Chapter 13
CHAPTER 13
The atmosphere in Yeouido was like thin ice.
"Can't trade properly because of Goldwin."
"Really can't sleep at dawn since he became president?"
"Ha... what nonsense will he spout today."
Goldwin's remarks drove traders into a state of hyper-tension. Thanks to that, traders working night shifts couldn't relax.
"Bear market will continue for the time being right?"
"What bear market? Full-scale correction market might come. Rose a lot meanwhile."
"True, it's historical high point. Nothing strange if correction comes here."
Traders were approaching the current market carefully. Because prices could move due to external factors rather than fundamentals of stocks. So they moved conservatively in Yeouido. However, Gang-hyeon was different.
"We use 2.5 times leverage as passive. Regretfully JP Morgan side doesn't raise leverage."
Leverage JP Morgan granted to KH Capital was 2.5 times. Since deposit was 40 billion, practically they became able to operate 100 billion funds.
"Perhaps because it's first transaction, seems they also approached conservatively. If we continue trading, leverage can be increased quickly."
Gwang-ho's explanation was accurate. Actually even just this leverage was an ideal figure for a first transaction.
"From today we enter full-scale trading. Night shift is first time, but everyone don't lose tension and participate in the market."
"Yes."
"Understood."
For traders mainly doing US market, night shift was like daily life. Since it's the first night shift after KH Capital opened, Gang-hyeon encouraged employees and entered rest. In Gang-hyeon's gaze looking at the monitor sitting on the chair, indices surging in red were seen.
Feels like watching a campfire.
Red color was more intense than ever. Since he proceeded with countless tests, he knew well what that meant.
When emitting such intense light is when volatility is largest. Big event is clear to come out today.
When Bitcoin fell to 100,000 dollars, light like today was shining. Just the color was blue so it nose-dived. But today stock markets were all shining in red. As if to burn everything any moment.
When market opens, big volatility comes out.
Gang-hyeon's gaze headed to the large monitor installed on the wall of the trading room. Charts of S&P 500, Nasdaq, VIX, Dollar Index etc. as well as major stocks of each index were floating there. Stocks were not moving yet as the market didn't open, but indices of futures market were already fluctuating. Like small earthquakes occurring before a great earthquake, it was like precursor symptoms.
"1 minute before market opens."
At that time Kim Seong-won's voice was heard. He brought coffee to mouth and drank at once. As caffeine came in at once, he felt his head clearing.
"30 seconds before!"
Now all preparations were finished.
"10 seconds before!"
What remained was.
"5!"
Real battle.
"Market opens!"
Stock market fluctuated.
Simultaneously with market opening, all stocks changed to red.
"Nvidia, Microsoft, Tesla, Apple. All stocks start with decline."
Selling momentum continued on leader stocks leading Nasdaq. Although not panic sell, this much selling momentum was seen after a long time.
"VIX, rising."
VIX, which can be called fear index, rose rapidly. This meant market participants were anxious and viewed the market negatively.
"DXY is rather going down."
This was a bit unexpected. When the market is chaotic, demand for safe assets increases. So naturally US Treasury bonds as well as dollar value were supposed to rise. But Dollar Index is going down?
"Breaking news from Bloomberg Terminal side. It says dollar showing weakness is because prospect is coming out that there will be a blow to US too since this level of tariff is first time."
Prospects that US large-scale tariff imposition would rather become poison were lining up. This phenomenon created movement where fear index rose and dollar showed weakness.
"Mess."
Gang-hyeon organizing current situation in one word. Now world financial market was chaos, itself.
"What about White House side? No news from that side yet?"
"No particular news yet. Goldwin also not posting any writing on social media."
Goldwin was a president utilizing social media well. Since they didn't know when and where he would post writing on social media, traders had to check there too.
"Nasdaq 1.4 percent decline, speed of drop increasing. Dow Jones and S&P 500 also increasing drop."
At Kim Seong-won's report, Gang-hyeon's gaze headed to chart again. Certainly speed of drop was getting faster. With this speed, 3 percent decline like previous day seemed possible.
Viewing long even going at this speed?
Watching Gang-hyeon observing screen, Kim Seong-won was curious about his thought. Whether he would maintain long or get on the currently falling flow. It was then.
"Nasdaq Long entry, 50 contracts."
Gang-hyeon finally moved.
"Nasdaq Long entering. Contract executed."
50 contracts were executed instantly. But this was only the beginning.
"Nvidia buy, credit limit max. 5 billion."
"Nvidia buy entering. 10 percent execution complete."
Contracts were filled quickly. Since buying while falling, that speed was really fast. Even amidst that, Gang-hyeon's orders continued.
"Maintain credit limit max from now. Microsoft 5 billion buy."
Starting with Nasdaq leader stocks.
"DataLux buy, 2 billion. Orbit Semicon buy, 3 billion. Bio Gensis buy, 4 billion."
Bio, Cloud etc. Buying for companies of various sizes continued. Since amount was substantial, deposit was decreasing quickly.
"Currently operating 80 percent of deposit. Internal risk limit 70 percent breach."
Im Gwang-ho warned of risk. 70 percent risk was a substantial level.
"Based on current leverage, maintenance margin collapses if index pushed just 1 percent more."
Currently Nasdaq recorded 2.1 percent decline and S&P 500 was recording 1.8 percent decline. If recording decline rate like yesterday, worst scenario where margin call comes in first transaction is created.
If margin call comes from first transaction, we lose credit to broker. Are you okay? Gang-hyeon.
