Tag: Meme Stocks (Page 1 of 16)

AMC’s Cost to Borrow Has Hedge Funds Burning Money

January 30, 2023 / Frank Nez / 24 Comments

AMC Cost to borrow — Market News: AMC’s cost to borrow increases

AMC’s cost to borrow continues to rise.

In the past, we’ve seen how important this data has been regarding major price runup.

Not only does a high cost to borrow incentivize short sellers to close their positions, but it gets AMC one step closer to a squeezing.

In this article I’m going to break down the number figures and explain why the CTB and other data is pointing AMC in the right direction.

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Cost To Borrow explained

The cost to borrow is the average annualized percent (%) of interest on loans hedge funds have to pay.

For example:

AMC has approximately 184.67 million shares on loan as of the publication of this article.

Hedge funds are paying 213% annually on these loans.

This translates to $393.34 million per year, or $32.77 million per month.

In the meantime, it’s costing retail investors $0 to hold their positions in AMC stock.

Hedge funds will continue to pay more as AMC’s cost to borrow rises.

Free Live Daily Updates: AMC Short Interest + more

Short interest

AMC’s current short interest is: 22.96%.

This is the percent of a company’s free float that is shorted.

AMC is a short squeeze play because of this number figure.

This number figures tells retail investors that there is a high interest in shorting the company stock.

It’s this data that allowed retail investors to foresee big price moves in January and in June of 2021.

This same data tells investors today that AMC has the potential to hit another all-time high.

Some of you might be familiar with the correlations between short interest and rise to $72 per share last year.

AMC’s short interest dropped from 22% to 20%, then to 14% when it ultimately skyrocketed in price from $14 per share to $72 per share.

Despite what mainstream media has said in the past, no, AMC’s short interest is not too low to squeeze shorts from their positions.

Will AMC’s cost to borrow force shorts to close?

Hedge funds may be incentivized to close their short positions in AMC stock as the cost to borrow increases. At some point, it’s not worth paying that high of a fee to continue shorting a company that has fundamentally improved.

AMC is no longer the same endangered company it once was during the pandemic.

The company has improved every quarter since 2021 and has managed to get rid of most of its debt.

The world’s largest movie theatre continues to innovate and adapt to the changing world.

While online streaming threatened the industry, revenue from box office hits has proved people are still going to the movie theatres, despite the convenience of watching movies at home.

Short sellers are betting against a recovering and innovating film industry generating billions in revenue now.

As AMC continues to prove itself fundamentally and the cost to borrow rises, expect short sellers to begin closing their short positions.

Here is where patient investors will see massive returns.

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Occupy the SEC 2023 is Here: What’s Happening?

January 27, 2023 / Frank Nez / 8 Comments

Occupy SEC 2023: Latest market news - Franknez.com. — Occupy SEC 2023: Latest market news – Franknez.com.

Retail investors are occupying the SEC headquarters in Washington D.C. on January 27th and January 28th from 10am-4pm.

The 28th marks the two-year anniversary of the ‘meme stock’ frenzy of 2021 when Robinhood and other brokerage firms prevented investors from buying more shares of GameStop, AMC, and other heavily shorted stock in order to prevent firms from collapsing.

Regulators interfered with the people’s money by suppressing shares from rising.

Majority of investors within these communities never left, but rather hoped for justice and change in the financial system.

Retail investors have raised the issues of dark pools, OTC trading, and a number of conflicts of interest that pin regular investors to the ground.

Discussions surfaced in 2022 of protesting several SEC locations in the U.S. but never came to fruition.

Some retail investors argued against these actions while many more said they are necessary to get their voices heard.

Here’s what’s happening in the retail community today.

What is Occupy SEC 2023?

The objective of occupying the SEC is to demand changes in the financial markets and to protect retail investors and companies from naked short selling and short selling misconduct.

The nationwide protests will occur on January 27th and January 28th between 10am and 4PM at 12 SEC locations, including the SEC headquarters in Washington D.C.

Outrage filled the retail community when SEC Chairman Gary Gensler confirmed 90%-95% of retail orders are processed in off-exchange platforms where the true demand for retail orders is not being reflected on the lit New York Stock Exchange.

The Wall Street ‘watch dogs’ turned a blind eye to the Madoff events that occurred during the last decade and now they’ve turned a blind eye to naked short selling and several conflicts of interest happening today within the media, hedge funds, and even regulators.

Retail investors are saying ‘we know’ what’s happening and ‘we need you to take care of it now’.

Occupy the SEC 2023 are meant to be peaceful protests.

Communities are tired of their investments in their favorite companies plummeting all because they’ve become targets of aggressive short sellers and manipulative tactics from Wall Street.

Now they’re taking the word to the streets despite gaining much attention on social media.

The lack of market transparency since the events that occurred in January of 2021 have led to these protests.

