Tag: Finance News (Page 1 of 2)

Citadel Fights The SEC On New D-Limit Order Against Arbitrage

Citadel vs SEC Court Hearing On October 25th
Citadel Securities LLC v. SEC October 25th | Citadel Securities sues SEC

BREAKING: Citadel is suing the SEC over the new D-Limit order that would protect displayed lit orders from being picked off by latency arbitrage players.

β€œThe SEC failed to properly consider the costs and burdens imposed by this proposal that will undermine the reliability of our markets and harm tens of millions of retail investors,” a Citadel Securities spokeswoman said in an email on Friday, via Reuters.

Now, this has been an ongoing battle since last year. However, new documents show this fight has risen in court again.

In fact, the new court date is set for October 25th of this month. This is big.

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Welcome to Franknez.com – today I’m going to be breaking down the D-Limit order and the Citadel Securities LLC vs SEC court hearing.

Let’s get started!

Community, the news that has come up today has been an ongoing fight since before GameStop began moving up between the months of October-January.

I’m going to break down the entire investigation leading up to today’s recent news and court date.

What Is The D-Limit Order?

SEC

The D-Limit order is designed to protect liquidity providers from potential “adverse selection” by latency arbitrage trading strategies.

This rule basically gives traders a way to buy or sell stock at the exchange while protecting them against unfavorable price moves, via Reuters.

“The D-Limit Order is an artificial intelligence order type that protects displayed lit orders from  being picked off by latency arbitrage players.”

“It aims to benefit displayed equity market quotes with better prices, larger displayed sizes and more competition among liquidity providers.” via, JLN.  

This order is a massive threat to Citadel as it takes away predatory trading through the practices of market arbitrage.

What Is Market Arbitrage?

Market arbitrage is the act of buying a security in one market and simultaneously selling it in another market for a higher price.

Traders frequently attempt to exploit the arbitrage opportunity by buying a stock on a foreign exchange where the share price hasn’t yet been adjusted for the fluctuating exchange rate, via Investopedia.

This type of trading takes advantage of everyone involved, including retail investors.

Citadel personnel argue that the D-Limit rule is detrimental to millions of retail investors and undermine the reliability of the markets.

How could you even argue the point, that’s insane!

Market arbitrage is a form of predatory trading.

The D-Limit order fights against latency arbitrage from high frequency traders such as Citadel Securities.

This D-Limit order would provide the markets with more accurate prices and prevent HFT firms from using arbitrage strategies to plummet or extensively short stocks.

In short, Citadel Securities has been fighting the SEC to continue using manipulative strategies against retail investors.

Apes in the community will have to back up the SEC to create this massive change in our markets.

Citadel Securities VS SEC October 25th, 2021

This battle between Citadel Securities and the SEC has been occurring for quite some time now.

However, Citadel and the SEC now have a new court hearing on October 25th, 2021. The fight for a fair market continues.

Citadel securities vs sec court - Citadel sues SEC
Source –> Link

The lawsuit fights against the use of the D-Limit order through the IEX exchange that would provide the markets with a solution against arbitrage trading via AI technology.

Argument: Citadel Enjoys Unfair Advantages Over Other Participants

Citadel Securities has been facing major scrutiny all over social media and is now being recognized for it’s multiple scandals in the public’s eye.

In a series of documents detailing the court hearing, the SEC explains how Citadel has profited billions from high frequency trading.

Citadel enjoys unfair advantages over other market participants
Source: page 13

This D-Limit order won’t just target Citadel Securities, it’s going after a handful of other high frequency trading firms.

Eliminating these manipulative strategies would be extremely bullish for retail investors.

For example, the markets wouldn’t be as volatile.

High frequency trading has been the cause for several market meltdowns so eliminating this practice would provide retail investors with a fair playground.

Citadel, as a market maker processes more than 40% retail investor trades in the market. 100% come from Robinhood.

This means Citadel has been making money from every trade that’s been processed merely from high frequency trading.

You essentially have this monster of a company making money off of every opportunity they can get a hold of, even if it means cheating retail investors.

Opposing this order is not protecting retail investors! Citadel is suing the SEC to continue this market manipulation and we cannot let this happen.

The Citadel Securities vs SEC lawsuit will take place on Monday, October 25th.

How Will The D-Limit Order Affect Meme Stocks?

Meme stocks

The D-Limit order will allow momentum stocks such as AMC and GameStop to run more naturally by eliminating some of the manipulation that suppresses the stocks from performing better.

The thing about arbitrage trading is that because these hedge funds are able to find foreign exchanges where the price hasn’t yet been adjusted, they can buy ‘current’ priced stocks and sell short in other exchanges.

The D-Limit order is meant to eliminate these strategies.

This market arbitrage could very well explain how hedge funds and HFT firms have been able to short momentum stocks despite the massive buying pressure from retail investors.

Massive kudos to the SEC for fighting against Citadel. There’s a lot going on in the background that we usually aren’t aware of.

I feel that as a community we must give strength to our regulators to make a difference in the markets.

This is a democracy and we want a fair market after all.

Will The D-Limit Order Be Upheld?

The D-Limit order would create a massive change in the markets in general, not just for the ape community.

This order must be upheld. There is absolutely no justification as to why it wouldn’t be.

It is up to our community as engaged and active investors to make this information known. And it is up to us to fully support it’s nature to create real change in the markets.

Our community doesn’t have the full trust from the SEC, yet.

But we must support those in power who can fight against the market manipulation head on.

An AMC and GME short squeeze depend on it. Hedge funds will not go down without a fight so a fight it is.

A fight for a fair market, a fight for the community, and a fight for your financial freedom.

MOASS is inevitable, but it will be up to us to ensure it’s fruition.

Final Words…

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I want to thank you apes for sharing the content, for being involved in the Discord community, and for being amazing community members across every social media platform.

The world needs people like you.

