Okay folks, so this Amc story has gotten a lot crazier over the weekend, and we need to talk violently about some things that you're going to want to know before we head into this week. In order to prepare. Number One, I want to talk about the effect of naked short selling on Amc and some evidence that we have so far in terms of how much naked shorting is going on. Number Two, I want to talk about the fact that many large investment banks are making the calculated decision to limit short sales on Amc as well as some other stocks, effectively decreasing their exposure to the risk of having a massive short squeeze.

And lastly, of course, I also want to talk about some trading opportunities outside of Amc. This is a trading channel and we usually do a top three stocks video every Sunday, but instead of doing that this week, we're going to focus a lot more on Amc because that's one of the most pressing events right now. But I still do need to tell you about some huge opportunities that I see some of which are actually related to Amc as we head into this week and I think it's going to be super exciting and the only thing that I ask in return for all of this is that you hit that ravishing like button and also don't forget to subscribe either. Also, this video is sponsored by Ziptraderu.

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You wouldn't expect results from an exercise program without exercising. Last week was one of the best weeks we've had in months in terms of retail plays. But even with the biggest and best briefing plays hey, you still would have wiped out if you didn't take some time to watch the lessons on risk management. This is a program that you're gonna have to put some effort into.

so just putting that out there. Okay, the entree, Amc. So if you're following the Amc story, you've probably heard a lot about Naked Short Selling and Cnbc's most recent mention of Naked Short Selling that went viral over the weekend. But maybe you're not sure of what Naked Short Selling even is or what the evidence for it is.

So for contact, short selling is of course, borrowing a share in order to sell it onto the market in hopes that you're going to be able to buy it back at a lower price and then return the share to whoever loaned it to you. That way you can pocket the difference between the price that you originally sold it at and the price that you rebought it at. Now with Naked Short Selling, you're exploiting the structure of selling share short selling shares onto the market that haven't been proven to exist and you have no arrangement to actually buy. Why would you do this though? Well, if you're a hedge fund, well, some stocks that you as a hedge fund see as overvalued may be hard to borrow on, and thus aka hard to short.

So if you see a stock like Amc and you're thinking okay, this is worth a dollar, this is worth five dollars. Whatever you think it is worth as a hedge fund. Well, now if it's traded at 70, that means more profit potential based on your analysis. But it's also probably true that all the other hedge funds at the same time think the same thing and the higher the price goes, the more people want to short it and the more people want to short it and the more shares that have already been shorted, the less shares that are actually available for you to short.

Of course, shares to borrow are subject to the same sort of supply demand as everything else, and the less shares there are to sell short, the more expensive and harder to get it is. So by Naked Short Selling, you could still participate in short selling a stock without actually doing it legally and actually having to find and locate available shares to borrow. Now keep in mind that when you're short selling, whether Naked or not, eventually you do have to buy back shares to cover that short position. And that's even more important because when it comes to Naked Short sales, they really need to cover their positions and destroy them or else it's going to set up a chain of events that screws them over and some of their cohorts.

However, hedge funds still do it because it allows them to make a lot more money when they're right. They usually get away with it when they're wrong, and it's very, very difficult to track, especially if they execute this through dark pools. How is Naked Short Selling actually done? well? If you short a stock, you have two days for the broker to prove that that stock actually exists. That's called a T2 settlement time.

By nature, a T2 settlement time allows you to short sell something before it's even settled that it actually exists, which in and of itself is problematic. But what happens if no borrowers are located after two days? Well, it's called failing to deliver. In Amc's case, failure to deliver data that we have in purple shows dramatic levels of shares failing to deliver within the last six months. Now, keep in mind that failures to deliver isn't a perfect data set.

Failures to deliver aren't just the results of Naked Short Selling. And of course, not all failures to deliver are going to be reported here, because again, a lot of them are done through unregulated exchanges and some different forms of dark pools, and that can delay when it actually shows up in the data if it ever shows up in the data. Most of the time, hedge funds can get in and out without anybody ever noticing or even having a track record of the transaction, but you can kind of gauge the overall situation by looking at the public data that we do have. Now, Amc is an interesting unicorn because we have a lot of evidence that suggests that not only do we know for a fact that a ton of shares are legally sold short, but there's also a lot of symptoms here of Naked Short Selling as well.