Occupy SEC 2023 LIVE

You can watch Occupy the SEC 2023 LIVE here.

Retail investors chant “do your job” when referring to the inaction from the SEC.

What is Stopping the SEC from Taking Action?

SEC Chairman Gary Gensler told ‘We The Investors’ he understands retail’s frustrations.

But retail investors aren’t convinced.

The SEC Chairman says that short selling is a challenging area where the SEC is still working and pursuing focus on.

One of the biggest challenges according to Chairman Gensler is that Wall Street powers will send stacks of reports highlighting rebuttals on proposals aimed towards protecting retail investors.

This is primarily because certain proposals aimed to protect retail investors conflict with Wall Street money.

And because these firms are market participants, like retail investors, these documents must be legally reviewed.

The challenge only grows when Wall Street firms open lawsuits against the SEC when certain proposals become a direct hinderance to the way these companies perform.

Regulators are in a massive bind now, facing scrutiny from both Wall Street and the average investor.

FINRA, DTCC Under Retail Scrutiny

FINRA has received backlash after freezing the trading of MMTLP (Meta Materials) prior to its spinoff.

The self-regulated organization is also responsible for outsourcing ‘best execution’ with the best execution rule, according to SEC Chairman Gary Gensler.

This means FINRA has the power to execute orders in off-exchange and dark markets for ‘best execution’ and ‘price discovery’.

But Gary Gensler says that this rule is too important for it to not be in the SEC’s court.

The organization contains records of every trade made available intraday, including that of naked short sales.

FINRA requires firms to be able to meet their short sale requirements as well as have a process to close out fails to deliver within their required timeframes.

However, they’re the open window that allows these manipulative strategies to occur in the market.

FTDS (fails-to-deliver) are mounting up every month according to SEC data, and FINRA is unable to get firms to close out these obligations.

FINRA’s justification towards FTDs say that firms face challenges related to miscalculations.

But Chairman Gensler says this is too important for it to not be handled directly by he and his team.

DTCC Conflicts of Interest

David Inggs is Global Head of Operations at Citadel and is responsible for all products across asset servicing, billing, cash management, clearing, and has a board seat at the DTCC.

The conflict of interest has raised big concerns amongst the retail investor community online as Citadel has been a leading and one of the biggest short sellers in the stock market.

On January 28th, 2021, The DTCC waived $9.7 billion of collateral deposit, limiting institutional losses and limiting retail profits during the ‘meme stock’ frenzy.

The organization allowed several naked shares to flood the market prior to the massive jump in share prices only to help financial institutions in the end.

SEC Chairman Gary Gensler has said one proposal they’re looking at this year involves tackling conflicts of interest in the financial markets.

How can investors support the cause?

Retail investors have been supporting the cause for years now by distributing news and information that sheds light on real issues.

Franknez.com is a media blog that supports retail investors and protects the retail community from mainstream media propaganda.

You can raise awareness in your community by sharing this article, and others, or by using hashtag #OccupySEC2023 on social media.

Advisory: This article is intended for educational and informational purposes only. This article is not advocating violence of any kind during these peaceful rallies.

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Will AMC Stock Squeeze This Year? [Short Interest Data]

January 25, 2023 / Frank Nez / 18 Comments

Will AMC Squeeze in 2022? — AMC Short Squeeze – AMC Entertainment 2023 – AMC Stock Price – AMC Stock Squeeze

Will AMC squeeze This Year?

The Fool thinks you should sell your stock, but retail investors aren’t budging.

Mainstream media who serve hedge funds in a conflict of interest have been egging retail investors to not buy the stock all of 2021.

If you listened to The Fool who told you not to buy AMC when its share price was low, then you would have missed out on a trade that went as high as 3000% in gains!

While the runup to $72 per share might have caused AMC’s short interest to drop to 14% from 20%, AMC’s short interest has now gone up to 22%.

Ladies and gentlemen, AMC stock has plenty of room for growth in 2023.

Welcome to Franknez.com – the blog that provides retail investors market news with integrity. Today we’re discussing AMC’s short interest data to determine whether it will squeeze in 2023.

Let’s dive right into it!

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Mainstream media wants retail to lose

It’s no secret the financial platforms who have been attacking AMC stock are tied together.

Wall Street Journal’s parent company is News Corp., who also owns Barrons, MarketWatch, and DOW Jones Newswire.

Well, there’s a relationship between Citadel Securities’ CEO Ken Griffin and News Corp (he owns stock).

This creates conflict of interest because of the influence these people in power have who are shorting AMC stock.

Citadel Securities is one of the top 10 financial institutions shorting AMC stock.

So, let’s look at the data that shows whether or not AMC will squeeze in 2023.

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Also Read: AMC’s Rising Borrow Fee Rate Spells Trouble for Short Sellers

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AMC Short Interest Data (2023)

AMC’s short interest is currently at 22.10%.

