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Will AMC Have a Short Squeeze Soon? All You Need to Know

Will AMC have a short squeeze soon?
AMC Short Squeeze – #AMCtothemoon #AMC – AMC Stock Forecast – AMC Stocktwits

What a storm. What a battle right? AMC keeps on keeping on, and although AMC has been on discount recently, retail investors continue to buy and hold it.

Retail investors are very excited about the data that’s been collected for months now.

Will we see an AMC short squeeze while we continue to ride this bear?

And if so, how soon?

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Welcome to Franknez.com – the blog providing you with content on stocks, crypto, and market news. Today we’re discussing AMC Entertainment stock.

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How soon will we see an AMC short squeeze?

Retail investors all want to know.

Is it this week?

Will it be next week?

Or, are we looking at a longer game here?

Here’s what we know.

Key Highlights

  • AMC closed at $12.78 on July 5th. The stock continues to be heavily shorted. AMC Entertainment is set up for a short squeeze.
  • Shareholders continue to buy and hold the stock.
  • AMC’s short interest data shows us the stock has the perfect setup for a short squeeze.

Some of you reading this article might have been holding since January now.

Kuddos to you for holding the line.

If you’re a new retail investor getting in on AMC be sure to thank the seasoned apes when you get a chance.

Below is a series of documented facts and positive news that all influence AMC’s potential towards a short squeeze.

One thing is certain, it’s inevitable.

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

AMC stock news and highlights

FOX Business reported AMC to have a strong chance of a short squeeze.

Coming from a big news platform it certainly brings the stock sentiment up for most retail investors.

This is the type of news retail investors need to keep an eye out for.

AMC Short Squeeze News Fox Business
Strong chance of a short squeeze – Fox Business AMC

AMC is still currently the most shorted stock in the market.

President and CEO of AMC Entertainment Adam Aron, announced AMC will reopen all 13 AMC theaters in New York City as of March 5th, 2021.

As of today, all AMC movie theaters are now open across the United States with many selling out.

Check out what Adam Aron had to say (via. Investor Relations AMC)

“Since reopening our first theatres with AMC Safe & Clean in August, AMC has welcomed back nearly 10 million moviegoers nationwide without a single reported case of COVID-19 transmission among moviegoers at our theatres. We look forward to welcoming back our New York City guests to the big seats, big sounds and big screens that are only possible at a movie theatre.”

Adam aron, President and CEO of AMC Entertainment

For those who thought AMC was a dead company, think again.

The company is now generating big revenue since it’s reopening.

Melvin Capital closing in June

Melvin Capital AMC Stock
Melvin Capital Hedge Fund – AMC – AMC Stocktwits

This is huge.

Melvin Capital is a hedge fund that has been shorting both AMC and GME stock.

Melvin Capital suffered a 49% loss it’s first quarter of 2021, via. Markets Insider.

Today, the hedge fund is scheduled to close in June of 2022.

Here’s why this matters:

  • Not only are shorts losing money every day but huge hedge funds are bleeding
  • This is a huge win for retail investors
  • Unless shorts close their positions, hedge funds will continue to suffer
  • Interest rates can skyrocket for short sellers enabling them to close their positions
  • 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
  4. Keep a close eye on the stock to not miss the squeeze

I’m going to discuss a little more on the short borrow fee that continues to increase for these hedge funds shorting the stock.

This is going to be a massive component to a short squeeze.

Related: Hedge Fund Melvin Capital Is Shutting Down in June

Positive news for AMC Entertainment (archive 2021)

Adam Aron gives positive news on AMC Entertainment – Archive 2021
  • 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
  • AMC Entertainment has implemented a Safe & Clean program under the advisement from Harvard University’s prestigious School of Public health as well as well as the No. 1 U.S. cleaning brand, The Clorox Company. This means movie goers can now return at ease knowing a proper sanitation program has been put in place.

Hedge fund affiliate partners such as MarketWatch, The Fool, and other finance website have been trying to redirect the public from investing in this stock.

That’s primarily because hedge funds are losing millions by the day.

A short squeeze could even put them out of business.

This is why it’s important for me to spread the positive news surrounding AMC.

I don’t believe in the manipulation of the media and I will continue to update these articles as more great news unfolds.

Is AMC Shorted?

AMC’s current short interest is around 18%.

As of 7/5, we’re seeing 150,000 shares have been made available to borrow (for now), via Stonk-O-Tracker.

AMC’s short shares available will be updated here so be sure to bookmark this page.

AMC Short Shares Available to borrow

While shorts might have the capability to short AMC stock, this is only temporary.

They will run out of borrowed shares and eventually have to cover.

There are finally investigations going around regarding naked shorting.

Yeah.. I sense a grand mother of all short squeezes. #GMOASS

BREAKING: Anchorage Capital closes after betting against AMC stock

What does this mean for the AMC shareholder?

Expect to see gains after shorts have run out of borrowed shares to use.

Hedge funds and short sellers alike have dug a deeper hole for themselves.

What this means for the AMC shareholder is a squeeze bigger than anything the market has ever seen before.

I am personally doubling down.

Not only is bankruptcy off the table (via. Los Angeles Times), but AMC movie theaters are now about to begin reopening in larger parts of the United States.

Which of course now introduces revenue.

AMC Entertainment Quarter Earnings History (2021)

Below are AMC’s quarter earnings for 2021, the year the ape movement began.

AMC’s quarter earnings for 2022 will be updated here and on another blog post once those have been announced later this year.

AMC Q1 earnings for 2021

AMC announced their Q1 earnings for 2021 on Thursday, May 6th. Things have been looking particularly bullish and optimistic since that point.

For the retail investor this means the upper hand is yours.

AMC Entertainment has raised over $2 billion dollars to hold them off until the year 2022.

If you missed the conference call you can view it here for your viewing pleasure. [ARCHIVE DATA]

Archived – 2021 Q1 Earnings Call – AMC Stock Forecast – AMC Stocktwits

AMC Q1 2021 highlights

  • The AMC community is recognized
  • Q1 earnings are higher than last years 4th quarter
  • Expectations for Q2 – Q4 are much higher
  • Food and beverage sales are up by 45%
  • Sales revenue will continue to rise as new titles are being released

AMC Q2 earnings for 2021

Quarter 2 earnings for AMC were absolutely amazing! I published an entire article on this information you can read all about here.

