After the Divorce, I Could Hear the Voice of the Future-Chapter 561 - 556: Fickle Family Members
Chapter 561: Chapter 556: Fickle Family Members frёeωebɳovel.com
"Those who do evil, bring ruin upon themselves~"
"In a way, this is Lu Liang’s Waterloo."
"Folks, buy the dip in Tesla, let Lu Liang miss the rally."
"The wheel of karma turns, look up and see, the heavens spare no one."
Two years ago, Tesla was invited into the domestic market.
At that time, it was still a niche electric car for the middle class. Although Tesla had the technology, good wine also fears a deep alley. It was Lu Liang’s endorsement that made it widely known.
Although it’s not yet a full $1.2 trillion, the number of fans has increased tenfold compared to two years ago.
Lu Liang’s reduction in holdings is seen by the capital market as a sign of increased risk, but Tesla, with its fan economy, is unfazed.
Massive retail investors crazily bought in, pushing Tesla’s stock price higher and higher until it completely recovered the day’s opening drop.
International hot money was also baffled by this scene.
Globally, East Asia has the most retail investors, but the Neon people stubbornly play with the Nikkei, Koreans are still making up for lost Bitcoin, while East Country has a fondness for US stocks.
But liking it so much seems excessive. They understand the desire to see Lu Liang miss out; after all, seeing the high and mighty fall from grace is always delightful.
But at least look at the announcement before buying the dip. The plan to reduce holdings starts on the 15th, meaning it hasn’t happened yet.
Right now, Lu Liang hasn’t missed out. They’re the ones missing out, missing the ’Waterloo’ entirely.
A huge amount of funds suddenly make a comeback, buying Tesla again, further pushing the stock price up.
They didn’t want to prop up Lu Liang, who’s about to reduce holdings, but the allure of so much retail money is too tempting.
The market’s wealth doesn’t increase out of thin air. Wherever the institutions are, retail investors are there too, or vice versa, all wanting to make money from each other.
The more retail investors on a trading board, the higher the profit potential.
"We agreed to be brothers, yet I’m so unpopular?"
Lu Liang chuckled, but a hint of worry flashed in his eyes: "Tesla has finally become an influential force."
His intention was to use the reduction announcement to suppress Tesla, to shatter its facade from the financial side first.
But he didn’t expect institutional hot money to accept this manufactured risk, while retail investors saw it as an opportunity.
Seeing Tesla about to return to yesterday’s closing price, Lu Liang furrowed his brows, feeling it can’t continue to rise unchecked.
Whether he personally experiences ’Waterloo’ is no longer important; his reputation built over the years allows him to accept a failure or two.
The key is to not let Tesla keep growing. If left unchecked, Tesla will sooner or later become like Apple, showing off an invincible aura.
"This momentum must be curbed."
Lu Liang picked up his phone, contacting Wen Chao in distant Tokyo: "How much available capital is left on the account?"
In recent months, Bitcoin’s price has fallen repeatedly from a high of $20,300 to just $7,209 now.
Wen Chao didn’t have much going on, buying low and selling high every day to reduce costs and wait for the next wave.
Today, he got off work early, finishing at six o’clock, and spent some quality time with his fiancée before starting tonight’s creation campaign.
Upon receiving a call from Boss Lu, Wen Chao quickly put on his pants, ready to head to the office: "Mr. Lu, it seems there’s still $2.8 billion."
"Short sell Tesla; profit and loss don’t matter. It’s important that it doesn’t close with a bullish candlestick tonight."
"Got it, Mr. Lu, but this is sudden. I need half an hour to prepare."
"Okay, call me when you’re ready."
Ending the call with Boss Lu, Wen Chao hurriedly packed up his office items.
His girlfriend on the bed looked plaintive: "You’re still going to the office so late?"
"Yes, an urgent matter suddenly came up." Wen Chao looked apologetic, but his actions remained swift.
Even as a 28-year-old governor with an annual salary in the tens of millions, no matter how busy preparing for launch, he held back, prioritizing his boss’s orders.
"It’s cold outside, wear a jacket."
His girlfriend sighed. Though she seemed displeased, she still helped him prepare a jacket.
"I’m heading out, be sure to lock the door when you’re home alone."
Wen Chao nodded without saying much else.