The short interest tells us the percentage of a stocks float that is being shorted (shares have been borrowed and not yet closed).

Because AMC is heavily shorted at 22%, this is a short squeeze play in 2023.

A 22% short interest is equivalent to approximately 179.25 million shares on loan (shares that have been borrowed and have not yet been closed).

When AMC’s short interest dropped from 22% to 14% (6 points), the share price rose to $72 per share.

New short positions have brought AMC’s short interest up to 22% again meaning there are many shorts that have yet to be squeezed from their positions.

AMC’s short interest for 2023 is updated here daily for free, via Ortex.

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Whether AMC’s stock price is up or down, the short interest tells us a large portion of AMC’s float continues to be shorted.

The short interest is the main recipe for a short squeeze.

Related: Are Institutions Preparing to Close Short Positions in AMC?

Will AMC Squeeze in 2023?

AMC has a high enough short interest to squeeze shorts from their positions in 2023.

Sitting at 22% short interest, it’s more than enough to get the price up well into the high hundreds of dollars per share.

Whether regulators will investigate naked shares, FTDs, and other forms of counterfeit shares for hedge funds to cover is another topic.

AMC will need momentum if it’s to see another massive runup in share price.

Furthermore, hedge funds will lead their customers into losses for the second year in a row if retail investors continue to buy and hold the stock in 2023.

AMC Entertainment stock has plenty of room for growth and mainstream media doesn’t want you to know it.

Who is AMC stock for?

AMC stock is for the retail investors who are willing to take a little risk to multiply their investment through a short squeeze play.

A short squeeze play is a long commitment with incredible upside.

If you’re lucky enough to get involved in the ape community you’ll find yourself fighting for a fair and transparent market, where your voice means everything.

Reasons why AMC wont squeeze in 2023..

I’ve always been transparent with the community.

There are many of you who got in when I first began publishing the data early last year and are sitting on unrealized gains today.

And although AMC could have squeezed during various occasions last year, there are still things that can hinder AMC from squeezing this year.

Here’s a list of things that will refrain AMC from squeezing shorts from their positions:

Retail investors start selling AMC stock
Retail investors stop buying AMC stock
New buyers aren’t introduced to the stock or short interest data
Number of day-traders increase
Regulators don’t enforce margin calls / protect retail from market manipulation

The AMC community has not had a problem holding or buying the stock.

One of the biggest problems the community faces today is regulators not protecting retail investors against the predatorial strategies from hedge funds.

The community has always been a beacon for change.

Apes will need to voice market concerns to elevate awareness.

Related: These Two Signs Will Tell You a Short Squeeze is Over

Latest Market Regulation/Proposals

AMC stock had multiple chances to squeeze in 2021, however, hedge funds always found a loophole that would prevent them from reporting information, or trading stock in the lit exchange.

Market manipulation continues to be a threat to every retail investor in the market.

AMC Entertainment was on the brink of extinction, it was about to go bankrupt.

Hedge funds took this opportunity to overleverage their short positions in the stock, betting it would close forever.

Once retail investors got in and saved the company, the community uncovered a number of market manipulation tactics that allowed hedge funds to prevent the stock’s share price from soaring.

The fight for a fair market continues in 2023.

For the ape community, this is more than just a short squeeze play.

It’s about freedom.

Read: 10 myths about the AMC apes the media has wrong

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BREAKING: Executive Order 14032 Could Be a Big Deal for AMC Stock

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AMC Stock is Up +40% This Year: What it Means for Shorts

January 24, 2023 / Frank Nez / 1 Comment

Daily Market News: AMC stock news, updates + more.

AMC Entertainment (NYSE:AMC) stock is up more than +40% this year-to-date.

New developments this year may send share prices rising throughout 2023.

Streaming giants have figured out that the theatrical experience is key to their long-term success.

AMC Entertainment CEO Adam Aron praised Disney for scheduling Stephen King’s ‘The Boogeyman’ to be released theatrically on June 2nd, 2023.

The film was originally planned to be released on the streaming service Hulu.

“Theatres beat streamers! We salute producer 21Laps and our friends at Disney for this decision. The Boogeyman, a Stephen King adaption, was made for Hulu. But it tested so well, Disney is releasing it theatrically instead. Thank you Bob Iger, Alan Bergman, Justin, Tony, and Ken,” said Adam Aron on Twitter.

On the other end, CNBC says Netflix left $200 million on the table for not leaving Daniel Craig’s ‘Glass Onion: A Knives Out Mystery’ in theatres longer.

So, what does this say about the Wall Street short thesis that movie theatres are dead?

Here’s the latest AMC Entertainment stock market news.

Online Streaming Might Not Be What Wall Street Hoped For

AMC online streaming news - Netflix falls short. — AMC online streaming news – Netflix falls short.

In October, AMC announced its first ever Netflix showing in 200 theatres.

