Tag: Stock Market News (Page 1 of 2)

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

October 16, 2021 / / 6 Comments
Citadel vs SEC Court Hearing On October 25th
Citadel Securities LLC v. SEC October 25th | Citadel Securities sues SEC

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

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

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

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

franknez.com

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

Let’s get started!

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

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

What Is The D-Limit Order?

SEC

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

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

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

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

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

What Is Market Arbitrage?

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

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

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

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

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

Market arbitrage is a form of predatory trading.

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

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

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

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

Citadel Securities VS SEC October 25th, 2021

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

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

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

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

Argument: Citadel Enjoys Unfair Advantages Over Other Participants

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

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

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

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

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

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

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

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

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

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

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

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

How Will The D-Limit Order Affect Meme Stocks?

Meme stocks

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

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

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

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

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

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

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

Will The D-Limit Order Be Upheld?

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

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

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

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

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

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

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

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

Final Words…

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

The world needs people like you.

Also, be sure to check out the YouTube video of me briefly discussing this topic and don’t forget to subscribe.

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Read: Hedge funds face short sale disclosure from the SEC

The SEC Is Looking Into Citadel Securities’ Business Model

October 14, 2021 / / 7 Comments
The SEC is looking into Citadel Securities Business Model
SEC has launched inquiry into Citadel that targets part of its business model

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

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

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

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

franknez.com

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

Let’s get started!

Fox Business Live Citadel Video

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

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

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

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

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

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

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

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

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

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

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

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

Watch the short video below.

Fox Business Live Citadel Video

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

In short retail investors want to:

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

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

The end game? A massive short squeeze.

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

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

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

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

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

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

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

Dark Pool Trading Must Be Eliminated

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

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

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

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

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

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

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

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

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

“Washington Is Aiming At Ken Griffin”

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

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

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

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

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

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

Hedge Funds Face Short Sale Disclosure From The SEC

SEC looking into Citadel

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

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

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

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

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

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

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

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

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

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

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

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

October 6, 2021 / / 0 Comments
David Scott Retail investors
David Scott VS Retail Investors

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

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

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

franknez.com rep david scott

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

Let’s get started!

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

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

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

David Scott Gets Intimidated By The Power of Social Media

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

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

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

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

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

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

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

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

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

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

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

What Do You Think?

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

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

They would make history!

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

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

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

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

Insider Trading Is The Real Problem, Not Retail

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

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

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

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

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

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

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

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

Let’s address the issue civilly.

Can The Government Stop Retail Investors From Trading Stock?

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

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

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

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

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

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Read: Stock & Crypto News

Bank of America Has Been Illegally Shorting AMC Stock

October 3, 2021 / / 32 Comments
Bank of America has been shorting AMC Stock

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

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

Franknez.com Bank of America bankruptcy

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

Let’s get started!

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

Bank of America Is Shorting AMC Stock

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

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

I’ll touch topic on that below.

Bank of America shorting AMC Stock
SOURCE

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

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

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

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

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

Hedge Funds Just Got Smaller

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

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

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

This could be the biggest financial scandal in history.

Is America Headed Towards Financial Collapse?

Janet Yellen Hedge Funds

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

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

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

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

Will Bank of America Go Bankrupt?

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

Bank of America bankruptcy

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

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

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

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

What Happens If A Bank Goes Bankrupt?

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

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

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

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

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

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

The Stock Market Is Rigged

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

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

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

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

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

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

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

What a journey.

The Greatest Transfer Of Wealth Is Commencing

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

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

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

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Gary Gensler Under Fire By Retail Investors [Leak]

October 1, 2021 / / 17 Comments
Gary Gensler Under Fire By Retail Investors. When Will The SEC Step In
Will Gary Gensler protect retail investors from naked shorting and dark pool abuse?

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

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

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

franknez.com gary gensler

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

Let’s get started!

Citadel Securities Denies Allegations

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

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

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

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

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

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

“Justice delayed is justice denied”

William E. Gladstone

#KenGriffinLied Files Lawsuit Against Flying Company

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

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

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

You can view them here.

AMC Plane Banner
AMC Plane Banner – HODL 💎

Robinhood Sold AMC Portfolio Before Halts

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

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

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

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

When will the SEC step in to protect retail investors?

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

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

FINRA Bypassed The Market Manipulation

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

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

Who Is FINRA?

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

Check out what their ‘about’ page says:

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

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

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

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

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

“Injustice anywhere is a threat to justice everywhere”

Martin Luther King

Who Oversees FINRA?

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

So why isn’t Gary Gensler taking action?

Missing Gary Gensler Have You Seen Me

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

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

What Do Retail Investors Want From The SEC?

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

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

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

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

You can read the full article here.

