Okay folks, so we've got three things to discuss: Number one, I want to talk about Crypto fud Number Two, I want to talk about potential squeeze runners or at least candidates for this week and what you need to know about them. And then lastly, I want to address a very important question that I keep getting when it comes down to Ev stocks, which is extra important to talk about considering Lucid's production. Preview week starts tomorrow, and before we get into all of this, the only thing that I ask of you in return is that you hit that ravishing like button and also don't forget to subscribe either. Okay, so let's go ahead and start with Crypto China, China, China.

You've seen the latest headlines that China is quote banning Crypto. What aren't they banning though? I mean, come on, China banned Winnie the Pooh After people made facial comparisons to Chinese dictator Xi Ji Ping and I don't see calls to short Disney, the People's Bank of China said services offering trading order matching, token issuance and derivatives for virtual currencies are strictly prohibited. Overseas crypto exchanges providing services in mainland China are also illegal. The Pboc said oh much doom and much gloom.

But the only problem is that China's been doing this for a while. Block Works put out a good data set showing the number of China's increased quote-unquote bans on bitcoin and crypto since 2013., even as recent as of course, the mining ban earlier this year, and what exactly has been the result of all of these bans, well, unprecedented growth afterwards after every single scare each one has resulted in annualized returns far outpacing the stock market. Now, take a moment to look at the chart on China scaling up of crypto bans. Just look at the last year.

in October of last year, they banned people from selling crypto. Then they shut off electricity to bitcoin miners, Then they banned mining totally. Then they banned bitcoin transactions from state-owned banks, Then they shut down websites, And now they are saying that all transactions are illegal. So take it alone.

You can look at this chart and say, hey, wait a second. China already stripped away most of the crypto trading in their region prior to this ban even happened. For example, how can you ban selling in the region they've been selling a year ago in October. If you're allowed in China to buy crypto domestically, but somebody isn't allowed legally to sell it to you, then essentially that's the same thing as banning all trading domestically.

So when they say that trading is banned, it's like, well, it has been banned for the last year. This is just stepping up the regulation in oversight. Before this even came out, again, they banned selling. They banned mining.

They banned banks. They shut down social media websites. Talking about it, you could argue that they've been ripping off the band-aid very, very slowly, but most of the band-aid was already ripped off. Truth be told, if you're a Chinese whale in crypto, you probably already either migrated your assets to different countries where they have exchanges where trading isn't banned, or you've sold off your assets entirely.

Crypto still isn't illegal for Chinese citizens to hold, so there's nothing right now to stop them from trading it on foreign exchanges. As long as these foreign exchanges aren't operating specifically in mainland China, Chinese citizens who often diversify their assets in other countries anyways, can continue to do that. On the backdrop of this though, this comes as China is set to be one of the first to issue widespread digital currencies themselves. The process in China is generally let your citizens use what they like from western worlds, and if enough people adopted, go ahead and ban it and then favor Chinese copycats.

But at the end of the day, folks, China's banning on technologies has very, very little impact on their global success. Whether we are talking Facebook, Youtube, whatsapp, Netflix, China can ban it, but they can't stop it from growing across the globe. And when it comes to bitcoin and cryptocurrency specifically, I would argue that this banning makes more of a case for why it's so important that we have decentralized currency. Cryptocurrency is all about empowering the individual and taking back individual freedoms within the monetary system that we have very, very little control over.

Every single time a government decides to overly regulate it or outright ban it, it makes the case and demand for that even stronger. Okay, moving on after. So After has been attempting a breakout squeeze for the better part of last week until the company announced they'd be wiping out much of their debt via share offering. This isn't technically as bad as a normal offering because in this situation, they're paying their debt with dilution.

which means that if you own shares of that, the debt to equity ratio per share is going to be lower because of this offering. So it's not as bad as a regular offering which just expands the share count. And with that it looks like a better setup. And honestly, I'd make the argument that it was a strong level of overreaction that derailed this momentum that we saw last week on that news Sport interest is still one of the highest out there, Increasing on Friday, it's followed at her short Interest history trend.