Glass Onion: A Knives Out Mystery starring Daniel Craig was released in the U.S. as well as the UK, Ireland, Italy, Germany, and Spain.

CEO Adam Aron stated on Twitter that success here could lead to more Netflix (NASDAQ:NFLX) movies at AMC.

The film earned $15 million at the box office but CNBC says the showing could have made $200 million if it had been kept in theatres longer.

The sequel to Johnson’s popular “Knives Out” opened in nearly 700 theaters, the largest release of any Netflix original film to date, 200 of which were AMC Entertainment theatres.

Unfortunately for the online streaming platform, hundreds of millions of dollars were left on the table.

Box office analysts say Glass Onion could have earned much higher earnings if Netflix had opted for a traditional wide release of 2,000 to 4,000 theaters.

What Are Experts Saying?

CNBC stated, “Netflix has backtracked on its previous policies, including by introducing an ad-supported subscription option, leading many to wonder whether the company should rethink its resistance to the traditional Hollywood movie release model as it looks for new ways to grow revenue. “

What Does This Mean for Short Sellers?

Daily Market News by FrankNez - Will AMC go up again? — Daily Market News by FrankNez – Will AMC go up again?

For short sellers betting against the movie theatre company, it could mean severe losses if share prices were to skyrocket again.

AMC Entertainment stock is still heavily shorted, currently weighing in at 21.92% short interest (updated daily).

All it takes is for a few short sellers to begin closing their positions for other short sellers to follow suit.

This chain reaction could trigger an AMC short squeeze in 2023.

Amazon insiders told Bloomberg the retail giant plans to invest billions in the movie theatre industry, aiming to release 12-15 movies annually for theatrical release.

That number of releases puts Amazon on par with major studios such as Paramount Pictures.

CNBC stated that ‘while a $1 billion annual investment for film development is on the lower end of what major Hollywood studios spend each year, it’s a positive sign for the movie theater business.”

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Is Biora Therapeutics (BIOR) Stock About to Go Big?

January 18, 2023 / Frank Nez / 1 Comment

Biora Therapeutics (NASDAQ:BIOR), formerly known as PROG stock was up more than +182% in the first week of the new year.

Today, BIOR stock is up more than +98% this year.

The stock surged from $2 per share and peaked around $7.36 last Wednesday but closed at $6.70.

After hours, the stock experienced a -10% pullback.

Today, BIOR is trading at $4.66.

Is Biora Therapeutics (BIOR) stock only warming up for takeoff?

BIOR is extremely shorted, we’re talking about the company being one of the most shorted stocks in the market at the moment.

Ortex is reporting the company to have a whopping 243.95% short interest.

What makes this stock even more interesting is that on Wednesday, massive buying volume came out of the blue.

Was this rally the first domino to fall that will trigger a BIOR short squeeze soon?

Let’s break it all down below.

BIOR (PROG) Stock Short Interest Today

Biora Therapeutics (PROG) stock has a current short interest of 195.74% with approximately 1.20 day to cover, per Fintel and 243% per Ortex.

Dark pool volume has eaten more than 54% of intraday trading volume.

However, trading volume has been quite strong in the past weeks.

BIOR stock price today — Biora Therapeutics (PROG) Stock Price Today.

So, why the sudden volume surge?

Did shorts begin to close their positions due to an upcoming catalyst?

This could very well be true, as BIOR just released an update that could potentially put their extraordinary work to real-world use.

And if all goes according to plan, shareholders may expect a massive short squeeze from BIOR (NASDAQ:BIOR).

The latest Biora Therapeutics news has the potential to create a big drop in short interest, sending share prices skyrocketing.

Latest BIOR Stock News (PROG)

PROG Stock News — Biora Therapeutics (BIOR) stock news | PROG stock news.

Biora Therapeutics is on track to move into clinic with its lead targeted therapeutics program.

For Biora’s Targeted Therapeutics Platform, which is focused on treatment of ulcerative colitis (UC), the company remains on track for an IND filing for its PGN-600 program followed by clinical trial initiation.

During Q4 2022, Biora continued its engagement with the FDA with a pre-IND supplemental Type C filing requesting agency feedback on its proposed PGN-600 clinical development plans, including the company’s proposed approach to toxicity studies and other aspects of its clinical plan.

“The recent Type C response from the FDA further strengthens our confidence in our plans to enter the clinic during the first half of 2023 with IND filing followed by trial initiation in Q2, and data readouts anticipated in Q3,” said Adi Mohanty, Chief Executive Officer of Biora Therapeutics.

Biora Therapeutics has previously shown the strong potential of its Targeted Therapeutics platform to help patients with ulcerative colitis (UC) through data demonstrating that:

Higher tissue levels of tofacitinib in UC patients are correlated with endoscopic improvement.
Biora’s device can accurately deliver liquid payload to the correct location in the colon of healthy volunteers.
Biora’s device can accurately identify colon entry and deliver liquid payload to the site of disease in active ulcerative colitis patients, despite a challenging environment of inflammation, bleeding, and highly variable motility.
Biora’s device can function as intended when administered both with and without food.

