Chapter 80: Misjudgment
International Settlement, Zhongye Public Office.
Fu Xiao’an’s broker is bottom fishing.
No matter how secretive the technique is, as long as there is massive bottom fishing, it will cause a slight rally in price, because someone is taking the sells, the price can’t be smashed down, and it will naturally trend upward.
Retail investors and small funds cannot judge whether this price stabilization is the main force preparing to rally or a washout.
But there is a group of outsiders who know very well.
Second Floor large account room.
A subordinate entered and bowed to Sato Kenji, the branch manager of Mitsui Company who was tasting tea: “President, it can be confirmed that Fu Xiao’an’s people are making large buys.”
Sato Kenji was not surprised by this information at all, he smiled and sat cross-legged on the ground continuing to drink tea: “It seems things are indeed about to reverse.”
For them, the situation is very clear. There is no forced requisition plan in Shanghai, so no matter how this lie is spun, it will eventually be broken.
So just follow the sells, and follow to eat meat when it reverses.
And the signal to act only needs to focus on one point, that is when Fu Xiao’an starts bottom fishing.
“Then should we start following now?” the subordinate asked.
“Wait a bit more.”
Sato Kenji took a sip of tea, “Has that Wu Sibao sold off yet?”
“No, he is still holding short position in cotton yarn futures, sitting downstairs waiting eagerly.”
“This is really strange.”
The matter of sealing up Warehouse 76 is known all over Shanghai. Sato Kenji originally thought Wu Sibao had some inside information, so he came today and opened a bunch of short positions again.
Leading to when Fu Xiao’an just started bottom fishing in the morning, he thought it was a washout, so he decided to wait a bit more.
As a result, this wait until now confirmed it, missing the cheapest chips in the morning.
“Why hasn’t Wu Sibao sold off his short position, what is he waiting for?” Sato Kenji muttered to himself with a frown.
In fact, Wu Sibao’s short position was profitable in the morning. If he had sold before Fu Xiao’an started bottom fishing, he could have made quite a bit, so this behavior would have a reasonable explanation, but not selling until now is intriguing.
If the people at Agent Headquarters do not think this is the bottom now, then they cannot fish this bottom.
The subordinate interjected: “President, from observing this person’s expression, why do I feel this person doesn’t know stock trading?”
“Whether he knows stock trading or not doesn’t matter, as long as he has information.
Agent Headquarters, as an important participant in this incident, has firsthand inside information. If they don’t participate in the stock market, that’s fine.
But yesterday’s two hundred short positions were definitely settled by people from Agent Headquarters, so he couldn’t possibly not know when the incident would reverse.
Opening price of one hundred sixty-seven, they shorted at the peak of this wave, do you think they don’t understand stocks?”
Sato Kenji’s explanation, the subordinate actually understood, but Wu Sibao’s reaction and Fu Xiao’an’s big buys indeed puzzled them.
Wu Sibao also couldn’t understand it. The futures were falling nicely, why the hell did it rise again?
To the point that he even sent someone to call Liu San to ask if he was slacking off leading to insufficient momentum in sealing the warehouse.
Liu San said: “No, Captain, I’ve already been firing a couple shots to intimidate whenever there’s nothing going on at a warehouse, just short of using machine guns to strafe. Isn’t this momentum big enough?”
Wu Sibao felt there was no issue.
A bystander nearby said: “It should be a technical rebound, a washout, it will definitely fall back down.”
This statement was even more correct.
Wu Sibao felt he needed to be patient.
Sato Kenji was also very patient, waited a bit more, received news that Fu Xiao’an’s people were still bottom fishing big time, not like a washout at all, patience exhausted.
He personally walked to the corridor on the second floor, observed Wu Sibao’s expression from above downward, seeing Wu Sibao’s anxious look as the price rose, his heart also shifted from certainty to some uncertainty.
“What price did Wu Sibao enter his short position at?”
“Average at 20 bucks.”
“Margin call price at what level?”
“30 bucks and he gets margin called.”
Now at 28, Sato Kenji looked at the quote on the blackboard, decided to wait just a bit more.
This time wasn’t too long. Fu Xiao’an’s large-scale bottom fishing drew attention not just from him, many funds would think to take a shot, more participating funds, comprehensive counterattack momentum surges, price rises very fast.
28.5 bucks, 29 bucks, 29.5 bucks, 30 bucks.
Bang, some people’s positions got margin called, still no reaction.
Sato Kenji’s face turned black.
Looking at Wu Sibao’s clueless expression again, filled with anger.
Turned around and cursed angrily, “This fucking idiot! Hurry and act.”
“Hai.” The subordinate hurriedly had the broker start fully following, just that this price definitely wasn’t as fresh as the beginning.
