Okay, so we have about three very violent things to talk about to close out this week. Number One, I want to talk about something very, very alarming that I'm seeing in terms of institutional transactions or I should say hedge fund transactions and what they're betting the market is about to do because they just revealed almost all of their ideas through the 13 filings. so we have a lot of insight into what's going on. Number two: I want to talk about one specific sector that is booming right now, and I want to explain why the data suggests that it's likely to continue to boom into this quarter.

and then number Three, I want to give a quick update on Amc Ooga Booga just to close out exactly my thoughts as we talk about institutional adoption of the stock and what some of the big money transactions are telling us. And the only thing that I ask in return for all of this is that you hit that radish like button and also don't forget to subscribe either. So the biggest hedge fund top put positions are Number One, Tesla, Ev King, and of course Growth Leader. A lot of this is Michael Bury taking out a huge put option on it, which we covered earlier this week.

Number two is Netflix Streaming Leader that has basically barcoded since January has dramatically increased the population of the United States thanks to the concept of Netflix and Chill. Unfortunately, it has been difficult for Netflix to monetize that, but what people don't realize is that if people are procreating during that time, more babies come out. and when more babies come out and they come of age, that's more Netflix subscribers. Number Three: Apple, a mainstream tech stock that has continued its momentum cycle into 2021..

Number Four: Amazon, which of course E-commerce leader has basically barcoded this year. Number Five: Microsoft, one of the best performing mainstream tech stocks of 2021. Number Six: Oogabooka Amc I don't know if you've heard of this movie theater company before, but it's been heavily short attacked. Number Seven: Facebook, Momentum stock into 2021 Number Eight: American Airlines recovery Stock that is suffering right now due to variant concerns.

Number Nine: Amd big winner this year because of the whole chip shortage. They've been able to benefit greatly from that demand and being one of the parties left standing. Number 10: Gme Gamestop Another short attack: Retail popular stock similar to Amc, But in total, what is alarming about these top short positions? Think about this for a second. Well, it's the fact that several major areas are represented, and if you actually blow it up to see the top 50, you see a lot more of the same story.

Why would you bet against mainstream big time tech stocks? Well, the only real reason is that you're betting that inflation is going to get out of hand and the Fed's gonna have to come in and choke these stocks, forcing investors that have a much shorter term time horizon. Why would you bet against recovery stocks like American Airlines? Well, you're projecting that this variant is going to be a lot more disastrous than the stock is letting on, and especially as we're heading into Fall, which was supposed to be a blowout period for recovery stocks and travel stocks and airliners like American Airlines because of the holiday season. and it's now looking a lot worse than that because cases are going up well. You're betting that this recovery isn't going to be getting off the hooks in the fall.

Well, you're betting it's going to be a very, very tumultuous season. Why would you bet against retail heavy short squeeze stocks? Well, this one's a little bit more obvious. A lot of hedge funds have put themselves in way overshorted waters in a stock that is fundamentally overvalued, but has a lot of retail that just doesn't want to go home. The more put options you have, the more you think they're gonna go run away and cry.

Why would they run away and cry? Well, one of the ideas that hedge funds have right now is hey, Well, if the overall market crashes and retail traders see everything that they own losing money for a couple months, they're gonna think the sky fell and the stock market's over. and they should just run home and cry to mama. So by taking out more put options, they're accelerating their bearish positions and making it so that it's a lot easier to break even on this. although to be fair, the Mcgme situation is a little bit more complex because of institutional adoption that also came with the institutional foot options in the last report.

but we'll get more into that later. And it is worth noting that in some situations, put options are a hedging strategy for stocks that a hedge fund or institutional player already owns. but the massive concentration and increase in put options is telling nonetheless. You don't take out more insurance if you're not worried that something's not more likely to happen and go wrong.

You also see hedge funds taking L's and unloading Chinese stocks as well as some diversification assets around the world. And hey, last year, around this time august, September, October you saw a lot of fud fear and dysphoria, which could be happening again this year in terms of a seasonal sell-off arbitrage opportunity. For a lot of these hedge funds, hedge funds like to play off fear. If they predict massive periods of fear are ahead, they'll try to short into that or take bearish positions into that.

So you look at the bigger picture here and it's like what's going on. Well, we have the Fed making another decision. at the end of September. you have case counts presumably going up into the Fall.

Death counts are already going up right now. Hospitalization's already going up. Some states are already talking about states that actually didn't want to do any restrictions before and now talk about hey. You know the hospitalizations are getting kind of out of control.

Pretty soon, we might have to start restricting, there's others that are doing it on a political basis, others that aren't. And you're looking at that, you're like, hey, wait a second. Even if nothing happens, there's a lot of fear going into this fall. And the bark is always worse than the bite.

Hedge funds are betting that there's going to be a massive massive bark, and the massive bark is going to cause a lot of these sell-offs and a lot of realization of profit in some of these positions. Remember, put options that we're looking at imply short to medium term bets against the valuations of many major sectors. And it's my view that hedge funds are betting that the fud around many different market catalysts is going to cause a massive bark that causes sell-offs. But by the end of November going into December, going into January, you're going to start seeing a lot more clarity on many things.

You're going to see a clear fed trajectory. You're going to see four or five more major inflation reports to see how bad the inflation is or whether it is transit touring out. That's not a word, but you get my point. number three.