AMC Q2 2021 highlights

  • Record breaking $2 billion in liquidity
  • Increased revenue / tickets & concession
  • AMC to accept Bitcoin by the end of the year
  • GameStop partnership
  • Enhancing the cinema experience with sports and music performance

You can read Q3 earnings here and Q4 here.

I will be updating 2022 earnings highlights here so be sure to join the newsletter for updates!

I left 2021’s earnings call in this article for record purposes.

You can read 2022’s Q1 highlights here.

When will an AMC short squeeze happen?

When will an AMC short squeeze happen?

It’s really hard to tell.

Even experts can’t identify an exact date and time.

However, the possibility of an AMC short squeeze is certainly possible given that it is still the most shorted stock in the market and the stocks volume continues to rise.

We also now have more data then ever before that indicate a massive short squeeze is almost certain to happen.

Especially now that the SEC has announced some crackdown on shorting.

With Melvin Capital and other hedge funds losing money, it’s only a matter of time before the short borrow fee continues to skyrocket and shorts have to close their positions.

It’s tendie time!

Analyst AMC predictions

With that being said, Trey’s Trades predicts a short squeeze is now certainly guaranteed. Trey has been a leader in the AMC community and deserves a spot on this page.

More data points towards the stock reaching $1000+ per share.

See what stock analyst Trey has to say.

AMC short squeeze – AMC Stock Forecast – AMC Stocktwits

The real questions is how can retail investors make this AMC short squeeze happen?

We know that short-sellers eventually have to cover their spots. This means that they will eventually have to buy AMC stock at the current share price.

  1. If retail investors continue to drive the share price up by buying the dip and holding their positions, short-sellers will have no other option than to buy from the retail investor at a higher share price.

2. Retail investors will also need to buy the climbs in order to show a demand for the stock. This doesn’t have to be huge buys, rather incremental to validate the current share price.

This play essentially creates a supply and demand scenario between retail investors and short-sellers. The results? A short squeeze.

Hedge funds are doing everything they can to prevent a short squeeze

How are they doing this?

  • By promoting false information online (we’re certain you’ve seen it)
  • Through strategies such as short-ladder attacks in the market
  • And, by restricting certain brokerage accounts from allowing its retail investors to purchase or buy shorted stocks (Robing hood)

This is what retail investors can do to fight corruption

  • Share content that presents facts (blog posts, analysis videos, etc.)
  • Continue to educate yourself and make investment decisions based on your personal analysis
  • Protect the community and one another
  • Follow your instincts
Read: How Hedge Funds Manipulate The Stock Market

What will a short squeeze look like?

We’ll begin to see a trend similar to that of GME (Gamestop). AMC will enter a bullish territory before hitting an ‘abnormal’ peak in which AMC would have ‘squoze’.

What will an AMC short squeeze look like?

It seems we’ve already hit the bottom.

AMC continues to be heavily shorted through dark pools and other market manipulation tactics.

This price level can be seen as a buying opportunity for retail investors looking to squeeze shorts out of their positions.

We’ve seen resistant levels around $14-$16 recently which is a great push from $5.

We’re now sitting at $12.78 per share.

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An AMC short squeeze will certainly make headlines.

Expect to see various gains prior to any sort of major peak as well as volatility.

Retail investors will have to hold their positions through upcoming gains if they want to see AMC short squeeze.

But most importantly, they’ll have to refrain from selling at the first sight of gains if they are to see bigger and more massive gains.

Gamma squeeze vs Short squeeze

Don’t confuse gains and momentum with a short squeeze.

Here’s the difference between a gamma squeeze and a short squeeze:

A gamma squeeze are momentum gains. These usually occur from call options closing in the pocket resulting in heavy buys or purchases in the market.

A short squeeze is vigorous and can spike with no warning.

This is where you see 100% gains in a matter of seconds and minutes.

A short squeeze can even reach 1000% and 10,000% gains.

AMC Short Squeeze Stock Prediction

AMC Stock Forecast – AMC Stocktwits

New retail investors are wondering whether $1k, $10k, or even $100k per share is even possible.

Gabe from ReviewDork does some math that’s going to leave you with an open mind.

AMC stock price predictions range from $1,000 to $100k+.

Will AMC reach peaks like GME?

AMC has been fortunate enough to receive more publicity and hype than GME did, at least recently.

The volume will speak for itself and retail investors will just have to wait to find out.

We’ve seen that abnormal gains are naturally part of a short squeeze.

Volkswagen rose up to nearly $1,000 when it squeezed back in 2008 due to a similar strategy produced by car manufacturer Porsche.

Analysts are predicting AMC can even go above the $1K mark if retail investors and institutions alike continue to buy and hold their positions.

Wouldn’t this be something. If you’re holding 1,000 shares and AMC spikes to $1K per share, you my friend have made 1 million dollars!

I strongly suggest using a reputable broker such as Vanguard or Fidelity oppose to phone apps like Robinhood.

Simply because the broker colluded with market maker Citadel to halt the buying of ‘meme stocks’.

Read: Codes to see if your phone has been hacked

Is it too late to get in on AMC stock?

Absolutely not, at least not yet.

AMC Entertainment is still heavily shorted.

You will have to decide whether its current share price is worth it if trades at $100, $500, or even $1,000+.

AMC Entertainment stock has not even started squeezing yet.

Redditors have touched base on this topic and advise anything below $100 is a buy.

I’ve been personally buying the stock when it dips.

This allows me to pick up more shares at a discount.

If you’re a beginner, I recommend buying 5-10 shares of AMC stock.

This amount will give you a feel of the market.

Not only is it affordable, but if the market is red you won’t see much loss on paper.

Where was AMC trading at before the pandemic?

AMC was actually trading between $30-$35 back in the booming party economy of 16′!

AMC stock started to decline as their debt increased and hedge funds began to heavily short it.

Short sellers could have covered back in August when AMC’s stock price was trading at $30 levels or even today.

However, AMC gets really uncomfortable under $30 per share.

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

What if a short squeeze doesn’t happen?

