Okay folks, so while I was shooting this video, you had Gme up 29 plus percent, Amc following suit up almost 15. And in today's video, I want to give you a violent update on the market and plays. But for the main entree, I really want to give you a breakdown of what's going on with the meme Revenge trade. Obviously, everything in this market has just been decimated Amc and Gme include it, but these do have some of the most dedicated ride or die followers of any sort of stock anywhere else in the market.

and there's been some things brewing underneath the surface with these that we absolutely need to discuss. and I'm going to go ahead and put the time stamps to everything. we're going to talk about below if you want to go ahead and give it a look, but let's get to work. So today the market did a little rally rally as the Fed minutes were released without any huge surprises.

If there was any stretch of time where you'd get a contrarian bear Market rally, this would be the time we have a few week breather until the next Fomc meeting, which takes place on June 14th to the 15th and that's expected to be a period of time where you get another half point hike, but nothing more than that Cpi report from May comes out June 10th. a few days before that, and right now the Congressional Budget Office is trying to curtail fears of inflation, saying that we've already peaked. If you can't trust a government office with inflation projections, who can you trust, right? But If you're going to get a contrarian rally during an overall bear trend, this would be the time to have it. You have the market really anticipating exactly what the Fed's going to be doing in the near future.

You have inflation data a few weeks out and probably going to be cooling down a little bit. And like I mentioned back on Sunday, if you have this massive drawdown another week or two, you're now getting into an area where it's historically significant. Bears are getting very, very crowded on one side, and there hasn't been much room for bullish activity. We either get massive, record-breaking disastrous trading, or we get a reprieve.

It tends to be the case that even the most aggressive downtrends have periods where you do get those contrarian rallies, and I would argue that right now is one of the best periods of time for you to get that. In any case, we can't control the market flows and we can't control what the Fed does, but we could certainly control what we do and how we trade this market. I want to go over some violent case studies from Ziptraderu Catalyst Place. This morning we briefed on very good food company Vgfc.

At about 16 cents a share, it ended up running up to 46 cents in the first hour of open, which is almost a 3x. but we found this as a catalyst play because of what. Well, they reported a distribution deal across Canada, and when you have a stock like Vgfc that's gone from seven dollars to literally 13 cents at recent lows, the standard to having good news is so so low. But their announcement today was actually very positive.

They reported they increased retail distribution across Canada with their new partnership with low block companies, and as a result, the company's products are now available in more than 2 000 stores across North America, with additional retail expansion forecasted for summer 2022, which is right around the corner. Now, Loblaws is one of the biggest grocery chains in Canada, so this is a big stinking opportunity. In terms of catalyst, some of my favorite are ones that are actually partnerships between little tiny companies that everybody thinks are garbage and big companies that can distribute the products of the smaller companies or partner with them in any meaningful way. that provides not just a huge business, but also proof of concept for other people that want to partner with that smaller company.

And again, to be fair, the standards for this to run were very, very very low. I mean, this is in the Black Holes evaluation. When you get down this low, people are like wait a second, does this company even exist anymore? And then all of a sudden to see a distribution deal like this that's huge And so that's why it did run so much. And you don't get opportunities like this every day.

but when you do, you got to celebrate them. Another case study was Gov x Gov X. We briefed on originally back on Monday morning because it was already showing proof of Concept over our red directional Sma line. In that prior period.

We briefed on it at about 190 ish a share when it was selling off into Open. It popped up that day and held its upper direction and then had a fake out rejection before it popped all the way up to 3 38 the day after, which was yesterday. Now it's like yes in hindsight, this ended up having a 77 run from briefing price to heist. But the odds of you catching the entire move unless you have a crystal ball or close to zilch, the goal is always to find stocks that hit your criteria.

Play the moves when they show proof of concept and then get out when they're no longer showing that proof of concept. Grab as much of the move as possible if you don't want to join our program. We have completely free entry and exit plan videos that you can watch. We have a decent amount of them to give you ideas on how to actually find a good entry point, how to manage your risk, and how to control the probabilities and push them in your favor.

Of course, we also do our best to try to find the best catalyst plays that we know how to find in our zip trader you briefings that we put out every market open morning and sell with our lifetime access to the overall program. But our goal at the end of the day is to give you trade ideas so that you have an idea of what to look for, what battlegrounds are likely to show. Opportunity: Of course, market conditions have a huge impact on this, right? If you have a good day in the overall market, you're going to see more opportunities and catalysts most of the time and vice versa. You look at something like a Sega which is an example of how fast stocks can turn against you Sega we briefed on as a hype trade on the Monkey Pox trend back around nine dollars last week and it ended up running to 1549.

