Okay folks, so we've got a lot to talk about. One of the first days in a while that we've seen some of the retail stocks pull back and pretty much everything pulled back with the exception of maybe some bitcoin place. We need to talk about the latest with Amc and what the deal is with this lawsuit alleging brokers conspired with hedge funds to stop retail traders from executing trades in order to protect short sellers from losing money on short sale positions in stocks like Gamestop, Amc, and the likes. Next, I want to talk about a very, very important catalyst that's going to be dropping tomorrow.

Most stocks and socks were red today pending this catalyst drop because people don't want to mess with it. They want to see what's going to go on with this catalyst before they decide whether to buy and sell. So you want to know about this ahead of time. And obviously we've mentioned this catalyst over the last couple of weeks especially, but we need to talk about it before it happens tomorrow.

A little bit more in depth 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. Pretty much everything was murky or red except for Bitcoin, Miners, Bitcoin, Miners, Mara and Riot finally decided to show up on the day that all of the other stocks were pulling back. Pretty ironic, since they were down over the last couple of weeks. I wouldn't pay super close attention to the day-to-day movements of Bitcoin.

Truth be told, it's gonna drive you crazy. Bitcoin is a long-term play. I think that oftentimes people do themselves a disservice by creating a long-term conviction in an asset class. and then they decide whether they're right or wrong based on the day-to-day movements.

But any and all asset classes have huge fluctuations and all arguments both for and against Bitcoin won't be proven true or false for many years down the line. So I would look at this with a long-term perspective and take the fluctuations as what they are. opportunities to get better deals and opportunities to take advantage of some really rapid fluctuations back and forth. In terms of clove.

It did run a little bit more in the morning after yesterday's squeeze, but it sold off net back to the 16s. No problem there. This is why we spent so much time yesterday talking about why it's so important to have a price target. and then follow that price target.

You're locking in profits after you hit the price target, because if you're just holding something to the moon, well, the moon isn't really a quantifiable location. Obviously, we got some criticism this morning because it's like, oh well, you know, Charlie said to lock in profits when it was trading in the low 20s and then it ran to 28. But keep in mind that you're always the master of your own C If you want to lock in profits later, that's up to you. From my perspective At the end of the day, Clove was a stock that we started liking in the elevens, and then I reiterated in the seven and sixes.

my fundamental take and price target from day one was twenty dollars. So we have to follow that plan because trading is a business. If you feel that something's worth more, you can hold out for a later number. But for us, it made sense for 20 to be that price Target beauty of putting in the work to have a price target is not only do you have a clear area to take profits, but when it gets low enough again, you can also be incentivized to rebuy back in so that you could trade the next irrational run.

Okay, Amc. So Amc has been overshadowed by many of the other big runners this week. Obviously, Amc led the way last week, but this week we've seen a lot of the other wannabe Amc's rallying too, and I know that there's been a lot of different speculation on why this is. A lot of people have been saying that maybe hedge funds are behind this, trying to distract people and get them to sell Amc.

It's also true that over the last couple of days the media has been very, very quiet about Amc. They haven't wanted to even mention the fact that it's you know gone down at all. The media usually loves to report on meme stocks going down because then they could say you're the dumb money. Hey, we told you.

By this time, you've seen a lot of silence in terms of the media covering Amc despite some of the sell-offs. I mean, some people are covering it, but you haven't seen that same level of temperature that would usually come after a meme stock sell-off as they like to call it. And of course, there are certain hedge funds that own either bullish positions in terms of options or actually own shares and a lot of stocks that ran over the last couple of days. So the idea is that maybe they're trying to squeeze out other hedge funds and get retail distracted and go ahead and buy those stocks and sell out of Amc.

That would make the hedge funds with the lower entry prices a ton of money. and then they can then go and take the profits out and then go and double down on short and Amc. And obviously, there is no shortage of theories on the many, many ways that hedge funds manipulate the markets. Some are more believable than others, but why even go into that? What's undebatable.

and what we do know is that short sellers unfairly and overly attacked many stocks held by retail traders, forcing them down. And we know that over the last couple of weeks, many of them got squeezed and tons of retail traders got their money back. And obviously we've seen a lot of division in the retail communities on what stock to actually focus on. Obviously the Amc folks which go apes, they think we should focus on Amc.

You have the Gme people who think that you should focus on Gme. You have the Beaver blackberries. I don't think that's actually what they're called, but the beaver blackberries think you should focus on Blackberry. We have the Citadel cloves, which we won't talk about how they earn their name, but they want you to sell out of Amc to buy clove.

And they don't care about Charlie's price target either. But at the end of the day, what's the message? Hey, hedge funds unfairly beat down a lot of these stocks crushed. Retail traders took a ton of money and then they got tested on it. They got their bluffs called on it.

That's the fact. No matter what side of the movement you're on, that's the fact. Now in terms of Amc, what is the fact with this stock? Well again, what matters is that hedge funds short Amc want Amc to go down, but they don't just want it to go down. They also need people to lose interest in it if it goes down and tons of people are still interested in it.

What's gonna happen? People are gonna buy it. They're like, okay, hey, this is a cheaper price to get in on the squeeze And I think the hedge funds are starting to realize this. They're starting to think hey, wait a second. we need this to be barcoded.

We need this to trade sideways for a long period of time so that people lose interest in it. If it could trade sideways and slightly go down over time too, Hey, kill two birds with one stone. They want Amc to be something of yesterday. They want Amc to be a past battleground.

They don't want you thinking about it. They want you thinking about something else. I'm not gonna go so far as to say the hedge funds controlled the entire media and got everybody to stop talking about Amc at once. But a lot of the main media outlets completely wiped Amc from their coverage and replaced it with a lot of stocks that actually benefit hedge funds.