Knowing each other for eleven years since high school and about to marry, if they didn’t understand each other’s personalities by now, they probably would have parted ways long ago.
He can work without worries thanks to her understanding, expressing dissatisfaction but not being petty. After he’s done with work, he comes home, apologizes, and they’re back to normal.
Tokyo time, 1:00 a.m.
Wen Chao walked while making phone calls, contacting short-selling institutions in Tokyo.
If it was a small-cap stock, it might take more time. After all, for short selling, one has to find an institution with shares, negotiate interest rates, and then borrow to use.
Luckily, it’s Tesla, the brightest star in the US Stock Market in recent years.
The US Dollar dominates globally, and the United States loves to use the Dollar to hold the world ransom, causing other nations’ currencies to devalue, spreading risk.
This leads large institutions in all countries, willing or not, to hold lots of US Dollars, which devalue if unused, leading them to the US Stock Market.
Soon, it was the agreed time.
Wen Chao called Lu Liang: "Mr. Lu, we can temporarily borrow only 350,000 shares. If that’s not enough, I’ll find a way."
"Start selling, dump in increments of 10,000, and then decide if we need to contact institutions."
Lu Liang looked up at the time; it was 12:30 AM in Beijing, an hour later in Tokyo.
With Tesla stock price at $1,270 per share, acquiring over $400 million worth of shares in the middle of the night proved Wen Chao didn’t waste these two years in Tokyo.
Apart from international market hot money, the institutions holding large amounts of shares were long asleep, embracing their beauties.
With those words, large amounts of shares appeared on the market, forcibly halting Tesla’s upward trend.
The stock price began a tug-of-war around $1,260, with a daily loss of -1.86%.
Gradually, institutional hot money began to pause.
If it were just retail investors, they would surely fan the flames, first liquidating short positions, then harvesting long positions of retail investors.
But with aggressive short selling, dropping in increments of 100,000 shares, strong and overwhelming, they started to hesitate.
Ultimately, Tesla’s recent rise was not based on solid logic. Originally, with Lu Liang’s reduction, it should have plummeted.
Retail investors’ enthusiastic buying helped lift it, prompting institutional hot money to follow suit to avoid missing out.
But now, someone was bracing for the rebound’s sell-off, and institutional hot money was hesitant to prop it up further, ceasing their buys.
"Did Lu Liang make a move?"
"It’s unlikely; he needs to follow trading rules, not selling before the 15th."
"Then who could it be?"
"God only knows."
As the long-side main forces hesitated, it was sharply caught by Wen Chao’s intuition: "Mr. Lu, they seem to be divided."
"What should we do?" Lu Liang asked with a smile.
"Keep selling. Show retail investors reality, make the long-side forces turn against each other."
Lu Liang grunted in agreement. Wen Chao’s confidence surged, decisively issuing the latest command via earpiece: "Hold on to 50,000 shares, sell another 200,000. This time, create a bearish candle and push the stock price below $1,200."
Hearing the instructions given in both Chinese and Japanese on the other end, a slight smile emerged on Lu Liang’s lips, his mood suddenly uplifted.
He wasn’t alone anymore, and the seeds of hope he planted back then were gradually bearing fruit.
Though Wen Chao’s reserved chips weren’t much, he was confident Tesla would close with a big bearish candle tonight.
Because from the previous round of selling and the long-side main forces’ defense, it was clear their attitudes were inconsistent.
On top of that, contrarian buying rarely succeeds.
Even Lu Liang had to rely on external forces, like the moment the Brexit results were announced, or the moment the US election results came out.
Utilizing unexpected news or results contrary to popular predictions, he achieved success.
Initially, Tesla should have fallen six to seven percentage points due to Lu Liang’s reduction. That would have been reasonable.
Some people just refused to believe it, convinced it was a chance to buy low, merely a retail investors’ illusion.
When 200,000 shares flooded the market, only 30% of the volume got transacted.
The long-side retail investors were caught off-guard, and the long-side main forces quickly turned sides, and they began "shearing the sheep" enthusiastically.
As a result, the public opinion shifted once more.
"Liangzi has made reductions, it’s bad news, why do you guys think it’s good?"
"Buy the dip, keep buying, just keep buying on the way down."
"Luckily, I’m smart. Sold at the peak just now. Even trading US stocks, I’ve incurred losses. It’s unheard of."
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