Okay folks, so we've got a lot to talk about. First of all, we saw some hedgies taking back some ground today on Amc. I want to talk about what's going on, have a conversation about dark pools, what the latest data circulating around Amc short sellers in dark pools is showing us, And next, I want to talk about what the Fed just did today and what to be aware of. 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, so first the Fed. So we were speculating yesterday on what the Fed's announcement today would entail. Originally, the Fed stance was that we'd have interest rates stay consistent through 2023 without any hikes, and today was the first time where they made some headway in terms of pencilling in a date, predicting two rate hikes to come in 2023 before the end of 2023. In terms of what Jerome Powell said for inflation expectations, he does continue to see inflation as transitory.

He also said that some of the dynamics associated with the reopening could mean that inflation ends up being higher and more persistent than they originally anticipated, and that makes sense considering how much of inflation is due based on supply chain concerns instead of actual monetary policy impacts. Most inflationary pressure that we've seen so far isn't because of the Fed's endless money printing, although the effects of that will come down the road. Pricing pressures that we've seen have come from supply chain concerns. Labor shortages are also prevalent, which is another thing to blame for Pricing pressures And these are all supply side pricing pressures.

But overall, my take today is that the message the Fed was trying to send is that yes, when the time comes to raise interest rates, it will. and it gave some clear predictions by the end of 2023. But still. Hey, the party's still going on.

Easy money policies aren't going anywhere anytime soon. Now in terms of how growth plays took, this growth had obviously sold off in anticipation of this event, but when it came out and had some time to sink in growth, investors were like, hey, wait a second. Easy Money policies are continuing and even in a slower recovery, growth stocks are still some of the deepest discounts from highs. Everything else in the stock market's pretty much traded at all-time highs, and without a dramatic shift in monetary policy like interest rates or papering of asset purchases.

Well, Tech also doesn't have that squeamishness either, so it's kind of in a middle ground here. Okay, next Amc. So dark pools. Now, if you've been following the Amc story well, you would know that dark bulls are a big part of it.

Dark pools are essentially private exchanges separate from the public market where hedge funds and other institutional investors can go and buy and sell massive amounts of securities without us knowing about it. But of course, the nature of a dark pool. The lack of transparency in a dark pool means that there's a lot that can go on behind the scenes that we would have no way of knowing about. Because again, when hedge funds are buying and selling massive amounts of orders under the surface, well, it's really hard to know what's actually happening and what isn't happening.

But why is this relevant with Amc? Well, because the data suggests that there's a lot going on behind the scenes with this stock via dark poles that we just have no way of knowing about. In fact, the data that we do have indicates that 62.7 of Amc trading in recent days is done through dark pools that's more than half. And when they don't use dark pools and they publicly and correctly disclose what they're doing, for example, increasing their short positions, what happens? Well, retail gets more riled up than ever. They're like, oh my god, they're increasing their short positions.

buy, buy, buy. So clearly right now, there's a huge incentive for them not to disclose information of what they're doing, because it's just going to make retail traders even more excited. And by utilizing dark pools, they can employ a ton of different strategies here to accelerate psychological warfare and get people to give up on Amc. And with some data congregators suggesting that dark pool short positions are 426 million shares deep, it raises the question of, how can there be 426 million shares short in the dark pool? On the publicly available information in terms of short interest shows that it's only 10.

While there's only 510 million shares outstanding for Amc in the first place, how is it that 426 million shares are deep without some synthetic naked short sellers, or at the very very least, some serious misreporting? But outside of the different theories and allegations in terms of naked short selling, there's a lot of other things that Dark Pools can be useful for. There's a million different strategies that they can be employing. but let me just give you an example of something that could be explaining the current trading patterns. One of the things that we were talking about the last few days when it comes to Amc is the fact that if Amc stays and holds above 60, that's a massive liability for hedge funds that are short.

this due to options, pricing, and options demand higher. the faster and the longer this goes above 60, the more risky it is for short sellers and the more chance of an imminent squeeze. So just hear me out, If you're a short seller, what's to stop you from say, employing a tactic where aside from your short position, you're also taking out strategic long positions smaller than your short position and just enough where you're going to make some money, but also push forward your goals with your short position as well. Let's just say that you're a hedge fund and you decide to take quick long positions where you buy up Amc when it's in the 40s, ride the retail momentum up to the 60s, and then dump those shares back onto the market.

