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.
How Does Citadel Securities Manipulate the Stock Market?
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.
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.
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“If you can afford to hold the stock, you hold. I don’t own it, but that’s what I would do.
Why? because when RH and the other online brokers open it back up to buyers, then we will see what WSB is really made of. That is when you get to make it all work.
I have no doubt that there are funds and big players that have shorted this stock again thinking they are smarter than everyone on WSB.
I know you are going to hate to hear this, but the lower it goes, the more powerful WSB can be stepping up to buy the stock again. The only question is what broker do you use. Do you stay with RH, who is going to have the same liquidity problems over and over again, or do you as a group find a broker with a far, far, far better balance sheet that won’t cut you off and then go ham on Wall Street.”
Now, although Yahoo Finance listed both AMC and GameStop tied to Mark Cuban’s stock portfolio, he said in the AMA that he does not own them.
Mark Cuban and Elon Musk have been two billionaires that have blatantly spoken out against the SEC.
Since its inception, the SEC has sworn to protect retail investors but has only proven to be complicit to market injustices.
An out of touch Gary Gensler has made it rather clear that keeping his job is more important than actually enforcing the law.
Here’s what Mark Cuban had to say about the SEC:
“The SEC is a mess. I wouldn’t trust them to do the right thing ever. It’s an agency built by and for lawyers to be lawyers and win cases rather than do the right thing
If the SEC gave a shit about ANYONE other than Wall Street you would be able to go there right now and read bright line guidelines about insider trading, shorting, what is a pump and dump, what are the rules for cutting off the purchase of stocks like happened with GME et al
But they won’t. They would rather litigate to regulate, which means they love to sue people in order to create new legal precedents.
All you need to know about the SEC and how badly they want to fuck the little guy is that they have the option of using JUDGES THAT WORK FOR THE SEC when they sue you rather than you have the option to have jury of your peers in front of a judge that is independent. Thats how bad the SEC is. If you want fair markets that doesn’t benefit Wall Street call your local politician and show them this.”
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The Markets in General Are Bouncing
The SPY has created a triple bottom around the $360 level so far and hasn’t come down since.
First in June, again in September, and last in October.
October is the month when SPY began to bounce from this major level of support.
Around the same time, AMC Entertainment stock was having a bounce from its major level of support around $6.30 per share.
Is it possible the market in general has hit the bottom?
It’s very probable, although it’s fair to mention any official talks of a recession can easily crash the market.
If we do begin to see further continuation, we might enter a short squeeze season where stocks begin to have sudden price surges from shorts closing positions.
Last year, AMC and GameStop gained mainstream attention when retail investors began to buy heavily into these two ‘meme stocks’ despite their high short interest.
Users over at Wall Street Bets identified that with enough buying pressure, they could force short sellers to rush and close their short positions in order to refrain from taking on massive losses.
This buy-back of shares would further fuel the buying pressure already being applied from retail investors; GameStop shot up over $483 per share.
In June of 2021, AMC Entertainment stock surged from $14 per share to $72 per share.
Will History Repeat Itself?
Market News: Will AMC squeeze again?
AMC’s short interest was around 21%-22% before short positions began to get closed.
AMC’s current short interest is at 21.64%.
This means that with enough buying pressure, retail investors might just have the chance to recreate the events that occurred last year, possibly even bigger.
But I’m curious to hear your thoughts on AMC’s rising short interest today.
AMC continues to be one of retail investors favorite stocks.
And yet again sources such as The Fool and other hedge fund partners are trying to steer the public from investing in this specific stock.
Well, just how high can AMC stock price skyrocket up to?
AMC stock price closed at $7.95 on November 15th.
The share volume remains healthy despite having gone down during today’s bear market.
Most of the market has been on sale and AMC has been no exception.
Welcome to Franknez.com – the blog where you can digest content on stocks, crypto, and trending market news.
Lets get started.
As some of you know, I update this article frequently. I update it with the intraday price action as well as any information pertaining to the stocks performance.
A lot of the information on here will be left untouched as it is a means to archive a lot of the information from both this year and last year.
Adam Aron has done an outstanding job with the media in the past months and continues to show a positive and bullish sentiment towards AMC.
He is now praised among the retail investors community holding AMC. And for good reason too.
See what CEO and President of AMC entertainment has to say to CNBC news about AMC Entertainment reopening and the Reddit movement.
As of today, all AMC movie theaters are now open 4/14
AMC Entertainment has raised more than 2.2 billion dollars in cash
90% of AMC theaters in the United States are now open with New York and Los Angeles finally reopening
Vaccinations and policies are making movie theaters safe
New movie titles are guaranteed to increase sales revenues
CEO and President Adam Aron expresses an optimistic future for AMC Entertainment
In a more recent interview we get an exclusive behind the scenes moment with Trey’s Trades and Adam Aron.
If you haven’t watched the video you’re not gonna want to miss out.
In this personal interview from the CEOs home, Adam Aron talks about the 500 million share dilution, which by the way as of today has been taken off the table, as well as his experience and perspective behind the the Reddit phenomenon.
My personal take is retail investors are going to continue to see foul play.
You’re going to experience this from bogus headlines.
They’ll usually try to steer the public from buying AMC stock to keep the volume and hype down.
Not sure if hedge funds know this yet but you do know documentaries of what’s taking place are in the works right?
