Tag: Hedge Funds

BREAKING: NSCC-2021-010 Prevents Naked Shorting and FTDs

NSCC AMC
NSCC-2021-010 AMC News

Community, this new proposal is massive. The NSCC is taking accountability as a third party between lenders. We now have a referee in the market saying everyone needs to play fair. Here’s what’s going with proposal NSCC-2021-010.

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AMC is about to start climbing again. What is going on with the NSCC essentially cleans the slate for retail investors. The AMC community will now be able to drive AMC’s share price without illegal tactics in the stock market.

All the opposition that prevented AMC Entertainment stock from reaching $100 per share is no longer able to drive the stock down. The momentum that retail investors create moving forward will result in higher and quicker upswings in AMC stock.

Breaking away from $30-$40 range

This could very well be the last straw for hedge funds and short sellers. There’s nothing after plan z except to close their positions because things just got a whole lot tougher for them.

All retail investors need to gamma squeeze AMC at this moment is to bulk up on the stock. While the AMC community has already been doing this, short sellers only increased their dark pool trading usage.

This illegal backdoor has allowed hedge funds to heavily short AMC stock through a rinse and repeat process retail investors have no control over. Well, the NSCC is stepping in to take accountability for every transaction being made in the market.

The NSCC will act as a third party to oversee transactions between lenders to stabilize the stock market. This means the markets will not be as volatile. And this is all possible due to proposal NSCC-2021-010. But more on that in a moment.

Time to play offense

Right now is the time retail investors will have to go on the offense if they are to drive AMC’s stock price back up. By drive AMC stock up, short sellers are negative millions of dollars on paper.

Charles Schwab have already raised margin requirements for both AMC and GME stock. JP Morgan on the other hand is implementing intraday margin calls up to 7 times per day to ensure short sellers have enough cash at hand to cover their positions.

This puts short sellers in the most extreme condition they’ve ever been. That’s because the more money they lose on paper means the more money they’re being expected to fund their margin accounts with.

Before, they were able to short the stock down to avoid immediate liquidation. Now, proposal NSCC-2021-010 prohibits short sellers from creating failure-to-delivers as well as naked shorting!

NSCC-2021-010
Source – NSCC-2021-010 Naked Shorts / Failures to deliver (page 4.)

This means they can no longer short AMC stock in extreme measures using naked shorting like they have been. The FTDs? All call options in the money should now be properly executed which will result in gamma squeezes that will drive up AMC stock up; breaking the $30-$40 range.

If you bought in during AMC’s climb, you’re about to break even real soon. And once you do, you’re going to begin seeing profits on paper shortly after.

The NSCC is going to watch every transaction

The NSCC just took away the enemies weapons and now it’s time for retail investors to charge. Hedge funds have been stripped from their power to manipulate AMC through naked shorting and FTDs.

Short sellers know cannot take another round of momentum. This momentum could cause immediate liquidation by brokers if margin accounts fall short of requirements.

The NSCC requires collateral

NSCC-2021-010 Market Regulators Preventing Naked Shorting and FTDs

If that wasn’t enough, the NSCC-2021-010 also requires that lenders have the collateral at hand when trading stock. So now hedge funds have JP Morgan, Charles Schwab, and the NSCC requiring them to keep an insane amount of cash at hand for once they get squeezed out of their positions.

NSCC cash collateral AMC
NSCC Cash Collateral – Source, page 11

The NSCC is essentially going to make sure everyone’s money is there before positions begin to get liquidated. This cash collateral is going to prohibit short sellers from overleveraging their positions.

You take out overleveraging and you take out the excessive manipulation. From this perspective, the biggest thing hedge funds fear the most is extreme volume from the community again.

We’re talking about executives selling their cars, homes, properties, assets, you name it; to keep their margin requirements up. Will it get to this point? Not unless short sellers close their positions now.

Hedge fund scrutiny intensifies

Hedge funds have been under extreme scrutiny recently. Democrats have even begun broadening consequences for hedge funds causing disruption in our economy.

In fact, if the Capital Markets Engagement and Transparency Act passes, hedge funds would be required to publicly disclose their bets against stocks as well as dark pool data.

The SEC just recently cracked down on 27 financial firms for FTDs. And although Citadel was not on that list, the feds are investigating them as well as Robinhood for market manipulation.

