Fox Confronts ApeNation | AMC Short Squeeze & SEC Investigation

hey everyone kevin here in this video

we're going to react to trey collins on

fox business so we're going to play what

fox said we're going to react to it it's

going to be really fun

it all has to do with amc and the reddit

revolution also want to hit the

technicals really quick

for amc just to give you a catch up if

you haven't already been caught up we've

got our line here drawn at 5085.

we've been balancing around this line we

had decent support earlier

we did break below support couldn't get

back across the line right now we are

consolidating below it

this is the five minute view if i go to

the one hour view

we see that amc really has been

consolidating around this line

for the last few days uh since our run

closer to

june 2nd and june 3rd since then we've

sort of been bouncing around this line

again if we break this

it is possible that 40 43 is in the

future

hopefully we don't break this and we

close above the blue line

and we keep that support and that

momentum moving up we do have some

technicals to consider though we could

look at or tax data that shows

that about 17 and a two-thirds of a

percent of shares

are available to be lent we're at 82.35

percent

share utilization versus close to a max

utilization

seven days ago which is when we did see

a bit of a squeeze

we could also or at least the squeeze in

prices going up we don't want to say

that it was these squeeze yet

but we definitely saw some massive price

action last week

this right here is a put call ratios

or it was a chart of put call ratios so

the higher the number the more puts

you're getting

lower the number the less puts you're

getting right now we're

still an elevated level of puts to calls

lots more call action

over here any number below one means

more calls so

throughout february and may we really

had mostly calls

but we had massive increases in put

purchases

at the beginning of or the end of may

here and the beginning of june

this right here being around june 3rd

june 2nd june 3rd

and so since then we have come down

we're still at an elevated level of puts

slightly greater than where we are with

calls 1.39 puts

for every call contract that exists

right now so

the level of shorting at least synthetic

shorting has come down

remember synthetic means it doesn't

actually affect shares it's just an

options play this is why we can have

synthetic shorts we can have synthetic

lungs

which is of course different than naked

shorting which is

a practice that if intentionally done is

illegal if unintentionally done

which commonly gets done is is

technically not a violation of

securities laws now let's go ahead and

jump over

that although much harder to track also

very common during liquidity events or

lack of liquidity events

we have plenty of liquidity right now so

we're not expecting too much of

too much naked shorting instead we want

to keep an eye on those synthetic shares

then we do also have data on short

interest

we're going to go ahead and pull up the

black app just so we can get the latest

data here on amc and gme and then we're

going to go ahead and react to trey

collins so take a peek at

this here this is amc right here amc is

at 12.5 percent gme sitting at 19.26

but what's more important folks is that

we pay attention to the actual chart

here

you'll notice that we really recently

had this inflection point around june

2nd and june 3rd

which is right around the time we had

about a 95

closing day in amc since then we have

seen amc short

interest a fall now this data could be

wrong they could be lying to us they

could be screwing us

but this if this data is accurate

implies that there was at least some

degree of squeezing that happened uh

last

week that would be about an eight to

nine percent uh level of squeezing okay

now let's go ahead and react to trey on

fox business we've got the recording

right here

let's hop right into it and uh share

some commentary as necessary

let's go lines and the pool of names by

the way continues to widen and being

swept in now

moments ago just about an hour and a

half ago it got the attention again of

the sec of course they've been looking

into this but now it looks like perhaps

chairman gary ginsler who kind of

alluded to this at the piper sandler

conference that there are considerations

being made now for changing the rules

and how

u.s stocks are priced and traded now

that could include shortening settlement

cycles

i want to welcome back to the show the

host of trace trades on youtube trade

collins and trey

you know part of this is faster

settlements we know

this t plus two is a long time for

stocks to settle

it allows for a lot of high jinks a lot

of shenanigans by hedge funds

your thoughts are maybe a t plus zero or

t in the evening

getting these traits settled much

quicker what would that do for these

shorts

to prevent this sort of shorting that

we're seeing quick update

in case this doesn't make sense settling

is the process

of when you sell a stock or buy a stock

your broker fulfills that for you but it

takes

two days to complete the transaction

with the other party to match up the