If an AMC short squeeze doesn’t occur, AMC stock price will still go up allowing shareholders to make at least some sort of profit.

With AMC theaters now open, it’s inevitable that the company will begin to see bigger sales revenue every time a new title is released.

I update this post when new titles make the headlines regarding earnings.

Keep in mind that AMC’s share price during the booming party economy of 16′ was roughly around $30 per share.

If a short squeeze doesn’t happen, fundamentals will continue to bring the stock up as more investors are buying the stock.

However, a short squeeze not happening is very unlikely as AMC is currently the most shorted stock in the market and most held stock, beating both Apple (AAPL) and Tesla (TSLA), via. NASDAQ.

Majority of the float is also held by retail investors and short sellers are going to be forced to close their positions very soon, more on that coming up.

As Mark Cuban bluntly put it, keep holding.

Why hasn’t AMC squeezed yet?

why hasn't AMC squeezed yet
AMC Stock Forecast – AMC Squeeze – AMC Stocktwits

AMC hasn’t squeezed yet primarily to two main reasons.

  1. We need more volume to drive the stock price action up
  2. Shorts need to close their positions

Volume really just comes to more and more retail investors as well as institutions getting in on AMC stock.

Regarding shorts covering, retail investors need to squeeze them out of their positions by holding their positions and helping increase AMC’s short borrow fee.

You can keep tabs on AMC’s short borrow fee as it changes every day via. Ortex, or Fintel.

AMC short borrow fee

As of 7/5 AMC’s short borrow fee rate is 14.70%.

Read: When do shorts have to cover their position? (AMC)

Aside from this, Wanda Group had caused a little bit of disruption for retail investors by profiting on the first sight of gains.

This turmoil was only short-term but is a reason why we’ve seen some selloff in the market a few weeks ago.

However, Adam Aron has brought awareness in an interview with Trey’s Trades that this selloff from Wanda is simply policy from China.

Retail investors should not be concerned.

Is AMC Ever Going To Squeeze?

All the numbers point towards the right direction for a massive short squeeze.

Shorts and hedge funds continue to lose money every day.

The interest is growing at an alarming rate and AMC’s current utilization is at 100%.

The lives of these retail investors are about to completely change.

Say goodbye to your old world.

Frank Nez is on YouTube – Subscribe to the channel for more market news and updates
Related: DTCC B16845-22: Are Margin Calls on The Way?

And lastly…

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What will an AMC short squeeze mean for you?

Let us know in the comments section below what an AMC short squeeze would mean for you!

If you’re an AMC shareholder let us know in the comment section below.

Related: Will AMC Squeeze in 2022? [Short interest data]


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Who is The DTCC and What Are Their Legal Duties?

Market News: DTCC
Market News: Who is the DTCC?

Retail investors have pulled up some information on the DTCC regarding the blockage of margin calls.

The Reddit community is calling the organization corrupt.

But what exactly is the DTCC and how do they play an important role in our markets?

In this article I’m going to explain the duties of this corporation in simple terms and also touch topic on questions retail investors might have when it comes to AMC and GameStop.

Let’s get started.

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Who is the DTCC?

who is the DTCC?
Depositary Trust and Clearing Corporation

The DTCC (Depositary Trust and Clearing Corporation) is an American post-trade financial services company providing clearing and settlement services to the financial markets.

The DTCC processes trillions of dollars of securities on a daily basis.

As the centralized clearinghouse for various exchanges and equity platforms, the DTCC settles transactions between buyers and sellers of securities.

The information is recorded by its subsidiary, the NSCC.

After the NSCC has processed and recorded a trade, they provide a report to the brokers and financial professionals involved.

This report includes their net securities positions after the trade and the money that is due to be settled between the two parties.

Conflict of interest

Clearing corporations such as the DTCC may receive cash from a buyer and securities or futures contracts from a seller.

The clearing corporation then manages the exchange and collects a fee for this service.

The size of the fee is dependent on the size of the transaction, the level of service required, and the type of security being traded. 

Investors who make several transactions in a day can generate significant fees.

This means every naked share that has been created on the ‘short side’ has been recorded and bypassed by the DTCC/NSCC, all for a fee.

And this is where retail investors begin to question the integrity of the financial market.

One of the DTCC’s bigger partners is Bloomberg LP, a privately held media and software company.

Retail investors are weary about Bloomberg due to having a dark pool where institutions can make unregulated trades.

Bloomberg also happens to be a media platform where Citadel’s Ken Griffin is made to feel at home.

The short seller remains to this date one of the top 10 institutions shorting AMC stock.

Related: Wall Street Journal is Indirectly Owned by Citadel's Ken Griffin

DTCC removing margin calls

There is information going around in the retail community of the DTCC removing margin calls and it’s creating somewhat of fear, uncertainty, and doubt.

After digging around for a while, it’s important to note that the DTCC did indeed remove margin calls, but on January 28th of 2021.

This isn’t necessarily occurring right this moment.

A press released was published advising of the circumstances that occurred during the time ‘meme stocks’ were halted.

The DTCC waived $9.7 billion of collateral deposit requirement on January 28th, 2021, limiting institutional losses and limiting retail profits.

Could the DTCC have been playing the middleman to prevent the market from completely collapsing?

Or was this blatant market manipulation?

The organization allowed several naked shares to flood the market but never stepped in to level the playfield for retail investors.

So why step in to minimize institutional losses?

I think it’s safe to say those client fees really make things happen.

The SEC is by law responsible for regulating the DTCC, but the DTCC is a company who caters to a wide range of institutions in the financial market.

And according to the SEC Chairman Gary Gensler, they need whistleblowers to really tackle the issues at hand.

Is the DTCC corrupt?

Most retail investors openly think so.

The corporation is a business that processes orders between buyers and sellers but caters to financial institutions – not retail investors.

The DTCC along with the NSCC are very well aware of the naked shorting issue in our market.

But they’ve failed to put a halt to it.

One can view this negligence as being complicit.

I’m curious to learn what you think.

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

Also, be sure to stick around for the latest market news.

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Citadel Pushes Back on Possible SEC PFOF Ban

SEC PFOF Ban
Market News: SEC PFOF Ban threatens corrupt institutions

The SEC is addressing the possibility of banning PFOF (payment for order flow).