There might have been a point where it felt like short sellers had the upper hand in the markets but not anymore. Retail investors now have the SEC, NSCC, and the Feds auditing the financial system.

The AMC community is forcing change. If you’ve ever shared a FrankNez article, a Trey’s Trades video, or shared a Reddit post, you’ve manifested change.

I’ve said many times before. It’s you as an individual within the community that has so much power to make things happen in the real world. The AMC community and the movement will be recorded in financial history.

Millionaires in 2021

About 625k people are becoming millionaires every year. 2021 is going to see hundreds of millions of people become millionaires this year alone. This biggest transfer of wealth is going to be historic.

It will be up to you to learn how to manage it, invest it, and create a better world for future generations. The torch is being passed down to us so be patient.

If you found this article to be of value I only ask that you please share it and help other apes in the community get a grasp on this amazing news. I’m going to continue to cover AMC as this incredible chapter unfolds, inevitably coming to a close.

If you haven’t gotten a chance to explore the blog be sure to do so. I’ve been producing content on long term stocks and crypto for diversification.

Here’s a personal invitation to my Discord group, AMC with Franknez.com. I created this safe environment for retail investors to discuss AMC stock, share memes, and stay updated daily.

Feel free to comment below and don’t forget to follow me on social media to be notified when a new blog post is published.


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How Do Hedge Funds Manipulate The Stock Market?

Are you a new retail investor? Bookmark these investing tips from Frank Nez.

How Does The Media Manipulate The Stock Market?
Trusted and beloved sources show their true colors

We’ve recently seen a lot of misleading headlines in attempts to alter the course of the inevitable. Today we’re going to talk about AMC and how hedge fund partners are playing dirty to steer the public from the free trade. So, how exactly do hedge funds manipulate the stock market?

how do hedge funds manipulate the stock market - franknez.com

Lets get started.

The power of the media: MarketWatch removes AMC as the most shorted stock

The investing community knows AMC has been the most shorted stock in the market for quite some time now. However, on Wednesday February 24, it simply disappeared from MarketWatch’s website.

Stock Market Manipulation - MarketWatch

AMC was not assorted to a place on the list, the ticker was simply removed from the eyes of the curious retail investor.

You can see it for yourself here –> Link

And no, the ticker symbol all the way at the bottom is not AMC theaters.

Why MarketWatch removing AMC from the list is manipulation

It’s a no brainer hedge fund partners need to stick together. When AMC squeezes, hedge funds are going to lose a lot of money.

Retail investors know this. It’s the newcomers who are looking to invest in AMC that are going to be misguided. See, the more people invest in AMC means the more the share price is driven to the moon. Something hedge funds betting against AMC cannot afford.

According to The Fool – You should invest in this or that “instead”

The Motley Fool is a source that provides its subscribers with hand picked stocks with potential gains.

With tremendous respect, stick to what you do.

The integrity of this company is to help investors pick winning stocks, not to divert them from a stock due to it’s potential upside that can cause hedge fund partners to lose billions of dollars.

For quite some time now we’ve been seeing The Fool attempt to divert the public from getting in on AMC stock by pumping negative headlines.

This ladies and gentlemen is how the media can manipulate the performance of a stock. This influence can sway a new retail investor from adding to the surging volume of shares being purchased in the market.

To the new retail investor – make your financial decisions based on your own due diligence. Not on what media sources get paid to write about.

Yahoo Finance & InvestorPlace

Platforms such as Yahoo Finance & InvestorPlace have also had their fair share of negative headlines to try and divert the public from skyrocketing AMC to the moon.

With InvestorPlace even throwing a jab at GME investors saying, “If You’ve Made Money On GameStop, You’re Not An Investing Genius”.

Perhaps not, but we’re pretty certain these investors are wealthier than the person who came up with that punchline.

These media sources have been discouraging new retail investors from investing in AMC since the beginning of the year although the stock is up year-to-date!

AMC’s average volume is now 155.5 million

AMC’s average volume is now a whopping 155.5 million. Retail investors have been holding and buying through red and green days.

The heavy volume is a sign retail investors continue to be bullish on AMC stock.

What is a short ladder attack?

A short-ladder attack is a strategy performed by short-sellers where they bid on the stock at a significantly lower sell price and purchase it from one another. Thus, driving the share price lower.