other person

and have money completely clear in that

process

a lot of shenanigans can take place

which is exactly what charles here is

mentioning

this is why blockchain technology has

actually been considered a potential

solution for settlement time frames

to where we can get instantaneous

settlement or same-day settlement

same-day settlement was probably going

to be much more realistic

than instantaneous settlement for for

the foreseeable future

this is something by the way that i

talked about with with the

robin hood ceo in my interview with the

robin hood ceo

about why don't we have t plus zero why

don't we settle trades right away

it would eliminate a lot of the issues

with collateral requirements

that led to the freeze of gamestop

trading at robinhood

and so going to t plus 0 would be great

or t in the evening which sounds like

having like coffee in the evening tea in

the evening

but it's actually settling by the

evening so buy the clothes let's go

hey charles first i'd like to you know

thank you again for letting me come back

on to fox business to chat with

everybody and represent the apes and the

retail investors

it'd be an awesome opportunity because i

think what is lacking that wall street

and the big guys have

is opportunity to have information very

quickly regarding different short

interest data and analytics

and what's actually happening in the

cycle here's the fact ortex which is a

short interest data website has a t2

cycle meaning that we have two days

until the return shares on any sort of

loan

are reported to the average retail

investor and what's sad about that is

that the average wall street guy will

get that information

much quicker than the little guy over

here on the streets will uh it would be

a

huge monumental sort of shift that would

happen and it gives some more

you know availability and free market to

the retail investor

right on by the way right on more faster

settlement

more transparency better for retail

investors this is good

would it do anything for naked shorting

or the does uh you know or do they just

simply have to enforce the rules for

that

so naked shorting it's it's it's funny

charles because i saw on cnbc that uh

melissa lee had had slipped up and

talked about naked short selling

now this is something that the retail

investor and the apes have been talking

about for about six months now watching

you know amc stock particularly is this

is blatantly happening

and there are a lot of rules and

regulations that are coming out and a

settlement time of t0

would definitely crack down on a lot of

this naked short selling

the system is built in a way that these

guys can get away with it in fact they

slipped it up so

easily on cnbc that it didn't even seem

like a big deal it was nonchalant

however it's an illegal practice and

that legal practice needs to get cracked

down on i also think there's an

interpretation from ginsler's comment to

greater transparency

like payment for order flow a lot of

people were shocked about it

the experts on wall street say you the

investors should be thankful for it

it's never been this cheap to transact

to try to do transactions

but it feels unseemly right this sort of

almost cannibalistic nature of these

relationships would you like to see

greater transparency no i want to

interrupt here quickly and just say

you know what's absolutely nuts about

the

market maker model of oh trying to get

you the

best execution is that when it comes to

you putting in a trade and then market

makers taking your trade and suggesting

oh well we're trying to save you money

so

we'll give you the best execution to

make sure we can save you as many

pennies per share as possible

the reality is there is a premium level

of execution and that premium level of

execution is actually better than best

which is really frustrating because

brokerages tell us

oh you're getting the best execution

don't worry about how the market makers

work you're getting the best

but best is actually not the best it's

just the level

labeled best so it's kind of think of it

like there's good

and then there's great except they're

calling good

best when in reality great is the best

but they're not telling you that and

that's really really really really

annoying

that should be much more transparent oh

100

100 charles you'd love to see

transparency that's the issue with what

you see happen

on some of these big wall street firms

is they're not transparent in the least

bit

you can go through a variety of

different ways whether it be dark pool

training so that you know different

brokers will go through a dark pool

system and you don't have to have as

much transparency

for the inkling of a cent like a tenth

of a penny or a hundredth of a penny

transaction gain i mean that in and of

itself speaks volumes

about how much these guys want to hide a

lot of their transactions

particularly regarding short selling

trey i got to get this in but i don't

have a lot of time i want to talk about

the reddit community itself for a moment

right yesterday someone posted a link to

an

sec s4 amendment filing it was from

northern star investment corp 2.