At the beginning of actual rallies, short attacks expand when they find themselves shorting into an exponentially increasing price. they start saying oh shite and paper hand and short interest goes down. But then mid short covering, the stock starts going down and then they realize, wait, now the stock is dropping. Let's go ahead and pile on again to celebrate these downtrends and accelerate these gains to which they are then met with the stock price once again rebounding, finding a consistent support and then going back up Friday we saw Short Interest start increasing again despite being met with a level of support and an 8 increase from buyers on an overall trend trajectory.

We followed a clear trend of bulls winning with each pup and dump rally leading to higher lows. The trend itself suggested that without dilution news we would also have had the higher highs, but the fact that it's still managed to hold trend trajectory on the lows is incredibly bullish. Usually with dilution you get really, really big derailing, but when you look at how well after has held up during the last few week uptrend and you consider a lot of retail traders who are angry for retribution as short sellers accelerated and made oodles and oodles of money off the downtrend from 48. And you combine that with Friday short interest increases and you get to this picture that this is not going to be a fast nor an easy battle for either buyers or short sellers.

Short sellers are very, very hungry in this retail traders I think are hungrier and with cost to borrow at all time highs, it seems inevitable that a lot of the short sellers that accelerated their positions during this last previous downtrend are having their tempers tested once again and are thinking to themselves, hey, wait a second. Does the cost-benefit analysis here make sense If this is met with more retail buying pressure? Does it make sense for me a short seller to continue to stay short when I was just going in to accelerate this quick downtrend that ended up not being very quick. the goal of most hedge funds is to be in and out as fast as possible as long as this has seen support inconsistent buyers from retail, and longs it does beg the question of how long they're going to be willing to hold out their exposure to this. Okay Bbig.

So quick Rundown: Bbig was a huge squeeze hype play a few weeks back that took it from 2 to 12 in the span of a few weeks Now it has a bunch of huge catalysts coming up in October with the main happening in mid-october October 15th, but in the meantime it hasn't been getting as much attention from buyers, and while we wait to see if it starts getting more hype around those capital states, the real question that people are asking right now is what is the real short interest Here, the big and constant debate that we've seen with many, many stocks over what really isn't isn't the free float has gotten really, really intense with Bbig, with many alleging that this 22 estimated short interest is actually likely a lot higher, many spreading due diligence suggesting it's as high as 260 percent, which would have a big big impact on how fast this rallies when buyers are chasing the limited float and shorts have to start chasing that as well. I don't agree with any of the arguments that I've seen for why it would be that high, but bigger picture. It does seem like there's a lot more short interest on this when you reduce the free float than just that 22 that we see. and the reason it's so important to discuss this is because we're still in the quiet period before you have the big catalysts and what happens now is going to dictate what happens later.

Right now we are at an inflection point. It's this week where Bbig gets to decide whether to hold upper direction above our red moving average or break into a downward direction below it. The more can withstand right now, the more it is likely to perform next month of our short squeeze candidates as of late, Cei was the best finishing last week, and the question of whether or not to take profits is very real. Right now it's gone from lows at 33 cents a month ago to over two dollars.

There is now more downside to recent lows than there is upside to long-term highs. Risk versus reward profile isn't looking amazing from that standpoint nor from a time standpoint because things that run up very very quickly are a lot more likely to sell off very, very quickly and very very soon. Quite frankly, we do talk about a lot of short squeeze candidates. Some run, some don't.

The key to coming out ahead is not just controlling your risk on the ones that don't run or the ones that end up flopping, but also understanding that you can't come out ahead if you're never taking profits on your winners and ultimately, that decision is obviously up to you. But my take is, why not lock in profits during the uptrend and eventually set a trailing stop loss? To say, take a middle ground it's going up. You have certain price points where you're taking profits and you leave some in the position to continue enjoying the running. and then at the end of the day, you have a trailing stop loss.