Retail investors have seen this tactic from hedge funds for quite some time now.

Manipulation in the stock market

Manipulation in the stock market - Robinhood
Robing Hood?

I’m sure you’ve all heard of the Robinhood scandal. This is another form of manipulation in the stock market caused by the halt of buying power. Robinhood prevented its users from buying stocks such as AMC and GME (GameStop) during GME’s bull run.

Although restrictions aren’t as tight anymore, we’re beginning to see trusted and beloved companies get exposed as hedge funds worst nightmares become a reality.

The stock market is no longer their playground. We’re now seeing more people learn about how the stock market moves. This is revealing a lot of unethical behavior on the hedge funds side that should be deemed as illicit activity.

Read: Why new retail investors investing in AMC should avoid Robinhood

A house of cards, r/superstonks (Reddit post)

A Redditor just posted an insane amount of DD on Reddit. This long form post discuses the transition from paper filled orders in the stock market to the use of computers going tracing back to the mid 80s.

The post reveals the beginning of issuing naked shares. We’re also learning that a lot of transaction are being held by the actual institutions that are shorting these stocks.

Robinhood routes more than half of it’s customers to Citadel. This information has now been disclosed via the Washington Post.

You can read the full Reddit post here.

Trey’s Trades does a quick breakdown on this DD as well. The video is embedded for your viewing pleasure.

With all this in mind, manipulation in the stock market has been able to keep AMC’s share price below $20 for the longest time. AMC is currently consolidating at $55 per share.

I also included this DD on the post, “Why hasn’t AMC squeezed yet?“.

Barclays is fined for inaccurate books and records

Stock market manipulation
Barclays CEO, Jes Staley

Reports by Finra have been made public detailing multiple fines on Barclays for inaccurate books and records.

Barclays is one of Citadels clearing houses. Although the fines won’t make a dent in their pocket, the unethical behavior of these clearing houses continue to be exposed.

This isn’t the first time Barclays has run into issues with fraud. There just simply hasn’t been a community to be loud about these investigations. Retail investors are now sharing this information and bringing light to all malpractice.

Positive news for retail investors

Melvin Capital hedge fund manipulation
Melvin Capital suffers a 49% loss its first quarter in 2021

With all this being said, retail investors should be aware that one the biggest hedge funds shorting AMC and GameStop have suffered a 49% loss their first quarter.

This ladies and gentlemen is justice. As long as both retail investors and shorts continue to hold, hedge funds such as Melvin Capital will continue seeing massive loses.

It costs retail investors nothing to hold, but it costs shorts and hedge funds money every day. It’s only a matter of time before a squeeze occurs, no matter how manipulated the stock market gets.

Related: Citadel loses billions: Hedge funds are getting dragged down

Franknez.com fights The Fool, Yahoo Finance, and InvestorPlace

Franknez.com is fighting for the community against malpractice from all news media shunning AMC and GameStop.

This platform will serve as a positive media outlet for the community and only spread factual documentation, and news related cited-sources.

Finance | Knowledge | Freedom

I will not encourage retail investors to take a position in AMC. However, I will outline the facts and evidence to help you make your own personal financial decision.

Read: A message to the SEC on fails to deliver (AMC)

How can retail investors bring awareness to the community?

Franknez.com

Retail investors can expose false information on social media to shine light on manipulation tactics driven by hedge fund partners.

Sharing factual and positive articles relating to the performance or analytics of a particular stock is another way the investing community can stay united.

Franknez.com is a platform for the community. I am 100% pro retail-investors and I will continue to share DD that point towards an AMC short squeeze as well as any relevant information that exposes malpractice in efforts to raise awareness.

Read: Media tries to scare people out of their money: AMC saga

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What Are Dark Pools in Stock Trading? (AMC)

What are dark pools in the stock market?

Dark pools are somewhat of a mystery to new retail investors. We hear about them a lot within the AMC community, especially through Trey’s Trades. We know that they allow hedge funds to make undocumented trades behind doors.

So what exactly are dark pools? And, is something being done about them? I want to expose this subject today.

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

Lets get started!

What is a dark pool?

A dark pool is basically a financial forum or platform for trading stocks or other securities. Dark pools are privately organized and are known to be an alternative trading system. These ATS’s are seldomly regulated.