For Biora’s Systemic Therapeutics program, the company has been transitioning from early concept to a clinical-ready device.

With several of the key device upgrades implemented, the company expects to report data from preclinical studies on its next-generation device during Q1 and Q2 of 2023.

This is big news for the company and for BIOR shareholders alike.

The latest PROG stock news could be the reason why we’ve been seeing bullish price action this year.

If clinical trials prove to be a success, Biora Therapeutics’ platform will be approved for use.

This could yield a massive payout for shareholders invested in the company this year, a PROG short squeeze.

Source(s): Yahoo Finance

BIOR Stock Forecast: Is BIOR Stock a Buy?

Analysts are giving BIOR stock a high stock price prediction of $100 in the next 12-months, that’s a +2,045% gain.

Price targets for BIOR look good overall.

CNN is showing the biotech company has a medium stock forecast of $82.50 (+1,670%) and a low of $65 (+1,294%).

So, is BIOR stock a buy?

Based on expert price targets for 2023, Biora Therapeutics stock could prove to be a ‘buy’ for value long term investors.

Are you holding Biora Therapeutics stock?

Is this the catalyst shareholders have been waiting for?

Leave your thoughts below for the retail community to see.

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Robinhood and Citadel Colluded Night Before Trading Restrictions

January 15, 2023 / Frank Nez / 35 Comments

The U.S. House Committee on Financial Services just published a press release stating Robinhood and Citadel Securities engaged in ‘blunt’ negotiations before the trading of ‘meme stocks’ occurred.

The press release states that talks regarding lowering PFOF (payment for order flow) rates happened just a night before trading restrictions.

Robinhood and Citadel GameStopped Report — GameStopped Report Notes

The “GameStopped” report issued by the U.S. House Committee on Financial Services greatly details how the NSCC saved Robinhood from defaulting due to failing to meet collateral obligations.

This article is going to highlight key points relating to the ‘meme stock’ halts that occurred in late January of 2021.

Welcome to Franknez.com – if you haven’t joined the newsletter, be sure to do that below. I’m publishing market news and updates daily.

Let’s dive right into it.

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GameStopped Report – U.S. House Committee on Financial Services

The GameStopped report highlights Robinhood’s lack of liquidity, conversations between Citadel and Robinhood, and the process leading to the halting of ‘meme stocks’ such as AMC and GameStop.

On January 28th, 2021, Robinhood routed orders to six market makers for equities: Citadel Securities, G1 Execution Services, Morgan Stanley, Two Sigma Securities, Virtu, and Wolverine.

Citadel, Morgan Stanley, and Wolverine are short on AMC to this day.

The conversations between Robinhood and Citadel were tense as the two negotiated the price of PFOF rebate rates and price caps for AMC and GameStop.

Furthermore, Robinhood received a massive waiver of its deposit requirement from the DTCC.

And according to the report, without this waiver, Robinhood would have defaulted on its regulatory collateral obligations.

NSCC officials say the waiver was necessary to avoid systemic risk to the market.

They explained that the extraordinary spike in ‘meme stocks’ contributed to increased clearing fund requirements for several firms.

Trading Restrictions Chart - GameStopped — Trading Restrictions Chart – GameStopped

Brokers halted the buying of AMC, GameStop, and other tickers when short sellers began to close their short positions, causing share prices to skyrocket.

The halting occurred due to a lack of liquidity where certain brokers were unable to cover the minimum collateral requirements.

The DTCC waived a total of $9.7 billion of collateral deposit requirements on January 28, 2021.

Global Head of Operations at Citadel Has a Board Seat at DTCC

David Inggs is Global Head of Operations at Citadel and is responsible for all products across asset servicing, billing, cash management, clearing, and has a board seat at the DTCC.

The conflict of interest has raised big concerns amongst the retail investor community online as Citadel has been a leading and one of the biggest short sellers in the stock market.

On January 28th, 2021, The DTCC waived $9.7 billion of collateral deposit, limiting institutional losses and limiting retail profits during the ‘meme stock’ frenzy.

The organization allowed several naked shares to flood the market prior to the massive jump in share prices only to help financial institutions in the end.

Citadel and Melvin Capital who shut down last year, lost billions during the event.

Melvin was crippled throughout 2022 from its severe losses in GameStop the year prior.

Had the DTCC not stepped in, the hedge fund would have closed that same year.

Retail Feels Cheated

GameStop - GameStopped — Robinhood and Citadel colluded prior to restrictions

Retail investors feel they were robbed when brokers took away the ‘buy’ button by restricting trading in AMC, GameStop, and other ‘meme stocks’.