Citadel and other institutions are speaking out.

Gary Gensler said there may be a conflict of interest for brokers and that too much power is concentrated in a handful of market makers.

The SEC Chairman could be re-routing retail investors into an automated system that would provide a deep pool of liquidity.

If this goes through, it will be historic.

Let’s discuss it.

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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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SEC Payment For Order Flow ban

SEC PFOF Ban

Gary Gensler will be speaking on Wednesday in regard to best execution for market orders.

The SEC has been under heavy scrutiny by retail investors as the agency has not made any progress to level the playfield.

The government branch that’s supposed to protect retail investors has even gone as far as taunting investors for buying ‘meme stocks’ recently.

But industry participants have quietly been saying that Gensler will likely use a speech at the Piper Sandler Global Exchange Conference on Wednesday to float several proposals.

These may include best execution and payment for order flow according to CNBC.

Last year during the ‘meme stock’ frenzy, Citadel processed retail’s orders through Robinhood.

Citadel paid Robinhood to give them those orders (PFOF).

However, retail investors don’t want their orders going to Citadel since the market maker/hedge fund/dark pool are short on ‘meme stocks’.

90%-95% of retail’s orders are not processed though the lit exchange.

Citadel takes these orders and trades them at a bargain through foreign exchanges.

Although PFOF is an expense to them, they make a lot more money processing the orders.

If the SEC PFOF ban goes through, orders would not be processed by Virtu or Citadel.

Citadel fights back

A spokesperson for Citadel Securities released the following statement to CNBC:

“It is important to recognize that the current market structure has resulted in tighter spreads, greater transparency, and meaningfully reduced costs for retail investors. We look forward to reviewing the proposals and working with the SEC and the industry towards our longstanding objective of further improving competition and transparency.”

“You need to be very deliberate on that approach,” Ken Bentsen, president and CEO of the Securities Industry and Financial Markets Association (SIFMA) said.

“We have been calling for a review of market structure for some time, but let’s be careful not to try to fix things that may not be broken,” he said. “The retail investor is getting a better deal than they ever have.”

Would you pay small trading fee if it meant Citadel and Virtu no longer reroute your orders to benefit their pockets?

Leave a comment below.

The statement alone that retail is getting a better deal than ever before is such a dishonest thing to spew.

These institutions have been taking retail’s money, using it against them, all while taking no accountability for their actions.

It’s not clear yet whether the SEC PFOF ban will go through or not.

It is certainly something worth discussing though, don’t you think?

Leave your thoughts below.

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Bear Market Becomes Official: How Long Will It Last?

Bear Market Official
The stock market officially enters a bear market, but how long will it last?

We momentarily entered an official bear market when the S&P 500 fell 20% for the third time.

The stock market rallied today with the SPY and NASDAQ up almost 2%.

Media seems to be in denial, but bear rallies turned into a bear market a while ago, without the official title.

And although today seems to be a green day – the question is, how long will this bear market last for?

Let’s discuss it below.

franknez.com

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Stocks have tumbled all year

Taking a look at the SPY (S&P 500), and we’ll find that the index is down 17% year-to-date.

bear market SPY stock

The top 500 companies in this index have also been down trending all year.

Tech companies have taken a heavy hit this year.

And the NASDAQ shows it.

The NADAQ is down more than 27% this year-to-date.

Netflix (NFLX) is down almost 69%, Tesla (TSLA) is down 44%, and Apple (AAPL) stock 22%.

bear market NASDAQ

Hedge funds deeply invested in tech companies have suffered big losses this year already.

The Tiger Cubs are a group of hedge fund managers who are currently treading in dangerous waters.

These asset managers are ditching many positions creating massive selloffs, according to SEC filings.

Stocks rebounded today – how long will these bear rallies last?

The stock market bounces back

The stock market has momentarily bounced back staying clear from bear market territory.

SPY stock seems to be making its way back to the $400 per share level.

I’ve mentioned in previous articles and videos that the SPY seems to be respecting the $400 per share level relatively well.

Although stocks officially entered bear market territory, it’s very possible the SPY and market in general are bottoming out.

Stocks have seen all-time lows during these bear rallies but have since come up from these surprising lows.

Robinhood (HOOD) hit a low around $8 and change, now it’s trading above $10 again.

AMC Entertainment reached $9 and change, went back up to $13, and is currently trading close to $12.

GME stock on the other hand seems to have a hard time getting below $90.

The stock rose to $100 per share last week and is currently trading at $96 per share after it announced the launch of its new crypto and NFT wallet.

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

Honestly, it’s a 50/50

I stated in a recent video that because we have seen mainly bear rallies all year long, it’s possible the SPY breaks downwards below $400 per share and we continue to see this downtrend.

Well, that happened last week, and we were officially, but momentarily, in a bear market.

Today we saw a small bounce back staying clear from that title.

But it’s still unclear whether the market has bottomed out yet or if there’s still room for stocks to fall.

Have the markets cooled off?

Is the market ready for a reversal?

What do you think?

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

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

Goldman Sachs’ Dark Pools Are Under Federal Investigation

Goldman Sachs dark pool under investigation
BREAKING: Goldman Sachs dark pool is under investigation

Goldman Sach’s dark pools are under investigation according to an SEC report.

The SEC published a report highlighting what essentially seems to be a deep audit.

This is not the first time Goldman Sachs has been fined or investigated for abusing its power.

Dark pools played a massive part in the recession of 2008, but dark pools were never banned.

Will something finally be done about it this time around?

In this article I’m going to break down everything they’re looking into, starting with Goldman Sachs’ dark pools.

Let’s break it down together.

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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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Feds crack down on Goldman Sachs dark pools

The fed is looking into various matters relating to Goldman Sachs’ businesses and operations.

One of which stands out to retail investors as being its dark pools.

The fed is investigating the supervision and controls relating to Goldman’s high frequency trading (HFTs) and its alternative trading systems (ATSs), also known as dark pools.

Dark Pools (also benignly called Alternative Trading Systems or ATS) are effectively unregulated stock exchanges being run by the same megabanks on Wall Street that blew up the U.S. financial system in 2008 and received the largest taxpayer bailout in U.S. history. – Wall Street On Parade.

