October 10, 2018.Wells Fargo's CBD office center.An office space.Abel lay quietly in one of the boss's chairs at the top.In front of him was an ultrabook.He had a microphone in his hand.A few days ago.He used the smoke of fate to foresee.Technology stocks in today's U.S. stock market are going to fall badly.Even giants like Apple and Microsoft.The evaporation of market value is also at the level of tens of billions.Although before that.In fact, it has been falling for several days in a row.But that decline was minimal.The 0.01% quota was struggling.Only today will be different.He sat on it and gave orders one by one.The orders are all in the names of the tech-stock companies.And as soon as he gives the command, pronounce the name.Here are some of the common elites of Wells Fargo and Oasis Investments.The stocks will be borrowed from the commercial margin of the major rolls to short.Or immediately use the margin to sign a contract with the major brokerages to sell short and sell short.There are two modes of shorting the stock market.One is the most basic mode.It is to borrow the shares from the banks or the major contract dealers, or directly from the owners of the shares.Then they sell it, and then when the stock falls to a certain point, they buy it back from the market and pay it back to the people who borrowed it.This process is the most basic and primitive short selling operation.This kind of operation is cumbersome.The process involves borrowing stocks, selling stocks, and then buying stocks and paying back stocks.The four processes take a long time.There is another mode, which is currently the most popular.That is to omit the above four processes.Directly sign a VAM contract with the dealer or bank for short buying and selling.This operation is actually no different from the most basic and primitive above.It's just that those four steps are omitted.In this way, there is no need to sell stocks and buy stocks.The stock is actually still in the hands of the merchant.But before the end of the contract period.The ownership of the shares belongs to the other party who entered into the contract.It saves a lot of hassle and allows this operation to be carried out quickly.The U.S. stock market basically operates in this way.Abel is also mostly using this kind of operation today.Backed by Wells Fargo as a guarantee.Give full play to the 50 billion funds and bet against major brokerages and other banks.Before starting this gamble.Able has used up the Smoke of Fate three times in a row.From all angles, it is predicted and affirmed that today's tech stocks will fall badly.And it's the kind that doesn't even have the idea of going up a little bit.The lowest drawdowns were 2%.Some of the highest companies with smaller plates even had declines of more than 20%.The rest is simple.See which tech stock drops a bit.Then there it is.Buy Short!
Buy Short!
So Abel lay on the boss's chair, listening to the ultrabook, and looking at the real-time U.S. stock values in the ultrabook.Which stock fell a little, Abel immediately pronounced the name.The following staff members will allocate a certain amount of funds.Liaison with major brokerages and other banks.Borrow the shares from them and sell them immediately.From giants like Microsoft, Google, Facebook, Amazon, Apple, Tesla.To the little shrimp that I haven't heard much of by name.Abel did it all.It's noon.50 billion in funds.Nearly $40 billion has been thrown out.Among these staff members below.Except for the employees of Oasis Investment, who were convinced of their boss because of their miraculous operations on foreign exchange, these Wells Fargo people.Now I'm also a little sideways to Abel.The reason for the side eye is ......
It's crazy!
In one morning, nearly 40 billion funds were thrown out to short.Such exaggerated funds.Except for a very small number of super-bigwigs like Soros and Warren Buffett and some giant capital conglomerates.Who would dare to do that?
And another reason is ......
Today's U.S. stock market is really falling sharply.Although it has been falling for several days in a row.But that decline is still within the normal range.Often, after a few days, the market will recalibrate back.But today's U.S. stock market.From the morning until now.The three major indices can't afford to leak out.Although it is not a cliff-like fall, the curve of the indicator from the high to the bottom is also terrifying.Almost all stock classes fell.Technology stocks in particular fell the most.Half a day.Shares of a giant like Apple Inc. even fell by 2%.Apple's 2%.That is, the market value of more than 20 billion has been evaporated.In a sense.It can be said that Apple lost almost $20 billion at once.Although it is not yet up to the situation of dozens of times the loss of the financial crisis in 08 and 09.But this collective decline.It's too TMD like a precursor to a financial crisis.There is already a panic in the market.These staff members who have been in the industry for many years believe it.The afternoon decline is bound to be even more exaggerated.Go on this way.Shorting the stock market today is bound to gain a lot of money.The difference lies in how much is harvested and how little is harvested.Midday.Take a temporary break.Of course, it was just Abel's personal temporary rest.These are the staff members below.Their rest times are staggered and they are to rest separately.Leave most of the population to pay attention to the movement of the stock.In the lounges provided by Wells Fargo.Abel met with visiting Alpha Carroll and John Mellon."
Amazing operation!"
Alpha Carroll sighed: "Impressive courage and determination!
”"Congratulations.Mr.
Sephorosa.Your harvest today must be amazing!
”"Congratulations.Abel. ”John Mellon also said.Abel smiled and motioned for him to call over, and followed the beautiful secretary Joe who came over to serve and brought two cups of coffee."
I was just a little bit luckier.I didn't expect to really make me bet right. ”"But I succeeded.It also represents the success of Wells Fargo, which is a win-win situation. ”"I want to congratulate both of you too!"
Abel said with a smile.The $50 billion or so in equity funds borrowed from Wells Fargo.There is a high interest and handling fee to be paid.That's almost a hundred million.Wells Fargo's risk is actually very low.Because Abel has a $6 billion margin.and shares of Bluestar Future as collateral.Even if his operation to short U.S. stocks fails.The first loss was Abel's 6 billion in cash.In fact, he didn't wait for him to lose the 6 billion.The contractual provisions between the two parties will be triggered.Not only did all the remaining funds go to Wells Fargo.Even Bluestar will become Wells Fargo in the future.Abel estimated.If you fail.Wells Fargo and the two in front of you will be happier.for the money lost belonged to his Abel.Wells Fargo, on the other hand, has high interest and fees.You can also get a blue star future for nothing.