Welcome back to the channel everyone today, i want to talk about how liquidations are coming for amc shores and how someone's actually calculated just how many hedge funds are going to be liquidated when nscc 2021.05 comes into effect, so stay tuned and let's make some money, but Guys before i dive into the video, i just want to give a massive shout out to the 3900 of you that have currently ding that notification bell, because you guys are always the first to watch a new video as soon as it's released, guys we're so so Close to 4 000 people having that notification bell dinged so guys be sure to drop a like down below subscribe to the channel and ding that notification bell, if you haven't already so that you don't miss another video. Just like this one, and just a quick one before i dive in with the key information, if you haven't yet signed up with moomoo, to get your four free shares worth up to 3 350, then be sure to sign up using the link down in the description Below but make sure you deposit, at least a hundred dollars, to get the most out of those free shares, if possible, deposit five thousand dollars to get all four free shares, and i want to dive straight in with the key information so part, one sr nscc2021005. Providing some clarity, every nfcc participant must provide a collateral or minimum required fund deposit ie margin, which will be increased from 10 000 to 250 000. Some of the biggest members have dozens of registered accounts with the nscc remember.

This is a margin requirement per specific account. Not per broker but per specific trading account that they have with the nscc. Let's suppose, goldman sachs would have 30 accounts with the nsec. They would have to provide 7.5 million dollars worth of collateral as per clearing rule 4 and procedure xv.

That collateral is only dealt with in cash according to a back testing coverage realized through a corporate study from june 3 2019 to may 29, 2020 29 members experienced repeated deficiencies causing them to fall below the 99 confidence target on margin levels out of 150 members. Under this study, 46 members would be impacted by the proposed 250 000 minimum required fund deposit with 28 members, which would have been required to deposit more collateral. If this new increase had been implemented summarizing this, we would witness smaller funds getting wiped out, forcing members to downside their number of debt or their value of debt and their collateral obligations towards the nscc. This point here in the response from kringle kitten is very, very important.

It doesn't sound like a lot of money to them, though i don't understand why this is such a big deal and kringle says it is a big deal for smaller funds. It's just a bigger rope around their necks, also tightening the screws not huge, but progress. It's obviously important to remember that 250 000 is only a small splash in the ocean for a giant fund or a giant institution like goldman sachs. But there are some funds and institutions out there that only operate with a few hundred thousand dollars or a few million dollars, and therefore an increase to 250 000 worth of collateral requirements is gon na, be a massive change.

Now i think there is a minimum fund size that nscc2021005 applies to. I tried to have a quick look around, but i couldn't find it, but i think it's something like a minimum notion: trade value of 50 million dollars. So therefore, it's not going to impact those tiny, tiny funds that only have a hundred thousand dollars in cash, but it is still going to impact those smaller funds that only just cross the threshold. Now i'm not expecting 05 to like completely liquidate goldman sachs straight off.

The start line, but if it does liquidate some of those smaller funds, it's going to be like a game of dominoes when some of those smaller funds start to go and have to cover their amc short positions. They're going to have to buy back a large amount of shares all at the same time, that's going to cause the amc price to spike upwards and could start causing larger liquidations in larger funds. Now i do think this comment is also quite important. This isn't necessarily about penalizing or squeezing members by increasing deposit amounts.

This is about the nscc trying to ensure it has enough funds on hand to survive 250 000 times number of members means the nscc, and the dtcc will have more cash on hand when things do start getting crazy and the market starts crashing and amc and gamestop Start spiking. Obviously, a lot of those hedge funds are going to have to lend out their long positions in return for cash, so they can cover their short positions, but they're going to need to get that cash from somewhere and that cash is going to obviously come from the Nfcc and the other participating members, so the nsec needs to make sure it has enough cash on hand. If it has ten thousand dollars times number of members, it might not have enough cash. Therefore, two hundred and fifty thousand dollars times number of members means it's gon na have a lot more.

I think there's something like 1 600 of these members that are going to fulfill these new requirements. Even if each of those 1 600 members only had one account times by 250 000, that's an extra 400 million dollars for the nscc, especially if each member has 30 different accounts. Like the example given here, that's an extra 12 billion dollars for the nfcc just extra cash on hand. I think this is also a brilliant update from ehort amc.

Short interest is 3.63 billion dollars. 108 million shares shorted. I think that's 108 million shares online there's very similar, but there is some differences: 21.17 short interest of float and 17.47 s3 short interest percent of flow, and now here's the kicker shares shorted are up 22 million shares over the last week worth 740 million dollars and Up 25.64 from the previous week, if you have a look at this yellow line, which is the short interest percent of shares, we can see it's massively rocketed up over the last few days, but on the good side, the amc price has remained fairly consistent. Therefore, the shorts are adding to their position, but they can't knock down the amc price anymore.

Now some of you might be leaving comments saying. Well, it doesn't matter. The amc price has already fallen so much down from 72 dollars to 33 to 35. All the shorts can cover now and make massive massive profits, which is massively wrong.

Shorts are currently down 3.31 billion dollars in 2021 mark-to-market losses, including 257 million dollars on today's 6.85 move. Yes, the shorts at some point back in june were down five to six billion dollars, but now they're only down 3.31 billion dollars. Yes, maybe some shorts are potentially in profit or break even or broke, even and therefore covered their shorts. But so many shorts are still very, very heavily underwater.

This is why even at 35, shorts cannot cover their short positions for a profit or even a break, even they're, still negative three billion dollars on their trade, and that would most probably cause the end of a lot of large funds. Yes, the shorts can continue to try and hammer down the amc price to save four or five dollars per share to try and cover their shorts, but that's also very, very reliant on people actually selling shares to them. They can't cover their shorts if people don't sell them the shares and we own most of the flow on top of that to be able to beat down the amc stock price all the way to five or six or four dollars. They'd have to increase their short positions massively and therefore they'd have even more shorts to cover to get out of their trade.

This is very much why shorts are absolutely stuck where they are at the moment. They can't cover now for a profit, because they're still down three billion dollars and they most probably can't even cover now for a loss because people won't sell them. The shares there's not enough shares in the open market because we hold over 80 of the shares and we're not selling our positions, and this is why i personally feel that it's only a matter of when the squeeze happens, not a matter of if the squeeze happens. Although, obviously not financial advice also got another post here, did everyone see the yahoo finance after hours, glitch for the real suppressed price? Here's a screenshot of yahoo showing the amc price of 35.69 in regular trading hours, but an aftermarket price of eleven thousand four hundred and thirty one dollars per share, plus a hundred and forty six thousand percent.

Now this could absolutely just be a data glitch or maybe one of those trades in the second book, where the amc price is supposedly much higher than on the late exchange accidentally snuck through onto the late exchange and impacted the price causing it to show. Eleven thousand four hundred and thirty one dollars a share with an excellent meme, suggesting just that one of those dark pulls slipped through. I also wanted to give you a quick update on amc's data, especially because in my video yesterday the macd was not on the screen. As it was covered by my camera, face here's the macd line and, as you can see, we flipped green on friday and had a continuation of that move yesterday on monday.

Hopefully we see again a continuation today of that positive macd price. We also have the monday reverse repo data, which again showed over 1 trillion dollars in reverse repos, that's over four days in a row now that we've had over one trillion dollars. Unfortunately, the monday daily treasury cash balance has not yet been released, but considering we've been losing 16 to almost 40 billion dollars a day. I expect this to now sit at the low 300 billion dollar position, guys, if you haven't already i'd, really consider joining the discord linked in the description below so that you get urgent news updates and due diligence on amc and other stocks and notifications.

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