Okay folks, so we've got about three different things to talk about today. Number one, I want to talk about what just happened with this inflation report. Number two, I want to give an update on plays And then for dessert, I hope you like cheesecake. Because number three, we're going to talk about what Robinhood just did to Amc shareholders and what you need to know about that Amc situation.

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This dashing gentleman will explain everything you need to know about the program. Coupon code floodstopper50 will get you 50 off before checkout. Okay, first, so the big macro story today was the Cpi Index report, which talks about price inflation in regards to consumer prices as a whole. July 2021 saw prices go up 0.5 percent month over month, which is the slowest month over month growth we've had since February.

The slowdown seems to be driven largely by the massive stabilization of the used cars and truck market. If you look hither, this particular sector's prices had gone up 10 in April, 7.3 percent in May, 10 in June and now it's gone all the way down to only going up 0.2 the last few months. this segment dramatically increased the average in terms of inflation, but this month, there's very, very little increase. So this is having less of a roll on the report.

And transportation services are actually getting cheaper. But for some of the most important sectors here, you're talking about food, energy, Shelter, Commodities, services, these categories are still seeing increases, and while some have had modest cooldowns, Really, what this report is saying is that hey, the parts of the economy the consumer goods and services that matter, they're still increasing in a pretty steady rate. But on the other hand, it's not getting out of control. It's kind of in line with the Fed's expectations.

Earlier this year, inflation would pick up, in the summer, it would stay strong, and then it would start peaking down as you get into the fall and winter. The real question of the Cpi index is hey, I know these prices are going up now. they might go up another month, but are they going to start pulling back as we go into October? November, December. Are these growth rates actually transitory? Or are they not.

But anyways, despite a lot of headlines over this report, I would say that the only real story here is that used car and trucks are starting to slow down in terms of price and pressure. Okay, moving on. So Upstart achieved our price target at 172 day and it was a 26 increase day for the company. But like we were talking about yesterday, hey, we've loved this company for months and months and months and they blew their earnings out of the park.

But I'm not going to upgrade the price target into the euphoria. Now, if you're unfamiliar with the company, their whole business model is essentially exploiting the fact that there's a lot of Americans who would make good borrowers but don't qualify for good credit. Upstart uses a much more holistic approach by taking in a lot more variables up to a thousand variables. This allows them to actually get to know their customer a lot deeper and get a better risk assessment on the customer instead of just throwing them out because they didn't fit some dumb criteria that credit score Rating Burrows came up with in the 1970s and it is working beautifully.

Yesterday's earnings were huge, revenue scaling dramatically, net income up more than 3x you look at the transaction volume. In Q4 of 2020, we were at 1249, which adjusted for scale is of course, 1.2 billion. Two quarters later, now, they are reporting nearly 2.8 billion. That's a dramatic scale-up Upstart is upscaling their business quite beautifully.

Remember, the market comes in cycles, and the fundamentals may not mean shite when you're doing the work and identifying the company, but eventually the truth comes out in the long run. Of course, on this channel, we talk about both long-term high conviction plays largely based on the fundamentals as well as short-term chart plays largely based outside of the fundamentals and just trading off euphoria. But it's very, very important that you have a clear line in terms of what you're attacking, because on this side you can wait it out. On this side, you can't because if you're waiting it out on a chart play, you're just holding and hoping.

Okay, next. So our accela potential short squeeze candidate woke up a bit today, going up over 12 percent at highs. It's been a fair tease the last few days hasn't been able to get enough retail strength to set off a momentum rally, but it does continue to maintain enough retail interest to hold back the short sellers from really baiting it down. I'm continuing to monitor the situation, but with so many short sellers attacking this one and trying to get this down to zero, it likely wouldn't take too much to set off a storm here.

Okay, next earnings. Now, Neo's earnings weren't out at the time I was shooting this video, so we're gonna have to defer on that. But Club Clovey Cloverston has reported their earnings and they had a little bit of a run frenzy into the after hours. Club was a massive short seller punching bag in February.

It started with a short and distort report. Everybody panic Sold. The media pushed this narrative that this was an entire scam, some sort of weird scheme and short sellers that had previously made a ton of money off Longing Clove. Now we're making a ton of money on the way down.

and I've said this many times before regardless of what price it was at, I said, hey, this is a play that I see is worth about 20 bucks And when they had their meme short squeeze rally to 28, I said, hey, this isn't a company that I see is worth 28 at this point. So take the opportunity as it is and seize the meme rally because there will be more attacks in the future to play another iteration or another cycle. Now again, it's back to eight dollars, which is a sizeable amount of upside to twenty dollars once again. Now do I know when the short attacks and inflows will revert back in cloves favor.

No. but short seller arguments that this is a dying scam of a company that deserves to be at the bottom of a gutter are being proven wrong? Quarter over quarter. They just reported their total revenue was up 140 year-over-year They've seen a doubling of patients since the first quarter of this year alone, and the whole argument that doctors and patients anyone serious would never use Clover Health because it's a scam is completely ridiculous. When you look at these numbers, you look at different awards that Clover has landed in the last six months, You look at the growth potential in the market they're in, and you're like hey, wait a second.

I don't know if short sellers are telling me the truth here. and the stock of stock that's in the Medicare Advantage space has priced in basically nothing about the possible Medicare expansion and lower eligibility age included in the 3.5 trillion dollar budget proposals. I look at Cloven. I'm like, okay, well, some of the most successful short attacks couldn't even get it far below where it's trading at right now, But some of the most successful meme rally attacks and some of the actual valuations when people were actually looking at these companies realistically put it much, much higher brought it as high as Twenty Twenty Eight Dollars.