The name of Goldman Sachs’ Dark Pool that trades in the U.S. is called Sigma X2.

It used to be called simply Sigma X.

According to a publicly-available document, Sigma X is now used by Goldman Sachs to designate the Dark Pools it operates in foreign jurisdictions, which include Europe, Japan, Hong Kong and Australia.

Dark pools are the gateway that allow financial institutions to manipulate the stock market without any regulation.

Now the fed is cracking down on Goldman Sachs and it comes as no surprise since the bank has been criminally charged on many occasions before.

In October of 2020, Goldman Sachs admitted to the charges of a bribery scandal where they were fined $2.9 billion.

Other operations being looked into

The fed is looking into the institution’s advisory services and conflicts of interest.

They are also tackling the following:

  • Research practices, including research independence and interactions between research analysts and other firm personnel, including investment banking personnel, as well as third parties.
  • Transactions involving government-related financings and other matters.
  • The offering, auction, sales, trading and clearance of corporate and government securities, currencies, commodities and other financial products and related sales and other communications and activities.
  • As well as the firm’s supervision and controls relating to such activities, including compliance with applicable short sale rules, algorithmic, high-frequency and quantitative trading, the firm’s U.S. alternative trading system (dark pool), futures trading, options trading.
  • And finally, insider trading.

The SEC said in past years they were tackling dark pools but failed to competently execute the plan.

The issue was brought to the light by the ‘meme stock’ crowd who also exposed naked short selling and received attention by mainstream media.

Dark pools have been able to suppress stock prices across the market from reaching full demand potential.

Gary Gensler said 90%-95% of retails orders do not get processed through the lit exchange (NYSE) but rather through these dark pools.

Goldman Sachs and others have essentially stolen from retail investors as only 5%-10% of retails money actually creates demand for a stock.

For every dollar retail puts in the market, only this small percentage is reflected on a security.

That’s what happens when financial institutions like Goldman Sachs redirects orders through its dark pools.

This is a developing story.

Be sure to join the newsletter for more market news and updates.

View the SEC report here.

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Related: Here's Why It's Taking AMC So Long to Skyrocket

Hedge Fund Co-Founder Sentenced to Prison Avoids Jail Time

hedge fund avoids jail time
Corruption: Hedge fund avoids jail time – pleads guilty of fraud

(Bloomberg) The co-founder of Premium Point Investments and a former trader pleaded guilty to charges they overstated asset values at the now-defunct hedge fund, but they won’t serve any time behind bars.

Anilesh Ahuja, the fund’s co-founder, and trader Jeremy Shor were found guilty of conspiring to overvalue the hedge fund’s assets by more than $100 million and sentenced to prison in 2019.

However, U.S. District Judge Katherine Polk Failla in Manhattan overturned their convictions in December due to errors and misleading statements by prosecutors.

The pair had faced a new trial but reached a deal with the government allowing them to plead guilty to a single securities fraud count.

Under the deal, which was approved by Failla in a hearing on Friday, the two men won’t serve any prison time, pay a fine or serve probation.

Let’s talk about it.

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Hedge Fund gets away with prison time and fees

hedge fund pledges guilty and gets away with prison time

Before their convictions were overturned, Ahuja was sentenced to more than four years in prison and Shor, almost 3.5.

But their surrender dates were delayed, initially due to the Covid pandemic and later because the judge was considering throwing out the verdict.

As a result, neither man served any part of his sentence.

“We are pleased that Mr. Ahuja can finally put this ordeal behind him without having to spend a day in jail,” his lawyers, Richard Tarlowe and Roberto Finzi, said in a statement.

“After years of litigation, we are pleased to put this matter behind us with no additional punishment beyond the punishment already inflicted by the process,” Shor’s lawyer, Justin Weddle, said in an email.

Federal prosecutor Daniel Gitner defended the deal before the judge on Friday, saying Ahuja and Shor had already made “substantial restitution” to investors. 

“Today’s guilty pleas to securities fraud bring to a close the defendants’ scheme to mismark their funds’ books,” U.S. Attorney Damian Williams said in a statement.

“This office stands by this prosecution, and is pleased that this matter has resolved with the defendants’ acceptance of responsibility.”

“Unacceptable errors”

Hedge fund avoids jail time after being sentences to prison – hedge fund pledges guilty

“I tried my hardest to conduct a fair trial,” Failla said in overturning the verdict.

“I no longer have confidence in the fairness of the trial.”

She declined to dismiss the charges against Ahuja and Shor though, saying that the errors made by the government — while “unacceptable” — were not severe enough to warrant throwing out the case.

Ahuja was a senior mortgage bond trader at Lehman Brothers, RBS Greenwich Capital and Deutsche Bank AG for four years before co-founding Premium Point in 2008.

The firm initially focused on the U.S. residential loan market and began amassing bonds backed by distressed assets in the wake of the global financial crisis.

It later expanded into the jumbo loan and home rental businesses and managed about $2 billion of assets at its peak.

Premium Point began winding down in late 2016 after posting large losses.

The fund revealed the following year that federal securities regulators were examining the way it valued its assets.

Its mortgage credit funds filed for bankruptcy protection in March 2018, and Ahuja, Majidi and Shor were charged two months later.

Former Chief Risk Officer Ashish Dole also pleaded guilty and testified for the prosecution at the trial.

The case is U.S. v. Ahuja, 18-cr-00328, U.S. District Court, Southern District of New York (Manhattan), via Bloomberg.

Should hedge funds be allowed to get away with fraud?

It’s curious how these hedge fund co-founders were sentenced to prison but managed to get away with jail time.

What does this tell us about our system?

Why do you think this happened?

Was the government paid out?

I’m interested to know what you think; leave a comment below.

[Sources]

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DTCC Makes Plans to Implement T+1 in 2024

T+1

The DTCC just announced they play to implement T+1 in the year 2024.

On February 9 the DTCC held a meeting to change the trading cycle from T+2 to T+1.

But is this change too far out?

I’m going to break down the benefits of T+1 as well as what the DTCC has to say regarding the lengthy time.

Also, what T+1 would mean for AMC and GME shareholders.

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Let’s dive right into it!

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What is T+1?