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Read: Hedge funds face short sale disclosure from the SEC


The SEC Is Looking Into Citadel Securities’ Business Model

The SEC is looking into Citadel Securities Business Model
SEC has launched inquiry into Citadel that targets part of its business model

Ladies and gentlemen, we’re seeing more of these headlines on mainstream media. The SEC and other powerful leaders are looking into Citadel Securities, calling their business model “politically motivated“.

The crackdown is real. I read what both Gary Gensler’s colleagues and people of opposite views have had to say about the SEC’s chairman.

And they both said the same thing… He’s unpredictable, and someone not to underestimate.

I guess retail investors will have to find out for ourselves won’t we?

franknez.com

Welcome to Franknez.com – massive bullish news coming to you today. Apes, we’re moving in the right direction. Will this crackdown be the catalyst to a short squeeze?

Let’s get started!

Fox Business Live Citadel Video

GOP insiders are saying Biden, the SEC, and Warren have all launched a political vendetta against Citadel Securities.

Dems have been working towards implementing serious consequences for Citadel Securities after the Archegos incident.

It comes as no surprise that the party is pressing on.

It’s also important that we see beyond the political parties. Retail investors are fighting for a fair market.

Our community is so diverse that it in the end it doesn’t matter whether the party fighting against market manipulation is republican or democratic.

We need regulators and people with power to impose serious consequences on the market maker.

After several months of voicing your thoughts about the injustice in the markets, Citadel Securities is finally getting the smackdown.

“There’s A Movement Afoot, To Take Down His Empire”

Charlie Gasparino has always been quick to defend hedge funds betting against ‘meme stocks’.

You might know Gasparino for trolling the AMC community on Twitter.

He argues that PFOF (payment for order flow) works and traders get to trade at no commission for it but fails to understand why retail investors want to remove this practice.

Retail investors don’t want Citadel Securities – who’s a hedge fund, market maker, and dark pool, to process their orders.

Watch the short video below.

Fox Business Live Citadel Video

Retail investors want to eliminate the market manipulation that’s been occurring due to the overleveraged power Citadel Securities has over the retail investor.

In short retail investors want to:

  • Eliminating dark pool trading
  • Get rid of PFOF
  • Have regulators look into insider trading
  • Expose and hold those accountable for the restrictions of buying meme stocks earlier this year
  • Liquidate overleveraged hedge funds

Eliminating these threats from the market would allow both AMC and GameStop to naturally skyrocket based on the laws of supply and demand.

The end game? A massive short squeeze.

Here’s How Citadel Securities Has Abused Their Power In The Market

Citadel Securities is one of the top financial institutions shorting both AMC and GameStop.

And while shorting a stock may not be illegal, trading patterns from several technical analysts shows naked shorting has made itself present again after being deemed illegal due to the Great Recession of 2008.

Intraday trading does not align with the actual sentiment of retail investors.

Unprecedented short-ladder attacks from overleveraged borrowed shares have been a way to cheat in the game too.

Retail investors have every right to buy as much stock as they want.

Suppressing the stock’s price action through leverage from banks and other financial institutions to profit on the downside is the biggest manipulation to have been uncovered in the markets.

Dark Pool Trading Must Be Eliminated

AMC dark pool trading has been as high as 60% in the past few months and has traded higher other days.

This advantage allows hedge funds shorting the stock to drive the price down despite the massive buying pressure from retail investors.

These dark pools can mask the buying pressure from retail, allowing hedge funds to manipulate how the trade is recognized through its share price.

Gasparino fails to recognize that investors are fighting against this type of manipulation in the markets.

He fails to recognize that Citadel is able to process orders through their dark pool without having the incredible retail buying pressure move against them.

Betting against a fair market, and especially against these heavily shorted meme stocks is a sign of weakness.

Rather than covering their short positions, hedge funds, market makers, and the banks have all exposed themselves.

A few months ago I said that this wouldn’t get out of hand unless hedge funds allowed it to by not closing their short positions in AMC and GameStop.

I said it would only escalate and here we are! Everyone is looking at Citadel Securities’ Ken Griffin.

“Washington Is Aiming At Ken Griffin”

During the congressional hearing earlier this year, Citadel Securities CEO Ken Griffin was under intense scrutiny.

According to Gasparino, GOP sources are stating there’s a lot of insider talk about Biden, Elizabeth Warren, and Gary Gensler going after Ken Griffin.

Citadel Securities processes almost half of all retail orders in the market.

The government is finally waking up to the excessive amount of power this market maker has.

If you’ve been reading FrankNez for quite some time now then you know how much I’ve preached the significance and power of your voice to make change happen.

Everything we’ve endured as a community is beginning to payoff.

Hedge Funds Face Short Sale Disclosure From The SEC

SEC looking into Citadel

The SEC poses a threat to hedge funds through a rule that would enable them to receive short sale disclosure periodically.

The rule may go into effect as early as November. You can read more about it here.

Needless to say, there’s massive change happening in the markets whether we realize it or not.

This change has been happening over a period of 10 months now.

Market regulation that allows retail investors to participate in a fair market could very well be the catalyst for a short squeeze.

By eliminating suppressing forces in the market, we give AMC and GME stock an open runway to move up in a supply and demand play.

Massive buying pressure from retail could force short sellers to close their positions as the price begins to experience larger upswings again.

Apes will have to continue to fight for a fair market and hold the stock if we are to squeeze hedge funds from their positions.

What Other Regulation Do You Want To See In The Markets?

Leave a comment below. What are your thoughts on what’s occurring with Citadel Securities, and what other problems do you think regulators should address?

Have your thoughts changed about the competence of the SEC and Gary Gensler?

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Criminal In A Seat Of Power: Rep. David Scott Attacks Retail

David Scott Retail investors
David Scott VS Retail Investors

Rep. David Scott of Congress was once named one of the top 25 most corrupt members of Congress by the political watchdog group of Citizens for Responsibility and Ethics in 2007.

