi's miraculous activity more than 20 years later.

A feint would immediately make the pound less valuable than the dollar.

Let the British pound become one of the fastest depreciating international currencies that year.

This is not the time to cause trouble, even though the national forces have been reduced. However, its financial power and influence are relatively stable.

This happened less than two hours after the market opened today.

GBP/USD rose more than 50 points in the short term, lifting to a two-week high of 1.4647.

UK bond futures fell by more than 20 ticks and the interest rate spread between the UK 10-year bond and its German equivalent increased by 2 basis points to 110.2 basis points version, highest since February 28 this year; Sterling short-term interest rates continue to fall.

But these. are all analyzed by David and Wall Street elites.

Leave it to Abel, he doesn't need to be so troublesome.

He directly ordered: "Today, please pay attention to the British pound exchange rate trend chart.

"Just today, ready to close position at any time."

The GBP/USD exchange rate is so strong that it has increased sharply for several days in a row.

The market is generally optimistic and bulls continue to enter the market.

But the talent told Abel that it was time to prepare to leave. If he doesn't leave the field, there will be stands waiting for him to jump.

He was now leaving the field, meaning he had fled before the digging of the sewer ahead began.

The pit ahead, only those who cannot see clearly can compete.

After the order was given, Abel asked again: "What is the total profit relative to the pound?"

"Correct!"

David was very touched and he also knew that Abel would love to hear the final result.

David said bluntly: "There is currently a total floating surplus of US$6.856 billion!

This time, the account amount of 10 billion US dollars, after many days of hard work, achieved nearly 70% profit!

The larger the capital, the more difficult it is to double it. Whenever floating profit exceeds 30%, it is a very good record. I didn't expect they could make such a floating profit!

Soros devalued the pound in 1991, busily planning his project for more than a month.

Run ahead and run behind, ready to be the god of Wall Street.

In the end, Wall Street came out on top and Soros with his sword in front received only 2 billion US dollars.

This is not his personal income, his personal income is only 650 million US dollars. At this profit level.

Wall Street boomed to the sky that year and also topped the Wall Street income list of "Financial World" magazine.

And now?

David now believes that even if the position were closed at that time, some profits would still be taken away.

Smith Capital could also make a profit of more than $5 billion on this transaction. Isn't that more than Soros?

Even though it's almost ten years later, after years of inflation.

The purchasing power of five billion US dollars is a little less than it was then.

But these investments all come from Smith Capital!

Although part of it was a private placement, most of the profits came from Smith Capital!

In the end, Smith Capital's profits exceeded $4 billion no matter what.

$4 billion in 2000 is worth more than $650 million in 1991!

David thinks Abel is the only person Wall Street should brag about!

By midday, the British pound currency pair increased sharply again. In the eyes of ordinary investors, most investors will be very enthusiastic and firmly hold.

But on Smith Capital's side, Abel officially ordered the position to be closed within a few days.

Despite his hesitation, David Mellon achieved it without any hesitation.

Nowadays, the pound has risen sharply, but this is becoming more and more worrying, because everything is going against each other!

A moment later, David shouted into the microphone causing many traders on the trading floor to start trading.

With such large amounts of money and many accounts, closing positions in a day or two is completely impossible. The time to close a position usually takes several days.

If the market is unstable or bad, it can last half a month or even longer.

Many investors with large amounts of money in the foreign exchange market often experience profit retracement when they close their positions.

I should have earned 100 yuan, but in the end there was usually only fifty or sixty yuan left.

Because during the closing period, the rate of retreat of profits is sometimes faster than the rate of increase. The same goes for foreign exchange trading.

Most of them are not good at choosing to close positions when profits are at their highest.

Because after the peak there will be a retracement and decline.

Whoever chooses to close the position at the top usually wins the least.

If the market becomes violent, it can even go directly from floating profits to floating losses. This is also a normal thing.

Just this afternoon, the latest US economic data was announced.

Monthly rates of the US Import Price Index for October:

previous value 2,

expected 2.1,

published value -0.1

Immediately after this data was published.

