All right folks, let's get to work as we approach another beautiful week in the stock market. A week that comes in with the backdrop of cryptocurrencies, skyrocketing dogecoins running around without leashes, consumer sentiment, tanking, geopolitical trouble in the Middle East, and variants of the Greek alphabet continuing to spread. Well, we must be talking about three different things: Number one is why you need to get ready for the crypto market this week. an impending metric that you're going to want to know about.

Number two: I want to talk about the latest data sets that actually point to institutional money starting to go bullish on Amc. I want to present the data and then talk about the implications of said data. And last but not least, I want to talk about one short squeeze stock that I'm watching right now, as well as why. 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. Okay, so I want to go ahead and start with Crypto. So Crypto had an incredibly strong start to the weekend. Big Dog Bitcoin almost hit 48 000 before cooling off up a violent 50 month over month.

But what is really intriguing about this rally isn't the rally itself, but rather its composition. Quick reminder: The reason that bitcoin tends to move so damn aggressively is because of the presence of massive amounts of margin. A seller rating moves to the upside, and accelerating moves to the downside. if you're leveraging something 10x.

Well, that means that you have 10x to capital in there, but you're also 10 times as sensitive to price shifts. But what is really, really interesting here is that while this bitcoin rally is largely amplified by the fact that there's a lot of shorts on bitcoin getting squeezed right now, we haven't seen the second stage of that, which is leveraged players returning to go long. Let me show you some data. Look at this graph.

This is a beautiful depiction of the funding rate on Bitcoin. You can think of this as a loose indicator of leverage inflows on the market. The Bitcoin market. specifically.

the yellow line is Bitcoin's price. The bars are indicative of positive or negative inflows of leverage when the bars are above the zero percent middle line. That implies positive leverage aka people are buying bitcoin using margin when bars are below zero percent. That implies negative leverage aka people are shorting bitcoin using margin.

For example, you saw a hugely positive leverage take off during the uptrend in mid-february You saw it take off again during the uptrend from March to April. Something to also keep in mind when looking at this is that massive longing: leverage when people are taking out lots and lots of margin in order to long something in order to buy it. Well, yes, that amplifies the upside. But it's also true that the more leverage you have to the upside, the more risk you have of a rapid, rapid panic cell at the next downtrend.

Why? Because Leverage again multiplies your losses. which is why Bitcoin is so apt to having some of the biggest downturns after the biggest and most sustained increases of leverage, such as after the February rally, after the March and April rally, and then after the May rally. But what is interesting is that after that may sell off, you saw some short selling for months, and the short selling only increased even more moving into the early July rebound. No doubt some of this shorted leverage helped contribute to the later amplified squeezing that took us to the current price.

But overall, right now you're seeing Leverage stagnate. We are seeing such massive increases in Bitcoin's price up 50 percent in the last month, yet there's barely any demand for longs or shorts. Keep in mind that less rapid moves significantly less rapid moves than we're seeing now, which is 50 in a month. Well, less rapid moves in early February were met with 40 times the same amount of longed leverage.

What am I implying here? Despite what everybody's saying, Leverage is only half-assing this uptrend. What do I mean by that? Well, Leverage isn't here, longing Bitcoin and amplifying its Upside: The only role that Leverage is having is Shorts closing their positions and causing this to rally up faster. and the other role. It's probably having his shorts going and increasing their positions thinking that Bitcoin is going to downturn.

So if anything, leverage is half ass in it because on one hand, it's largely just people buying back Bitcoin. On the other hand, it's somewhat neutralized by the fact that more short positions are increasing. In other words, we haven't even seen the effects or the beginning effects, even of massive, massive, longing leverage coming back in. And if you look at the past, remember, the big institutional money likes to trade both sides of the move, right, but they like to trade based on a trend.

Sustained crypto reversal trends come in two stages. Number one, you have shorts that stayed too long on the previous trends starting to get squeezed they cover, amplifying the upside, and then you have the overwhelming majority of short sellers on the previous run, as well as institutional traders that were ahead of the trend going and longing bitcoin using leverage. And as the trend becomes more clear, they start scaling up that leverage more and more and more and more. Which of course, makes the trend even more true because all this extra money is pouring in.

So basically, if these are the moves that we're seeing without the bullish leverage that we saw earlier this year, imagine what would happen if we started seeing this level of leverage come back. Or even half this level of leverage. That would be a massive massive by storm. And if you have all that buying pressure, somebody's got to fulfill that right? Who's going to fulfill that? Well, Bitcoin Miners transaction volume could go through the roof when that happens.

But taking a step back, going back to the chart of just Bitcoin What am I saying? It seems pretty damn clear that the Leveraged players are waiting for more signs that this is a true trend reversal. And if they decide it is, oh boy. is there going to be a stampede of buy orders coming in. Leverage is going to come out of the sky.

There's going to be so much leverage everywhere. your head's going to explode. Institutional investors that have been making pretty sloppy returns on a fairly slow market besides a few percent here and there on the S P. They're gonna start chasing these moves.