Now he wants to put a bill that will make it hard for retail investors to participate in the stock market and even implement jail time for users on social media…

Yeah this is not going to go well.. at least for rep. David Scott it’s not.

franknez.com rep david scott

Welcome to Franknez.com – the blog that fights for your financial freedom. Today I want to discuss why our community continues to be a beacon for change against market manipulation.

Let’s get started!

Leaders are getting desperate. Retail investors are fighting for a fair market and are now getting attacked for doing so.

I said this on Twitter earlier, it’s going to take every single one of us to make change happen. And although it might not seem like it at the moment, we’ve made quite some progress already.

We’re on the radar now and our voice is being heard. I believe that those who aren’t in favor of a fair market should be looked at very closely.

David Scott Gets Intimidated By The Power of Social Media

I’m not sure if David Scott knows this or not but social media is not a new concept and it’s certainly not going anywhere any time soon.

That is unless Mark Zuckerberg halts the spread of powerful information again, smh.

Social media platforms have allowed communities and people to have a voice they couldn’t otherwise have had decades ago.

When the people begin to make noise for change, they are often ridiculed or labeled as conspiracy theorists as a way to shut down the voice.

Billionaire Grant Cardone just mentioned this on Twitter following the insider scandals occurring within our financial systems.

The truth is, it’s time to pass the torch.

David Scott wants to make it hard for ordinary people to invest in the stock market. This is something I’m 1000% against for.

I believe everyone should have the right to participate in a fair market where they can invest in their favorite companies and also create generational wealth.

FrankNez teaches people how begin investing in both stocks and in crypto. To take this away from the people is blatant manipulation and tyranny in it’s rawest form.

You can’t get mad for losing millions of dollars in the market and then say you want to create a bill so that no one else can play against you. The world doesn’t work that way.

You can see chairman of the SEC Gary Gensler almost pull a smile from hearing David Scott speak. I think this is a clear indication that the SEC has no intention in letting this happen.

What Do You Think?

Do you think Gary Gensler will allow this narrative to become a reality? Let me know in the comment section below or vote on this Twitter poll.

Not a lot of people have faith in Gary Gensler or the SEC but can you imagine the heroes they’d be if they liquidated short sellers and actually began protecting retail from market manipulation?

They would make history!

That’s the kind of power and legacy our leaders have at the moment. The new world we live in rewards its heroes and honors them.

Gary Gensler and the SEC have two very important paths they can choose from. My advice to them? Have courage.

So instead of bashing Gary Gensler and the SEC, I believe we should be encouraging them instead. Because courage isn’t easy, it’s difficult.

It takes courage to stand up for something, it takes courage to make a difference, it takes courage.

Insider Trading Is The Real Problem, Not Retail

Representative David Scott only put a magnifying glass on himself. How about we tackle insider trading and injustices within our own financial system first.

Let’s start at the root. Fed’s Kaplan and Rosengren have already been caught in a scandal regarding insider trading. Policy makers should not be allowed to participate in the markets.

This gives them way too much leverage and allows them to bend rules in their favor. Ladies and gentlemen, this is the real problem – not retail investors.

And those against a fair market know this. But greed doesn’t care about fair. Greed cares about greed.

Gary Gensler knows that prohibiting people from participating in the markets is a direct violation of his duties to serve the people.

I don’t see the chair of the SEC backing up rep. David Scott on his delusional vision of implementing jail time for discussions about stocks on social media.

How are you going to put millions of people in jail for voicing their thoughts and opinions on social media? Guys, I know you can’t see me but I’m facepalming right now.

Let’s not attack David Scott though, the poor man is lacking something significant in his life. No person with their head screwed on right thinks of taking the rights of another human being.

Let’s address the issue civilly.

Can The Government Stop Retail Investors From Trading Stock?

Absolutely not. Any bill preventing the people from trading in a public company is a direct violation of the people’s freedom.

Capitalism is the American way. We have to right to create businesses, establish and donate to charities, as well as support and invest in innovative companies that serve us as consumers.

Limiting who can and can’t trade in the stock market would cause an uproar. CEO’s and influential entrepreneurs thrive from investor relations.

Businesses and investors alike would not support this. Preventing the people from a fair market is un-American.

Americans and our allies will fight for our freedom whether corrupt politicians like it or not. It’s what our founders have done and it’s the reason why the people will always win.

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Read: Stock & Crypto News


Facebook Get’s Turned Off After Several Scandals Rise

Facebook Get's Turned Off After Several Scandals Rise

Facebook and Instagram faced the biggest outage since 2008. Coincidentally enough, this happened just hours after the Bank of America scandal began taking traction on social media.

Journalists who published the “Pandora Papers” also caused a scene.

The AMC community has been a beacon of hope to every retail investor fighting against market manipulation.

What will happen next?

franknez.com social media down

Welcome to Franknez.com – the blog dedicated to serving the people. Apes have made a RUCKUS.

Lets get started!

The AMC Community Scores A Massive Win

Retail investors are shaking the finance world and I believe a new era is about to begin, but not without a fight.

Citadel Securities took it to Twitter after 9 months of silence, calling retail investors “conspiracy theorists”. However, transcripts of the Citadel scandal have been shared all over investing forums including Reddit’s r/wallstreetbets and r/amcstock.

You cannot hide the elephant in the room. Attempts to gaslight the people in itself is a form of psychological warfare. Something retail investors have seen within the markets one too many times.

Social media has given content creators a medium by which they can spread information and knowledge at scale. Today we experienced a social media shut down.

Why Did Facebook Shut Down?

During a livestream, Mark Zuckerberg mentioned the power of organizations and influence people now have.

Another concern surrounded the spread of misinformation and fact checking information first.

Everything Mark said makes absolutely sense. The information apes have been spreading has been data and facts collected over a period of several months.