The dollar immediately began to turn negative and in turn, the GBP/USD pair, which was already on fire, strengthened.

GBP/USD is growing out of control again. Abel immediately told David: "Let traders increase the number of liquidated positions for each operated account.

The market is better now and more leaders will enter the market.

There are also many stop-loss selling and closing positions, and there are many buy orders in the market.

It turns out that he was able to hedge against Smith Capital's order to close the position, to avoid things like profit retracement as much as possible.

This black swan incident also knocked out Smith Capital, which was completely taken off the market for at least a week.

The speed on the field has been accelerated many times. To some extent, the frenzied liquidation of positions has resulted in halting the rise in sterling against the currency.

But the situation will not be that simple.

"Talent" caused Abel to leave the field at this time.

Meaning it's the right thing to do.

Half an hour later, new US economic data was released. Monthly industrial production rate in the United States in October:

Previous value 2.

Predicted value 2.

Published value -0.3.

As with the previous monthly rate of the US import price index, the data was once again negative for the dollar.

Because Smith Company closed its positions with part of the capital and left the market, the slightly depressed currency pair was supported again.

In addition, currently, many sell orders in the market have stopped at loss. GBP/USD increased again, from 14,700 to 14,740, a total increase of 40 points in half an hour.

Smith Capital's traders naturally closed their positions again frantically.

Such a good opportunity to leave the field in a high position can only come across once or twice.

I don't know what's going on today, I've been here twice already.

As for Smith Capital's exit, it's accelerating and there's another acceleration that's about to get hyper. The result was a rise in GBP/USD, which was quickly held back by a frantic increase in the number of liquidated positions by Smith Capital.

GBP/USD started to fluctuate at high speed in a 20-point range between 14,740 and 14,760.

After half an hour, GBP/USD fell completely and finally fell to position 14705.

David was a little worried at this time.

He found Abel: "Boss, should we now reduce the number of lots to close the positions?

Smith Capital unscrupulously closed the number of positions, causing market sell orders to completely exceed market buy orders. Let GBP/USD turn around and gradually decline.

In this situation.

Smith Capital closed its long position, effectively shorting the market.

The number of long positions liquidated means the number of additional sell orders placed in the market.

The order taker seeing this situation will also mutter in his heart, notice it starting to go down and start reducing the number of closed positions. At this time, David became even more worried.

I am concerned that if Smith Capital continues to close positions, GBP/USD could collapse.

After all, acquiring large sums of money is easy but liquidating them is very difficult.

Currently, they only have a million hands tied, while three-quarters of the field remains.

And that was already crazy speed. Under normal circumstances, a large amount of money must leave the market and it will take at least two days to maintain profits.

And as of today, it only lasts about two hours!

Hearing David's words, Abel thought for a moment and said: "A little slower, but continue to close the position."

"Awaiting the next US economic data."

"If the data is not good, we will continue to increase and close our positions. If the data is very good, we will continue to increase and close our positions.

"Don't worry about GBP/USD collapsing."

Talent told him that nothing like that happened.

Shortly after, the initial value of the University of Michigan Consumer Confidence Index for November in the United States was published.

Previous value 822

Predicted value 832

Declared value 802. The data was terrible, once again sending the dollar lower and GBP/USD higher.

GBP/USD increased strongly again to 14705.

But this time, its rise seems unstoppable.

Within an hour, it fell from 14,705 to 14,790 and is about to break the high of 14,800.

At that time in Manhattan, number 3 of the International Financial Center, headquarters of Merrill Lynch. Stanley O'Neill, one of the presidents who stripped CEO David Komansky of much of his power, talks with the company's CFO Charlie Schaff.

The conversation took place in the trading room of the international foreign exchange investment department of Merrill Lynch Securities.

On the other side of the office's glass wall, Stanley O'Neill looked at the nervous traders outside.

While watching the latest specially marked real-time forex market of the British Pound.

"Has it been half an hour? Still haven't found it? Charlie?" Stanley O'Neill suddenly looked behind him, who was using the computer to contact the company.