The concerns regarding dark pools and AMC Entertainment has been that we simply don’t know what these communities are hiding from the SEC. This slimy strategy is what’s known as backdoor buying and selling.

Why are dark pools used?

Dark pools give hedge funds an advantage in the sense that they are able to conceal their moves. We can only speculate what type of information is being hid from the public here. Details within these dark pools are not accessible by the trading public.

This lack of transparency may allow dark pools to conceal information such as:

  • The illicit activity of naked shorting
  • Explanations behind millions of fails-to-delivers
  • Any discussion regarding malpractice in the market
  • Inaccurate filings and reports

Dark pools can very well be the place where short sellers get together to discuss strategies and the ruining of companies.

It could be the reason why we don’t know how many short sellers are shorting ‘meme stocks’ and other information that would otherwise prove a fair market for both institutions and retail investors.

Is the SEC looking into dark pools?

SEC dark pools gary gensler

In a recent article regarding the high possibilities of automated margin calls, I point out some research I found on Gary Gensler, Chairman of the SEC.

He publicly announces that the SEC has been observing hedge fund activities since January and are taking action to regulate these entities shorting AMC and other ‘meme stocks’.

One of Gary’s proposals states that hedge funds could face 13-F filings. These filings would provide the SEC with insight on equity as well as dark pool disclosure.

I trust we will begin to see this new chairman make the right calls. It’s time for change and our generation will be the ones to make it happen.

Dark pools could explain the low short borrow fee

Could dark pools be the explanation as to why the short borrow fee is so low for hedge funds shorting AMC and GameStop? Now, because so much information is in the shadows, this of course is only speculation.

According to Investopedia, dark pools can charge lower fees than exchanges because they are often housed within a large firm and not necessarily a bank.

dark pools Investopedia
via. Investopedia

Why do these large firms (hedge funds) have this much power in the first place? This advantage is completely deceitful and unruly. It really does make you look at the SEC and think why in the world has no one taken action sooner.

Are dark pools illegal?

Dark pools are not illegal but they are certainly unethical. Per the SEC, we can expect real regulation to surround these exchanges relatively soon.

Bloomberg Tradebook

bloomberg tradebook dark pool SEC

The Bloomberg Tradebook is a dark pool that is owned by Bloomberg LP. Bloomberg is a financial media company that has been trashing AMC Entertainment for quite some time now.

Bloomberg Tradebook Dark Pool AMC Stock

Bloomberg has published FUD (fear, uncertainty, and doubt) articles in efforts to scare people out of their money. This raises questions regarding the ethics of these manipulators who gather behind close doors in order to stray the public from squeezing shorts out of their positions.

Other dark pool exchanges

Institutions such as Morgan Stanley and Goldman Sachs also offer private trading to their clients through the use of dark pools.

The main concern here is that the information that is made public to the SEC can easily be manipulated. Mainly to conceal foul play and inaccurate information.

The information that is available on Stonk-O-Tracker regarding AMC and dark pools is the percentage of trading within these forums/exchanges; which is usually relatively high.

How does this affect AMC stock?

AMC stock dark pools

These private exchanges may be illegally trading naked shares behind close doors refraining AMC’s stock price from further climbing. Although AMC is up nearly 3000% year-to-date, hedge funds continue to attack it through sell walls and short ladder attacks.

And since these private forums could potentially have been getting away with inaccurate reports, the possibility of foul play in the market is certainly there.

How can retail investors fight these predatory trading practices?

Retail investors have several advantages over hedge funds shorting AMC and other ‘meme stocks’. The community must stay the course if they are to squeeze these short sellers out of their positions.

Not only are hedge funds losing billions, but the SEC has finally begun to implement new regulations that could automate margin calls in overleveraged accounts. I’m personally not worried. These house of cards are falling at the times they should.

Read: 6 things retail investors holding AMC stock should know

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How to Successfully Invest in AMC Stock

How to Successfully Invest in AMC Stock
#AMC #AMCtothemoon #DiamondHands

Retail investors are strategizing a way to short squeeze AMC stock. What does this mean? It means hedge funds lose billions of dollars and the average investor has the potential to cash in life-changing numbers.

For the new retail investor that cut their loses as the stock was going down, well you might have just gotten off at the wrong train stop.