If insiders got a hold of this research, do you think the progress for a fair market would surge? Or would it get taken down? Let me know your thoughts in the comment section below.

Everything regarding Mark Zuckerberg’s livestream mentioned people having a voice and the dangers of it.

This genius of a CEO has a way with words. He knows exactly what to say and how to say it.

Whatever type of content Facebook found to be deemed as ‘harmful content’ is the reason why Facebook momentarily experienced a shut down.

“Virality Could Be Dangerous” – Mark Zuckerberg

According to Mark, virality could be dangerous and the content would need to be addressed.

During this social media halt, Facebook was identifying accounts to ensure the spread of information is legitimate and not being spread by bot accounts.

They are also making sure the content is in line with their policies. Fortunately for the AMC community, content we’ve shared should align with these policies.

However, articles published by The Guardian on Pandora’s Papers cannot be found on Facebook anymore.

Some articles regarding the Bank of America scandal have been removed as well.

In my personal opinion, they don’t want the general public educated. I have a strong feeling that all of this information that they want hidden for now will be uncovered at some point in the future.

Facebook Censorship Raises Concerns

The censorship of gathered information by journalists and large communities is rather concerning.

People raise their voice when they want to be heard. We didn’t raise our voice though, more of us simply stood.

So how are the people supposed to defend themselves when our very own leaders cannot communicate with groups and communities in need of their help?

Now the data that’s suppose to protect the people is being censored.

To every problem there’s a solution and this a solution we’ll have to find for ourselves.

Sooner or later someone with bigger access than any of us will get our message through. The fight for a fair market continues.

The People Will Find Their Way

Facebook may have blocked journalism from reaching mainstream media, but I believe people will find their way to this information.

And that’s what ultimately matters.

But to be quite frank, not everyone will win. Self-education is something you do on your own.

And although social media wants everyone to keep living in their own bubble without disruption, they cannot hide the truth.

Facebook is one of many tools. They won’t be the catalyst for change; you will.

So even though it might not feel like it at the moment, the time will come when you realize just how much change we’ve actually made.

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Bank of America Has Been Illegally Shorting AMC Stock

Bank of America has been shorting AMC Stock

If you bank with Bank of America chances are they’ve been using your hard earned money to short AMC stock. Financial institutions have been shorting AMC stock all year, resulting in billions of dollars in losses.

Bank of America also has a 75% probability of going bankrupt according to sources. The shorting of meme stocks could explain why the bank is currently facing liquidity issues.

Franknez.com Bank of America bankruptcy

Welcome to Franknez.com – so much information is coming to fruition. I’m piecing bits of information that have been revealed in the last few weeks and days.

Let’s get started!

Information from one of my articles has been circulating the entire community recently. In this article, I go over how AMC continues to be the most shorted stock in the market. This is going to be a very important piece of info.

Bank of America Is Shorting AMC Stock

Bank of America is on the list of the top 10 institutions shorting AMC stock. BofA is known for being an untrustworthy bank for the people so it comes as no surprise.

They’ve been cheating the system by demanding printed money from the feds to lend to short sellers. The insane part of this scheme is that everyone is a part of it.

I’ll touch topic on that below.

Bank of America shorting AMC Stock
SOURCE

A lot of the puzzle pieces seem to be connecting now. Boston and Dallas Fed presidents Kaplan and Rosengren were fired due to investing in securities while playing a major role in creating monetary policy.

Repos have been at record high this year. The feds have been pumping so much money into the financial systems for banks and hedge funds to maintain margin requirements from.

Hedge funds have been overleveraging their positions due to betting against retail investors who aren’t giving up the fight for a fair market, and a short squeeze play in their favorite ‘meme stocks’.

Now, 34 of the largest banks are being required to hold $1 trillion in capital, enough to be able to loan mortgages and business loans during an economic downturn such as a recession.

Will banks margin call hedge funds to meet the new capital requirements as of October 1st? Or will they default?

Hedge Funds Just Got Smaller

We’re beginning to see financial institutions throw other institutions under the bus. Citadel began pointing fingers towards Robinhood during a rant on Twitter.

I think very soon we’re going to see banks do the same towards hedge funds. Will hedge funds be able to pay back banks? Someone has to pay back the overleveraged debt they owe.

What started from a Robinhood and Citadel scandal just climbed the hierarchy and is now involving both the banks and feds.

This could be the biggest financial scandal in history.

Is America Headed Towards Financial Collapse?

Janet Yellen Hedge Funds

Janet Yellen just recently said, “there are issues relating to hedge funds and the possibility of leverage, they can trigger financial runs.” So, we know that any chance of financial ruin in the markets is tied to overleveraged hedge funds and financial institutions.

Hedge funds have been borrowing money from both the banks and the feds. The feds weren’t stopping overleveraged institutions from borrowing money, but rather contributing to their needs and gaining from them, as seen with Kaplan and Rosengren.

It seems leaders are washing their hands before these scandals continue to escalate.

A substantial portion of Citadel’s assets are held by Bank of America’s clearing house “BAML“. Powerful leaders are fleeing the crime scene. Who are the first to flee a sinking ship? Leave a comment below if you know the answer to this one.

Will Bank of America Go Bankrupt?

Bank of America has a ‘more than 75%’ probability score for bankruptcy, via MacroAxis. The fact is there is no path that can save overleveraged institutions or short sellers betting against retail investors right now. The future of the short seller is grim.

Bank of America bankruptcy

To make matter worse for the bank, retail investors are pulling their money out from the bank before things get a little more severe. In fact, one of my personal family members just moved 98% of their money from BofA into a brokerage account.

Overleveraged hedge funds and banks will be the cause of the next financial collapse.

Something massive is coming very soon and I know the community can feel it. I speculate paper-hand sellers will soon re-enter the markets as the first wave of short sellers begin to close out their positions.