My projection on May 22nd, which was this past Sunday was that you'd see it pop up in the pre-market on Monday and then you'd end up seeing a sell-off 40 to 60 percent and you wanted to watch exactly where it retains value to see if it's primed for another hyper alley. It did pop up to 17.5 in the pre-market and then it had its profit-taking cycle and it's down something like 50 which was expected, but it hasn't found a bottom yet so it's like at the end of the day a lot of the hype is here and then it's gone and it doesn't always have to come back, right? You have to be very, very careful and mindful that even if you find the best catalysts and you find them early, they're still going to turn against you eventually, right? You should always take pride in having a beautiful exit strategy. In fact, it should be a piece of art. But speaking of art, this is the perfect segue to talk to you about how you can diversify in this market and also get a chance to win free lifetime membership to our zip Trader You Let's be real.

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Thanks Masterworks for sponsoring this video. Now back to the content. Okay, let's get on to the main entree. So in order to understand the situation with Gme and Amc, you have to understand what retail has been doing in this market condition.

Reuters reported today that retail inflows are at nearly all-time highs. Despite market turbulence, they said quote individual investors are buying stocks at a pace akin to the 2021 meme stock frenzy, even as the returns on retail investments sit at multi-year lows amid a widespread sell-off on concerns about rising interest rates, vandal research said retail investors in terms of specifics. They said retail investors bought stocks worth 76 billion during a three-month period ending on May 21st or at 1.3 billion dollars a day on average compared to net purchases of 80.6 billion or 1.32 billion a day on average between January and March of 2021. Now, this was a very, very shocking statistic to me in terms of all-time record participation of retail traders.

That was that period of January, March of 2021. This period that we're in right now is almost actually the same as what it was back then. The takeaways that retail participants us, me and you and your neighbor Susan haven't been running home to Mama and Papa. That's a huge break of trend.

Usually when stocks go down, retail traders blame the system and go home and never come back. Nowadays, they're just blaming the system, but they're still showing up. The system in many cases is unfair, and in some cases it is fair. But the thing that has historically separated the institutionals and the professionals from the retail crowd is that they keep showing up rain or shine, and they keep plowing through all the different problems and challenges that are thrown at them.

and of course, also crime. That's another big separator of the retails and the institutionals. And so certainly these are numbers that we should all feel very, very good about. And I read comments and some people are like morons buying the dip.

The dip just keeps getting dippier And it's like at the end of the day, if you're somebody especially on the investing side and you're not buying in a beer market, what kind of market are you buying in one that's at all-time highs Still, objectively a better time now than it was a year ago. Obviously, for short-term trading focuses, you don't really care where stocks are going. you just need things that move. But in terms of long-term investing, which I believe most retail investors do, it seems like the buy and hold crowd are making a lot of big moves.

Right now. It's like going back to Amc and Gme. Why are you not seeing the apparent presence of massive amounts of retail capital to the same extent that you saw during the last period where you had this much retail participation. And I think the reason is because the capital is being spread out a lot more.

Back then, you had a lot of stocks that were at very, very frothy valuations, and you kind of have the situation where people weren't really buying the dip so to speak. they're just kind of buying whatever would be the next momentum trade, which was a fun time. but a lot of that capital got centered on about two or three or four big retail names, Gme and Emc being the top dogs in that Nowadays, after the market has been completely obliterated, there's just name after name after name that is down huge, so there's a lot of opportunities for people to dip by. in a market where Alphabet, Amazon, Tesla, Apple are all down huge.

Not that they're all equal companies, but they're all down pretty decently. It's like there's just a buffet of names to buy, whereas like a year or 18 months ago, it's really just a few names. They got a huge concentration of that retail capital, but now it's spread out everywhere. But I believe that the other side of this is that while you may not necessarily be getting as much new capital deployed into Amc or Gme as you did back in January or February or early summer of last year, the fact that there are a lot of retail participants still participating in the market and watching to see how things are going paints this picture that there's probably a lot of short-term sideline capital that is willing to buy in when you start seeing some more proof of concept with some of these more meme names.

And you also have to acknowledge that these tickers still have a substantial substantial amount of ride or die buy and hold folks who are just like, no matter what happens, we're going to hold this. which creates a very interesting dynamic, because again, of course, you have a very aggressive short selling situation there. Let's talk about what made them run today. We'll start with Gme.

