America's Road to Wealth

Chapter 156 The Daily Life of Wall Street

After calling.

Abel stood up silently, and he walked to the wine cabinet next to his office.

The wine cabinet and the wine in the wine cabinet were all prepared by Merio.

There were about a dozen bottles of red wine and five or six bottles of foreign wine in it, and Abel randomly picked a bottle that suited his eyes.

When I took it out, I found it was a bottle of Margaux Pavilion Blanc.

Opening the red wine, he poured himself a glass of Margaux Blanc.

Château Margaux is a well-known 1855 First Growth, and its white wine brewing history can be traced back to the end of the 17th century.

In the 19th century, the wine was sold under the name "Margaux Sauvignon Blanc", and it was not renamed "Margaux Pavilion Blanc" until the 20s.

Abel didn't like to drink alcohol, so he just took a sip of the thousand-dollar premium Margaux Baiting and put it beside him.

Then he came to the trading room on the third floor, and his appearance made the traders who had been here for almost a week cheer.

David Mellon rushed over, and Abel noticed that the whites of his eyes were bloodshot, and his pupils were slightly dilated.

With an excited expression on his face, David said loudly to him, "Look at the trend chart, look at the latest trend chart!"

Abel smiled, and under the gaze of hundreds of people, he came to the market quotation wall composed of screens.

Abel saw the trend chart of GBP/USD, and the daily chart of GBP/USD was a super big positive line.

It's still on the rise.

And there is still a small tail dragging underneath.

Clearly GBP/USD bulls have taken a huge dose of drugs today.

Knowing this, Abel naturally wouldn't be as excited as David.

He said calmly:
"David, tell me the situation of the British pound against the currency from yesterday to today."

David stood up straight, and said excitedly: "Boss, this is a day when the exchange rate of the pound sterling has skyrocketed!"

"Boss, in the European market yesterday, the U.S. dollar index fluctuated and went down. Now the U.S. dollar index is around 80.55."

"And the attention of investors during the period is undoubtedly focused on the Bank of England's quarterly inflation report."

"In the end, the Bank of England did not revise the unemployment rate hike threshold as expected by some market participants, but instead raised the country's economic forecast in the report."

"Affected by this risk event, GBP/USD soared by hundreds of points in the short term, hitting a two-week high of 1.4647!"

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

“将2001年英国GDP增速预期由2.3%上调至2.7%，预计2000年第四季度GDP增长0.9%。”

Abel nodded in satisfaction.

This is the Bank of England bragging about speeding up their currency!

During this period, the Shit Stirrer did indeed have a certain amount of economic strength.

As one of the global financial centers, this kind of financial virtual power is quite advantageous in this respect.

Let's look at Sister Lizhi's amazing operation more than 20 years later.

A feint immediately made the pound less valuable than the dollar.

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

This time is not that time, the shit-stirring stick at this time, although the national strength has already been reduced.

However, its financial strength and influence are relatively stable.

It opened in less than two hours today.

GBP/USD soared more than 1.4647 points in the short-term, refreshing a two-week high of [-].

英债期货跌幅扩大逾20个跳动点，10年期英债与可比德债收益率之差扩大2个基点至110.2个基点，为今年2月28日以来最高；短期英镑利率期货扩大跌幅。

But these.
It is all the analysis of David and Wall Street elites.

Putting it on Abel, he didn't have to be so troublesome at all.

He directly ordered: "Today, you keep an eye on the trend chart of the British pound against currencies."

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

The pound/dollar is so strong that it has skyrocketed for several days in a row.

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

But talent told Abel that it was time to get ready to leave.

If he didn't leave the field, there would be pits waiting for him to jump.

Now that he is leaving the field, he ran away before the digging of the manhole in front of him started.

The pit in front, only those who can't see clearly can be pitted.

After the order was given, Abel asked again: "How much is the total profit against the British pound currency?"

"Yes!"

David was emotional, and he also knew that Abel liked to hear the end result.

David said directly: "Currently, there is a total floating profit of 68.56 billion US dollars!"

This time, after many days of hard work, the account funds of 100 billion U.S. dollars have made a profit of nearly 70%!
The bigger the capital, the harder it is to double it. Every time the floating profit exceeds 30%, it is a very good record. I didn't expect them to be able to reach this level of floating profit!

Soros attacked the British pound in 1991, busy planning for more than a month.

After running before and after running, he is willing to be a pawn of Wall Street.

In the end, Wall Street got the big head, and Soros, the sword that was placed in the front, only got 20 billion US dollars.

That's not even his personal income, which is only $6.5 million.

That's the level of profitability.

He was blown to the sky by Wall Street that year, and also topped the Wall Street income ranking list of "Financial World" magazine.

What now?
David now feels that even if he starts to close his position at this time, he will withdraw some of his profits.