T+1, T+2, and T+3 refer to the number of days it takes for a security to settle after it has been traded.

T+1 means that if a transaction occurs on a Monday, settlement must occur by Tuesday.

Likewise, T+3 means that a transaction occurring on a Monday must be settled by Thursday.

We are currently on T+2 and have been since 2017.

So, what is T+0?

T+0 is a shortened settlement cycle where trades are settled the same day of transaction.

The DTCC recently argued that T+0 is rather complicated to achieve at the moment and is nearly impossible today due to how many orders flood the market daily.

They commented that as T+1 is implemented, they will monitor its progress to see how they may accommodate to T+0 at some point in the future.

When will T+1 happen?

DTCC T+1

The DTCC and SEC have established that T+1 will occur during the first or second quarter of 2024.

The DTCC is in favor of making this change in the first quarter of 2024 while the SEC feels like they will need more time and would like T+1 to go into effect during the second quarter.

T+1 is certainly a step forward; however, retail investors feel like this settlement day should be implemented sooner.

The DTCC and SEC agree that the process to implement this settlement day will require time.

Regulators have acknowledged that systemic risks may surface due to delayed settlement days, such as our current T+2.

Let’s talk about the risks of delays settlement trades.

Risks of T+2

Momentum stocks, also known as ‘meme’ stocks, proved last year when just how risky delayed settlement trades were when Robinhood ran out of liquidity to meet customer demands.

Robinhood is notoriously known for restricting retail investors from purchasing AMC, GameStop, and other ‘meme stocks’ due to liquidity issues.

The problem began due to delayed settlement trades.

So many orders were being processed and registered that by the time they were settled, liquidity had run dry forcing Robinhood to halt trading of these specific stocks.

The only problem here is that market makers are responsible for providing liquidity to broker firms such as Robinhood.

Robinhood makes money by sending retail orders to one of the biggest market makers in the world, Citadel.

Citadel at the time was losing billions from betting on AMC and GameStop.

This is where the Citadel and Robinhood scandal started, the day a losing market maker colluded with the broker to halt trading in order to prevent further losses.

Could T+2 be used as a copout for what occurred last year during the halts?

Be sure to leave a comment at the end of the article.

How would T+1 affect AMC and GameStop?

T+1 would not only affect AMC and GameStop, but it would ensure every stock in the market is settled one day after the purchase.

It would eliminate room for market makers to create naked shares during the settlement delay.

According to the SEC, in a “naked” short sale, the seller does not borrow or arrange to borrow the securities in time to make delivery to the buyer within the standard two-day settlement period

T+3 was removed years after the 08 crisis.

Now T+2 is scheduled to be removed three years after the ‘meme stock’ frenzy.

The change retail has been wanting to see is going to happen, but it’s going to take time.

As settlement trades get shortened, we can expect to see less risk in the market and less market manipulation.

Of course, there are still many predatorial strategies in the market that must be addressed.

Some of which include dark pool trading, off exchange trading, and short and distort campaigns where short sellers and media collude to drive the price of a stock down.

Related: How do hedge funds manipulate the stock market

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Official: You Can Now Trade Shiba Inu Coin on Robinhood

Robinhood Lists Shiba Inu Coin
Shiba Inu Coin is now on Robinhood

Robinhood has officially listed Shiba Inu Coin on its crypto trading platform.

The SHIB army has been waiting for Robinhood to list Shiba Inu Coin for months now.

Shiba Inu Coin was one of four new cryptocurrencies Robinhood listed on its platform Tuesday.

SHIB, Solana, Polygon, and COMP joined the meme stock halter’s platform on Tuesday.

What does this mean for Shiba Inu Coin moving forward?

Let’s break it down together.

franknez.com

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Let’s dive right into it!

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SHIB rises on Robinhood listing

Robinhood Shiba Inu Coin
Shiba Inu Coin News Today Robinhood

SHIB rose nearly 7% when it became available on Robinhood’s crypto trading platform.

Shiba Inu Coin is the second ‘meme’ coin to be listed on Robinhood, Dogecoin being the first.

COMP jumped 6.6%, MATIC 3.5%, and SOL 2%.

SHIB became popular when the cryptocurrency skyrocketed back in late October of 2021.

The cryptocurrency is up more than +20,000% for those who bought SHIB exactly one year from today.

Shiba Inu Coin ate a zero on its second biggest climb last year and never looked back.

The SHIB army anticipates Shiba Inu Coin will eat another zero or two this year.

Now that you can trade Shiba Inu Coin on Robinhood, cryptocurrency investors speculate more traders will buy SHIB on the platform.

What caused SHIB to run last year and will it run again?

Big buying pressure and a lot of momentum.

Unlike the stock market, the crypto market runs actually caters more to a supply and demand market.

Now that SHIB has become mainstream in a sense, more traders are going to begin to discover it.

While SHIB doesn’t have any real-world value, the developers are working on multiple projects for the community.

One being Shiba Inu Games and several NFT projects.

Will SHIB run again this year?

There’s no doubt Shiba Inu Coin will continue to eat zeros as retail piles in before the ‘meme’ token reaches $0.01.

SHIB is currently trading at $0.000027 and is up 9.98% on the weekly chart.

Can SHIB reach $1 per token?

Shiba Inu Coin News Today Robinhood – Can SHIB reach $1?

In order for SHIB to reach $1 per token its market cap would need to be in the trillions.

Having this come to fruition would be quite difficult.

However, because this cryptocurrency is still relatively new, investors have a chance at becoming profitable in the long-term as the market cap increases and new traders buy in.

Many of my readers were able to profit from the run back in October when I sent out a newsletter advising the token was looking very bullish.

If you’re on my Patreon, you saw I purchased the cryptocurrency a few days before it skyrocketed.

SHIB has been consolidating extremely well in the 20s which mean it’s found a new foundation.

If you missed the first and second run, this could prove to be a great entry point.

We’ve also seen that SHIB’s typical holding time has drastically increased to 112 days meaning investors are holding this cryptocurrency.

And it’s not difficult to see why.

The room for growth is massive.

Are you holding more than 1 million SHIB?

Robinhood Shiba Inu Coin - Shiba inu coin robinhood
Shiba Inu Coin Robinhood – Robinhood Lists Shiba Inu Coin – Shiba Inu Coin News Today Robinhood

If you’re holding more than 1 million SHIB leave a comment below.