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

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

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

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

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

Horace mann

Your Voice Is A Weapon

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

franknez.com gary gensler

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Fed’s Kaplan And Rosengren Resign In Market Manipulation Scandal

September 28, 2021 / / 3 Comments
Kaplan and Rosengren resign from FED
Rosengren and Kaplan Resign

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

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

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

Franknez.com

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

Lets get started!

How The Fed Took Control Of The Economy

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

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

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

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

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

Is The Fed Fit To Serve Its People?

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

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

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

Franknez.com

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AMC Continues To Be The Most Shorted Stock In The Market

September 25, 2021 /
AMC continues to be the most shorted stock in the market
AMC stock continues to be heavily shorted

AMC Entertainment stock has caused havoc for short sellers shorting the stock. Hedge funds have proven to lose billions of dollars from the ongoing ‘meme’ stock frenzy.

Momentum stocks, as I like to call them, are more than just plays for money. Retail investors have conjured up a real movement for change.

And although mainstream financial news platforms say it’s over, it’s far from it. Hedge funds betting against AMC just borrowed more than 4 million shares to short the stock.

They just dug themselves a deeper hole.

franknez.com

Welcome to Franknez.com – the best blog for new and seasoned retail investors. Today we’re discussing AMC Entertainment stock.

Lets get started!

Is AMC Stock Shorted?

Short sellers just borrowed more than 1 million shares to short the stock. Although AMC has had major buying pressure all year, shorts continue to attack retail and the company.

The community wants to see chairman of the SEC, Gary Gensler, take action towards banning activities such as naked shorting, dark pool trading, and PFOF.

The SEC was created in 1929 after the infamous Stock Market Crash of 1929 to protect retail investors against the manipulation from hedge funds and short sellers. However, it was established in 1934 with the passage of the Securities Exchange Act, a law formerly governing the trade of securities.

Overleveraged positions in the markets have been the cause for economic meltdowns resulting in significant losses for the American people. Our government has always had the power to fix the biggest problems retail investors currently face.

Why no real regulation has truly protected retail investors is the big question. Talks of ongoing investigations have risen but actions will have to speak louder than words.

AMC’s stock price continues to be suppressed through overleveraged means only hedge funds and short sellers have access to. The ape community has sparked a movement towards fighting for a fair market and aren’t going anywhere until real change has occurred.

How Can We Appoint New Leaders In The SEC?

Members of the SEC are appointed by the President of The United States himself.

The SEC is headed by a five-member board of commissioners. Members are appointed by the president with the advice and consent of the United States Senate.

The president does not have the authority to remove members once they are confirmed. No more than three commissioners may belong to the same political party. The president appoints one board member to serve as chair.

Change will only happen if we the people voice our concerns publicly. We have the right and the power to overthrow any form of incompetent government.

We must let these powers know that we see them and understand that they have the power to make things right. There are more than 4 million of us in this community. Our voice is our strength.

Will AMC Continue To Run Up?

I’ve been in this community since early February and the sentiment has not changed. 80% of AMC’s float is now owned by retail investors and the movement keeps growing. The stock market is based on supply and demand, and so retail investors are in command.

Although AMC’s share price is being suppressed by heavy shorting in the market, AMC Entertainment stock will continue to run up as long as retail investors continue to buy the stock.

Which isn’t going to be a problem by the way. AMC is more than just a stock, it’s a movement.

Hedge Funds Will Continue To Face Mounting Losses

There are no signs of retail letting off the gas pedal. Investors in the ape community continue to buy the dips and hold their stock no matter the pressure.

Short sellers have already lost billions this year and continue to mount losses in liquidity and debt.

Betting on this stock, the company, and its massive community has been a terrible financial decision.

What Financial Institutions Are Shorting AMC Stock?

AMC Entertainment is currently being shorted by numerous hedge funds and financial institutions. Here’s a list:

  1. Simplex Trading LLC
  2. Susquehanna International Group LLP
  3. Citadel Advisors LLC
  4. 683 Capital Management LLC
  5. Anchorage Capital Group LLC
  6. Group One Trading LP
  7. Wolverine Trading LLC
  8. Bank of America Corp DE
  9. Millennium Management LLC
  10. Piction Mahoney Asset Management
companies shorting AMC stock
Source

AMC Has Changed Millions of Lives

AMC Entertainment has changed the lives of movie goers through the theatrical experience we’ve all missed since the lockdowns. The company has unintentionally sparked a movement greater than ourselves, resulting in the resurrection of the movie theater industry during the process.

And it’s changed the lives of millions of retail investors, netting significant profits to majority of its shareholders.

Whether you’re holding for a short squeeze or to be part of a community with a movement, you cannot deny AMC has attracted change. So, lets continue to be that change the world and our community needs.

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GME Stock: Why It Can Still Skyrocket Past $1,000 Per Share

September 15, 2021 /
GME Stock

A while back I wrote an article debating which stock you should invest in, AMC or GME stock? The premise of that article was to identify which stock was more convenient for the new retail investor.