There's a lot of different estimates in terms of how many synthetic shares are out there on the market, and they have a very wide range of impact. For example, if you have a billion shares synthetically created in order to manipulate and make money off Amc's downfall, well, if that's true, then the short float percentage that we have is extremely inaccurate. and if there is a short squeeze, it's going to be that much more lucrative because all of those two billion shares synthetic fake shares would have to cover as well, chasing the stock up to insane heights. But again, going back to the thing that's very contentious about Naked Short Selling is that there's no concrete data on it.

You can only identify the symptoms and then try to connect everything to get an idea and gauge of what's going on. Some people call synthetic shares phantom shares, and I think that's a very, very good way of putting it, because if you have a ghost coming in and haunting you, you can't see the ghost. You can't confirm that the ghost is there. But if the ghost is moving stuff around, you can see some symptoms.

They're moving stuff around. I hear beating on the walls when I'm taking a shower. I feel breathing down my neck. You have to look at the symptoms, you know.

For example, one of the symptoms is Amc, A company with about 500 million shares outstanding last week managed to have five days where the total shares traded in a day were way more than the float. In fact, on Wednesday, it reached a weekly high at 766 million shares, and back in January managed to get over a billion. And again, this is a company that has a float of about 500 million shares. Obviously, when you have a 500 million dollar share of volume, it doesn't mean that every single share just got traded.

Some shares can trade multiple times, but keep in mind that some of the most actively traded stocks in the stock market never go over their entire float available. And again, that's totally possible, even without Naked Short Selling. But if there are a lot of synthetic shares out there, it becomes a lot more believable. Trading over 100 of total share float is very unbelievable in and of itself.

But if you add one billion synthetic shares to the mix, hey, maybe it's not as unbelievable. Maybe it explains a lot. And of course, the reason that short data doesn't scare a lot of Amc apes is because the bet is that there's a lot of synthetic shares out there that have to cover, And any evidence like this points to that. Another thing that we were talking about earlier is, hey, the higher a stock price goes and the higher the demand for short borrows.

Well, the less shorts are available for hedge funds to short with. But many have speculated that the strength of short sellers that we've seen over the last couple of weeks during some of the downtrends that were rapidly accelerated, suggests that short sellers have a lot more power than they should based on the availability of shorts that are even in circulation, which in and of itself may suggest more naked shorting out there. Okay, with all that being said, why is Naked Short selling? Why is this whole thing such a big deal? Charlie? Well, number one, because it creates a lot of artificial selling pressure. When you're dumping a lot of fake shares onto the market, you're inducing artificial selling pressure onto the market, which can then dupe a lot of retail traders and other participants in the market into thinking that everybody's freaking out and selling shares.

But they're not selling shares because those shares didn't exist in the first place. And creating that artificial selling pressure gives you a huge advantage because you know that a lot of retail traders will sell at the first sign of any red, and you know that some of your competitors have risk management protocols that force them to sell out at certain points of rent. and then you combine that with some of the things they do outside of the market, such as Fudd campaigns and fear campaigns in the media. If that's not the same thing, when you combine that with paying off of a lot of people that talk about these stocks in order to say negative things and get people away from a lot of these plays that are going to cost them a lot of money if they go up.

and you combine that with the fact that a lot of regulators favor hedge funds in the first place, and all of the rules are pretty much geared towards the favor of hedge funds. and hedge funds have strong relations with many brokers that allow them to manipulate buying and selling, allow them to receive data that suggests when retail is going to buy and sell, and allows them to be informed on every single thing that happens in the market to the second. Well, it really just showcases the unfair manipulation tactics from hedge funds in the whole entire system, and this has been allowed to go on pretty much behind the scenes forever despite this being illegal. The other thing is that naked short selling also allows hedge funds to illegally multiply their profits because it allows them to sell share short.

