Okay folks, so we've got a lot to talk about. I want to give a violent update on the market plays such as yes, Ooga, Booga, Amc, and then for the main entree, I want to talk about something that's going parabolic. Bitcoin specifically, has gained over 300 billion dollars in market cap in three weeks, and its current 869 billion dollar market cap If it was a company, would make it the seventh most valuable company in the world between Facebook and Tesla. So amongst these massive rallies in the cryptocurrency market and of course cryptocurrency miners, we need to talk about what caused this and whether it's going to last.

And the only thing that I ask in return is that you hit that ravishing like button and also don't forget to subscribe either. Okay, let's go ahead and start with the market. So the Dow was down today. the S P was flat, but Arc and most tech innovative plays, including Evs were up dramatically today.

Why is that Charlie? Well, because money chases stocks that have growth rates that are abnormal for the market. Back in the beginning of this year, that was the recovery sector. But now the recovery sector has factored in all of the abnormal growth. So capitals looking for a new place to flow to and that has been tech and tech innovative and the trend is becoming more and more concrete because of this whole Delta variant situation that is causing a lot of people to say hey, there's not much upside in holding recovery plays right now because they've already factored in years of growth.

Maybe I'll pour out of them, go into something else, and then when the Recovery plays go down because of the Delta, then we can pour back in. But right now you're starting to see a little bit more of that rotation into tech and tech innovative. In terms of the economy, you have job openings reaching 10 million for the first time ever. Pretty damn big kerfuffle because you only have 8.7 million Americans that are looking for work right now.

You have more jobs than you have people, and keep in mind that if a company's looking for workers, what does that mean? It means that they think that hiring a worker can help expand their business, help them serve more clients, help them create more economic value for society, and if they can't find those jobs that holds them back and it creates a bottleneck for the broad economy. Okay, moving on. The big story today was that Draftkings reached an agreement to buy Golden Nugget online gaming, which caused G-nog to rally 50 as this buyout represented a 53 premium. But while a lot of people hate on acquisitions, my take is hey, if you have the money to do it, if you're buying a brand name company, and if you're buying something that you can't reasonably make on your own within a small time scale, then just get the job done and do it.

The money you pay up front won't matter very much. Down the road, you're paying a fixed cost for an ongoing income stream. Paying the premium for G-nog is not going to kill Draftkings, but it will exponentially grow their market share and their revenues as well as of course, their brand reputation. Triple D, which we talked about yesterday and last week and were speculating on earnings did indeed beat on earnings today, which, like I said yesterday, was great for my fragile ego and feelings, but it's not so great for people who are looking to get a better deal in Ddd.

Anyways, I'm very, very happy with the earnings and in terms of the actual business itself. I'm very happy when I see businesses that we like perform. I just wish that the businesses would perform very well and the stock would go down in relation so that you could have a very clear divergence and you can exploit that inefficiency. Okay, moving on.

Amc Ooga Booga! Amc showed a very nice day today as earnings riled up retail traders into buying more. To summarize the earnings report: the numbers are actually pretty good relative to how tough the industry is. At least they only lost 71 cents a share compared to Wall Street's expectations of them losing 94 cents. They beat revenue expectations by about 100 million.

They also reported that they are very, very well capitalized thanks to all their offerings during this whole Amc Ape rally. That being said, of course, they have a ways to go in order to get back to their pre-pandemic earnings. But one of the silver linings that I would like to point out is that a lot of these recovery stocks that struggle during the pandemic like Amc were forced to learn how to cut costs and be as efficient as possible in order to survive. And a lot of those tactics have carried on through the recovery and will carry on throughout the years.

But anyways, in totality, hey, Amc's earnings, while still ugly, were less ugly than Wall Street had expected. and that rallied and riled up retail traders into buying Amc today. No, Amc does not trade on the fundamentals, but I do think that retail traders like the fact that they're buying a company that is making responsible choices, putting themselves on a pathway to survive, managing themselves correctly, and is showing results because of that. And the fact of the matter is that if this Amc Ape situation hadn't happened, Amc would be sitting on a lot less liquidity.

Amc is so well capitalized, they could probably make it through a couple more pandemics if we're being honest. And hey, they might have to remember there's 24 letters in the Greek alphabet and we've really only just started seeing it hit Delta. That's in the beginning of the alphabet. We still got to go all the way down to Omega.

And what happens after you hit Omega? Well, we may just shift over to Roman numerals. Who knows. But you know what they say, you gotta ooga before you booga. Okay, Cryptocurrency.

So what's causing the rally? Well, there's three big reasons. Number one is a political power shift. On August first, the Senate introduced an infrastructure bill that included provisions on how digital assets like cryptocurrencies were to be regulated and taxed. Essentially, the crux of it was that it would substantially increase the reporting requirement for anybody that the bill identified as a broker.