Now, honestly though, playing Devil's Advocate does Cei have more juice in it to run? Well, There's no shortage of people calling for this to go to five dollars, and I wouldn't be surprised if this does hit five dollars within the next couple of months after three or four massive dips, of course. So I would say hey, err. on the side of caution here, there is nothing wrong with taking profits if it goes up to four dollars the next day. Who cares? You did a good trade.

Why is it always? Oh no. I did well on a trade, but if it could have gone up a little bit more, I'm gonna feel terrible. You could feel terrible if you want, but at the end of the day you're going to be thinking yourself that, hey, you're taking some profits off the table on winners? Okay, next I want to talk about Neo and Lucid. So the other day I got a message.

Someone sent me this picture of Neo's deliveries year to date and asked how it's possible that Neo has delivered 55 000 vehicles a year. To date trades at a market cap of about 58 billion while Lucidus delivered no vehicles a year to date, and no vehicles ever trades at a market cap of 40 billion. Well, obviously the reason that might come to your head is the market that they're in. Since Neo is in China, it trades minus the risk premium, which is extremely steep right now because of all the China flood.

You simply get more bang for your buck in China because you're taking on a lot more risk per buck. China that's a sketch. Market policies and policy objectives are harder to understand and predict, and quite frankly, people are first to sell foreign markets during any sort of shaky market condition. The market in China for Evs right now is much, much more lucrative than the market in the Us.

But the market risk at least the market perceived risk is many, many multiples higher. So during dysphoria times, that gets subtracted from the share price. Now, Lucid is based in California. Of course, you have massive, massive risk with early-stage companies, but being based in the United States and having to follow regulations that at least were more aware of and familiar with, there's certainly a certain level of safety premium on top of it.

The second big reason they're different is because Number One Lucid is in its anticipatory stage, Where Neo is in its reactionary stage. With Lucid right now, everybody's reacting to good news with battery range, production capacity, a slew of positive coverage on their lucid air, as well as the upcoming coverage coming next week when they open their factories. But with Neo, what's going on? Well, they're reacting. People are reacting to the reality that hey, we are in a global chip shortage.

Production is going to be slow for a while. There are bottlenecks. There's also systematic risk thanks to the ever grown situation. Because Neo is more mature, it reacts to what's going on in the world because we know hey Neil was delivering set amount of vehicles a few quarters ago and Neo is making this much money.

Now they're making this much. We see a direct effect with Lucid. They haven't even really started production yet, So you don't get that effect. You can't see a trend change.

It doesn't have any room to react, it's just all anticipatory listed in many ways, is in an early stage hype cycle, where Neo is farther along, edging into the medium stages and also is in a dysphoria cycle. And let's be Real Lucid in the long run. certainly has yet to earn its valuation, but likely will and will go on to exceed it. and Nia right now will have to prove that it can waver the Chinese flood and waiver this supply chain chip shortage issue which it also likely will.

Both have huge risks attached to them. weighing them down, how early stage loose it is, how risky the Chinese market in China is, But at the end of the day, if you're looking at what they do five ten years from now, are they overvalued? I don't know, I don't think so. Anyways, folks that caps off the video. if you have any questions, feel free to reach out to us below or join us on Ziptradersorkel.

And if you'd like to learn how to trade with our step-by-step lessons, our private chat, and of course our daily morning briefings, where are we brief on the latest catalyst each and every market open morning? Well, I'll go ahead and put a link to Zip trader you below if you're wondering what broker to trade these stocks on and you'd like to earn two free stocks. When you both sign up and deposit with our link below, we'll all put a link to Weeble below. They are a fantastic broker, so if you are broke or curious, go ahead and check them out. Anyways, that caps off the video and I'll see you in the next one.