RoaringKitty (DFV) might get BANNED | GameStop Stock. [Keith Gill]

boy oh boy there is a lot of noise about

Market manipulation is Keith Gil roaring

Kitty deep effing value a market

manipulator in this video I'm going to

give you a Securities Insider point of

view of how an argument could be made

that Keith Gill is a market manipulator

but first I'd like to ask you this if

Keith Gill is indeed a market

manipulator then I have to say so is

every person in Congress who gets to

hide their trades for 45 to 90 days

every hedge fund or short seller who

posts a research piece on Twitter or

social media and says this company is a

scam meanwhile they have weekly put

options on it to profit millions of

dollars then every single institution on

Wall Street who has a thesis and places

a bet on it and then uses their clout

their name Barclays Goldman Sachs JP

Morgan then every single firm in the

country that argues for or against a

specific stock is a market

manipulator now that's my opinion but

I'm going to show you where the argument

could be made if they really wanted to

press it as to how Keith Gill could be

deemed a market manipul later now I want

to be exceptionally clear I think what

Keith Gil is doing is frankly Free

Speech social media influence doesn't

matter good for

him but I think you have the right to

share what positions or trading ideas

you have just like any hedge fund any

short seller or any institution or quite

frankly the congressmen and women who

constantly outperform the

market with that said let's go into how

the Securities industry actually works

first things first there are a lot of

folks referencing the ER trade potential

of kicking Keith Gill off the platform

all right first of all this is a

terrible leak from erade because this

could lead them to get canceled by

social media people love Keith Gill and

this is a very stupid and bad PR move

for E Trade sorry E Trade this is a big

oopsy doopsy now why would E Trade do it

well E Trade would do it because as a

broker dealer they are responsible to

Regulators for making sure that their

clients aren't manipulating the market

so if

finra can allege that E Trade is failing

to supervise Keith then ER trade could

lose its broker dealer license and go

bankrupt so there's a lot at play here

now there has been a fine related to

Keith Gill in the past in fact if you

scroll down this has been talked about a

lot back when Keith Gill worked at Mass

Mutual mind you he holds a bunch of

Securities licenses in fact we talked

about this over at ec.com we talked

about I think he has a series 24 which

is actually a pretty tough one uh yeah

here it is he has a 63 657 3 24 and the

siie it's interesting I have the 63 657

24 27 and the siie I don't have the

three but anyway uh very interesting

some some of these are actually very

hard licenses to get but there's this

talk about how Mass Mutual agreed to pay

$4 million fine back in 2021 to settle

an inquiry about from State Regulators

about Market manipulation potentially

but when you actually go into the

details it's not because Keith Gill was

deemed to be a market manipulator it was

because of a failure to supervise Keith

Gill and now this gets really Arcane and

I'm going to make this very very simple

let's say the speed limit on a highway

is 65 M an hour and let's say you wrote

down that I promise not to go over 55 M

an

hour and then you get pulled over for

going 64 mil

hour in the world of driving did you

violate the

law no it doesn't matter what you wrote

down the law is 65 mil hour you didn't

violate the law fine you follow the

rules of the vehicle code fair game in

the Securities industry if the rules of

the security industry applied to driving

and you wrote down we will not go faster

than 55 M an hour and you went 64 and

got pulled over did you violate the

law yes see in the Securities industry

when you have a manual and you say

you're going to do something and you

don't do it you violate the law you have

to then pay fines or you potentially get

kicked out of the industry that's really

bad and so that's what happened when

Mass mutuals fined $4 million they say

here that the firm had a policy against

employees discussing Securities on

social media but they didn't actually

monitor Keith Gill's social media

activity now they could have avoided

having to pay that $4 million fine if

they didn't have a policy prohibiting

their employees from talking about

stocks on social media

so they kind of fell on their own sword

that's their fault that's not Keith's

fault so just because there was a fine

in the past does not mean Keith Gil was

at fault

here okay interesting so where is the

potential argument that Keith Gil could

be a market manipulator all right well

first let's start with the easy one if

you just Google market manipulation you

get a very very simple description from

uh the SEC and it's spreading false or

misleading information about a company

that's not that's I don't believe What's

Happening Here with Keith kill at all

engaging in a series of transactions to

make a security appear more actively

traded this is called painting the tape

it's basically when you're like let's

