Divergences Among Bulls

Another week had passed, and the price of ammunition continued to steadily rise.

The Lübeck Navy had fought three victories and one defeat against the Danish Navy, with the Danish fleet now reduced to a mere third of its former strength. It could be said that Lübeck's victory was all but assured.

Edward, having closely observed Wood, a key client he had been monitoring, saw that Wood had begun to make his move. Wood, leveraging his prestige, continued to urge other Hanseatic merchants and Lübeck citizens to buy ammunition, while simultaneously beginning to quietly unload his stock.

As the owner of the exchange, Edward could see every transaction, and Wood's actions, loudly promoting while secretly selling, were a clear reflection of human nature and the cutthroat world of commerce.

Since Wood had begun to quietly unload his stock, Edward decided to establish short positions, betting on a price decline. This way, there would be no risk of a margin call. In this dark forest of commerce, anyone who lights a torch will eventually be shot down by a sniper.

Knowing that Wood was about to sell, Edward made his move and sold first. He watched Wood's cards closely, playing the game with full awareness. Wood, using his fame to rally others to buy ammunition, ended up simply making Edward richer.

Though Edward remained silent in his actions, he was able to capitalize on Wood's strategy—buying high while selling low—and gather a substantial amount of profits. Wood had merely dressed others in his own garments.

By issuing a series of commands to establish short positions through the accounts of Uncle Muller and young Baron Baron, Edward's own accounts once again showed exposure to risk. However, the potential reward was even greater.

On this particular day, the market closed with a large bearish candlestick, triggered by Edward's aggressive short-selling.

...

At the close of the day, Wood was drenched in cold sweat.

The market is alive, unconstrained by any scientific principles or techniques. Wood had his first inkling to escape, making a small sale, but mysterious capital had driven the price into a massive crash.

Who could it be?

Such a large amount of capital could never be from retail traders.

Wood stared at the price board, bloodshot eyes fixed on the line chart. Now, Wood had only two choices: escape as soon as the market opened tomorrow, dumping his stock before the big capital did, or defend the market, betting that the opposing capital was a one-time force.

Cold sweat running down his face, he made his decision.

The most terrifying moment in a risky leap is when the price collapses. If he can't liquidate, his entire life would be ruined.

"Not good, I must stabilize the price. If I run, the bulls will have no support, and the price will surely collapse. I won't be able to sell much. I will have buried myself."

"At this juncture, the only choice is to go long. If the opponent is just selling out, it doesn't matter. But if the opponent is building short positions, then I must drive them to the brink of a margin call. Only then will I survive."

"Force a short squeeze, no matter who the opponent is, drive them into a margin call!"

As the main force of the bulls, Wood gradually regained his confidence and calm.

In Lübeck, the merchants he had united now made up the majority. Even if the short positions did exist, they were no match for him.

...

The next day, the price of ammunition strongly rebounded. The bulls were in full force, and many merchants in the exchange hall secretly breathed a sigh of relief.

Yesterday's market movement had frightened everyone. After the extreme tension, came the release of emotions, as people once again experienced the thrill and earned money.

"Everyone should thank me. I bought 50 boxes the moment the market opened and activated the market. That's why we're seeing this rise today," said one Hanseatic merchant, proudly displaying his contribution to those around him.

Wood silently observed the Hanseatic merchants in the hall, trying to identify the big player who had sold their ammunition yesterday, but to no avail.

Who had betrayed him?

No one knew that, this morning, Wood had bought 700 boxes of ammunition, just in time to stabilize the situation. Otherwise, if it had been left to that merchant who bought only 50 boxes, they would likely have been annihilated by the short forces.

The Hanseatic merchant continued to boast, "In a bull market, every dip is an opportunity to buy. This is called 'backing up the truck.'"

Some newcomers gathered around the merchant and asked, "What if we're wrong?"

The merchant responded confidently, "This is trend investing. The big trend is up, and in a bull market, there's no such thing as a top. As long as you're buying, you're doing right. If you're wrong, then the market has peaked. Just sell, and you'll be right most of the time, only wrong once."

The newcomers were puzzled. "Is making money really this easy?"

The merchant laughed, "You're still young. This paper ammunition may be new, but it's the same as trading ordinary goods. If the market really has topped out, it means all the speculative capital has already entered. Once we confirm the top, we sell and finish off the market."

A newcomer respectfully asked, "I want to join the trend investing camp too. Can you show me the ropes?"

The merchant patted the newcomer on the shoulder, "Of course. The more people in a camp, the stronger it gets. Speculation is a war between bulls and bears. Whoever has the most money wins."

Wood silently scoffed.

The market is alive, and trying to explain it with a mechanical framework is laughable.

Wood decided to first eliminate this merchant and then look for the hidden short forces.

Wood had been watching the merchant and had come to understand his way of operating: buying in an upward trend, breaking through and building positions to ride the momentum, and buying during price dips to help stabilize the price for the bulls.

To counter these two tactics and make the other party lose money was, frankly, easy.

Wood sneered and returned to his VIP room.

(Due to the increasing crowd in the exchange hall, with many commoners around, Edward had created a VIP room for the more influential players.)

(In the VIP room, powerful players had their own dedicated staff, drawing charts on the blackboard, with not only the 15-minute line chart but also a 15-minute candlestick chart.)

(The candlestick chart provided even more information, making Wood feel even more respected.)

(Without realizing it, Wood had started to view the exchange as his own turf. Edward, ever low-key, spent most of his time on the fifth floor and rarely appeared on the first floor.)

(Wood and his friends had essentially taken control of the market. As far as the price action went, no one—Edward included—could defeat Wood's faction.)