The Great Sage Returns from Ten Years of Imprisonment
Chapter 183 Special Circumstances Require First Cutting as a Sign of Respect
In about forty minutes, the United Securities investment team successfully sold off all of its European stock holdings, firmly locking in the profits from this bullish investment.
Meanwhile, Yuanda Hong Kong Island branch and other state-owned investment teams were doing the same thing.
Because there was ample time to sell, and more importantly, strong buying interest, this collective action did not cause any ripples in the European and American financial markets and was completed quietly.
Next, everyone closely monitored the trends in the European and American financial markets to see if Lingyun's judgment was correct.
At 9:30 p.m., the US stock market opened on time.
The Dow Jones Industrial Average opened about 2% higher, a very positive sign, and the market erupted in cheers.
Stimulated by the collective higher opening of the three major US stock indexes, European stock markets began to rise rapidly.
But just ten minutes later, the situation changed dramatically!
The financial markets in Europe and the United States suddenly changed their tune, with a flood of panic selling hitting the three major US stock indices and causing them to plummet.
The S&P 500 index, especially the financial sector, was hit hard, falling by more than 1.5% in just about fifteen minutes, and even showed signs of collapse.
Dragged down by the sudden plunge in US stocks, the stock markets of European countries, which had been soaring, have seen their gains halved or even halved, and are no longer as glorious as before!
The expected strong opening and continued upward trend in US stocks did not materialize; instead, they showed signs of an imminent collapse, leaving everyone stunned and even somewhat unable to believe their eyes.
Just then, Ling Yun's slightly smug voice suddenly rang out.
"Attention all investment teams: Start increasing your holdings of financial stocks in the US stock market now until the S&P 500's losses are wiped out."
"Pay attention to the trading technique, add positions in small, dispersed orders. Immediately disseminate the specific targets and quantities for adding positions to each group, and execute according to the plan..."
Everyone was stunned again, and they all turned to look at Ling Yun.
Before anyone could react, Ling Yun smiled and explained the reason.
"The sharp decline currently facing the three major US stock indices is a violent release of the panic that has accumulated over the past few days. It looks frightening, but it won't last."
"In addition, there is also the factor of some large financial institutions on Wall Street secretly manipulating the market, which is a common market manipulation tactic used by Wall Street."
"This panic sell-off could last for several hours, until European stock markets close, before a true reversal occurs. For us, this is undoubtedly a golden opportunity..."
As he explained and analyzed the situation, everyone gradually realized what was going on.
Some quick-thinking individuals rapidly checked the stock market situation in Europe and the United States.
When they saw the European stock markets, whose gains had been halved, and recalled Lingyun's previous trading orders, they were all amazed and deeply impressed.
"That's incredible! He's treating the international financial market like a field of韭菜 (a metaphor for easily exploited people), harvesting whatever he wants, taking whatever he pleases!"
"Isn't this too ruthless and too risky? Isn't he afraid of retaliation from Wall Street? What wouldn't those bastards do?"
As they spoke, Ling Yun had already finished explaining the situation.
Then they started assigning tasks, getting everyone to take action and buy at the bottom.
As he predicted, the US stock market continued to fluctuate at low levels for the next few hours.
It wasn't until around 11 p.m. that they started to exert force to lift the boat, and it was quickly pulled onto the water.
Across the Atlantic, stimulated by the successive introduction of short-selling bans and other market rescue measures by various European countries, European stock markets began to rise rapidly.
Near the close, European stock markets extended their gains, ultimately closing near their highest levels of the day, with financial stocks averaging over 9% higher!
Seeing the violent rebound in stock markets across Europe, everyone was very excited.
Ling Yun remained unmoved and did not allow the United Securities investment team to enter the market again to buy European stock markets.
The US stock market only began its real rally after all European stock markets had closed.
By around 3 a.m., the three major U.S. stock indexes had all risen by more than 4%, and the total trading volume in the market had reached a recent record high!
Fueled by the US government's $7000 billion bailout plan and the SEC's short-selling ban, the financial sector saw the most dramatic gains, exceeding 8% at one point!
Just as the financial sector's gains exceeded 8%, Lingyun once again grabbed the microphone, smiling as he issued the order to reap the rewards.
"Listen up, all investment teams! Starting now, gradually sell off all your US stock holdings. Complete the liquidation by 3:50 PM, leaving not a single share!"
"brush"
Everyone turned to look at Ling Yun, startled by the transaction order.
Everyone instantly understood that Lingyun had no confidence that this strong rebound in the US stock market could be sustained.
They're not even willing to wait until the weekend, convinced that US stocks will revert to their old ways next Monday, resuming their downward trend and continuing their sharp decline!
Before anyone could react, Ling Yun's firm voice rang out again.
"Stop being cautious, start shipping. The inventory must be cleared out by 3:50."
His reminder brought everyone to their senses.
"receive"
Numerous traders responded enthusiastically and quickly took action.
The next moment, Mr. Chen from CIC leaned closer and whispered:
"Why liquidate your US stock holdings at this time, Lingyun? Isn't it a bit too early? Can you explain your reasons?"
"Given the strong rebound in US stocks, the market should continue its upward momentum when it opens next Monday night. Wouldn't it be better to liquidate all positions then?"
Just as he was asking his question, Chairman Lou and the others came up to him one after another.
Then they all perked up their ears, ready to hear Ling Yun's explanation.
Ling Yun turned to look at President Chen, then glanced at Chairman Lou and the others, before lowering his voice to explain a few words.
"What you're describing is a normal situation, Mr. Chen. Under normal market conditions, this kind of situation can indeed occur."
"But we are now in the early stages of a global financial crisis, a very special period. Under special circumstances, we must cut losses first."
"There are two main factors that led to today's global stock market surge: the US government's massive bailout plan and the short-selling bans subsequently introduced by various countries."
"Let's just talk about the US government's massive bailout plan. The US Treasury Department has decided to submit it to Congress for review tomorrow. Don't forget, this is a US election year..."
Next, he analyzed the possibility of this bailout plan being passed by Congress in a simple and easy-to-understand way, drawing on the reality of the life-or-death struggle between the two parties in the United States.
The analysis concludes that this massive bailout plan will eventually pass the US Congress, but the process will inevitably be fraught with twists and turns!
Every time this bailout plan encounters setbacks in the US Congress, the international financial markets will plummet!
It won't be long before market enthusiasm is completely exhausted!
Once this massive bailout plan is actually approved by the US Congress, it won't cause much of a stir!
More importantly, this global financial crisis had only been going on for a few days and was in the midst of a period of concentrated release of financial risks!
At this stage, no rescue plan can completely reverse the trend of the continued plunge in international financial markets; this is an inevitable trend!
Today's global stock market surge is nothing but an illusion!
By next Monday, the international financial markets will return to their old pattern of continuous sharp declines.
After hearing his in-depth analysis, everyone was shocked and couldn't find any words to refute him!
After a brief moment of shock, Lou and his team reacted quickly, immediately instructing the investment teams of CIC and CICC to follow up.
The other state-owned investment teams also received the news quickly and followed suit without hesitation by selling off their shares.
Meanwhile, the three major US stock indexes continued to rise, and the market was jubilant.
But little did people know what would happen the following weekend and next week!
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