In this transaction, Smith Capital can also profit more than 50 billion U.S. dollars.

Isn't that more than Soros?

Although the lapse of almost ten years, after years of inflation.

The purchasing power of $50 billion is a bit worse than it was then.

But these investments are all from Smith Capital!
Even if part of it is private placement, a large part of the profit is from Smith Capital!

In the end, Smith Capital's earnings exceeded $40 billion no matter what.

The 2000 billion US dollars in 40 is worth more than the 1991 million US dollars in 6.5!
David felt that Abel was the only one Wall Street should brag about!
At noon, the pound sterling currency pair jumped again.

In the eyes of normal investors, most investors will be very excited about this situation and insist on holding it.

But on Smith Capital's side, for many days, Abel officially issued an order to close the position.

Even if he hesitated, David Mellon carried it out without any hesitation.

Nowadays, the pound sterling has risen sharply against currencies, but it is becoming more and more disturbing, because things will go against each other!

After a while, David yelled into the microphone, causing many traders in the trading room to start operating.

With such a large amount of funds and so many accounts, it is absolutely impossible to close the positions within a day or two.

The time to close a position normally takes several days.

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

Many large-capital investors in the foreign exchange market often experience profit retracement when they close their positions.

I should have earned 100 yuan, but in the end it often happened that only 60 yuan was left.

Because during the closing time, sometimes the profit retracement is faster than the rise.

So in foreign exchange trading.

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

Because after the peak, there is a retracement and decline.

Those who choose to close their positions at the top tend to earn the least in the end.

If the market is violent, it may even directly change from floating profit to floating loss.

This is also a common thing.

In the afternoon, the latest economic data from the United States was released.

Monthly rate of U.S. import price index in October:
previous value 2,

expected 2.1,

Published value - 0.1
As soon as this data is released.

Immediately began to be negative for the US dollar, and in turn, the GBP/USD, which was already on fire, became stronger.

GBP/USD has risen again uncontrollably.

Abel immediately said to David: "Let the traders increase the number of liquidation positions in the accounts operated by everyone."

The market is better now, and more heads will enter the market.

There are also many short positions that stop losses and close positions, and there are a lot of buying orders in the market.

It happens to be able to hedge against the order of Smith Capital's closing position, so as to avoid the occurrence of profit retracement as much as possible.

This black swan incident also made Smith Capital, which would have taken at least a week or so to completely leave the market.

The speed of leaving the field has been accelerated several times.

The result of the frenzied liquidation of positions was to a certain extent that it suppressed the rise of the British pound against other currencies.

But the situation is not that simple.

"Talent" made Abel leave the field at this time.

That means it's the right thing to do.

After half an hour, another new US economic data came out.

The monthly rate of industrial output in the United States in October:
The previous value was 2.

Predicted value 2.

Published value -0.3.

Like the previous monthly rate of US import price index, this data is once again negative for the dollar.

Sterling currencies, which were slightly suppressed, got a boost again as Smith & Co. closed their positions with some capital.

In addition, at this moment, there are also many short sellers in the market who have stopped their losses.

GBP/USD was further pushed up, rising from 14700 to 14740, a total increase of 40 points in half an hour.

The traders of Smith Capital naturally closed their positions frantically again.

Such a good opportunity to leave the field at a high position can only be encountered once or twice at most.

I don't know what's wrong today, I've been here twice.

For the departure of Smith Capital's funds, it is accelerating, and there is another acceleration, which is about to become a super acceleration.

The result was the rise in GBP/USD, which was quickly suppressed by Smith Capital's frenzied increase in the number of liquidated positions.

GBP/USD began to fluctuate at a high speed in the range of 14740 points from 14760 to 20.

After half an hour, GBP/USD fell all the way, and finally fell to the 14705 position.

David was a little nervous at this time.

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

The unscrupulous closing of Smith Capital's positions caused the selling orders in the market to completely exceed the buying orders in the market.

Let the GBP/USD turn around and go all the way down.

In this situation.

When Smith Capital closed its long position, it was tantamount to shorting the market.

How many long positions are closed means how many more selling orders are made in the market.

Seeing this situation, the person who receives the order will also murmur in his heart, be careful that the price will start to fall, and start to reduce the number of positions to be closed.

At this moment, David became more and more nervous.

I am afraid that if Smith Capital continues to close positions, the GBP/USD may plummet.

After all, it is easy to get large funds in, but it is not easy to liquidate them out.

Now they've just tied a million hands, with three-quarters of the field remaining.

And that's already an insane pace.

Under normal circumstances, so much money has to leave the market, and it will take at least two days to maintain profits.

From today to now, it has only been carried out for about two hours!

After hearing David's words, Abel pondered for a while, and said, "Slow down, but continue to close the position."

"Waiting for the next U.S. economic data."