Independent filmmakers such as the Mulligan Brothers will be covering this story from the retail investors perspective and rumor has it Netflix will be writing as well.
Expect AMC stock price to rise and continue to be shorted.
We will see volatility with shorts attacking the price action.
They do this by trading synthetic shares at lower bids in off exchange markets.
Trey’s Trades walks us through the positive moves AMC has been making from an analysts perspective.
Trey presents his audience with transparent information and has been a key player in the analytics world for ticker symbol AMC.
Although this video is an earlier video, Trey’s videos are packed with relevant information that still apply to where the stock is today.
r/wallstreet bets and Discord
Members over at r/wallstreetbets and Discord anticipate AMC stock price can skyrocket as high as $1,000 with enough momentum.
The number of phantom shares hedge funds have to cover is astronomical which is why the community is calling this the mother of all short squeezes (MOASS).
By holding shares in AMC, retail investors are setting up a supply and demand scenario where short-sellers will eventually need to buy from them.
This in turn can drive the stock up as high as the retail investor chooses, theoretically speaking.
Large institutions such as Vanguard, Wells Fargo, BMO Harris, BlackRock, Fidelity and many more are buying AMC stock while it’s still low (via. CNN Business).
Take that for what it is.
Whether that number comes to fruition or not, retail investors will have to continue to hold and to add to their positions in order to skyrocket AMC’s share price.
We’re seeing more and more retail investors join the fight against short-sellers.
Short-sellers are the investors betting on AMC Entertainment to lose.
There’s been a lot of speculation that due to the possible number of outstanding synthetics could be in the billions, AMC may potentially squeeze past 6-figures.
I just recently found ReviewDork on YouTube.
Gabe talks about this possibility and walks us through some math.
Check him out.
But is it realistic?
Be sure to leave your thoughts in the comment section below.
Retail investors are teaming up together to see their visions come to fruition.
And they’re not waiting on anyone.
What we do know is that the current share price is still affordable for most people.
Why hasn’t AMC squeezed yet?
AMC hasn’t squeezed for two primary reasons.
The volume isn’t all there yet. The volume needs to be quite high. Trey’s Trades referenced 500+ million being an outstanding number.
Shorts are holding – they need to close their positions if retail investors are to squeeze them.
It’s not illegal for shorts to hold long on their positions; however, hedge funds may lose money every day they hold due to the incurred short borrow fees.
Fortunately for retail investors it’s free to hold.
It really depends on when shorts close their positions.
It would have been wise considering the stock continues to correct itself in an upward trend and has now set itself up for the perfect squeeze.
If shorts continue to play the long game, AMC’s stock price could potentially be higher when it squeezes.
In this case, shorts would have lost a lot more money due to accumulating and rising short borrow fees.
Can AMC squeeze after hours?
A question some people might have is whether or not AMC could potentially squeeze after hours.
AMC can certainly squeeze after hours when the market closes.
In fact, it wouldn’t be surprising if it did this.
AMC’s stock price would continue to surge as retail investors watch immobile.
For one, shorts could decide to cover before the market closes in attempts to throw one final blow to retail investors.
This would give the price action to potentially come back down after hours.
Should you worry?
Although squeezes can last anywhere between minutes to hours, they can certainly last days too.
Volkswagen’s squeeze back in 2008 lasted approximately four days. GameStop’s lasted even longer.
Here’s how you can prepare for a short squeeze
A squeeze can technically happen at any time.
The short interest doesn’t necessarily have to be high.
Shorts could choose to close their positions with little loss opposed to massive losses.
If you’re in a position to keep an open tab on your browser that is updated AMC’s stock price in real-time then I would suggest doing so.
Own an Apple watch? Keep the stock in your background. This is a very convenient way to keeping tabs on the stocks performance.
Join discords where you can be notified when something massive is going on.
When a squeeze happens you’ll know. Just don’t get a short squeeze confused with gamma squeezes.
Gamma squeezes are usually small spikes resulting from extremely bullish actions coming together at once. Otherwise known as relatively healthy gains of built momentum.
A short squeeze will be something more sudden and disruptive.
What should I do when AMC squeezes?
This is completely up to you!
You can choose to sell your entire position and collect your profits, or you can continue to hold and find out whether the squeeze continues to go up.
Unfortunately, we can’t time the spike.
For all we know, the initial squeeze might not be the potential price action.
This makes it difficult to calculate the best time to sell.
You could sell a portion of position and wait to see how AMC’s stock price moves.
We created a thread for you to share how you will use the money when AMC squeezes as a means to spread positivity and share with the community.
A circuit breaker is usually a rule in the market that essentially pauses or halts trading for 5-15 minutes.
A common circuit breaker type is the Volatility Pause.
This helps smooth volatility in the market and prevent flash crashes.
It forces traders to take a 5 minute timeout, research the stock, news, etc.
Often times if a stock is spiking up and is halted, it will reopen higher.
Inversely, a stock selling off will often open lower.
Why this is worth mentioning
This is worth mentioning because it’s important for our readers and the ape community to be aware of possible halts as AMC’s stock price becomes more volatile.
If you happen to experience a circuit breaker halt do not panic.
It’s a policy to make sure trading goes as smooth as possible.
Important Advisory
It is important to note that I am not a licensed financial advisor.
Like many traders and self taught investors, all speculation is based on educated estimations based on highly reliable analysis, patterns, and documented news charts.
Where can I invest in AMC? What’s a good platform?
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