and it pointed to a legal proceeding on

page 186

now part of it read plaintiffs allege

that apex along with over

30 other brokerage trading firms and or

clearing firms including

robin hood barclays citadel and dtcc

engaged in a coordinated conspiracy

in violation of anti-trust laws to

prevent retail customers

from operating and trading freely now to

to stop losing money on short sale

positions that's what it read

listen we're not lawyers i don't want to

speculate on this case at all

i just want to say to me it's impressive

the

reddit community how they unearth things

like this some of filing an innocuous

filing

page 186 why did the pros keep

underestimating your intelligence

and how committed you are to this i

think these pros that the people who

quote unquote are smart

money don't understand that the retail

investor is not stupid

the the average person out there can put

together a lot of different resources

due diligence

crunch numbers whatever it may be and

find out some really cool things

this is news but it's not new news these

are things that we have uncovered

over the last six months as individual

retail investors doing research on the

stock

here's a fact this is something that you

know brought me to believe that this

could be happening

is the heavy leveraging the margin debt

that you have in the economy right now

the u.s stock market there's 847 billion

dollars of debt

coming from margin the stock market and

the majority of them just so you know

that level of and i'm going to talk

about that amendment in just a moment

but that level of debt is the highest

level of debt we have ever seen

in margin markets and it continues to go

up it gained

three percent last month almost 200

billion has come in the last six months

that is not a coincidence these hedge

funds are playing with fire and

eventually going to get cracked down on

and that's as simple as it gets

you got to work with me trey real quick

the greatest risk to this movement

is it regulations is it investors

running out of money

is it the federal reserve hiking rates

so let's quickly discuss this amendment

64 because it's worth noting this

amendment 64 that alleges this

coordination between brokerages

in influencing the price to the benefit

of hedge funds i want to show you

exactly how easy it is to find

what it is and what it means okay so

bottom line northern star is a spac

they're taking apex public

apex works with companies to do security

clearing

like weeble and m1 finance apex is being

sued along with robin hood and many

other brokerages

for what happened with gamestop there

are over 30 lawsuits against robin hood

these are all being consolidated into

like a massive class action filing

and so what was actually read and

charles mentioned this but it was easy

to miss

charles mentioned that this is a quote

from a legal proceeding it's just worth

being very clear here

that this is an allegation so it's an

allegation

and all you have to do is type in robin

hood on the apex

filing and you'll find this but

plaintiffs allege that apex

along with over 30 other brokerages

robinhood included barclays citadel etc

coordinated in in a conspiratorial

manner in violation of antitrust laws

to prevent customers from operating and

trading freely in a conspiracy to allow

certain of other defendants primarily

hedge funds to stop losing money on

short positions

like gamestop that's the allegation here

it's worth seeing this in context here

i would just want to make that very

clear that it is just a a

basic summary of the lawsuits that are

happening it's not drawing any kind of

conclusion

let's now get back to hear trey on the

biggest risks

absolutely yeah no problem so i think

the greatest risk

is infiltration there's no strange you

know stranger to the note that these big

hedge funds and firms will pay people to

infiltrate the community

and act like one of us we have to watch

out for those people and recognize that

this is not the normal way and stick

true to your convictions

simple as it gets all right trey thank

you so much for sharing your comments

and good luck to

on everything coming up freaking awesome

by the way that we've got trey

representing the community on fox biz

shout out to trey trades awesome awesome

awesome so uh let's do a summary here

okay so

big risk infiltration of of maybe hedge

funds dressing up

in suits i'm wearing a suit but i am

wearing jeans

okay so that does soften that a little

bit uh hedge funds uh

or maybe not dressing up in suits but

hedge funds setting themselves up as

insiders when they're really not

insiders

i want to show you i have zero put

positions

or short positions against amc i am only

long on amc

i have always promised to you that i

would show you

exactly what we've got and uh i would

show that to you no matter what

so we're going to go ahead and show you

this i do believe that right now the

momentum the temporary momentum

is is in a manner of consolidation for

amc

it is one where we are hunting for a

catalyst

and while we hunt for catalyst we could

potentially trade sideways

or down to some other support levels

there you go

there's my live amc position right now

down about

three thousand one hundred dollars to a

market value about 70k

so there you have a full update on amc

from me i'm super excited for that next

catalyst to come in the meantime

we're hodlin we're looking at other

opportunities as well especially long

positions to add

and folks we'll see in the next