So Ortex reported today that exchange reported short interest as a percentage of free float is higher than at any point in the last year, and based on their estimates, comes out to 27 percent. Cost to borrow is also more expensive than at any time since the original meme trade period in early 2021, and utilization is at about 100 for the last couple of months, which also mimics the early days of the original massive Gme run up. In terms of fees on some shares borrowed today, Stonko Tracker registered around 25 000 borrows at a fee of 104. Those interest rates, buddy.

Imagine taking out a loan at a 100 interest rate? That's just not a fun time. This is something I find very, very fascinating, right? Because in a bear market, every short seller is a genius. You short anything, it's probably gonna go down. You may have a few days where it goes up, you may have a few weeks where it goes up, but overall, it's gonna go down.

And there's so many opportunities of stocks everywhere that don't have much of a following at all that short sellers could just go and short to oblivion. And the borrow fees are much lower and the risk profile is much better. Why bother with a stock that has traditionally caused a lot of heartburn and kidney stones for short sellers? Why? There's so many stocks out there that short sellers can short that retail traders wouldn't even bat an eye. And they'd probably make a lot more money in a faster time span.

If I was running a short fund today, I'd be trying to find stocks that have high prices that I could short into with shares that I could borrow. Very, very cheap. and then buy back in to cover the position without anybody noticing. These stocks are just not those stocks that fit any of those criteria.

Why the hell even focus your efforts on this? Your margin could go much farther if you just attack a different stock. Many better opportunities out there. And I always like to think that hedge funds operate as rational beings who just look at the math and the numbers. But for me, when you look at this kind of behavior, just suggest that this is an ego trade.

These stocks are some of the ones that cause dramatic losses and some of the biggest players in the hedge fund world and everyone left wants to be the one that held their conviction long enough to help finish off these stocks. And increasingly, of course, short sellers in this market have been empowered to press their luck as much as possible, trying to throw their weight around in every single name. But they're even trying to throw their weight around in historically dangerous short seller names like Amc and Gme now that they're trading at their weakest valuations and in the weakest market conditions since the meme trade started, which is why we see short interest increasing right now. But when you think about meme culture, the culture of the retail community, the meme revenge culture.

I should say, when you have short interests going up, retail traders get emboldened to buy more. And of course, there is an aspect of freedom fighting the short sellers. That's not lie here. And so when they see new short seller aggression, it causes huge inflows.

And this peak today. this new peak for the year in terms of short interest has been something that caused a lot of people to buy. and then of course when one of the big meme names goes up in this case Gme the other follows Amc Similar situation up a decent amount today. not the highest short interest in a year, but certainly much higher than we've been at when Amc was at much higher valuations which would have been a better time in hindsight to short sell right Which suggests again what well that short sellers are playing the tried and true game of trying to kick the player when it's down and on its weakest point.

The analogy that I make here is let's say you have two kids on a school yard. You have a bigger kid, the short sellers and the smaller kids the retail players. But say the smaller kid finds one area, one small area of the schoolyard where he has the upper hand because there's a lot of other little kids there, which make it very, very difficult for the bigger bully kid to come in their storm and beat that little kid up. Now let's say the bigger kid waits until the school bell rings and recess is over and all those other little kids go scattering back to their classroom and leave the one original little kid that gets bullied all the time undefended.

And then let's say that's when the bigger kid goes over and starts really beating on the little kid right when he's at his weakest. That's how I think a lot of retail traders see the recent short seller aggression. In names like Amc and Gme. they see it as a dirty and pathetic increase of aggression.

Now you could say charlie, hey, wait a second. This is how the game's played. The stock market is eat or be eaten. But I think that Emc and Gme are particularly interesting because you have such a relentlessly dedicated participant on both sides.

Both sides of the game are willing to give up any logic in the position in order to screw the other side over, and neither of them are really relenting. Truly go through some areas where one side gets weakened and the other side gets stronger and vice versa, but it just seems like neither care too much about the risk profile. They're there to make a point and they're not given up. I've always said whether or not you think that the Amc Gme meme trade is stupid or not, it's a very fascinating case study in market psychology, and it's going to be interesting to watch how this game turns out over the next six months to a year, especially.

Anyways, that capped off today's video. Thank you again Masterworks for sponsoring us today. If you want to get more information about how to invest in art, I'll put a link to them below. If you're looking to learn how to trade rather violently and get access to our daily morning briefings every single morning that the market is open in Ziptraderu, I'll go ahead and put a link to Ziptraderu and everything that we offers on that website coupon code charliefever.

We'll get you a nice discount before checkout. Have a good one folks, Make sure to hit that ravishing like button and subscribe and I'll see you in the next one.