Now, Twenty Eight Dollars. The valuation. I would not touch this, but Twenty dollars. That's where I see a fair price for this.

at. At twenty dollars, you factored in a reasonable level of growth over the next three four years and you've been able to get that up front without having to deal with a lot of that fun and risk and regulatory concerns. So at 20, I see that as a good price to sell out at. Okay, moving on.

the hood of Robin and Amc. So today, Robin Hood announced that they will be buying say Technologies for 120 million. You don't say ah, you do say say Technologies is a platform that allows retail traders to come together to confirm their shares and to vote on pressing issues that they'd like to ask. the Exec board At A lot of these publicly traded companies, Generally, retail traders get tossed aside like little stupid children when it comes to asking questions to the exec boards.

Why? Because retail traders don't have many shares and they want to save all the questions for the big dogs that own a lot of shares aka the institutional money. It's also honestly a practicality issue. If you have thousands of thousands of retail traders, you're not going to be able to address their concerns. So Say Technologies is the platform that's trying to fix this problem by allowing retail traders to come together, log in, confirm their shares, and then vote on questions or raise questions, and then vote on questions they'd like to get answered.

This inferior would give them a better voice and better representation. Now, where it gets interesting is that Amc used Say Technologies to survey their shareholders which is largely retail based and asked them to vote on what they wanted to have answered. And because of that, about a week ago, there were tens of thousands of people on all of the Amc forums asking folks using Safe Technologies to both confirm their shares and to raise questions to the Amc Exec Board around earnings Saying things like this will be safe, don't worry, basically encouraging one another to give State Technologies access to their confidential and personal information on their brokerage platform, and in return they'll be given the ability to vote. But now, of course it just came out that Robin Hood is going to be buying Say Technologies and what you're seeing now is a lot of those same people panicking people implying that Robin Hood is trying to steal all this data.

Everyone's rushing to figure out how to protect themselves. Here, Things like this post that says with news breaking of Robin Hood's acquisition of Say Technologies, I have requested the complete destruction of my profile and personal investment data. I saw some posts of people saying their lives were destroyed because Robin Hood bought Say Technologies. There's nothing short of panic on a lot of retail forms right now, and we could certainly go on about the ironic timing of this acquisition right after Amc used Say Technologies for this vote, and the fact that of course, Amc apes don't like Robin Hood and Mass.

But honestly, I think this is missing the bigger picture and there's way too much wheel spinning in the retail community right now. One of the consistent themes and struggles that we've had with this Amc ape situation is that a lot of people fail to acknowledge how interconnected everything is. and since everything is interconnected, people have so much that they can speculate and get mad about every single day. One thing is a conspiracy.

Everything is a conspiracy, right? All of a sudden, it's become so much more fun to speculate on things that aren't really happening because it's so much more dramatic. Instead of speculate on what really is happening. which is the facts. And the facts are bad enough.

Every if and or or is now to be questioned. Maybe the hedge funds put that in the English dictionary to make us lose money on our Amc shares. Now folks, not every single thing that happens is because they want Amc down. When you say that it is, you start screwing a lot of people over because you're just blankingly lying to them.

All of a sudden, the purpose of the movement, which is to reveal actual unfair manipulation tactics has been thrown aside because it's not interesting anymore. What's interesting is who can make up the next Bs lie? It's important to ask questions. But when did we decide that answering the questions honestly didn't matter anymore. What I would say is that you need to understand the proper context here.

When you're saying that Robin Hood, for example, is trying to steal your data by buying, say technologies, what you're really worried about is Hood using that data and sending it over to the institutional investors who can then weaponize it against you In terms of short selling, right? That's what you're worried about. Okay, but if you open the broad structure of the market, almost all of retail traders orders are routed through institutional investors in the first place. Citadel, for example, a market maker and the most talked about one executes approximately 47 Of all U.s retail order volume, and there's a handful of others that execute a majority of the rest, and of the retail orders that go directly to the exchange. Those transactions are usually done with brokers that are either owned or do business or have some relationship to a lot of these institutional market makers.

So when you're speculating over, say, the Robinhood acquisition of say technology, and you're really, really worried that your data is going to be leaked to these hedge funds who are going to use them against you, You're acting as if the hedge funds already don't have all the data. you're focusing on avoiding a puddle while at the same time drowning in a lake. The institutional money either fulfilled your order or use deductive reasoning to figure out what the five percent of orders that aren't fulfilled using Institutional money are and what they're doing and what the training activity looks like. If you have 10 chickens and only two places to go and eight of the chickens go left, where did the other chickens go? They went right.

It's damn well easy to figure that out. That's what it looks like for institutional money. Now, am I saying don't try to reduce your exposure to data leaks? No, I'm not saying that at all. But what I am saying is that if you really want to have an impact with your time, instead of focusing on puddles, I would focus on the entire lake.

If you're worried about institutional money getting your data a much better focus than trying to question and call into question every single little action in the world would be asking a very, very simple question. Why is it that a high concentration of retail orders are routed through a very, very small number of market makers? Why is that the system in the first place? And why are there so many different conflicts of interest? Which is something that Sec Chairman Gensler literally tweeted about today in context of his testimony on whether the current market structure promotes fair, orderly, and efficient markets. Make no mistake, the reason that he's talking about this is because retail relentlessly brought this to the top of the conversation. All I'm saying is that you need to keep your eye on the lake and stop focusing on the puddles.

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So make sure to check them out if you aren't broke or curious. If you're wondering about my thoughts on payment for order flow, I'm gonna go ahead and link to that video below too. I know we're gonna have some questions on that topic and that caps off today's video. I'll see you in the next one.