DOJ Announces CRIMINAL Probe into RIGGED Stock Market!

hey folks so do you want to make

billions or billions of dollars in the

stock market well it's actually really

easy all you have to do is either be a

short seller who publishes research

reports

or

a law firm and here's the way the game

works you put together a really hot and

sexy research report that usually ties

together things that make a company look

like it's a fraud violating securities

laws or lying or deceiving somehow

usually you want to do this by stringing

together comments from glassdoor.com

or reviews of the company online or

facebook conversations and messages that

anybody could have in theory had

you strain together this information

with a very creative narrative then

before you publish either the fact that

you filed a lawsuit or even filing the

lawsuit before you do that or before you

get rid of your or you publish i should

say now get rid of you publish your

short seller report there are a few

things that you have to do first you

short the crap out of the company you're

about to publish bad news about you

could do that by buying put options or

you could also just short the stock

probably the most profitable thing would

just be buying one-week put options so

that way you get the biggest most

leveraged return possible when the stock

drops 40 percent your put options could

be up

multi-thousands of a percent

pretty wild in fact this literally just

happened with techno glass just two days

ago hindenburg researched

hindenburg research published a report

alleging that this company was violating

securities laws a fraud and somehow tied

to the cartel leading the stock to drop

over 41

in addition to either

getting short while shorting the stocks

or selling puts it's also a good idea to

let your buddies know who pay you like

your fellow hedge funds

an advance fee so that way you could let

your hedge fund buddies know to also

pile in on the shorts but keep

everything on the down low because when

you post this report the media is going

to pick up on it you'll post a press

release media will pick up on it they'll

run stories on it the stock will drop

leading the media to run more stories on

it leading to a lot of paper handers

selling the stock leading the sell-off

to continue usually the stock rebounds

within a day or two of this but

oftentimes it doesn't come back to the

levels where it was leaving these

companies in much more dire straits in

terms of being able to fundraise in the

future especially since lawsuits can

take years to end up clearing the cool

thing is if you're your own legal firm

it doesn't cost you anything extra to

file another lawsuit it just takes a

little bit of time and you get to use a

way of saying hey we believe in our

story so much that we're suing well

folks this is exactly the scummy way

that the market is rigged when it comes

to buying puts and short selling that's

why it's very hard to be somebody who

buys puts or short sales when you don't

have the connections to this kind of

research or insider information that

people are going to publish or file

lawsuits or publish negative research

reports beforehand unless you're in the

in crowd you don't know and folks

finally the sec has realized hey wait a

minute maybe there's something sus about

this going on bloomberg just broke a

story that the department of justice has

opened a criminal probe into the

practices of hedge fund and research

firms that rely on short selling

and the question that they're asking is

do hedge funds trade stocks targeted by

research firms prior to the publication

of the reports this is where i wrote

duh

now

the probe not the prob the probe will

seek if there's any improper

coordination or market abuses now i

wrote here jpm and vandertrak it's

really

interesting to know about these but what

jpmorgan and vandatrack do is they

actually provide data

to individuals who want to prevent a

short squeeze and i shouldn't say

individuals it's mostly institutions so

for example

let's say you're a hedge fund and you're

like okay we have

an investment of 100 million dollars in

peloton and you're like okay well

there's a risk that peloton's going to

miss on earnings so we're going to buy

some puts as a hedge against our long

position on peloton basically they're

shorting a little bit but then what if

all of a sudden things start going

trending on twitter or on

reddit that hey the retail army the apes

are ready to squeeze the hedges who've

got shorts well now all of a sudden a

hedge fund which is really just trying

to do what it's trying to do which is be

long on this particular stock in this

example right don't get me wrong they're

scummy hedge funds but in this example

the hedge fund's like hey we're just

trying to protect our long with a put

but if now we get short squeezed on that

put we could lose our entire long

position and so companies like jpmorgan

chase and vandatrack provide information

on the ape army

so that way they can disclose hey you

know the apes seem to be circling around

this looks like the apes are trying to

squeeze this over here and they

basically sell services to give hedge

funds an advance notice that you're

about to get squeezed but the point of

the retail army being pissed off at

hedge funds and these big old firms like

citadel or uh what was the other one

there was citron research which had

massive shorts on gamestop right the

reason retail the retail army is is

upset by companies like this is because

of the game rigging i talked about

beforehand how they set up shorts then

they beat the crap onto stocks destroy

companies that don't deserve to be

destroyed and they maliciously collude

with each other to rob money from the

retail army and the apes are sort of the

counter-attack to this the apes are a

way of saying hey we're retail we're

demanding the sec do something we're

demanding the government do something to

stop the bull crap basically so it's

important when we think about hedge

funds to really separate them in my

opinion i mean look they're all suits

okay but separate them into two batches

one is just the hedge fund that has long

positions that also has short positions

because well that's what hedge fund does

they hedge uh against downside risks uh

and then they're the evil funds that

purposefully publish reports to destroy

companies so they could sell their

research to other people i mean think

about it this way hindenburg which just

pulled off this techno glass 41 percent

short which may or may not be accurate

information hindenburg is going to

attract a lot of media attention i'm

talking about him the media is talking

about everyone's talking about him and

that's going to lead a lot of

institutions to want to call up

hindenburg and go hey um

can we pay to get early access to your

reports like we don't need long like

give us an hour

and uh yeah we'll pay

millions of dollars for a subscription

like that

hindenburg makes money on the

subscriptions and i don't know that with

certainty i'm guessing uh hindenburg

makes money on the subscriptions

hindenburg makes money on the shorts all

their customers make money on the shorts

boom the institutions win retail and

hodlers and companies get screwed

it's a dirty game it's so dirty that

after citron research got smoked

by the gamestop short squeeze they

actually said that they are going to

stop publishing research reports on

companies that are that they're going to

go short so they've they've promised to

stop posting short reports basically

now one of the reports that they

published after the gme uh short report

just to show you how strong they can be

or influential they can be they

published a report the day after uh jim

cramer pumped excel fleet from 18 to 21

they published a report excel fleet went

from like 21 to 35 on the positive

report which is really interesting

because that doesn't hurt the company

and it certainly doesn't hurt hodlers

and it doesn't hurt retail if anything

it helps right can create fomo and

momentum and can also be bad advice so

it can kind of go in both directions

because at the time and i felt like an

idiot i had just made a video on excel

fleet going i can't own this stock i

think it's a bad investment that same

day jim cramer pumps it and the next day

citron pumps it and then i got all these

comments like nah you're such an idiot

it doubled right after you bagged on it

yeah well i'm glad i wasn't a hodler at

18 and i'm glad i dumped my shares that

i had because the darn thing is at four

dollars now so it shows you like this

whole like research world can be really

really scummy here's that crazy uh jim

cramer pump and everything the jim

cramer pump and then the uh the citron

positive research report and then of

course the momentum bleed out over time

because well

that's right i mean you can watch my

video on it okay just type into youtube

meet kevin xle but the point is uh the

sec is now vowing to protect retail

investors when the facts demonstrate

abusive or manipulative trading activity

that is prohibited by federal securities

law the problem is

uh you know we've been waiting for the

sec to do something to do anything

for a long freaking time the sec

published their their reports about

gamestop and they basically did nothing

the staff review uh alleged no wrong

doing at all but i'm glad that the sec

along with the department of justice are

now looking into this from a criminal

point of view because honestly it's got

to stop it's shady and it's dirty anyway

thanks so much for watching this video

we'll see in the next one bye