In the 60s, you've now not only made profits on that 40 to 60 dollar jump, but you've also introduced a lot of selling pressure at the 60s to help protect your short positions that are going to be squeezed massively if this holds above 60 for a fair amount of time. Now let me tell you how dark pools can make this actually a lot more effective. What about instead of buying Amc at the 40s, you decide to use a dark pool to buy it. That way you can get your shares and you can get the job done, but it doesn't create any buying pressure in the stock wouldn't even show up in the chart.

so you can basically buy in profit off the move without anybody knowing. By using these dark pools, your buy orders wouldn't affect the public price and you'd still get your filth. Now here's where it gets interesting. What if when you're at that 60 region instead of selling it back to the dark pools, why don't you just go ahead and dump it onto the public market? So essentially what you're doing is you're executing all of the good orders, the orders that help boost Amc's price on the dark Pull, so nobody knows about it, and you're executing all of the bad orders that hurt Amc on the public market, so that it actually hurts everybody that's in Amc.

It's a very, very interesting way to manipulate the price and public perception of Amc stock in the short term and also allow you to make a ton of money in the process, while also accelerating your goals for your short position at the end of the day. By buying in the 40s and selling in the 60s, you keep making money and you have the ability to stop the price from rallying so high that it screws your short positions that expire later on. Dark pools allow hedge funds the advantage of making the current price perhaps not even reflect what the price will be once Dark Pull transactions eventually find their way to getting reported if they ever get reported. Only people that these hedge funds are really scared of are the ones that are buying and holding Amc stock because if you're just buying it and then kind of scalping the moves, well, they can make money off that if you're kind of panic selling at every single dip.

Obviously they make money off that too. So this is really a win-win if hedge funds can keep this in this region. and what I said was just true. but if the majority of holders of Amc are just buying and holding it, then that's less shares that hedge funds have to cover their short positions with and so they can play these games with us as long as they want, as long as they want to pay millions of dollars in daily interest.

But at the end of the day, the answer is still the same. They do have to cover. There's just no getting around that. and again, just to reiterate the point, we don't really know what's happening behind the scenes with dark pools.

We are really just speculating based on the data that we do have and the tactics that we've seen them use in many other stocks. But let me just say, if I was a hedge fund manager, I'd say the calculus is looking pretty clear here. Hedge funds know that if Amc goes down dramatically right now, let's say to 30 to 25 to 20. Well then another dip rally is likely going to come after that, because retail traders are very, very in the know right now.

Everybody's very excited. If it goes down, They know that hey, well, hedge funds have to cover eventually and they're going to cover and it's going to go up massively. People who hadn't had a chance to buy into the Amc movement at the higher prices because they didn't want to buy in at the higher prices are probably going to be very, very motivated to buy in at the lower prices. So hedge funds don't really have a price problem Right now.

they have an enthusiasm problem. There's just too much enthusiasm amongst retail traders. They need to get rid of the enthusiasm so that then in the future they can get rid of the price problem. Hedge funds also know that keeping Amc bouncing between 40 and 60 allows them not only to basically stagnate the price, but also profit off the moves while managing the risk of it going much higher.

And worst case scenario, if the psychological tactics are too effective, then all of a sudden Amc drops way below that 40 region and they make tons of money on their bigger short positions anyways. So I mean very, very interesting push pull here. But keep in mind while hedge funds do have some time to kill enthusiasm and make this stagnate if they need it to. The fact of the matter is that they don't have forever.

and the more that retail traders show up, the more risky this becomes for short sellers and the more short sellers are gonna have to be forced to close their short positions at a loss. And in terms of what I think about Amc, hey, we haven't seen something like this before to this large of an extent. There's so much money really on both sides here and nobody really knows what's going to happen. So what I would say is, don't let anybody on social media influence your opinion on whether to buy, hold, sell, or whatever you want to do with Amc.

Think for yourself because at the end of the day it's your money and it's you that's going to make money or lose money based on how this goes and no matter what happens, eventually this is going to go down and it's going to be a fast drop. The only question is is that fast drop going to come from the moon? Anyways, that caps off the video. If you have any questions, feel free to reach out to us below or join us on the lovely Ziptrader Circle Facebook group and of course Quick Plug if you'd like to learn how to trade. Would like access to our private chat and daily morning briefings where we brief on all the biggest catalysts each and every morning.

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