Sato Kenji’s anger didn’t subside, actually played by an idiot once, and crucially a room full of traders, all top intellects, actually speculated a whole day on an idiot’s psychology.
And he led the way himself.
Thinking about it felt like the shame of his life.
Sat down with a sullen face, drank a cup of tea, put down the cup and said: “The first short selling by Agent Headquarters definitely had an expert operating it. This Wu Sibao’s operation today should just be stupid individual behavior. Call Agent Headquarters, have the person in charge come over.”
“Hai.”
The subordinate called Agent Headquarters, directly saying to find the person in charge.
Ding Mocun was dragged over.
Although Mitsui Company is nominally just a business company, as Japan’s number one conglomerate, involved in wide industries like energy, medicine, military industry, finance, grain, etc., Ding Mocun as former Chongqing High Command naturally knew the ties between Mitsui and Japanese Military Department were very deep.
It could even be said that Mitsui’s will is sometimes the Military Department’s will.
So even though it was just a branch manager looking for him, no official position, Ding Mocun still set off immediately, treating it solemnly.
After brief pleasantries, straight to the point.
“Since Director Ding came to Shanghai, Agent Headquarters has achieved brilliant results. I invited Director Ding today to ask, who came up with Agent Headquarters’ strategy in the stock market this time?”
Ding Mocun didn’t expect Sato Kenji was looking for him about this, but he definitely couldn’t give credit to Li Shiqun.
So he smiled and said: “Thank you Mr. Sato for the praise, but I truly dare not take credit. Actually, the one who came up with this idea is not from Agent Headquarters, but Deputy Division Chief of Judicial Department Gu Yansheng. Agent Headquarters just cooperated in execution.”
“It’s him?” Sato Kenji heard this name, expression somewhat surprised, but thinking about it made sense. This matter was originally Judicial Department’s affair, just didn’t expect the stock market manipulation was also Gu Yansheng.
From the look on Sato Kenji’s face, Ding Mocun could judge this was a good thing, and wasn’t this a great opportunity to contact Gu Yansheng?
Judicial Department.
Wen Yan reported: “Mr., all changed to long position in cotton yarn futures, all here, bought dispersed, average price around 27 bucks.”
Gu Yansheng directly threw ten thousand US Dollars to Wen Yan, had him exchange for long position in futures.
This was another risk-free arbitrage opportunity, Fu Xiao’an’s coattails, no reason to miss.
“You hold it. Watch the market these two days, once it doubles, sell off all for me. If no accident, should be tomorrow.”
How high Fu Xiao’an would rally the cotton yarn price to, Gu Yansheng didn’t know. Eat a bite of the certain revenue, no greed for the rest.
Wen Yan asked embarrassedly: “Okay, then Mr., can I buy one or two hands to follow a bit?”
“Sure, just don’t be greedy. When I sell, you must follow and sell off. Even if it goes to the sky, don’t participate again.”
Giving subordinates a chance to make money, benefits without cost.
“I’ll listen to Mr.”
Knock knock knock.
Liu Xiaolou entered, “Division Chief, Director Ding from Agent Headquarters is here.”
Ding Mocun came secretly, notified no one, to the point he and Liu Xiaolou actually arrived one after the other.
“Haha, Brother Gu, showing up uninvited, don’t mind.”
“Director Ding, rare guest, sorry for not welcoming you properly.” Gu Yansheng stepped forward with a hand outstretched, smiled: “Welcome to Judicial Department to guide work.”
Ding Mocun also reached out, “Guiding dare not, just came to chat idly with Brother Gu.”
“Please sit. Xiao Lou, brew coffee.”
“Yes.”
Xiao Lou brewed coffee, Wen Yan tactfully took the suitcase and withdrew.
Ding Mocun glanced at Liu Xiaolou, smiled and said: “I actually came this time entrusted by someone, to invite Brother Gu to have a meal together.”
“Who?” Gu Yansheng curious.
Ding Mocun smiled: “Mitsui Company, Brother Gu must know. The person in charge of Mitsui Company in Shanghai, Mr. Sato Kenji.”
This was truly an unexpected name.
“What does he want with me?”
“Invite you to dinner. Actually, when I was chatting idly with Mr. Sato, he asked about recent Agent Headquarters matters, chatted to the stock market, asked who came up with this idea, I said it was you. Mr. Sato also likes stock trading, so I took the liberty to act as middleman, everyone sit down and chat insights.”
“Like this.”
Mitsui’s power, Gu Yansheng of course knew, absolute behemoth.
Getting to know them wasn’t bad.
“Sure, when?”
“No time like the present, tonight, tonight is good. I’ll book the place, what dishes does Brother Gu like?”
“Let Mr. Sato decide, guest follows host.”