Forums are beginning to shed paper hands, or newbie retail investors who cut their loses before the objective, or who took early profits of AMC.

So, how are retail investors successfully investing in AMC stock and why has the stock hit a new level of support? Here’s what we do know.

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

Lets get stared!

Why AMC? What’s so special about this stock?

AMC is currently the most shorted stock in the market. This means hedge funds and short-sellers are betting on AMC Entertainment to completely vanish from the face of the earth.

However, r/wallstreetbets took the opportunity to pump the price action by doing exactly what Keith Gill did with GameStop (GME).

AMC was on StockMarket’s #1 place for the most shorted stock in the market but it seems they’ve taken it down for some strange reason.

Read: How Do Hedge Funds Manipulate The Stock Market

AMC number one shorted stock in the market
Here’s the screenshot prior to the complete obliteration of the stock on the list.. retail investors smell foul play.

In the midst of financial history

What we’re experiencing today ladies and gentlemen is a financial war between retail investors and short sellers.

Investing in AMC has uncovered just how corrupt our financial system is. With this being said, hedge funds will no longer be able to get bailed if retail investors win this war.

This is exactly why hedge fund partners are doing everything they can to steer the masses from investing in AMC. We’re certain you’ve seen bogus headlines everywhere online.

What are retail investors doing that’s keeping AMC afloat?

AMC experienced a gamma squeeze when it hit $20 per share back in late January where it gradually plunged back down and met a level of resistance at $5 per share.

Although we’ve recently seen AMC share rise up to $11 after hours, it looks like it has established a second level of resistance at $8 per share. What we’re seeing here are steps of resistance that are gradually increasing.

So, how are retail investors pulling this off?

Easy, retail investors continue to hold their positions. They are not selling and they are even buying the dips.

Short-ladder attacks from shorts might have caused new retail investors to sell early, but not the majority. The majority of retail investors holding AMC positions are looking to squeeze the shorts out of their positions.

And it’s only a matter of time before short-sellers close their positions due to the accruing interest on borrowing AMC shares.

Is this what’s going to cause an AMC short squeeze?

AMC short squeeze

Absolutely. Retail investors obtained all the knowledge they need to make a short squeeze like GameStop’s possible.

The answer to how to successfully invest in AMC? Buy the dip (market on red) and hold your position (hold the stock).

How high can AMC share price go up to?

Financial experts are speculating the stock price can go as high as the shareholder demands.

In fact, hedge funds can end up going bankrupt due to two major plays. 1. the accumulating interest on the borrowed shares and 2. retail investors conviction to hold the stock.

This means that if you own AMC stock and continue to hold throughout the short-term loses and gains, you now hold a stock that short-sellers eventually need to buy back to cover their positions.

And guess what? If you don’t want to sell it to them for $15 that’s okay. The price will go up and if you decide you don’t want to sell it for $50, that’s fine too.

This is how retail investors are successfully investing in AMC. They’re buying the dips and continuing to hold their positions until the stock price continuously experiences gains and meets new levels of support.

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

Is it too late to get in on AMC stock?

If you’re like most retail investors who are speculating the stock price to rise anywhere from $100-$1,000+ then it is not too late to get in on AMC.

See, retail investors holding AMC positions aren’t selling at the sight of $20 or even $50 per share. Their vision has to do with life-changing numbers, not a quick profit.

Read: Is it too late to get in on AMC stock?

How soon will we see a short squeeze?

There are many speculations to when a short squeeze will occur.

Right now we know that AMC is the most shorted stock in the market and hedge funds don’t want people investing in it.

We also know that shorts will be covering their positions very soon due to the accruing interest on the shares they’ve borrowed. Depending on how many close their positions, retail investors can expect a series of gamma squeezes that lead to the inevitable short squeeze.

Short’s can hold their positions as long as they want to so we can’t say for sure when any sort of squeeze will happen. However, the borrow fee interest on shares they’ve borrowed is steadily increasing. In a month we’ve seen this interest go up from 3% to a whopping 9%!

So they’re holding alright.

Retail investors will need to be patient if they are to see a full on squeeze like that of GameStop’s, if not bigger.

Read: How soon will we see an AMC short squeeze?

Are you an AMC shareholder?

Consider sharing this post with a fellow ape. With a ton of backlash online from hedge fund partners, the community can use some positive articles.

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