This momentum will only further complicate the state of emergency these financial institutions are currently in.

What Happens If A Bank Goes Bankrupt?

If a bank goes bankrupt, the FDIC must collect and sell the assets of the bank and settle its debt.

For AMC and GME shareholders, this means that all the shares that were borrowed will finally get bought back. Heavily shorted stocks would skyrocket as overleveraged debt is finally closed out.

The results? MOASS (mother of all short squeezes).

The momentum from billions of shares being bought back could push ‘meme stocks’ to unprecedented numbers.

Whether Bank of America goes bankrupt will depend on whether they file for bankruptcy protection or not.

A short squeeze play is imminent and there’s no doubt financial institutions are preparing for it.

The Stock Market Is Rigged

“The stock market is a rigged game for the wealthy as corporate execs can hide behind trading plans as they buy or sell stock, sometimes based on nonpublic information.” via ZeroHedge.

We’re seeing this happen right before our very own eyes. Fed presidents Kaplan and Rosengren were using their power to mold regulation in theirs and their partners favor.

Bank of America has been a liquidity refuge for Citadel, allowing them to overleverage their positions in heavily shorted stock without repercussions.

We saw that Robinhood executives sold AMC and GME stock right before halting trading back in January of this year. The Citadel scandal has been the talks all over Reddit and Twitter. Citadel and Robinhood had communication about which ticker symbols would be halted.

The stock market is a device that has been created for the wealthy to leverage their wealth to build more wealth. The SEC has proven to have little to no power.

Now, that doesn’t mean retail investors don’t have a chance at the market. Corporate executives simply have a much stronger edge.

Our voice and DD have been very powerful tools in fighting corruption in the markets. We’ve been able to inform the public of what’s been occurring all while setting ourselves up for an immense short squeeze play.

What a journey.

The Greatest Transfer Of Wealth Is Commencing

I believe this scheme revolving shorting meme stocks is finally coming to a close. Empires are crumbling and new ones will rise.

But before new ones rise, retail investors would have made history by beating the financial system at its own game first.

It seems more information is being revealed with each day that passes. I don’t think retail investors have had an upper hand like this before. And unfortunately for short sellers, they’re about to get burned again. This time for good.

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Gary Gensler Under Fire By Retail Investors [Leak]

Gary Gensler Under Fire By Retail Investors. When Will The SEC Step In
Will Gary Gensler protect retail investors from naked shorting and dark pool abuse?

The heat has been turned up. All eyes are on #KenGriffinLied, Gary Gensler, FINRA, and other regulators.

Financial institutions are calling retail investors conspiracy theorists despite a variety of proof leaked across social media. Transcripts, real messages regarding the manipulation that occurred in the markets preventing investors from buying GameStop and AMC stock are beginning to wake up a sleeping giant.

Retail investors cannot be gaslighted. This attention has reached many finance and business personalities including Charles Payne of FOX Business. And he wants to get Ken Griffin or Vlad Tenev on his show.

franknez.com gary gensler

Welcome to Franknez.com – the blog that fights to protect retail investors against tyranny. Today I’m calling out regulators.

Let’s get started!

Citadel Securities Denies Allegations

Apes have been raising awareness of the manipulation tactics in the market caused by Citadel Securities, Citadel LLC, and Citadel Connect… yeah it’s the same company.

See, the problem is one branch is a market maker, one is a hedge fund, and the other is a dark pool.

Since Citadel is one of the biggest hedge funds and market makers, it gives retail a massive disadvantage because of how their orders are processed.

One company is shorting AMC and GME stock, the other is creating failure-to-delivers, and the third is hiding buying pressure through dark pool processing and trading.

Financial regulators such as the SEC and FINRA are supposed to be protecting retail investors from this very exact type of manipulation.

The AMC and GameStop community have been looking at Gary Gensler, Chairman and President of the SEC to act. And now, the world is looking too.

“Justice delayed is justice denied”

William E. Gladstone

#KenGriffinLied Files Lawsuit Against Flying Company

The AMC community has been flying banners all year. The community gathered to further spread trending Twitter hashtag “#KenGriffinLied” but was halted from doing so through a law suit.

#KenGriffinLied started trending on Twitter when transcripts of coversations between Citadel and Robinhood insiders took place regarding the halt of trading meme stocks earlier this year.

Ken Griffin under oath said his team had no communication with Robinhood’s team in regards to halting trades. The transcripts show there was communication a day prior to the halts.

You can view them here.

AMC Plane Banner
AMC Plane Banner – HODL πŸ’Ž

Robinhood Sold AMC Portfolio Before Halts

More transcripts have come out regarding the communication between Robinhood and Citadel Securities.

Now that you’ve seen the transcripts between Citadel and Robinhood, the transcripts below will make sense. Two Citadel executives confirm the ‘closing only’ positions of AMC, GME, NOK, BB, and NAKD just to name a few.

Robinhood’s COO, Jim Swartwout said in an internal chat “I sold my AMC today. FYI – tomorrow morning we are moving GME to 100% – so you are aware.” This chat is dated from January 26, 2021. Just two days before trading was halted.

Robinhood sold GameStop stock on January 27, 2021 when it was up more than 1200% before halting trading for everyone else. This blatant manipulation has yet to be addressed by Gary Gensler and financial institutions.

When will the SEC step in to protect retail investors?

Robinhood sold AMC stock before halting trading
Robinhood sold AMC and GameStop stock before halting trades

The halting of ‘meme stocks’ occurred on Thursday, January 28, 2021 and trading resumed on Friday, February 5, 2021.

FINRA Bypassed The Market Manipulation

In another transcript, Citadel Securities Senior Vice President discusses with another Citadel executive on the need to inform FINRA of expectations around a plan for PCO symbols and to expect an increase in complain ‘impact’.

These PCO symbols were AMC, GME, NOK, and BB.

Who Is FINRA?