The chief financial officer of Merrill Lynch wiped the sweat from his face and said loudly:

"Detected! Basically confirmed that the market saboteur must be Smith Capital!"

"They have been there for a long time, but now they are closing their positions. Liquidation is very strong and in a sense they have become short positions."

Currently, the most powerful black man on Wall Street, Stanley O'Neill frowned:

"Is it really them? With so many liquidation orders, this guy's investment in the foreign exchange market this time seems like a lot of money."

"It must be big." Charlie Schaff said: "Our Merrill Lynch fund alone is in the billions of dollars!

Stanley O'Neill couldn't help but shake his head: "So it's really not a good idea for him to choose to close his position at this time."

The reason the black president said that is because he is one of the big guys on Wall Street. Merrill Lynch and other giants soon had inside information.

These are the economic data related to the United States released during these two or three days.

Everything is down for the dollar.

This, in turn, will favor slightly stronger world-class currencies.

Mainly the British pound, euro and yen. .

These currencies are all set to rise thanks to this data.

Smith Capital chooses to close the position at that time and will lose this increased profit.

Stanley O'Neill speaks again: "Charlie, tell me, company analysts, the three-day forecast value of GBP/USD."

Charlie Scharf glanced at the computer screen and immediately replied:

"The data is around 14,830! It is similar to the current real-time data, but there will be many increases and retracements along the way. Of course, these are all predictions."

"Of course I know these are just predictions." Stanley O'Neill nodded arrogantly. "Charlie, I think we should increase the next entry. The pound clearly has room to rise. You should know that earlier this year it was in excess of 16,500."

Charlie Schaff hesitated a bit, because in his heart, Merrill Lynch's CFO admired Smith Capital.

Smith Capital is currently closing its position

However, he is only the chief financial officer and has very little power in this area.

And Stanley O'Neill is currently the company's most powerful chairman. The board trusted him immensely, and even David Komansky, the actual CEO, was almost eviscerated by him.

What can Charlie Schaff say.

He had no choice but to say, "I trust your judgment, Mr. O'Neill."

Stanley O'Neill nodded, picked up the phone on the side table and made an internal call.

"My name is Stanley O'Neill. The dollar is currently falling. I think we should buy long currency pairs and short dollar currency pairs!"

"Increase the amount again, the amount is 1 billion US dollars. Just use the amount from the 136th highest value fund and the Merrill Lynch money fund account."

"Leverage? We don't take risks. There's no leverage."

After issuing this order, Stanley O'Neill became interested in the market again.

He found that it was just a waste of time. It's just British pounds being exchanged for dollars. The data dropped from 14,810 to 14,830 and fluctuated rapidly between 14,830 and 14,850.

The black president nodded with satisfaction. He estimates that this time Merrill Lynch could earn at least a few hundred million dollars.

This is a rare major problem. Merrill Lynch missed the international crude oil market and the British pound earlier this year.

In this pound and dollar market, you can't miss it anymore.

Charlie Scharf doesn't agree at all, but he's fine.

After all, something really happened and it had nothing to do with him as CFO.

Stanley O'Neill has a solid body and he can absolutely support anything that comes his way. And there aren't many Wall Street giants as judgmental as Stanley O'Neill.

Like Merrill Lynch, they can obtain inside information that small and medium-sized investors cannot obtain.

These data are often damaging to the dollar, some of which they provide.

They may even adjust the release schedule of this economic data.

In fact, people started taking action again two days ago. Otherwise, the prices of currencies in GBP terms would not have reached such high levels.

.

It's not just Merrill Lynch taking action.

Goldman Sachs, Mellon, Wells Fargo, Citigroup. Everyone is taking action. They spent more money than Smith Capital wanted to play with.

It was evening.

As Abe left the Smith Building.

GBP/USD steady around 14840.

Smith Capital's 4 million additional orders are also moving at a breakneck, unprecedented speed. Closing 2 million lots.

The profit is half a hand.

(end of this chapter)