If you buy them, Money follows attention and what happened. Well, money followed a lot of the stocks that mainstream media covered. In terms of Amc, they want this to stagnate for a few weeks. They think, hey, the longer this goes on, the longer nothing happens, the less retail is going to want to care.

the more retail is going to pull out and go chase something else Now, sadly for them, I think the ape community isn't really backing off here. It seems like a lot of the Amch was just like. you know, We know that they have a ticking time bomb. We know that time is in our favor.

Hedge funds. They can't wait forever. They have to cover their short positions eventually. Now again, I've said this many times.

I don't know if retail is going to keep holding Amc. I hope they do. I think this would be a great squeeze opportunity, but at the end of the day it's very difficult to figure out the psychology of massive amounts of individual millions actually of retail traders holding this. The other thing I want to talk about is the legal proceeding.

This was found in a merger disclosure document on Sec.gov's archives and has gone viral over the last 24 hours. On page 186 of this document, it says: plaintiffs allege that Apex, along with 30 other brokerages and or clearing firms including Morgan Stanley, E-trade Interactive Brokers, Charles Schwab robbing the hood, Barclay, Citadel, and Dtcc engaged in coordinated conspiracy and violation of anti-trust laws to prevent retail consumers from operating and trailing freely. Blink, blink, blink blank in a conspiracy to allow defendants primarily hedge funds to stop losing money on short sale positions in Gamestop, Amc, and certain other securities. Pretty powerful.

An actual document put into serious words, what many of us have felt and what many of us have experienced over the last few months or at least have thought very strongly that we experienced. In summary, this is basically alleging that firms and brokerages work together to basically prevent retail customers from trading freely and allow hedge funds to stop losing money on their short positions. I know there's a lot of people on both sides of the spectrum that watch this video. Some people think that this is a conspiracy theory that retail traders kind of made up and just kind of circulated.

Other people think that this is just completely set in stone. Regardless of your position on this, what this actually does is raise some of the ethical and conflict of interest questions in regards to how share execution is completed. Many of the parties that trade in the stock market and make tons of money off both sides of the move have ties with many of the brokerages and many of the clearinghouses, if not actually the same party themselves or different branches of these individual corporations. Many of these corporations are huge and have so many different connections that your head would spin and there's a lot of incentives all across the board to screw with your execution to make money.

I'm not saying they do that, but there's a lot of incentives to do that. One of our members pointed out that David Ings, who is on the board of the Depository Trust and clearing corporation that is named in the lawsuit and provides clearing and settlement services to the financial markets in the U.s also happens to be the global head of Operations at Citadel. Sorry Lisp, I met Citadel. Oh, you gotta work on that speech, which of course, Citadel Operations has been in and out of a lot of the same retail trades on both of the long and short side, while also controlling equities and options.

Order flow for popular retail brokers like Robinhood. And Point of the Matter is isn't to single anybody out, but a lot of these parties named in the lawsuit have connections that are very strong to each other and have many different conflicts of interest. Doesn't mean that they're using those conflicts of interest, but it does raise some questions in terms of the structure. Okay, Lastly, the big catalyst the catalyst begito tomorrow is the Cpi Index release aka the Consumer Prices Report.

This is the report that is perhaps one of the biggest telling signs of how inflation is looking, and the market has been anticipating these summer reports for months. Last month's Cpi report saw consumer prices jump the most year over year since 2008, and the last month we went line by line and examined that some of the biggest culprits were a strong increase in used car and drug prices as a result of the chip shortage and manufacturing supply chain issues. We also saw increases in prices in terms of shelter, transportation services, food. But the big thing that will be motivating this report is energy prices.

Gas and Oil went down slightly March to April which applied downward pressure on a lot of the numbers of this report. And how does increased energy cost relate to the prices of all the other products And services on this list? Because when you raise the cost of oil and gas and electricity, that means the cost of transportation and manufacturing go up. And that means that it costs more to produce these products unless you're going to raise prices on them. It's also true that labor is getting more expensive and there's a lot of labor shortages, so companies are going to have to pay more to pay workers to actually have them work.

That makes it more expensive to provide goods and services as well. How does this affect food, apparel, and commodities? At a time where people are supposedly going out and spending more money and having more demand come back? In terms of Jobs reports that we've gotten, we've seen hospitality jobs increase dramatically. Is that representing the hospitality industry increasing dramatically? Definitely. How does that relate to increased fuel usage? Increased transportation services? Increased spending on many of these categories When you have increased spending at a time where there's a lot of supply shortages and labor shortages.

Obviously, you're getting a massive increase to demand, and you're getting perhaps a reduction in supply in some cases, if not a slowing down of supply trying to catch up to that demand. How is the chip shortage going? How is it affecting used car prices? We know that we're getting out of the ship shortage probably in the next quarter, at least to a large extent. Well, what are the numbers looking right now in terms of new car sales and used car sales? How does the booming housing market and real estate asset prices combined with a shortage in construction materials and again, labor impact costs of shelter? This report is going to have a dramatic effect on the market because it can put even more pressure on the Fed to taper and change interest rate policies, which then can punish and encourage funds to take some of their high risk money out of the market again. you know it's also true that we're kind of in this interesting situation where where a lot of money in the market is still thinking, hey, wait a second.

I don't want to be in tech if inflation is going to get out of control and interest rates are going to go through the roof. But I also I'm kind of worried about this recovery because there's a lot of issues to the recovery, such as supply chain issues such as labor shortages. These are going to be issues that slow down economic growth, so maybe I also don't want to be in these dow place these recovery plays that have factored in the moon and beyond. We're at a very, very interesting crux, so we're going to be finding out a lot more information tomorrow and I'm looking forward to it anyways.

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