"If the data is bad, we will continue to increase and close positions. If the data is very good, we will continue to increase and close positions."

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

Talent told him that there was no such thing happening.

Soon the initial value of the University of Michigan's consumer confidence index in November came out.

Previous value 822
Predicted value 832
Published value 802.

The data is poor, again bearish for the dollar and bullish for GBP/USD.

GBP/USD rose sharply again at the 14705 position.

But this time, its rising momentum seems a bit unstoppable.

In an hour, it went from 14705 to 14790, and it was about to break through the high of 14800.

At this time, in Manhattan, No. [-] International Finance Center, Merrill Lynch's headquarters.

Stanley O'Neill, one of the presidents who has emptied much of CEO David Komansky's power, is speaking with the company's chief financial officer, Charlie Schaff.

The dialogue took place in the trading hall of the International Foreign Exchange Investment Department of Merrill Lynch.

Through the glass wall of his office, Stanley O'Neill watched the nervous traders outside.

While looking back, I looked back at the latest real-time pound sterling currency exchange market that was specially marked.

"It's been half an hour? Haven't you found out yet? Charlie?" Stanley O'Neill suddenly looked behind him, who was operating a computer to communicate with the company.

The CFO of Merrill Lynch wiped the sweat off his face and said loudly:
"It's been found out! It's basically confirmed that the smasher in the market should be Smith Capital!!"

"They were long before, and now they are starting to close their positions. The liquidation is very strong, and they have become a short position in a certain sense."

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

"It really is them? With so many liquidation orders, this guy's investment in the foreign exchange market this time seems to be a lot of money."

"Must be big," said Charlie Schaff. "A billion dollars just through our Merrill Lynch money!"

Stanley O'Neill couldn't help shaking his head, "Then he chooses to close the position at this time, that's really not a good idea."

The black president said that because of being one of the titans of Wall Street.

Merrill Lynch and other giants have already obtained inside information early.

That is the economic data related to the United States released within these two or three days.

All negative for the dollar.

In other words, it will benefit those slightly stronger world-class currencies.

The main ones are sterling, euro and yen. .

These currencies are all set to rise on the back of these data.

If Smith Capital chooses to close the position at this time, it will lose this part of the rising profit.

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

Charlie Shaf glanced down at the computer screen, and immediately replied:
"The data is around 14830! It is similar to the current real-time data, but there will be multiple rises and retracements in the process. Of course, these are all predictions."

"Of course I know it's all predictions." Stanley O'Neill nodded arrogantly.

"Charlie, I think we should increase our entry. The pound obviously has room to rise. You must know that at the beginning of this year, it once exceeded 16500."

Charlie Schaff was a little hesitant, because the chief financial officer of Merrill Lynch highly admired Smith Capital in his heart.

Smith Capital is now closing positions
However, he is only the chief financial officer and has little power in this area.

Stanley O'Neill is currently the most powerful president of the company.

Trusted by the board of directors, even David Komansky, the real CEO, is almost overshadowed by him.

What could 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 table next to him, and dialed an intercom.

"I'm Stanley O'Neill. The dollar is bearish right now. I think we should be long the pound and short the dollar!"

"Increase the amount of funds again, the amount is 10 billion U.S. dollars. Just use the funds in the 136th high-value fund and Merrill Lynch money fund account."

"Leverage? We don't take risks. No leverage."

After issuing this order, Stanley O'Neill began to pay attention to the market again.

He found that it took only a short while.

It's just that the pound is exchanged for the dollar, the data has risen from 14810 to 14830, and it fluctuates rapidly between 14830 and 14850.

The black president nodded in satisfaction. He felt that Merrill Lynch should be able to earn at least a few hundred million dollars this time.

This is a rare big market.

Merrill Lynch missed the international crude oil and pound market at the beginning of this year.

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

Charlie Scharf disagreed a bit, but he was fine.

After all, something really happened, and it has little to do with him as the chief financial officer.

Stanley O'Neill has a strong waist, and if anything happens, he can fully support it.

And there are not many Wall Street giants who make judgments like Stanley O'Neill.

Like Merrill Lynch, they can get inside information that small and medium investors can't get.

Those data that are bad for the dollar, many times, some of them are provided by them.

They can even adjust the timing of these economic data releases.

In fact, everyone started to act again two days ago.

Otherwise, the market for sterling-based currencies would not have been pushed to such a high level.

.

Merrill isn't the only one in action.

Goldman Sachs, Mellon, Wells Fargo, Citigroup. Everyone is taking action.

They spent more money than what Smith Capital wanted to play.

By evening.

As Abel leaves the Smith Building.

GBP/USD stabilized around 14840.

Smith Capital's 400 million more orders are also at a crazy and unprecedented speed.

200 million lots were closed.

The profit is half.

(End of this chapter)