say not that it would make a difference

to Apple stock but let's say you had 100

shares of Apple stock you bought it and

then you sold it that's 200 shares of

volume then you did it again that's 200

shares of volume again again again you

create like a thousand shares of volume

with no intention of actually having a a

thousand shares of volume actually being

there the only purpose is to create

volume for the purpose of creating

volume which is a scam that's not what

appears to be happening here rigging

quotes or prices or trades to make it

look like there's more or less demand

for a security that's not what's

happening here either micro cap stocks

are more susceptible okay well those are

stocks between $50 million to $300

million actually see that right here but

that's not what gme is so you go to gme

stock you got an $8 billion market cap

so 8 5 so that's not what's happening

here okay so if we go to then finra you

could go to finra new rules for 2023

manipulative tra trading we're going to

read these in reverse order okay

manipulative trading manipulative

trading schemes so in reverse order what

are manipulative trading schemes

pre-arranged trading that's when you

promise to Rey a security at a higher

price so it's like hey buy this stock at

$20 I'll Rey it from you at 25 to make a

commission or whatever like guarantees

basically you can't make guarantees in

the Securities industry no that's that's

wrong uh wash sales uh again this this

is very similar and and you can just

look these up wash sales finra but it's

basically making trades that have no

legitimate purpose they're very very

very anti stuff like that from happening

uh and algorithms can do that creating

wash sales for basically creating

traffic to make it look like something

is more active than it really is uh

spoofing is pretty similar I believe

these are just fake trades a form of

Market manipulation in which orders are

entered with the intent to create the

appearance of a buildup of selling or

buying pressure exactly trading her head

or front running okay this is a little

complicated an individual is allowed to

make a trade and then tell people about

it there's there's nothing against that

rule remember or there's nothing that

that says you can't do that think about

Bill Amman he has a short position and a

long position his short positions were

probably weekly call options uh or sorry

weekly put options and he goes in and

tells CNBC that you know everything

should be shut shut down for 30 days to

slow the spread and uh the stock market

tanks and he picks up billions of

dollars you can't Insider trade on your

own information like stuff that's going

on in your head is not insider trading

insider trading would be like jimie

diamond calling up or I'll use another

example Elon Musk calling up JB Diamond

over at JP Morgan and Elon Musk going yo

I need to dump $20 billion of Tesla

because the Stock's about to tank

because we're about to miss deliveries

let's do it in a 10B plan or whatever an

employee sale plan so it makes it look

like we're not dumping and Insider

training and then first of all that

would be illegal but then Jamie Diamond

tells everybody a Chase yo guys sell

Tesla and everybody at the company

starts dumping Tesla that's trading on

the basis of Insider information right

that's also front running or trading

ahead because they'd be able to trade

ahead of Elon musk's uh you know stock

dump plan that's not what's happening

here uh layering uh is is another one of

of trying to create this sort of like

fake uh uh order information layering is

a form of Market manipulation which

multiple limit orders are entered onto

one side of the market at various

different prices to try to create the

impression of activity that's not what's

Happening Here the only one that you

could potentially argue is this right

here momentum ignition trading now the

easiest defense to momentum ignition

trading is hey man look when I posted

that I made a buy the underlying stock

didn't move at

all this is one of the reasons that I

like to trade in stocks that are larger

and I think this is a very important

rule if anybody's trading on social

media it's probably something people

should regularly do is just focus on

larger companies ideally you know $500

million market cap plus but again

GameStop has a market cap of $8

billion but in the cas of ke in the case

of Keith Gil because he's the face of

gamestock GameStop let's be real he's

got a position of 140 or

120,000 uh contracts at $20 these

contracts went from $5 to $16 at Market

open yesterday they're only worth about

$10 now uh it doesn't look like he sold

any uh as of yesterday and the stock was

up 21% after he posted on social media

it could be argued that there was

momentum ignition from Keith Gil now

look at the actual definition of

momentum ignition momentum ignition not

this layering or spoofing it would be

this transactions in cross product

Securities okay well this is a little

bit complicated here cross product

Securities or cross product manipulation

this is a little tough one uh cross

product manipulation is a practice of

placing orders or trades in one