The DTCC jumped in and saved Robinhood from defaulting, cut Citadel’s losses short, and prevented retail investors bets from reaching maximum potential.

No one has been held accountable for these actions primarily because the system is justifying the actions as saving the market from total collapse.

But the system stole from retail investors to save institutional investors.

Regulators intervened to save institutions while they capped retail investor gains.

Still, hedge funds lost billions of dollars during the process.

GameStop broke Melvin Capital.

The hedge fund was not able to recover from its massive losses and has now shut down.

But Citadel nor Robinhood have faced any severe consequences that money can’t buy them out from.

Retail investors are now looking at our government and regulators as complicit to fraud and market manipulation.

You can view the full detailed report here.

What are your thoughts on the incidents that occurred during this time?

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Former Branch Chief Disappointed by SEC Meme Stock Video

January 15, 2023 / Frank Nez / 10 Comments

The SEC meme stock video is circulating all over social media due to its surprisingly and unprofessional attack on retail investors.

The agency was created in the 30s after the Great Crash to prevent fraud and protect retail investors from predatorial practices conducted by Wall Street.

But something happened along the way – the branch has proved to take a stance with congress in tailoring policies for financial institutions.

Who is going to protect retail investors from the corrupt?

Former SEC Branch Chief expresses her thoughts on the propaganda published by the SEC.

Let’s discuss it.

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SEC publishes Meme Stock Video

If you haven’t watched the SEC meme stock video, it’s embedded below.

SEC Meme Stock Video

The SEC published the video on their official YouTube channel where they restricted public commenting.

Former SEC Branch Chief Lisa Braganca said she was “very disappointed to see the SEC disparage investors in meme stocks as if they must have done it thoughtlessly – especially when the SEC permits most trading to take place in dark pools.”

She then tweeted, “how about a video on dark pools Gary Gensler?”

Lisa Braganca is an activist who fights for market transparency.

She’s talked on Matt Kohrs’ channel before and has done an AMA on Reddit’s r/Superstonk answering questions about self-regulatory regulations, SEC regulation, and SEC enforcement.

Gary Gensler admitted in a Bloomberg exclusive 90%-95% of retail orders don’t go through the lit exchange but failed to mention a solution to the problem.

In an interview with Jon Stewart, the SEC Chairman fails to deliver a quality and productive discussion on solving the problems in the market.

Jon Stewart described Gary Gensler as a sheriff in town that allows blatant corruption to occur.

For Gary, it’s clear it’s more about keeping the job rather than creating a legacy.

Activism Matters

The SEC’s meme stock video might try to portray retail investors as young and clueless novice investors.

But that’s far from who the retail community is.

Retail investors outsmarted hedge funds, exposed the corruption in the SEC, mainstream media, and are now attacking with this propaganda.

It’s a sign of weakness.

The retail community is made up of a very diversified group of people all fighting for the same cause.

And this is a threat to corporate media and powerful institutions.

Republicans and democrats getting together to fight for market transparency, what!?

But this isn’t just about the left and right getting together to combat corruption, it’s a global movement – and opps (opposers) don’t like this.

Activism matters. #FireGaryGensler https://t.co/STOcOxuOIy
— Frank Nez 🇺🇸 (@FNez_Blogger) June 1, 2022

Trey made a great point when he stated why doesn’t the SEC tackle the problems that created meme stocks in the first place:

PFOF
Off exchange trading
Prime brokers
Arbitrage
Naked shorting
Derivative leverage
Etc.

Activism matters.

Retail investors must continue to raise awareness of these issues despite the propaganda.

SEC Spent $460K on “Investomania Meme Stock” Ad

The SEC spent nearly half a million dollars on the ‘meme stock’ ad campaign that ridiculed millions of retail investors.

A Twitter user had sent in a FOIA application inquiring about the costs to produce “Investomania”, the video published on the SEC’s official YouTube channel.

The agency that was established in the early 1930s to protect retail investors took a shot at millions of investors who participated in the ‘meme stock’ frenzy.

Former SEC Branch Chief Lisa Braganca stated she was “very disappointing to see SEC disparage investors in meme stocks as if they must have done it thoughtlessly”.

“Especially when the SEC permits most trading to take place in dark pools… how about a video about dark pools @GaryGensler?”

And retail investors continue to hold this one against the agency, even in 2023.

What are your thoughts?

The SEC has ignored retail’s cry for help, and now they’ve made fun of the community with the meme stock video.

Did this unprofessionalism in our government surprise you?

I’d love to learn what you think.

Leave your thoughts in the comment section of the blog below.

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Related: Ken Griffin Attacks: "Pension Plans Destroyed by Retail Investors"

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How Bloomberg’s Beloved Citadel Securities Manipulates the Market

January 9, 2023 / Frank Nez / 1 Comment

Market News: Here's how Bloomberg's beloved Citadel Securities manipulates the stock market. — Market News: Here’s how Bloomberg’s beloved Citadel Securities manipulates the stock market.