FINRA is a private American corporation that acts as a self-regulatory organization which regulates member brokerage firms and exchange markets.

Check out what their ‘about’ page says:

“FINRA is authorized by Congress to protect America’s investors by making sure the broker-dealer industry operates fairly and honestly. We oversee more than 624,000 brokers across the countryβ€”and analyze billions of daily market events.

We use innovative AI and machine learning technologies to keep a close eye on the market and provide essential support to investors, regulators, policymakers and other stakeholders.”

This could very well be the AI technology that Citadel uses to track and predict how investors trade in the market. This advantage could be used against retail investors given that Citadel and other hedge funds have been losing billions of dollars from ‘meme stocks’.

Regulators portray to the world that their jobs are to protect retail investors and to ensure the integrity of the markets.

However, they have proven to merely be a tool for someone else’s gain. I speculate lobbying.

“Injustice anywhere is a threat to justice everywhere”

Martin Luther King

Who Oversees FINRA?

The SEC oversees FINRA as well as other financial institutions in the market. They are granted the power and authority through congress to make real change happen.

So why isn’t Gary Gensler taking action?

Missing Gary Gensler Have You Seen Me

Although we’d like to think the SEC is on the sidelines coming up with solutions, we have not heard from Gary Gensler in regards to the market manipulation that continues to occur with AMC and GameStop.

Mainstream media is finally shedding light on these problems. Now we just need our leaders to begin taking action towards a definitive solution.

What Do Retail Investors Want From The SEC?

Retail investors want a chance at a fair market where the stock they are invested in is not manipulated through naked shorting and dark pool trading.

  1. Eliminate dark pool trading
  2. Ban naked shorting / FTDs
  3. Liquidate/margin call overleveraged hedge funds

Hedge funds shorting AMC, GameStop, and other ‘meme stocks’ are preventing retail investors from participating in a fair market.

Treasury Secretary Janet Yellen just stated, “there are issues relating to hedge funds and the possibility of leverage..”

You can read the full article here.

Hedge funds are also proving to be the cause of disaster in the markets and are a real threat to the American people.

These financial institutions have been the culprits of devastating economic recessions throughout history. The Feds have just as much of a role to play as the SEC does. The Feds are currently dealing with their own scandal too.

Policy makers are stepping down for illegally trading in securities and playing major roles in monetary policies.

The American people and those who stand by us are holding our leaders accountable. Gary Gensler and the SEC should have taken action many months ago. The next best time to take action is now.

“Injustice alone can shake down the pillars of the skies, and restore the reign of Chaos and Night”

Horace mann

Your Voice Is A Weapon

If you agree that what’s occurring in the markets is a form of injustice, speak out on it. Leave a comment below. Tag government leaders on social media, share this powerful message, make a RUCKUS.

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Fed’s Kaplan And Rosengren Resign In Market Manipulation Scandal

Kaplan and Rosengren resign from FED
Rosengren and Kaplan Resign

BREAKING NEWS: Dallas Federal Reserve Bank President Robert Kaplan, and Boston Fed President Eric Rosengren resign after trading in securities despite playing key roles in deciding U.S monetary policy, via REUTERS.

This news can explain why so much market manipulation has been allowed. Leaders have been allowing illicit activities to persist in the markets for their own financial gain.

How soon will retail investors be allowed to participate in a fair market?

Franknez.com

Welcome to Franknez.com – today’s blog post will be brief. I want to uncover more of the manipulation occurring in our markets today.

Lets get started!

How The Fed Took Control Of The Economy

“The central bank is turning into a hedge fund”, says David Rosenberg. This statement alone is quite shocking. David said this about a year ago when the Feds began to pump more money into the markets.

AXIOS believes the market is now governed by an unelected and large independent group of technocrats that directs it by creating massive amounts of money and buying assets with it.

Will people be held accountable? Possibly to a certain degree. I believe we will see more people walk out with millions to billions of dollars instead of serving prison time.

Regardless, our country needs a new generation of delegates and people in power.

Both Kaplan and Rosengren are under high scrutiny for buying and selling millions of dollars in individual stocks. According to WSJ, 11 out of 12 Fed banks disclosed the financial profiles of their leaders.

Is The Fed Fit To Serve Its People?

Fed chairman Jerome Powell noted his displeasure with the trading controversy, saying “no one is happy about it”. Jerome vowed new rules would be put in place.

Both Kaplan and Rosengren said they would sell all their individual stock on September 30th. Kaplan and Rosengren both actively traded stocks and other investments while also helping to set monetary policy.

I mean, we can’t let two people give the Feds as a whole a bad rep, can we? Be sure to subscribe to the blog for more market and finance news.

Franknez.com

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Read more on: Stock & Crypto News


What Are NFTs And How Will They Change The World?

What Are NFTS
What Are NFTs?

If you haven’t heard of NFTs yet, you will. This technology is a little mind boggling in the sense that it’s so simple yet revolutionary.

NFTs are going to change the way we transmit data and connect with one another. The NFT community is growing now quicker than ever.

franknez.com NFT

Welcome to Franknez.com – today I want to discuss what an NFT is and why this technology is growing so quickly.

Lets get started!

What Are NFTs?

NFTs, also known as non-fungible tokens, are a unit of data stored in blockchain technology. This data is usually stored in a piece of artwork containing exclusive access and prizes for holders.

If you’re familiar with Gary Vaynerchuck, his startup VeeFriends is actually a collection of his personal NFTs. Gary has built an NFT community where buyers gain exclusive access to VeeCon, a multi-day conference focused around business, marketing, creativity, entrepreneurship, and a lot more.

What Are NFTs Used For?

NFTs are tokens that may grant access to exclusive content, future products, prizes, or events.

Each NFT, depending on how the seller uses it, can unlock different levels of membership access. This is why NFTs are usually so expensive.

How Are NFTs Going To Change The World?