What is your personal Shiba Inu Coin price target and where would $0.01 put you at?

If you’re not a fan of Robinhood but would like to purchase SHIB, I recommend buying the token on Coinbase.

How long have you been holding SHIB?

Let’s start a discussion below.

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Robinhood Review 2022: How it Works and All you need to know about this Stock Trading App

Robinhood Review 2022: How it works and all you need to know about this stock trading app
Robinhood Trading App Review 2022 – Robinhood Review

Written by: FrankNez Team

Robinhood is an online investing platform that offers commission-free stocks with high-yield cash management offerings.

This popular stock market trading app does not charge commission for stocks and cryptocurrency trading.

Robinhood, the financial technology company offers trading in stocks, ETFs, other options, and cryptocurrency.

Moreover, this online brokerage provides web and mobile-based services which will allow you to invest and trade easily.

Additionally, the mobile-based services of this platform have made it stand out from its other competitors.

You may be wondering about many questions arising in your head about Robinhood & Robinhood stock.

No worries!

Here in this article, you’ll find the answers to your queries and get to know all the details about this popular online brokerage like- How does it make money, the pros & cons of Robinhood, Robinhood stock price, the behavior of Robinhood in cryptocurrency & its future, and benefits of long-term investing in stocks & cryptos.

Keep scrolling to read more.

Let’s begin!


         Overall Rating: 3 / 5                                               OPEN AN ACCOUNT         Account Minimum: $0         Fees: $0
Robinhood Review – Robinhood Trading app

Understanding Robinhood

With more than 13 million users, Robinhood is the best platform for active investors or younger investors who want commission-free trading and investing on mobile.

If you want to invest in cryptocurrencies like Bitcoin, Ethereum, Dogecoin, you can use this mobile and web trading platform to invest long term.

Apart from it, Robinhood (a popular stock trading app) went public in July 2021 and its share price was set at $38 for IPO (Initial Public Offering).

Also, Robinhood was listed on the Nasdaq stock exchange under the symbol “HOOD.”

Recently, Robinhood’s CEO Vlad Tenev said that the company is planning to release the feature that allows customers to trade stocks outside of market hours.

The company named this feature, “Hyper-extended hours.”

According to Bloomberg, Robinhood stock is the favorite stock of Cathie Wood’s ARK funds and they’re purchasing the stocks every week since October 2021.

Last week, ARK Funds have bought about 2.45 million shares of Robinhood markets.

Robinhood Business Model- How the company generates income

With no minimum and no fees for trading in stocks, cryptos, and ETFs, the company has to generate income as a business to be sustainable.

This online brokerage makes money from market makers and some other ways.

Here are the ways through which the company generates revenue.

Payment for Order Flow

In 2021, the company generated 75% revenue through the process payment for order flow (PFOF), in which the company directs their customer’s orders equity and options to a particular market maker and the company receives payment for this compensation.

Hence, PFOF is the major income stream for the company.

Payment for order flow unfortunately plays against retail investors.

The SEC has talked about banning the practice since it allows market makers to manipulate the stock prices.

Stock Loan Income

Robinhood generates revenue by lending margin securities to counterparties.

Furthermore, the company keeps all money it generates from lending your stock and does not share it with you.

This is a big problem because large financial institutions make more money from the user while orders are processed through dark pools.

Borrowing Uninvested Cash

Robinhood generates income by borrowing uninvested cash and depositing this cash in interest-bearing accounts.

Membership Fees for Robinhood Gold

Robinhood Gold program is a paid subscription service that allows users to benefit from premium features like margin trading, Level II Market Data, professional research, and enhanced quick access to deposits.

It is also one of the income sources of the company.

Robinhood Gold costs $5 per month.

Also, it gives a free trial of 30 days.

What can you invest in on Robinhood?

Robinhood Review
Robinhood Review 2022 – Robinhood trading app

Robinhood is a popular trading platform that allows the user to invest in stocks, cryptocurrencies, Exchange Traded Funds (ETFs), and options.

If you want to do commission-free trading in stocks, ETFs, and cryptocurrencies, then Robinhood is great for you.

Moreover, the company allows the investors to buy portions of stocks without paying the full share price.

It gives a free stock upon making referrals and opening the account.

When it comes to investing in cryptocurrencies, Robinhood allows to trade in several digital currencies including Bitcoin, BitcoinCash, Ethereum, Ethereum Classic, Litecoin, Bitcoin SV, and Dogecoin.

Most importantly, Robinhood has introduced IPO access for traders.

Besides, Robinhood does not offer the ability to invest in mutual funds, forex, bonds, and futures options.

The pros and cons

Pros 

  • Simple, Easy to Use, and Easy to navigate                          
  • Free stock, ETFs, Cryptocurrency Trading                                  
  • No account minimum   
  • IPO access                                                           
  • Cash management accounts
  • Margin investing and Fractional shares

Cons

  • Limited customer support
  • No mutual funds and retirement accounts
  • Limited investment offerings
  • Limited investing research and trading tools

The Pros explained

Robinhood, the popular brokerage in the US, is extremely easy to use and accessible for people of any age and any income.

Robinhood is a mobile-first company that differentiates it from other companies.

Its trading app and web-based platform are well-designed and more than enough to trade.

The new investors or inexperienced users can easily trade on it due to its simple and user-friendly features.

When it comes to costs, Robinhood provides commission-less trading with no minimum fees.

You can invest in stocks, cryptos, options, and ETFs for free.

Furthermore, the company offers fractional share trading, and you can invest in expensive stocks without much capital.

Additionally, it gives quick access to deposited cash.

The account opening process in Robinhood is fully digital and free.

Rather you get free stock upon opening the account and by referring the new members.

Last but not least, the company offered IPO access in July 2021 to benefit its users.

If you trade often, the savings can be huge on this platform due to the lower cost.

The Cons explained

Along with plenty of advantages, there are a few cons of it.

Robinhood does not offer to trade in mutual funds, bonds, and futures trading.

The research, educational resources of this financial company is limited.

It provides basic tools for the services and users can access professional research by purchasing paid membership of Robinhood Gold.