They never existed making profits on a market that wouldn't allow it to organically make it in the first place. Retail traders can't do that. Now, on the flip side, why is there a high likelihood that Amc is going to short squeeze again? short sells are going to have to cover their positions at some point. and the more short sellers there are besides the ones that we concretely know to exist, the ones in the public share short float, and the ones that were speculated on the synthetic shares that could be upwards of a billion? Well, the more in mass covering the more this can shoot up.

But let's take a step back from speculation. I just want to talk about what we do know: we know for a fact that Amc has been massively attacked by short sellers and that they do have to cover. Eventually, we know that they want Amc to go down, and we know that the worst thing for them is for retail traders to buy and hold Amc. We don't know exactly how many synthetic shares are available, but we do know for a fact that there's a lot of short sellers that are still in this and they're still.

they're still short This. So at the end of the day, whether you believe that there's a ton of synthetic shares out there or not, still, the best approach from retail is to buy and hold. Now, I'm not telling you to buy and hold. I'm not telling you to sell.

I'm not telling you to do anything. This is up to you. Truth be told, what I've seen many, many times with many, many different stocks is that retail has a very, very strong problem where when stocks go up, everybody's very, very excited and they're just so confident that they're going to hold through downtrends. And then when stocks go down, they start feeling like they got scammed.

They're like, okay, well, I didn't really know the reason why I bought in in the first place, and now that I lost a ton of money in my over leveraged position now, I'm going to sell out at a loss when it's like, literally the exact opposite of what you want to do. Stocks go both up and down, and if you don't actually understand why you're buying it when it's up, you're definitely going to be selling it when it's down. So at the end of the day, I mean, if you're going to be somebody who's buying holding this, you have to be able to deal with all the fun or it's probably better not to even mess with it. Okay, the next thing I want to talk about is several investment banks making the decision to stop short selling Amc and the big reason I see here is risk management.

Goal of an investment bank is to mitigate the chance of extreme and unnecessary losses and the short selling situation in Amc is a risk of an unnecessary and extreme loss. Remember, if you are a broker or a facilitator in the chain of naked short selling, you can find yourself in some deep deep mud if a chain of events sets off a insane and impossible to cover short squeeze. So I see the blocking of short selling on some of these stocks as evidence that banks are admitting that there is a sizable chance of a squeeze happening and leaving themselves and their cohorts open open to that extreme risk. Okay, let's go ahead and finish with updates on plays for this week.

So so last week retail saw a lot of rewards for both long-term and short-term traders, but I continue to believe that this is a short-term traders market pending some more steady inflationary data. Likely if you're a short-term trader, some stocks that you're going to want to watch this week for setups are skills workhorse Bb Fisker, Ride, B-y-n-d and Clove. All of these stocks had heavy short squeezes last week and have had many short squeezes over the last couple of months and after they sell off a little bit more, you're going to see a lot more short squeezes when you get more of these. I don't want to call them meme rallies because people get upset, but you understand what I mean.

When you have money flow into one short squeeze stock, it tends to lift all the other ones. And that's why when you saw Amc take off last week, you saw a lot of these other stocks get squeezed last week. and I think it makes sense to scalp some of those moves when we get them. and we'll be there every single morning in the daily briefings and of course in the daily evening youtube videos talking about the biggest opportunities that we see.

But at the end of the day, make sure that you're keeping a good eye on skills. workhorse blackberry fisker, Ride Bynd and clove. Anyways, so that caps off the video. If you have any questions, feel free to reach out to us below or join us on ziptrader circle.

If you'd like to learn how to trade, we'd like access to our private chat and daily morning briefings. you can learn everything about it in that link coupon code. Battlefield 75 will get you 75 off before checkout. If you're wondering what broker to trade these stocks on, it would like a broker that actually cares about retail traders.

Well, Weibull is also linked below and that pretty much caps off the video. Have a great week and I'll see you in the next one.