Citadel Securities is a leading financial institution known for its expertise in electronic trading and market making.

However, the company has also been embroiled in controversy surrounding allegations of manipulation in the markets.

In this article, we will explore the history of Citadel Securities and the accusations of market manipulation that have been levied against the company.

We will also examine the potential consequences of such behavior, both for Citadel Securities and for the broader financial industry.

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How Does Citadel Securities Manipulate the Stock Market?

Citadel LLC was founded in 1990 while Citadel Securities was founded in 2002 by Ken Griffin.

Citadel Securities is a leading global market maker that provides liquidity to financial markets.

The company is known for its use of advanced technology and quantitative strategies to facilitate price discovery and drive market efficiency.

However, Citadel Securities has also been accused of manipulating financial markets in order to gain an unfair advantage.

Here are 5 ways Citadel Securities manipulates the stock market.

#1. High Frequency Trading (HFT)

One example of Citadel Securities’ alleged market manipulation is its use of high-frequency trading (HFT) algorithms.

HFT algorithms are designed to execute trades at extremely high speeds, often in fractions of a second.

This allows Citadel Securities to react to market movements faster than other traders and potentially gain an unfair advantage.

Critics argue that the use of HFT algorithms allows Citadel Securities to manipulate prices by quickly buying or selling large volumes of securities, which can create artificial demand or supply and move prices in their favor.

#2. Dark Pools

Another area where Citadel Securities has faced accusations of manipulation is in the realm of dark pools.

Dark pools are private stock exchanges that allow traders to buy and sell securities without revealing their identities or the details of their trades.

This can create a lack of transparency, making it difficult for regulators to monitor market activity and prevent manipulation.

Citadel Securities operates a number of dark pools and has been accused of using these platforms to engage in insider trading and other forms of market manipulation.

In addition to its use of HFT algorithms and dark pools, Citadel Securities has also been criticized for its role in the flash crash of 2010.

On May 6, 2010, the Dow Jones Industrial Average plunged nearly 1,000 points in a matter of minutes, before quickly recovering.

The cause of the flash crash was traced to a large sell order that was executed by Citadel Securities, which many believe was done intentionally to trigger a market panic.

Critics argue that Citadel Securities exploited the vulnerabilities of the market in order to profit from the flash crash.

#3. Spoofing

Another tactic that Citadel has been accused of using is spoofing, which involves placing a large number of fake orders in the market with the intention of tricking other traders into thinking there is more demand or supply than there actually is.

This can cause prices to move in the desired direction, allowing Citadel to profit from the manipulation.

In 2015, Citadel was one of several firms that were fined by the U.S. Commodity Futures Trading Commission for engaging in spoofing.

In December of 2022, a Biotech company researching cancer has decided to sue Citadel Securities for spoofing their stock.

#4. “Front Running”

Citadel has also been accused of engaging in “front-running” – a practice in which traders use inside information to gain an unfair advantage in the market.

In 2013, the company was sued by the New York Attorney General for front-running, but the case was later settled out of court.

Despite these controversies, Citadel remains a major player in the financial world.

Its use of algorithms and high-frequency trading has made it incredibly successful, but it has also raised concerns about the potential for market manipulation.

One of the key reasons for Citadel’s success is its ability to manipulate the markets to its advantage.

This is done through a variety of strategies, including high-frequency trading, where the firm uses powerful computer algorithms to make trades at incredibly fast speeds.

This allows Citadel to take advantage of even the slightest market movements and make a profit.

#5. Derivatives

Another way in which Citadel manipulates the markets is through the use of complex financial instruments known as derivatives.

These are financial contracts that derive their value from an underlying asset, such as a stock or a bond.

Citadel uses derivatives to speculate on the future value of these assets, and to hedge against potential losses.

This allows the firm to make huge profits even in volatile market conditions.

Despite its impressive track record and reputation, Citadel Securities has faced allegations of manipulation in recent years.

In particular, the company has been accused of using its dominant market position to manipulate prices and engage in other forms of misconduct.

These allegations have led to significant scrutiny from regulators, authorities, but primarily by retail investors who are concerned about the impact of such practices on the integrity of financial markets.

Leave your thoughts below

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Will Shorts Be Forced to Close Positions in APE?

December 31, 2022 / Frank Nez

Market News: Here's the latest on AMC and APE stock. — Market News: Here’s the latest on AMC and APE stock | APE short squeeze update.

A new proposal by CEO Adam Aron has been circulating the retail community where shareholders will get to vote on the conversion of APE equity to AMC common shares.

Shareholders are anticipating short sellers will close their positions in APE if the conversion to AMC common shares is approved.

While no official voting proxy has been distributed amongst shareholders, the talks are certainly on the table.

A second proposal will allow shareholders to vote on a 1-for-10 reverse stock split.