If losing credit to large broker like JP Morgan, setback occurs in future trading too. Possibility was high that all benefits beyond imagination they give would be reduced. There was no way Gang-hyeon didn't know that fact. But Gang-hyeon was standing in that spot not taking eyes off screen. His eyes were moving quickly checking dozens of stocks floating on screen.
No more stocks to enter? Did I miss anything?
Checking stocks with tremendous speed, he was looking at which stock to enter to make profit largely. But not all stocks emitted light. Among individual stocks, there were ones emitting intense light while some didn't emit light at all. Even if emitting light, intensity of light was different per stock. What that meant was one thing.
Even if becoming bull market, individual stocks rise width is different. Have to pick that properly.
Even if market hits historical high point, it happens often experiencing my stock not rising while trading. So most important thing for trader was picking out net profit among individual stocks.
"Replacing Nasdaq chart."
Simultaneously with Gwang-ho's words, Nasdaq chart was replaced. If looking at bio sector previously, this time platform sector appeared. Among them, conspicuous stock came in.
"LunaHub Technology 5 billion buy."
"LunaHub Technology buy entering. 30 percent execution complete."
"Operating 90 percent of deposit."
Almost all deposit went in. Practically buying for last stock. Gang-hyeon's gaze headed to chart where each indices were turned on.
Still all indices are falling. VIX rise is becoming stronger. Dollar Index is still chaotic and gold and treasury bonds are rising.
Market participants still viewed current situation chaotically, but money was flocking to safe assets for hedge.
But to my eyes it looks like rebounding soon.
Light wasn't visible in VIX, Dollar Index, and gold and treasury bonds, but indices were clearly showing red light meaning rise. Especially light emitting from Nasdaq was more intense than ever. So Gang-hyeon placed 80 percent proportion of individual stocks of Nasdaq in portfolio.
"Internal risk limit exceeded 80 percent."
At that time Gwang-ho's voice was heard. If 80 percent risk limit, practically had to prepare for clearing. If this place wasn't his company, warning would have come from Risk Team through internal line already. But now was different.
Here is my company. Money rolling now is also all my money. I take responsibility.
Because it was his, he could be unshaken more.
"Risk limit 85 percent breach."
Risk limit went up increasingly faster. Meaning index was falling.
"89 percent bre...!"
"Uh?"
Moment Gwang-ho warned, Kim Seong-won shouted as if discovering oasis walking in desert. And Gang-hyeon also discovered that oasis.
"Buying momentum coming in!"
Decline of each indices paused then suddenly buying momentum poured. Red candle falling rapidly rolled tail and went up then soon changed to green candle.
"Buying momentum is powerful!"
Nasdaq running towards minus 3 percent rose with fast speed and went up to minus 2 percent instantly. At that time Gwang-ho checked news and shouted.
"News that Goldwin posted writing 'Will reserve tariff application.' on social media!"
Cause of this price reversal started from Goldwin's mouth as expected. Declaring trade war to world unexpectedly then withdrawing saying to reserve it in just a few days. Nonsense thing, but possible thing because it was Goldwin.
"Bloomberg, Reuters, Wall Street Journal etc. All media delivering various news as breaking news!"
Media companies also moved quickly. As related news conveyed, movement of indices became faster.
"Buying momentum coming in more! Based on 4-hour candle, long body yang candle forming!"
Long body yang candle creating size bigger than 2 times not just dominating immediately preceding 4-hour candle was being made. What this meant was one thing.
"Market reversed!"
Meaning market which was bear market changed to bull market.
"VIX decline, treasury bonds and gold prices also dropping."
"Nasdaq turning positive!"
Nasdaq started with decline turned to rise. Gang-hyeon checked positions they entered.
Entered properly at tail of candle. This level could be called artistic buying.
Profit is...
Yield was rising quickly on monitor.
[10.7%]
Gang-hyeon's mouth corner went up seeing profit rising in seconds.
Good.
It was when clenching fist tight rejoicing at profit.
"Buying momentum growing more and... uh? CEO! Nosebleed!!"
Blood flowing from Gang-hyeon's nose was seen in Kim Seong-won's eyes turning body for report. At his shout, wiping under nose lifting hand, blood smeared out.
"Uh?"
When surprised at unexpected event, Kim Seong-won approached holding tissue.
"Here is tissue!"
"Ah, thank you."
"CEO, are you okay?"
"Yes. I'm okay. Need to rest for a moment."
"Since market also turned to rising trend, Seong-won and I will be monitoring."
"If anything happens please call immediately."
"Yes."
Asking monitoring to two people, Gang-hyeon headed to restroom.
Turned on water in washbasin and removed tissue. Tissue which was white already turned dark red. Since this kind of thing was first time, Gang-hyeon had no choice but to be surprised.
"What is this suddenly? Did body become weak?"
Finishing rough fix, Gang-hyeon guessed reason for this nosebleed.
Perhaps side effect of ability?
There was such possibility, but in that case there was one question.
Never happened like this before.
That there was no such side effect when testing previously.
If there is difference from test time... point that number of stocks increased largely.
When testing, since utilizing tablet PC and laptop, couldn't check many stocks. Keeping charts of two stocks on at most was all. But this time was different. Various indices and stocks too. Number of charts filling monitor exceeded ten. Plus individual stock charts changed to other stocks in real time. In short, if difficulty at test time was normal, now played hardcore level.
Meaning strain goes to body as load is applied?
But not certain yet.
"Have to go to hospital tomorrow."
His expression became serious at thought that unexpected restriction might occur.
(End of Chapter)
— Translated by Prime Works —