‘You’re going to short it?’
He said this quite loudly, and as the word short darted its way around the tables like an acute pain along a sciatic nerve, you could almost feel the whole room stiffen. There was a brief silence and then everyone started talking at the same time and checking their screens and looking across at my table. Over the next couple of minutes the tension in the room increased as the original Mediflux faction regrouped and began hurling comments in my direction.
‘Feel sorry for you, buddy.’
‘Margin call!’
‘Loser!’
I ignored these taunts and got on with executing my short-sell strategy on Mediflux, as well as looking after my other positions. For the next while the Mediflux share price continued to rise, reaching 51 points, but then it seemed to stabilize. Jay nudged me again and shrugged his shoulders as if to say, Talk to me, why did you short it?
‘Because it’s all hype,’ I said. ‘What – a couple of mice with cancer in some laboratory somewhere sit up in bed and ask for tea and suddenly we’re all into a buying frenzy?’ I shook my head. ‘And when is this new protein they’re developing going to have a commercial application anyway? Five years? Ten years?’
Jay looked worried all of a sudden and seemed to recoil into himself.
‘Besides,’ I said, pointing at my screen, ‘Eiben-Chemcorp pulled out of a takeover deal of Mediflux about six months ago, and it was never properly explained – doesn’t anyone want to remember that?’
I could see him rapidly processing the information.
‘This does not have legs, Jay.’
He turned to the other guy beside him and started whispering. Soon – as my analysis made its way around to all of the other traders – dark clouds of uncertainty descended on the room.
From the babble of muttering and clicking that ensued, it was obvious that two camps were emerging – some of the traders were going to hold on to their stock, while others were going to join me in shorting Mediflux. Jay, and the guy beside him, reversed their positions. The baseball caps held fast to theirs, but refrained from making any comments about it – not aloud, at any rate. I remained huddled over my terminal, keeping a low profile, even though the atmosphere was electric, with a definite sense that in the ecosystem of the room I was an interloper who was making some kind of a bid for power. I hadn’t intended it that way, of course, but the thing is, I was convinced that MEDX was a turkey – and so it was to prove.
Late in the afternoon, just as I had predicted, the stock collapsed. It started slipping at about 3.15 p.m., much to the consternation of about two thirds of the traders in the room. MEDX closed at 17½ points, a drop of 36½ points from its high, earlier in the day, of 54.
At the closing bell, a cheer went up from a small group sitting at the table directly opposite me. They came over afterwards to introduce themselves – and I realized that with them, Jay, the guy beside him, and one or two others, I had formed my own crew. It wasn’t only because they were happy to have taken the tip from me, but it was also, I think, because of what they saw as the sheer, ballsy scale of my own trade. I had shorted 5,000 MEDX shares and come away with over $180,000. This was more in one trade than most of them could hope to make in a year, and they loved it – loved the sanction it gave to risk, loved how it confirmed that scoring big was possible.
One of the three baseball caps nodded at me from across the room, a gesture that I think was meant to indicate he was conceding defeat, but then he left quickly with the other two and I didn’t get a chance to say to him – magnanimously, or, perhaps, patronizingly – that hey, they had come up with the stock in the first place. I still refused to go for a drink with anyone, but I did stick around for ages, chatting and trying to find out as much as I could about how day-trading firms like this one operated.
On my third morning at Lafayette I was the centre of attention. But I was also, undeniably, on trial. Was I a one-hit wonder – I’m sure they were all thinking – or did I actually know what the fuck I was doing?
As it turned out my period of probation only lasted a few hours. A position with a data-storage company, JKLS – not unlike the one of the previous day – soon presented itself, and I whispered to Jay that I was about to initiate coverage of the stock at its current price with an immediate short-sell. Jay, who had quietly assumed the role of my underboss, passed on this information to the next table up, and within less than a minute it seemed that the whole room was shorting JKLS. During the course of the morning, I fed out a few other tips that some people, but certainly not everyone, picked up on. Early in the afternoon, however, when the JKLS price began falling rapidly, and a cheer went up, a quick review of my other tips took place, and the doubters joined in.
By the closing bell at four o’clock, it was my room.
Over the next couple of days, the trading ‘pit’ at Lafayette was packed to capacity – with all of the regulars in attendance, as well as quite a few new faces. I stuck to my short-selling strategy and led an onslaught against a whole series of overhyped and overvalued stocks. My instinct for identifying these stocks appeared to be unerring and it was thrilling to watch them all behave exactly as I had predicted. In turn, people were watching me very closely and naturally wanted to know how I was doing it, but since these same people were also making a lot of money from my recommendations, no one had the temerity to come out straight and simply ask me. Which was just as well, because I wouldn’t really have had an answer.
It did seem to me to be instinct, though – but informed instinct, instinct based on a huge amount of research, which of course, thanks to MDT-48, was conducted more rapidly and comprehensively than anyone at Lafayette would ever realize.
But that also wasn’t enough to explain it – because there were plenty of well-resourced, well-financed research departments around, from the windowless backrooms of investment banks and brokerage houses throughout the country, stuffed full of pale, nameless ‘quants’ number-crunching till dawn, to places stuffed full of Nobel-prize winning mathematicians and economists, places like the Santa Fe Institute and MIT. For an individual, I was processing a huge amount of information – it was true – but I still couldn’t compete with outfits like those.
So what was it?
After the first day of my second week at Lafayette, I tried to evaluate the various possibilities – maybe it was superior information, or heightened instinct, or brain chemistry, or some kind of mysterious synergy between the organic and the technological – but as I sat there at my table, staring vacantly at the screen, these ruminations slowly coalesced into an overwhelming vision of the vastness and beauty of the stock market itself. Grappling for understanding, I soon realized that despite its susceptibility to predictable metaphor – it was an ocean, a celestial firmament, a numerical representation of the will of God – the stock market was nevertheless something more than just a market for stocks. In its complexity and ceaseless motion the twenty-four-hour global network of trading systems was nothing less than a template for human consciousness, with the electronic marketplace perhaps forming humanity’s first tentative version of a collective nervous system, a global brain. Moreover, whatever interactive combination of wires and microchips and circuits and cells and receptors and synapses was required to achieve this grand convergence of band-width and brain-tissue, it seemed to me in that moment that I had tumbled upon it – I was jacked in and booted up… my mind was a living fractal, a mirrored part of the greater functioning whole.