So far, more than 72% of shareholders said in a poll they’d vote ‘YES’ for the split.

$AMC $APE Will you vote 'YES' or 'NO' for a 1-for-10 Reverse Stock Split? 🍿https://t.co/AvinZ58p69 #AMCApe
— Frank Nez 🇺🇸 (@FNez_Blogger) December 22, 2022

You can read more about what a reverse stock split signifies for a company here.

Will shorts be forced to close their positions in APE if the conversion is approved?

There’s a very strong probability of that being the case.

Let’s discuss it.

What Happens to Shorted Stock During a Merge?

In the case of APE and AMC, the merge between the equity and common shares may temporarily increase the share price of AMC stock.

This is where short sellers are caught in a bind.

Short sellers betting against the company would see big losses during the surge of the newly reflected share price.

Short sellers will have the option to close out their positions completely prior to the conversion or keep holding their position.

While they will not be obligated to close out their positions, they are at higher risk from momentum taking over and further escalating rising share prices.

Here is where shareholders have the opportunity to buy in heavily to keep short sellers from only pushing the price down after the merge.

As short sellers begin to fear the tide turning against them, the buyback of shares will result in a short squeeze.

If shareholders fail to create momentum, then short sellers may identify weakness in buying power and further add to their short positions.

Is an APE Short Squeeze Over?

Not quite.

There’s a strong possibility short sellers close their positions in APE prior to a conversion (if approved by shareholders).

In doing so, they avoid seeing share prices rise and the probability of having losing positions during the merge.

APE momentarily became the #1 most short stock according to Yahoo Finance.

In the past week, APE has surged more than 150% with heavy buying volume.

Is it possible this was caused by a few shorts closing?

Perhaps, but an APE short squeeze prior the conversion is still very possible.

Despite so much market uncertainty happening today, both AMC and APE have fair shots at squeeze short sellers from their positions.

So far, this has been one of the biggest catalysts for a short squeeze.

But it’s going to require retail investors to play their part.

Leave your thoughts below

Are you holding AMC and APE?

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Here’s How FINRA Has Failed Retail Investors

December 12, 2022 / Frank Nez

FINRA, or the Financial Industry Regulatory Authority, is a non-governmental organization that oversees the securities industry in the United States.

It is responsible for regulating broker-dealers, issuing and enforcing rules for the industry, and protecting investors from fraud and other unethical practices.

While FINRA plays a crucial role in ensuring the integrity of the financial markets, it has been criticized for its handling of certain cases and its failure to adequately protect investors.

One of the main criticisms of FINRA is its arbitration process, which is often used to resolve disputes between investors and broker-dealers.

Critics argue that the arbitration process is biased in favor of the broker-dealers and does not provide investors with a fair and impartial hearing.

Here’s the latest market news.

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Ways FINRA Has Been Complicit

How FINRA has been part of the problem. — How FINRA has been part of the problem | FINRA fraud – Franknez.com.

Investors have reported that they were not allowed to present certain evidence or witnesses during arbitration, and that the arbitrators were not neutral and impartial.

Additionally, the arbitration process is often confidential, which means that investors are unable to share their experiences or warn others about potential issues.

Another criticism of FINRA is its failure to adequately police the securities industry and to hold broker-dealers accountable for their actions.

In some cases, FINRA has been criticized for not taking action against broker-dealers who have engaged in unethical or illegal practices, such as insider trading or fraud.

Additionally, some investors have reported that FINRA did not respond to their complaints or take action against the broker-dealers involved.

This has led to a lack of trust in FINRA’s ability to protect investors and to maintain the integrity of the financial markets.

Also Read: Retail Investors Say FINRA Abused Its Power by Halting MMTLP

Transparency and Accountability

In addition to these issues, FINRA has also been criticized for its lack of transparency and accountability.

For example, some critics argue that FINRA’s decision-making process is not transparent and that it is not accountable to investors or the public.

Additionally, FINRA’s funding model has also been criticized, as it is funded largely by the securities industry, which some argue creates a conflict of interest.

Overall, while FINRA plays a crucial role in regulating the securities industry and protecting investors, it has faced criticism for its handling of certain cases and its failure to adequately police the industry.

Critics argue that its arbitration process is biased, that it does not adequately hold broker-dealers accountable, and that it lacks transparency and accountability.

It is important for FINRA to address these concerns and to work to improve its processes and policies in order to better protect investors and maintain the integrity of the financial markets.

What Can Retail Investors Do?

FINRA market manipulation | Is FINRA corrupt?

Retail investors can voice their opinions and concerns on FINRA market injustices on social media in order to raise awareness. #FINRAFraud

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How Does Citadel Securities Manipulate the Stock Market?

#1. High Frequency Trading (HFT)

#2. Dark Pools

#3. Spoofing

#4. “Front Running”

#5. Derivatives

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