They can actually give them something to brag about and bring in some new clients at the end of the year. I think the real question is at what point is that going to happen? Judging by momentum it gained past 35 40, I wouldn't be surprised to see that once we get a more sustained breakout, which I think would be something like 50 55.. I don't see a world where you hit 50 55 or you don't see a more sustained trend and you start seeing people being like okay Bitcoins almost at all time highs. Let's just push it back over there and we can ride the trend.

So very, very exciting. Time for Bitcoin and Crypto miners specifically. Okay, next oogabooka Amc. So Amc.

has been basically barcoding in the 30s for the last 10 or so trading days, but we are starting to see some peculiar trading activity. For example, the Swiss National Bank more than quadrupled at stake in Amc. Now, I've speculated in the past if you're a nimble enough fund or you took a nimble enough position, it might be in your best interest to try to force a squeeze to happen earlier. Remember, there's two different dynamics when it comes to a short squeeze.

You can either wait it out at a higher valuation or you can force it to come in sooner by putting in a ton of buying pressure that forces all these short sellers to get margin called or otherwise screw with their risk management protocols that cause them to cover sooner. Now, if you're an institutional trader specifically maybe a competing hedge fund, and if you can crunch the numbers in terms of the exact position that you need to take in order to be not too big, where you have liquidity issues, and not too small where it wouldn't basically do anything, well, that might be in your best interest to start putting a nimble position in it. Probably true that if you're going to take a massive order on Amc, it's going to cause a huge by storm almost immediately, which then could get you executed at a really bad price. and then if you try to get out, it creates a massive cell storm.

Now you could go through the dark pools, but a lot of the major short sellers are also the people who fulfill your orders through the dark pools that have all the shares available to actually buy. But at this point it seems like if you're going to take a bullish batch on Amc and you're an institutional trader, you're probably doing that through derivatives, which we have evidence of as well, and Zynga pointed out a ton of purchases of call option contracts towards the end of this previous week, with a lot of contracts slated to expire August 20th, which is this upcoming Friday. Now, this data alone isn't extensive enough to say oh, this is a concrete trend, but it is very, very peculiar. These sweep orders indicate that there's a lot of orders, and there's a lot of money being placed on Amc taking a massive bullish run this week, But these types of orders are usually done by institutional traders, which gives some more evidence that we're starting to see some bullish speculation and money going behind that bullish speculation on the part of institutional investors.

Now we can't see where they're coming from, and it's anybody's best guess, but if it smells like a duck, it quacks like a duck and it looks like a duck, then it's probably a duck. And you're wondering why so much institutional money taking a bullish bet on Amc? Is there going to be some restructuring of order flow this week that's going to cause some buying pressure? Is there going to be some strategic covering this week that's going to cause buying pressure We've seen in the past many examples of short sellers covering their positions, strategically inducing short-term buying pressure only the next day to take out new short positions. Could we be on the cusp of that this week? Because it looks like there's a lot of money going to speculating that Amc is going to have a bullish run this week. Okay, moving on next.

so short squeeze stocks. So aside from Excella, for those of you who have been following and reading our daily morning briefings in Ziptraderu, you probably know that I've been tracking Naov. Naov is a portable ultrasonic therapeutic device company. It popped up massively on the 23rd and has had several massive run cycles since, while following an upward direction trend over the red directional Sma line, which of course indicates an upper direction.

Now, short interest is up 2560 in the last report, more current estimates put the short interest total at around 30 percent. Uh, the start of the month was around 20 and you combine that with a decreasing but still very very elevated search trend amongst retail traders and it's like, hey, this gives a strong probability for more rallies and with a rolling rotation of Catalyst coming out for this one, I would not be surprised to see some more taking off of this and I will be continuing to track this very very closely. A lot of people ask Charlie, can you please tell us which short squeeze thoughts you're watching and I like to give the data in these videos just so that you kind of get an idea of some of the basic data sets that I look at just to see what probabilities are for these short squeeze stocks. Because you're dealing with two things: Number one, you need to set up in terms of short interest being high.

Number two: you want previous pattern of retail going and pouring in and causing one of those short squeeze momentum rallies. It's not really due to the short squeeze, it's more just due to momentum from people anticipating the short squeeze. But still, you get my point. And then the third thing that I want is retail continuing to be interested.

I want to see a strong probability of another one of those retail rallies happening. and with Noive as well as Excella, we see that Anyways, folks that caps off the video. If you have any questions, feel free to reach out to us below or on circle. If you'd like to learn how to trade.

With our step-by-step lessons, our private chat, and of course our daily morning briefings, you can join us at Ziptraderu. Go ahead and click the link below and watch our intro video where I'll walk you through personally everything you need to know about the program Coupon code floodstopper50 will get you 50 off before checkout. And if you're wondering what broker to trade these stocks on, well, Weeble is linked below. They are a fantastic broker.

They have a ton of great resources and tools to get you working in the markets. Two free stocks when you both sign up and deposit using our link below and you only have to deposit five dollars, so that's a pretty good deal anyways. folks, that's it for today and I'll see you in the next one.