The idea was this reporting requirement would close all the loopholes that allow people to get away with tax evasion in relation to digital assets, and by doing so, bring in more revenue that helps fund that massive infrastructure bill that they're all debating right now. The problem is that the bill's definition of the word broker was way too broad and would have applied this massive, massive burden in terms of reporting to parties such as crypto miners, developers, and anybody else in the blockchain supply chain. Anybody that helps contribute to the facilitation of cryptocurrency transactions would be considered a broker under this regulation, Where in effect, it really only made sense to apply these standards to actual crypto brokers like say, Coinbase where you have a broker and you have a client. However, after strong arming from lobbyists, they redebated the provision and earlier today announced that they had essentially watered down the clause quite a lot and came to an agreement one that didn't have such a broad definition of the word broker, which was a huge win for the cryptocurrency industry and resulted in a massive rally.

However, while I was filming this video, Senator Bernie Sanders went and decided to block this compromise. But overall, regardless, what we've seen is a dramatic shift and increase in cryptocurrencies power in government. This debate is a hugely symbolic win for cryptocurrency. Five years ago, very few politicians would have given cryptocurrency the light of day.

Now everybody's seriously talking about it. Fact of the matter is, there's a lot of politicians that have never talked about cryptocurrency before, that within the last couple of weeks, have voiced their opinions and they've been in favor of it. And the show of strength in voicing opposition from the crypto lobbyists is also getting louder and louder and louder money talks. And the more money this cryptocurrency industry brings, in, the more influence it's going to have in Washington.

Countries like China can impose broad bands and regulations on the entire cryptocurrency market because their government doesn't have to worry about pushback from the industry or from citizens because if they push back, bad things happen to them. However, in the Us, what are the main drivers of political decision making? Well, industry lobbyists and voters? Probably more so the first if we're being honest. I didn't say that though, and with popular opinion amongst voters shifting in favor of crypto assets, and with lobbyists funded by crypto brokers and crypto miners gaining more and more power and influence every single day, Well, this marks a massive, massive shift in political power and political will towards representing and protecting cryptocurrency from over-regulation That's not to say that regulation isn't going to increase, it almost certainly will, but it is to say that perhaps over-regulation is looking a lot less likely now that the crypto bulldogs are getting more and more power in Washington. Okay, number two, Short Squeeze: As we talked about during the beginning of the year, Bitcoins moves to the upside and to the downside are so damn dramatic because there's so much leverage.

There's so much margin in this currency. Whenever Bitcoin goes down, tons and tons of short sellers go and massively short this. all. that leverage creates a multiple of massive selling pressure.

And on the flip side, when it starts reverting up, all those shorts start getting pushed to cover and a lot of the funds that got ahead of the trend, then go and leverage it to the upside, which then artificially creates a massive amount of buying pressure. So when you have those two combinations, you get massive massive swings in both directions on pretty much every catalyst. Unfortunately for short sellers, the massive short campaign to get this down to 15 or 10 000 a coin didn't work. Remember short sellers these days? They don't really care about whether the asset class is overvalued or not.

What they care is that they're going to accelerate the current trend. The reason that most short sellers aren't attacking asset classes when they're at all-time highs, but attack them when they're already halfway down is specifically because they're trying to right that trend. and that trend exists both on the upside and on the downside. But the thing is that when they don't have the conviction that it's going to go to zero, that means that they're willing to flip back and forth.

and what we've seen in the last couple of weeks is really a short squeeze. There's a lot of shorts that haven't really turned yet, but it's starting to get very, very hot for them. You consider a 300 billion dollar market cap increase since mid July, which was like three weeks ago. There's a ton of capital moving in and out, and pretty soon you're gonna see a lot of the short sellers who are holding on here get screwed if this keeps going up.

And the final and third reason: when you're moving into an area with economic threats such as a variant such as valuations of recovery stocks over factoring in a recovery, well, you start seeing a flight of capital into assets that have pricing power. People are looking at reopening stocks. They're like, okay, they factored in a perfect recovery. But we're headed into this Delta variant situation, so it makes sense when you have not much upside and a lot of downside For a lot of these reopening places start selling off people like.

Okay, well, I'll just re-buy them back after the Delta situation cools down and we get a lower price point. but that capital has to go somewhere. and where is it going? Well, it's fleeing into stocks and asset classes that have pricing power. That's why you sell Arc up today.

That's why you saw a lot of small cap software companies up a lot today. That's why you saw Ev's taking off and that's why you saw Clean Energy taking off. Anyways, folks that caps off the video. If you have any questions, feel free to reach out to us below or join us on zip trader circle.

Also, quick plug. A lot of people ask Charlie what broker should we trade these stocks and cryptos on? Well one of my favorite brokers is Weeble. They have fast executions, a great platform you can trade when the market's not open, pre-market and after hours trading, and it gives you access to a ton of useful information that allows you to find some of the hottest place. And if you sign up and deposit just five dollars with them using our link below, you'll get two free stocks.

so you just have to put in five dollars and you'll get two free stocks and you can go and trade with that five dollars of course and do whatever you want with the stocks. Pretty much a win-win situation and you get to try out a great broker. So I'll go ahead and put the link below if you're interested. Also, if you'd like to learn how to trade, we do have Ziptraderu, which has our step-by-step lessons, our private chat, and of course our daily morning briefings.

Go ahead and take some time to watch my intro video on the Ziptraderu website. This handsome gentleman here will answer all the questions you may have about the program. Anyways, folks, have a great day and I'll see you in the next one.