1928: The rise of giant merchants

Livermore was well aware of the influence of Fisher and Keynes.

When he learned that Yello had also roped in Roger Babson to sell short, Livermore became increasingly confused and couldn't figure out what Yello was doing.

Because of the sudden appearance of many well-known short sellers, coupled with the decline in the market and many stocks yesterday, many speculators have withdrawn from the stock market, making the bulls feel scared.

Last night, Fisher and Keynes suddenly wooed the media to build momentum, hoping to revive the stock market.

Livermore didn't know whether this offensive would be effective, so he was anxious and went to the New York Stock Exchange as soon as the morning market opened on September 5.

When we arrived outside the trading hall, we saw a large number of speculators waiting anxiously outside.

"Sir, would you like a copy of the latest New York Financial News? It's 1 cent a copy." The little newsboy handed a brand new newspaper to Livermore, "It contains Mr. Fisher's accurate predictions on today's stock market. ~"

"Give me one."

Livermore was also a newsboy and had a good impression of these children who had to make a living by selling newspapers. He took out 1 cent and quickly browsed the content.

It has to be said that Fischer's strategy is extremely correct and efficient.

The media in New York follow the trend and praise whoever has money, which is completely shameless.

A while ago, Hongxing United Group spent a lot of money to buy stocks, and they brainlessly touted penny stocks. Now that Fisher and others have entered the market, they have begun to preach that the US stock market is about to usher in a new round of bull market.

Anyone who believes these people's writing is a fool!

However, there are idiots like this all over the United States.

It's embarrassing.

Closing the newspaper, Livermore continued to wait for the New York Stock Exchange to open.

At this moment, there were waves of exclamations from the crowd. He stood on tiptoe and looked around. It turned out that several luxury cars were driving in. The people getting out of the cars were clearly Fisher and the people who had rushed to rescue the market yesterday. Cairns!

People ran to see him like Roger Babson.

The two men’s intentions in coming to the New York Stock Exchange are self-evident.

If Ye Luo were here, he would definitely lament that the financial and securities industry in 1929 was like the entertainment industry in later generations. People's pursuit of "stock gods" and economists was as fanatical as star-chasers.

"The stock market is going to rise sharply today." Livermore clenched the newspaper in his hand. Unable to wait any longer, he turned around and hailed a taxi and rushed to Franklin's villa as quickly as possible.

I heard that Ye Luo stayed there last night. There must be some female celebrity who recommended himself as a pillow. I hope I can persuade him in time to close his position and run away!

Just a dozen kilometers away, Livermore felt like the longest journey in his life.

As soon as he got out of the car, he threw some dollars casually, and without even having time to ask for change, he quickly ran into the high-end villa that was just covered in the early morning sunshine.

Ye Luo happened to come down from the second floor. The twin sisters in the room gave him a taste of "one dragon and two flowers" last night. They had a fierce fight this morning and now they can't get out of bed.

He came to the sofa in his pajamas. The maid had already prepared the meal, but before he picked up the bread, he saw Livermore's wrinkled face squeezing over.

Ye Luo was shocked.

"Mr. Livermore? Have you had breakfast?" Ye Luo rang the bell and asked the maid to prepare another meal.

Livermore sat down and hurriedly informed him of the situation on the New York Stock Exchange: "Fisher and Keynes came well prepared. It is estimated that the stock market will pick up in the morning. We have so many high-priced stocks, and there are haha From Terry Company.”

"I called someone to close the position last night." Ye Luo interrupted him and stuffed the soft bread into his mouth.

"Huh?" Livermore didn't react for a moment.

"I went to the New York Stock Exchange yesterday afternoon. Roger Babson added $1 million to his position. At the same time, we notified the people in the trading department and asked them to help us close our positions immediately after the market opened in the morning." Ye Luo cut with a knife. Fried sausage, "After the Dow Jones index climbs to its highest point, it will inevitably fall back. However, if someone starts to advocate the decline of U.S. stocks at this time and short-selling at the same time, it will inevitably cause a large number of bulls to encircle and suppress it. This time it is just short-term short-selling."

"Wait a minute, Ye, you mean to say that you thought of all this from the beginning, after hearing the news I told you that day, and then arranged to go short and go long?" Livermore looked at him blankly.

"Yes, it will take some time for the Hartree Company to collapse and go bankrupt. There is a delay in the news reaching the United States. There is still a lag in waiting for the reaction in the stock market. There is still a long way to go. Of course, it is bound to fail. As for Isn’t it good to go short on other high-priced stocks, and then when Fisher and others come out to promote bullishness, we turn to long?”

Ye Luo looked at him with a knife and fork and smiled.

"Everyone is going long, and the stock market is going to pick up. Don't we make money? If we continue to go short, won't we become the meal of those bulls?"

"." Livermore looked at him, speechless for a moment.

Everyone knows the truth.

Before the stock market is going to fall, you are bearish, so you go short; if you feel that the stock market is picking up, you close your position in advance, and then if you are bullish, you go long.

But in actual operation, once you grasp the timing incorrectly, your position may be liquidated directly due to small fluctuations.

He said it in an understatement, but it showed his absolute confidence in judging the stock market situation.

Who can guarantee that the stock market will rise as soon as Fisher and others arrive this morning? Maybe it will continue to fall?

"We will continue to short the stock of Hartree Company until it is delisted. How much will it cost when we sell the stock of Hartree Company?" Ye Luo asked after taking a sip of coffee.

"At $57.6 per share, we borrowed a total of about 500,000 shares for a total price of $28.8 million." Livermore immediately replied.

He knew these data by heart.

"Yesterday, Hartley's stock fell by $1.50, and we made a profit of $750,000."

According to the previous short-selling rules, when the price reaches the bottom, they will turn around and repurchase those stocks from the market. The difference in price will be their short-selling profit.

But if the stock is delisted.

That would be equivalent to making $28.8 million in vain.

Of course, no one would be crazy enough to short a stock and bet on its delisting.

Except Ye Luo.

Of the US$750,000, US$500,000 came from Hongxing United Group.

In other words, Hongxing United Group made nearly US$19.19 million from the shares of Hartree Company that he sold!

Liu Xuenong successfully secured the funds of important military and political figures and many people in the Republic of China.

"Okay, relax, Livermore, the game has just begun. Stocks have been going up and down in the past few days, and the situation is complicated and confusing, which can pave the way for our subsequent big short selling." Ye Luo patted him confidently. shoulders.

"I understand, but this is too exciting." Livermore drank a cup of coffee to relieve his excitement.

Even a legendary trader like him was gradually surprised by this grand and gorgeous battle of the century.

What is in this young Chinese man’s mind?

How dare he manipulate stocks so crazily and trample on the dignity of countless speculators! (End of chapter)