NFTs are cutting out the middle-man. You can now sell NFTs directly without distributing tickets to your audience or community. Business owners and entrepreneurs will be the ones to take advantage of this blockchain technology.

NFTs are also going to allow content creators to connect with the community and sell tokens for exclusive content and build a one of a kind art from that specific content creator.

These artworks are designed so that you cannot copy or duplicate them. They were originally created to protect or copyright artists’ work. This means only one person could own the original, or a few people could own part of a scarce collection from that artist or content creator.

NFTs are changing our world by how we communicate with one another and transmit information.

For consumers, it can be a great way to keep something very personal and special from your favorite content creators.

How Do You Buy NFTs?

Because NFTs are Ethereum-based tokens, most marketplaces only accept ETH as a form of payment.

And if you have never purchased crypto before, check out this article on how to open your account through a crypto exchange. Here you’ll be able to purchase Bitcoin, Ethereum, ADA, Doge, and other cryptocurrencies.

OpenSea is the world’s first and largest NFT marketplace.

How to buy NFTs
How To Buy NFTs

Anyone can create and buy NFTs here, even if you’re not a content creator or have any knowledge in blockchain tech.

Can NFTs Go Up In Value?

If you’re a collector, then you’re more than likely building a portfolio that may go up in value over the course of a few months to a few years. NFTs certainly have the potential to go up in value depending on who the creator is.

You just never know how far this certain content creator will go or who they will impact society one day. Buying an NFT from their younger selves today could prove to be a rare piece of art in the future.

Will NFTs Become Mainstream?

My personal take is they will. The NFT community is growing every day and as more content creators find ways to provide more value to their communities, NFTs will continue to be a source of exclusivity and connection.

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Read: How to invest in Bitcoin cryptocurrency for beginners


When Do Shorts Have to Cover Their Positions? (AMC)

When do shorts have to cover their position?

Every retail investor holding a position in AMC wants to know, when will shorts cover their positions? And I don’t blame you.

This one is a little tricky. See, it’s like saying, “when will retail investors sell their positions?”

franknez.com - when do shorts have to cover their positions AMC

Welcome to Franknez.com β€“ the blog where you can digest content on personal finance, side hustle ideas, entrepreneurship, and trending investing topics.

Let’s get started!

Retail investors have been waiting patiently for AMC Entertainment stock to rip. You’ve been holding through the ups and downs and even buying the dips.

So, why aren’t shorts covering their positions yet? What do retail investors need to do to squeeze hedge funds out of their money?

Are shorts obligated to close their positions?

Let’s start with the fundamental question. Are shorts obligated to close their positions? Now, there are currently no rules regarding how long a short can hold before closing out their position.

However, lenders do have the right to demand the seller closes their position with minimal notice. This is rare and only occurs if the the seller isn’t paying the interest fee, or the interest fee is ridiculously high.

“A short position may be maintained as long as the investor is able to honor the margin requirements and pay the required interest and the broker lending the shares allows them to be borrowed.” – Investopedia

When an interest fee is extremely high, it makes a stock difficult to borrow which obligates the short seller to close their positions.

AMC’s short borrow fee rate as of 9/24 is: 0.80% according to Stonk-O-Tracker.

Keep an eye on this interest as it will determine just how much shorts are bleeding. Hedge funds currently shorting the stock are losing money every day. And regrettably for them it’s getting worse the longer they hold. I can feel a short squeeze coming.

Why does the short borrow fee matter?

The short borrow fee is an interest that shorts must pay for borrowing AMC shares. And although the interest continues to rise for them, shorts aren’t going down without a fight.

AMC short borrow fee interest

They will hold in hopes to drive AMC’s share price right back down to the floor. However, AMC is trending upwards now and has absolutely no intention of going back down.

Analysts data and AI predictions all point towards a high possibility of a short squeeze. Even Fintel’s short squeeze score has been as high as 80-90% in recent weeks.

AMC Short squeeze Score Fintel

This short borrow fee is going to continue to go up as AMC stock becomes harder to borrow.

For short sellers, a low short borrow fee is in their favor. They would much rather pay the fee and stubbornly continue to hold their positions against retail investors.

But, if the short borrow fee is high enough to hurt the borrower, they will be more inclined to close their positions before losing an excruciating amount of money.

The short sellers conviction is strong, even though they’ve already lost. It’s only a matter of time before they have no other option than to forfeit.

How can retail investors help drive the short borrow fee up?

Retail investors can help drive the short borrow fee up simply by holding their positions.

When AMC squeezes, retail investors will have to continue to hold their position on the way up. Not every short will close their positions immediately.

If we begin to see AMC’s price action rise monumentally, it is important to understand that there’s more potential because not every short seller has closed their position.

We might see AMC drop a little after it peaks. However, if retail investors continue to hold, it’s only going to continue squeezing more and more shorts resulting an further perpetual gains.

Melvin Capital suffered 49% loss 1st quarter

Community, this is massive. Melvin Capital is a hedge fund that has been shorting both AMC and GME stock. These are the people trying to drive the stock to the ground.

Melvin Capital suffered a 49% loss it’s first quarter of 2021, via. Markets Insider. Unfortunately for them, this is only going to get worse.

Retail investors are hodling to the moon. They are not waiting for $100 price action anymore, and some are certainly not waiting for $500+ share price anymore. The Reddit community is set new standards for the AMC’s stock price.

Here’s why this matters:

  • Not only are shorts losing money every day but huge hedge funds are bleeding billions of dollars due to retail investors holding
  • This is a huge win for retail investors – our favorite companies have been saved
  • Unless shorts close their positions, hedge funds will continue to suffer
  • Interest rates will continue to skyrocket for short sellers, enabling them to close their positions sooner than later
  • An AMC short squeeze might be closer than we think

Here’s what retail investors can do:

  1. Continue to hold your positions, it’s free
  2. Buy the dips to counter any short attacks
  3. Share articles on social platforms that can provide value to the community and keep everyone informed
  4. Keep a close eye on the stocks performance so you do not miss the squeeze

Hedge funds are not going to be able to recover from this. Yes they can possible receive help from huge banks but this too will be at a cost.