We should get a better idea of where the variant situation is if that's starting to cool off again, if it was an overreaction. Even if it's not, at least we'd have clarity in terms of how bad that's getting and whether restrictions are being implemented like they are in other countries. And overall, for better or worse by December, we should get a much better idea of what 2022 is going to look like. and odds are strong.

and I don't want to be overly optimistic or naive here. I'll just run that. It's probably going to be a pretty decent year for the economy, so you have clear negative catalysts trying to play off barks, scary barks, big big dogs that seem like they're going to bite you and then you see the dog and it's a chihuahua and then the market starts going up again. So that's a perfect combination.

Because that means hey, you get something clear to give you good discounts, and you have something clear to give you good checks to say. hey, there's value here. and what are some bullish contradictions right now in this market? Well, crypto is a huge bullish contradiction right now, and this may not even have a down trending period this quarter. As you know, last week we talked about how crypto is on fire, but remember, it's doing so without much leverage.

The leverage that we saw back in January in February and in 2020 that motivated similar level of rallies has not come back into the game yet. Which means not only is Bitcoin this time around a lot more fortified in its price point, because the money isn't propped up by Leverage, but that once you see the leverage come back in. There's a high likelihood that this really goes parabolic because this is what we've done without Leverage. Imagine what happens when Leverage starts coming back into the game this week.

Despite the market cooling off and Bitcoin dragging a little bit towards the middle of the week, here we are again up at recent highs. We're getting closer and closer to the end of 2021. And if you are a Leveraged player aka a hedge fund that has tons and tons of leverage, well, well. you are on a race against the clock to make as much money as possible so that you can brag to potential investors in your fund about how much money you made in 2021 and you only have a few more months left to do that, and with the market kind of flooding out, where are you going to amplify your returns? You can do so in betting against the broader stock market.

You can do so in betting against some of these mainstream tech stocks that we talked about and recovery plays and whatnot. But the biggest upside potential for you is in terms of leveraging a cryptocurrency trend. There's not that many clear trends in the market right now that you can exploit either to the upside or to the downside. The stock market's been back and forth, but we have been breaking out into some sporadic new highs for a while.

but still, if you look. overall, it's not that clear of a trend trajectory. There's only one thing that's looking very, very bullish right now, and that's the cryptocurrency market. You look at the trend of Bitcoin over the last month, and then you look at the trend of really any other asset class and it's like, hey, Bitcoin is doing quite well in terms of picking up euphoria.

and this is without leverage. So so if you're a leveraged player and you're like, okay, how do I amplify my returns in something that's not already overly leveraged or overly attacked, well, Bitcoin is one of your biggest options. The crypto market is one of your biggest options, and that paints a really good picture for Mara and Riot, too, who may start coming back into prominence in the next quarter. But overall, with all these different storms, both good and bad, hey, I'm very, very excited.

and if we do see some sustained sell-offs in terms of Ev stock specifically, that's going to be one of the areas where we're going to make videos talking about each specific stock. I want a good deal in Chargepoint, Neo, Evgo, Tesla. That's another one that we just haven't been able to snap up at a good deal for a long time. Crowdstrike, Amd and the likes, so I'm really looking forward to talking through each of these stocks if they do get discounted when you get lemons, you better be making some lemonade, right? The other thing I want to talk about is as this relates to Amc.

We are seeing a lot of put options on Amc, but the other side of that picture as well. Institutional adoption has gone up in the last filing. recently released 13f files showed us that as of June 30th, where Amc was trading at just under 60, we saw a ton more institutional buying pressure than we did institutional selling pressure of Amc. Which is hilarious because of course the media has been hammering that retail traders are morons for buying and holding Amc.

Weirdly, they don't call these massive massive hedge funds morons And you asked the legitimate question of, hey, why would so many institutional investors be buying and holding Amc on June 30th when it was trading at like 60 bucks a share and had already gone up to 70 and it was on the way down, why would they be holding it if it was fundamentally overvalued? Well, I think that the main answer is that hedge funds that are more speculative based in nature are betting on the probability of their hedge fund competitors having to close their positions having to cover massive shorts. And they also understand the retail sentiment which has been strong enough to keep this at valuations. That turns up the pressure on those short sellers. Now again, short sellers can play the deferred game for quite a long time, and they have been playing the deferred game for a long time.

Their goal is for people to walk away and run for the hills, but the idea that institutional traders are now turning up the heat on them as well and you have hedge fund against hedge fund kind of paints the picture that there's a lot more to this battle than we've even known about. In the last couple of months, we talked about Renaissance Technologies, which is one of the most successful hedge funds of all time in this war for Amc, and it's like, hey, this is very, very interesting. Turns out, it's not just a meme stock, it's a probability bet. Anyways, folks, I hope you enjoyed this video and I hope you have an excellent weekend.

If you have any questions, feel free to reach out to us below or on Zip Trader Circle if you'd like to learn how to trade. We'd like access to our daily morning briefings and of course our private chat. Well, I'll go ahead and put the link to Zip Trader you below. If you're wondering what broker to trade these stocks on, I'll put a link to Weeble.

You'll get some free stocks when you sign up and deposit just five dollars using the link below. Anyways, have a great one and I'll see you in the next one.