See, both are great momentum stocks to hodl, but GME stock is a lot more expensive for the newcomer to buy. And although AMC has now become the more popular stock, I have a good feeling those hodling GME stock can still see massive gains. Here’s why.

franknez.com

Welcome to Franknez.com – today I want to talk about GameStop stock, ticker symbol GME. Lets look at the data that states this stock is not done climbing up.

Lets get started!

If you’re like me, you probably didn’t get a chance to get in on GameStop before it began to create a ruckus in the financial world. Or perhaps you were lucky enough to get a few shares.

I’m a strong AMC shareholder and will not buy GME stock only because I rather increase my position in AMC. AMC’s short interest is higher, utilization is higher, and so are the shares on loan. It’s also more affordable.

But don’t get me wrong, the reason I’m publishing this post today is because GME stock has enough data that proves it has more juice to squeeze. So, if you’re holding GME stock, this article should help you armor up your conviction towards your stock.

GameStop Short Interest

GameStop’s short interest is still rather high. A short interest above 10% of the float is considered to be high. GME’s current short interest is sitting at 12.86% via. Ortex.

Just to compare, AMC’s is at 18.38% which a short interest of 20% or higher is considered extremely high.

Why Does Short Interest Matter?

Short interest the number or percentage of short shares that have yet to be covered. For stocks with high short interest this means it is possible to squeeze shorts out of their positions.

GameStop stock is considered to have high short interest therefore it has slack to keep moving up. Not all shorts have covered their positions!

If you hold GameStop stock, keep holding it. The longer you hold it, the more money short sellers lose on paper. Once they can’t afford to hold GME stock they’ll be forced to cover.

Remember, it costs you nothing to hold.

GME Utilization Rate

GME stock utilization rate is currently 34.24%. This more than a quarter of the available shares in the market are loaned. APPL for example, may have less than 1% because there’s not a large demand for shorting the stock.

A high demand for shorting GME stock means there’s a play to squeeze shorts out of their positions. GME shareholders still have a chance to make a ton of money.

Short sellers have not backed off from shorting GameStop and continue to play with fire.

Will Utilization Go Up Again?

If more short sellers open short positions then GameStop’s utilization will certainly go up. At the moment, it seems that there’s only 34% of the stock that’s being borrowed.

I personally don’t think shorts will try to go up against GameStop again. Those that are still shorting it have been holding on for quite some time. However, it’s only a matter of time before they too close their positions and GME stock surges again.

GME Stock: Shares On Loan

GME’s shares on loan refers to the number of shares that are being borrowed. GME stock has approximately 6.80 million shares on loan. We essentially convert the utilization percentage into the actual number of shares that are being borrowed.

That’s a lot of shares that still need to be covered by short sellers borrowing the stock.

GME stockholders could take advantage of the fact that the stock has been on discount recently. Especially if you’re still looking to increase your positions in GameStop stock.

Otherwise, GME stock is a hold play right now where patience will bear some sweet fruit very soon.

Charles Schwab Raises Margin Requirements

Charles Schwab just raised margin requirements for short sellers shorting both AMC and GME stock.

This puts short sellers under tough conditions since they’ll need to keep more cash at hand to continue borrowing AMC and GME stock.

And although we’ve seen a little bit of institutional selloff, Charles Schwab continues to hold GME stock. An institution that has not sold GameStop is Vanguard. Vanguard is one of AMC’s biggest institutional holder who continues to buy the stock to-date.

So if there’s something GameStop shareholders can take from this is that institutions are still holding GME stock, and there are still enough short sellers to squeeze out of their positions.

How High Will GME Stock Go?

So, can GME stock reach $1,000 per share. It’s certainly a possibility given that GameStop’s dark pool trading percentage is rather high, according to Stonk-O-Tracker data.

Dark pool trading in GameStop has ranged between 30%-50%. This means 30%-50% of short selling has occurred behind closed doors. Short sellers are able to keep their short borrow fee down with this loophole as well as conjure up naked shares to swap with one another.

However, they’ll eventually have to close every synthetic share they’ve ‘borrowed’ to short the stock. This is massive for GameStop just as it is for AMC.

Is It Too Late To Buy GME Stock?

I would say that you will no longer be able to buy GME stock below 3-figures. If this figure is too expensive for you to build your portfolio then it absolutely is too late.

However, if you’re looking to diversify your momentum stock portfolio, GME stock could be a good stock to hold. Otherwise, you’re better off buying the heavier shorted stock that is significantly more affordable at the moment, AMC.

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Franknez.com

If you enjoyed this article be sure to share it with someone who needs to see it and subscribe for more stock market and investing news.

New articles are posted daily and emailed out to each reader. Or you can follow me on social media to see when I share a new publication.