instrument with the intention of

illicitly impacting the price of an

instrument on the same trading platform

or a separate one so for example a

Trader could trade an equity to impact

the price of a trading a derivative

contract okay this is really very

complicated but imagine this let's say

you have a bunch of options and then you

buy a bunch of the stock so that pumps

the stock price potentially which then

pumps the derivative price at a

multiplier effect that's cross product

manipulation really dangerous one way to

avoid allegations of cross product

manipulation is in my opinion don't do

cross products don't do shares and

options well Keith has both he has

shares and options so that is a cross

product that's not great I know this

gets Arcane but which manipulate this is

hard you'd have to prove that manipulate

the underlying price of the security but

again 21% it was up 75% in pre-market

clearly people are going to follow this

here right thereby influencing the price

at which a market participant can either

establish or closer a contract so now

Keith didn't close yesterday but when he

closes those contracts there could be an

argument that he did so on the backs of

other people who went into it because he

went into it and see there are uh many

different websites that sort of Define

this uh momentum ignition let's do

momentum ignition trading this one would

had a good an interesting uh more

simplified definition entering orders

like ly to start or exacerbate a trend

and to encourage other participants to

accelerate or extend the trend to create

an opportunity to close out or open a

position at a favorable

price so this is dangerous again the way

to avoid this in my opinion is by making

sure that when you

trade the underlying stock isn't

skyrocketing solely because you entered

so for example I make trades all the

time sometimes I buy a stock like I'll

buy calls on Tesla and the damn thing

just tanks right after well then I'm

like all right obviously I know I'm not

influencing the price of Tesla I had no

expectations either of influencing the

price of Tesla or frankly any of the

stocks I trade like I generally trade

Nvidia Tesla Nas you know these are big

companies super micro computer inid I

don't actually think any of the trades

that I make affect the underlying price

and I'm not doing cross products or

whatever but when it comes to momentum

ignition what you're really doing is

you're creating an allegation and could

finra or the SEC make the allegation

that Keith gills posts on social media

encourage others to get in so he could

pump his

portfolio yes absolutely because not

only does he have cross products the

shares and the options but it's really

easy to go here's when you posted here's

what happened to the stock

price the best way to avoid that would

be to say hey look here's something

that's really liquid that isn't moving

off of our information but In fairness

if that allegation is going to be made

against Keith Gil then why is that

allegation not made against all the

short sellers or hedge funds short

sellers or hedge funds who can post

articles that say hey we think this

company's a

fraud then they've got a bunch of

position in that company and then all of

a sudden the stock tanks based on what

they posted which you could argue you're

igniting

momentum now it's also possible though

that the loophole is hey well they're

doing that under the uh what's it called

um uh research uh guys so like hedge

funds or institutions might be like hey

look you know we're not telling you

exactly what trade we're making we're

just saying we think this company is a

scam we're not saying oh we're buying

you know we're short this amount or

whatever that might be a loophole

they're

using that Keith doesn't have the

benefit of when only posts his shares so

maybe a way to avoid the allegation of

momentum

ignition is to say hey here's a

fundamental thesis I see I see this

stock is making this potential Trend

here's you know the the longer term

fundamental analysis or the technical

analysis uh and there's sort of this

avoidance of here's just

my you know $120,000 or 120,000

contracts thumbs up so the allegation

does probably have some Merit do I

personally think it would be fair no but

I do think there's a lot of cleanup that

could be done by Regulators to make it

very very clear to firms and

institutions hey when is something

considered igniting momentum or not is

posting an opinion momentum ignition or

is that unfair to people who have more

influence like a Keith gild I don't know

let me know what your thoughts are in

the comments down below I find it really

interesting Hopefully this wasn't too

granular and uh I hope that uh Keith Gil

is a okay okay thanks so much for

watching and we'll see you in the next

one goodbye can not advertise these

things that you told us here I feel like

nobody else knows about this we'll we'll

try a little advertising and see how it

goes congratulations man you have done

so much people love you people look up

to you Kevin PA there financial analyst

and YouTuber meet Kevin always great to

get you

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