Furthermore, borrowing money from banks won’t change the fact that shorts still have to cover their positions. Retail investors are buying AMC stock every day. Shorts are fighting a war they cannot win.

Important advisory: I am not a licensed financial advisory. I simply have a passion for finance and writing.

What happens when a short covers their position?

A short position will be profitable if it is covered at a lower price than the initial transaction; it is at a loss if it is covered at a higher price.

In AMC’s case, shorts who drove the price down to $5 but are still holding to-date are at a loss. AMC is currently trading at $40.01 as of September 24th.

When there’s a ton of short covering happening in a particular stock, it will result in a short squeeze.

What is a short squeeze?

What is a short squeeze?

A short squeeze occurs when a stock spikes in price action due to an increase of short-sellers closing out their positions.

We’ve seen a short squeeze happen with both GameStop and Volkswagen. GME topped almost $500 while Volkswagen spiked shy below $1,000 back in 2008.

Short squeezes are massively profitable for retail investors. These one-time phenomena are how people are able to accumulate wealth in such little time.

Read: How high can AMC stock price skyrocket up to?

So, when will AMC shorts cover?

Instead of exiting, short sellers are holding. Some shorts might be waiting for a more favorable price to close their positions.

Another way shorts will be forced to close their positions in AMC is through a margin call. This is when their accounts don’t have the sufficient funds to meet the accounts minimum amount of dollar required. At this point they are forced to liquidate.

Now, because there’s no rule to how long they can hold their positions, they’re in the long game like most retail investors waiting on a short squeeze to happen are.

The good news is that AMC bankruptcy is no longer on the table and Wall Street analysts are even saying the industry is on a solid path to resurgence, via Hollywood Reporter.

As we continue to see a high utilization and the short borrow fee increase, we can only expect shorts will cover sooner than later.

Related: AMC Margin Call: The Squeeze is Inevitable

What percent does the short borrow fee have to be?

AMC’s short borrow fee is currently at 0.80%, via. Stonk-O-Tracker on 9/24. AMC stock is getting harder and harder to borrow. There seems to be some sort of manipulation here. The interest should be much higher.

Short sellers have been borrowing millions of shares to short. It seems they thought AMC’s 500 million share dilution was going to go through. Funny enough Adam Aron, the CEO and President of AMC Entertainment actually scrapped that idea leaving short sellers in a deeper hole.

I personally think retail investors are going to experience the short squeeze of a lifetime. Strap in.

AMC’s price action will continue to go up

Journalists and analysts alike are now claiming AMC to be a big buy. Shorts can continue to hold their loses on paper for months to come, or close their positions while it’s at the current price action.

Closing now is recommended due to an overwhelming amount of attention AMC Entertainment has received.

With new titles coming to AMC movie theaters soon, we’re only going to continue to see a surge in price action due to an increase in the company’s sales revenue.

Even if shorts continue to hold, lenders will eventually run up the interest rate again and force them to cover. If you’re a retail investor reading this article, I’m already celebrating your success. Leave a comment below and let the community know what a short squeeze would mean for you.

AMC is on the ‘Potential Short Squeeze’ list via. Fox Business

fox business amc short squeeze list

In case you missed it, a squeeze is very possible, via FOX Business. All the data at hand point towards the inevitable for both shorts and retail investors.

Retail investors holding AMC stock are going to experience a once in a lifetime opportunity.

Read: What The Fool isn’t telling you about AMC could hurt you

And lastly…

A quick message from Frank Nez

A lot of you have been sharing my posts on Facebook Groups, Reddit, Discord chats, and Twitter. Words can’t explain how grateful I am for you sharing positive and valuable information for new retail investors to look at. So, I published this video to tell you just that. Thank you.

You can support the blog on Patreon.


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Robinhood Acquires Say Technologies In $140 Million Cash Deal

Robinhood acquires say technologies
Robinhood acquires say technologies – investing news

Robinhood (NYSE: HOOD) just acquired Say Technologies for $140 million cash. This is the same company AMC Entertainment used to connect with its shareholders.

Say Technologies allowed the AMC community to ask Adam Aron questions to be answered during the Q2 earnings conference call. Retail investors already want out.

It seems that the community does not want to partake in anything with Robinhood’s name on it. Here’s what’s going on.

franknez.com

Welcome to Franknez.com – today I’m going to be discussing finance news with the community.

Lets get started!

Retail Investors Provided Say Technologies With Confidential Information

One of the biggest reasons retail investors are disconnecting from Say Technologies is because of how much confidential information was provided to the company.

Now, AMC shareholders are concerned their information is at risk with Robinhood acquiring the company. Robinhood is an affiliate partner to the unregulated hedge fund monster, Citadel Securities.

Retail investors fear that the information they provided the company may be used against them as Robinhood is no longer a trusted broker in the community.

What Information Does Say Technologies Track?

According to their website, Say Technologies tracks the following:

  • Investments
  • Trade History
  • Balances
  • Name and Contact Information
Say technologies

The company continues to use and store ongoing information for as long as you’re connected to the service.

Say Technologies Compromised?

Shareholders were required to provide the login information to their broker accounts which also calculated and registered their positions.

Now, retail investors aren’t so sure they can trust the company with Robinhood overseeing it.

If you signed up with Say Technologies you can still unlink your brokerage account. Be sure to change your brokerage account password once you’ve disconnected to ensure your private information is no longer monitored.

Did you sign up with Say Technologies?

Let me know in the comment section below. Will you keep using the service or will you be unlinking?

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Read: AMC Entertainment to accept Bitcoin as online payment


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