Are you holding GME stock? Let me know in the comment section below how high you think the stock can go.

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Read: List of momentum stocks: short interest data

SPRT Stock Is About To Squeeze: Get Ready

September 3, 2021 /
SPRT Stock Short Squeeze
SPRT Short Squeeze

SPRT stock is up more than 860% year-to-date and is getting ready to blow. It saw more than a 180% jump last week and retail investors are anticipating this is only the beginning.

The stock closed at $26.33 on Friday (8.27) after reaching an all time high of $59 per share. The stock remained in green territory despite the selloff from quick traders.

franknez.com

Welcome to Franknez.com – SPRT stock has a short interest of 63.14% and we need to talk about this.

Lets get started!

SPRT Stock Short Interest

SPRT Short Interest

That’s right, according to Ortex SPRT has a short interest of 63.14%. This means almost 3/4ths of the stock’s float is being shorted.

Community, SPRT stock is massively shorted. If you took profits this past Friday congrats on your gains. I know a lot of you moved these to either your AMC or GME stock positions.

However, this runup seems to have been just that, a runup. Retail investors are anticipating a short squeeze from SPRT stock in the next few trading days of September.

SPRT has an average volume of 13 million but topped at 166 million on Friday (8.27). This massive volume pumped SPRT stock price up to the $50 range and beyond before getting shorted down to the mid $20 range.

SPRT Short Volume Ratio

SPRT stock had a short volume ratio of 49.45 on Friday, via Fintel. This means almost half of the volume on Friday was being shorted. Even then, the stock was able to make massive moves and still finish green both intraday and after hours.

SPRT Stock DD

The gamma squeeze we experienced on Friday seems to only be the beginning. The short interest is ridiculously high and with the overall float being much smaller than that of AMC or GME, there are more shorts in this play that will get wrecked short-term.

Why Haven’t We Heard of SPRT Stock?

In all honestly I have to blame myself. I should be on top of these plays and providing the information out to you so that you may digest the information and make a financial decision for yourself.

Two of the biggest plays in the ape community are AMC and GME. This is not going to change. However, I will be sharing information from other plays where the community can multiply their money. These plays will be updated on the momentum stocks tab of the blog.

There’s a lot of information and plays out there that simply haven’t had the reach they need to make an appearance to us at scale. For this reason is why I will make this platform a designated place where you can find this information out from.

Should You Buy SPRT Stock?

SPRT stock ended the trading day on Friday (8.27) with the MACd crossing downwards. This leads me to believe that SPRT stock will continue to drop in share price before finding a new level of support.

There is massive volume coming into this play right now that can easily deflect short sellers and counter with a bounce.

The stock today is on massive discount. The biggest signs pointing towards a short squeeze is how high the short interest is.

After the rally up to $50+ dollars, the short interest has gone down about 10% meaning short sellers might have covered a few of their positions. However, the stock still has a massive short interest!

Well now there’s exposure. More retail investors now know that there is a stock out there that was being shorted on the hush hush with over 75% SI at the time.

Retail investors who made money on SPRT’s runup have moved gains over to AMC or GME stock. Since SPRT has not squeezed yet, this momentum play could be a great way to multiply cash at hand for your main short squeeze plays.

Is SPRT Stock A Distraction?

SPRT stock is not a distraction. GME apes at one point believed AMC to be a distraction but the community noticed the incredible opportunity with this stock as well.

SPRT simply has not been exposed to the community. If there’s something I’d like you to take from Franknez.com is the amount of opportunities that will present themselves to you when you visit the blog.

You have a choice to keep HODLing your main plays, or to put some money in this incredibly shorted stock. No matter what you choose to do, you will always have opportunities to multiply your money.

Announcement

Franknez.com

I will only use my blog for good. All the information I publish here will be with sentiment in wanting to help you make life-changing plays and moves. If I don’t believe in it, or don’t think it will benefit you then I will not publish it on my site.

With that being said, I’m doing a giveaway to the first 100 FrankNez Patreon members. We are currently at 80/100. Once we hit 100 members, every single one of you will be receiving a free gift, sponsored by my company.

Thank you for reading FrankNez and for supporting the blog every way you do.

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

August 11, 2021 /
NSCC AMC
NSCC-2021-010 AMC News

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

Update: this proposal will be filed on August 23rd and effective on August 24th per this FINRA letter, page 3. Bookmark this page for additional updates.

franknez.com

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

Lets get started!

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

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

Breaking away from $30-$40 range

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

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

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

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

Time to play offense

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

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

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

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

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

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

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

The NSCC is going to watch every transaction

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

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

The NSCC requires collateral

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

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

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

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

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

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

Hedge fund scrutiny intensifies

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

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

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

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

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

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

Millionaires in 2021

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

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

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

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

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

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

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