The customer support available in this stock trading app is limited.

Although, the company had made necessary improvements to its customer service in the last year.

The Robinhood scandal has blown up after the freezing of buying ‘meme stocks’ in 2021.

The company lacks full trust from retail investors after restricting the rights to buy specific stocks from its users.

Recommended brokerage: Vanguard

Robinhood Stock Price and Recent Developments

Robinhood stock price
Robinhood stock price – Robinhood trading app review – Robinhood Review

Robinhood stock price has dropped significantly since its IPO and is currently trading around $15 per share.

Weeks back, Robinhood’s stock price dropped to 11.61 USD and the stock hit the lowest price of 11.15 on January 24.

In June 2021, the company’s funded accounts rose to above 22 million.

Besides, Robinhood’s stock price hit an all-time high of 85% on Aug 4 at 85.00. 

On the other hand, the company stated Q4 results on January 27.

The company lost 49 cents per share on sales of 362.7 million in Q4.

In the current stock market, HOOD is one of the IPO stocks to watch.

The company is growing popular among young investors to trade stocks, cryptos, and NFTs.

Robinhood (HOOD) and Cryptocurrencies

Robinhood crypto - Robinhood cryptocurrencies, robinhood crypto list,
Robinhood cryptocurrencies – Robinhood Review – Robinhood app review

Robinhood, one of the best online stockbrokers generated huge transaction-based revenue within cryptocurrencies in Q4 2021.

It has a fast-growing cryptocurrency business as the company launched crypto gifts.

Most importantly, the company has introduced cryptocurrency wallets to 1,000 users as a part of the beta test.

Crypto wallets will help the users to transfer digital currencies in and out of the Robinhood app.

The rollout of crypto wallets may be expanded to 10,000 users in March.

Adding a wallet will help the traders to transfer their digital assets out of the online platform to invest. 

Moreover, the company is planning to test new crypto-related functionality on its stock trading app which will allow the user to get statistics, transactions on blockchain at a glance.

The introduction of crypto wallets closed the gap among Robinhood app and cryptocurrency exchanges which will increase the trading in crypto markets.

Most of the US brokers don’t offer crypto wallets, therefore the rollout of crypto wallets on Robinhood will have positive impacts on Robinhood accounts opening in the future.

When it comes to Coinbase vs Robinhood, our personal choice when it comes to investing in cryptocurrency is Coinbase.

Investing in stocks and cryptos is great in so many ways.

If you’re thinking, why should you invest in stocks and cryptos?

Here we’ve discussed the importance and benefits of long-term investing.

Read on to find ways to become financially independent.

Related: How to invest in cryptocurrency for beginners

Importance of Long-term Investing in Stocks & Cryptos

A long-term investment strategy is like holding assets such as stocks and cryptos for more than a full year.

Anything under a year is a short-term investment.

Long-term investment requires patience and discipline, but it gives incredible outcomes.

Market volatility is a prime matter in investment as the prices fluctuate regularly.

The higher the volatility, the higher the investment’s price fluctuation and the higher the risk.

Here is why you should go for long-term investment.

Long-term holdings in stocks and cryptos exhibit lower volatility, greater profits as compared to short-term.

Assets such as stocks & crypto give higher returns over a long time. It maximizes the growth potential of your savings.

Now, investment in US stocks and digital currencies is far better than bonds and gold investment.

When you watch your investment portfolio grow, your satisfaction increases more.

Stocks are long-term investments and generate better long-term returns.

The longer you invest in stocks, the longer your money will grow.

Among asset classes, the stocks have surpassed all other asset classes.

If you want to keep your money multiplying and become a better investor, it’s wise to go for long-term investment so that the market bump can’t knock you.

Because, when the prices go up and down, you can handle it by remaining patient.

Apart from making you financially strong, the investment makes you disciplined with your money.

It’s a necessary rule to succeed in your life financially.

Long-term holding means fewer trading fees because you will need to pay the fees every time you trade.

Also, it’s easy to do, you can start trading in Robinhood stock-trading app, just by implementing the strategy and patience to make the most of your returns.

Or through a more traditional broker like Vanguard.

Through investment in the stock market, you can benefit from various trading strategies.

Apart from stocks, cryptocurrency is an attractive investment and future of technology that gives high returns.

Long-term investment in cryptocurrency is good for investors to recover and get profits.

You can invest in crypto on Robinhood or cryptocurrency exchanges.

Long-term holding in popular cryptocurrencies such as Bitcoin, Ethereum can harvest good returns in 2022.

If you’re a new investor and can’t tolerate big risks, short-term investment cannot work for you, rather you must go with long-term holding.

Digital currencies are rising globally, and the number of investors is investing in them. 

They provide a safe and long-term store of value.

Like other assets, cryptocurrency also exhibits volatility.

If you’ll invest in stocks & cryptos for the long term, there would be less fear, less risk, less trading cost, lower tax rates, and more returns.

Also, you’ll be able to buy the future house, vacation, and can save your education or retirement.

Along with your regular income, trading is the way by which your money keeps multiplying, and you can earn more and do more.

The Bottom Line

Robinhood Review
Robinhood Review – Robinhood trading app review

Robinhood, the US-regulated broker is best for active traders who want to invest in assets with no commission.

Whether you’re looking to invest in cryptocurrencies or stocks, Robinhood could be an option for you due to its minimalistic trading platform that has made it easy to buy and sell assets.

The biggest perk of trading on Robinhood is a lack of fees with no costs.

However, payment for order flow is affecting the entire stock market as a whole.

Retail investors are ditching the trading app.

Whether you’re in school or college or doing a corporate job, start investing today to achieve financial wellness.

Start with a positive mindset and stay flexible because your today’s decision can make a huge difference in your life.

Become financially literate and learn how to invest in the stock market and crypto, and how to start an online business here.

I’m committed to guiding you on your journey to achieve financial freedom.

In a nutshell, long-term investment and business allows you to become financially independent and follow your dreams.

Written by: FrankNez team

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Bank of America Has Been Unethically Shorting AMC Stock

Bank of America has been shorting AMC Stock
Bank of America is shorting AMC Entertainment

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 MacroAxis (more on that below).

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 months.

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

franknez.com

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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