Welcome back to the channel everyone today, i want to talk about how citadel's margin, usage and leverage is maxed out how this is going to cause a massive crash and courses that they'll have to cover their amc shorts. I also want to talk about the amc nfts and how they're selling and why this is great for amc as a company, but also great for the short squeeze so stay tuned and let's make some money. And now i want to dive straight in with the key information. So, let's start by talking about citadel and how their leverage and margin is maxed out and how this is going to cause a massive massive crash stock market leverage, spikes margin they're up 42 year on year.

So only part of the leverage in the stock market is tracked and disclosed on a monthly basis. The only leveraged data we get is margin. Debt at brokers reported to finra there's a lot of stuff that goes on in the shadows, including securities based lending and obviously margin levels on derivatives. The margin levels on securities based lending may or may not be disclosed on a quarterly or annual basis by the banks.

Some just don't bother disclosing as it's self-reported leverage at the institutional level, such as with hedge funds, is an 8.5 trillion dollar industry leverage associated with options and other equities based derivatives is even larger, and it's only when something blows up that we can see. Tidbits of this leverage emerge in all of its splendor, such as when archaegos imploded earlier this year. The only leveraged data we do get on a monthly basis is margin. Debt at brokers reported by finra.

The most recent report showed that margin debt spiked by 33 billion dollars in october from september to another all-time high of 936 billion dollars up 227 billion or by 42 from a year ago and 67 from october 2019.. You can see here, margin debt has been increasing since 2016, 2017 2018 obviously pulled back in 2019 and then obviously crashed during the march 2020 crash. But since then has absolutely rocketed upwards. Obviously, the same kind of chart can be seen with a number of other ratios out there right now, like the schiller pe ratio, for example.

This is basically showing that hedge funds and other institutions are borrowing more and more and more cash to trade stocks. At an alarming rate, i mean we are currently holding their biggest ever promotion at the moment. If you sign up with moomoo, open an account and make your first deposit, you can currently get five free shares, valued up to three thousand five hundred dollars each. So i wanted to break down how you can get every single one of these free stocks.

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So this type of stock market leverage doesn't predict exactly to the exact date when the market will crater. But what it does predict is that when the market is going down hard enough, it will trigger massive bouts of force selling. If you tracked some of the companies that crashed during the archaeos disaster, like viacom cbs, for example, you can see the company was on an absolute tear over the last year or the last half a year and then absolutely cratered in a matter of days effectively. What this article is saying is: that is exactly what could happen to the stock market.

The s p 500 has been on an absolute tear since march 2020, but the entire year and a half gains could literally be wiped out in a couple of days. The s p 500 could crash by 30 or 40 percent in literally two or three days. If worse comes to worst as margin calls are going out and leveraged investors have to sell stocks to pay down their margin debt, it pushes prices down further, which then triggers obviously more forced selling and more fears of force selling as well, and therefore people also bail Out of their positions, this is why leverage is a risk to financial stability and why the fed keeps talking about leverage in its financial stability reports. Apparently, no one at the top of the fed least of all powell and other members of the fomc ever reads these financial stability reports, because the fomc out of the other side of its mouth keeps on encouraging even more leverage with its interest rate, repression and money.

Printing, obviously, the government are trying to encourage more spending by keeping interest rates, low and printing more money. Yes, they are talking about rising interest rates, but obviously so far they haven't done that margin. Debt is the big accelerator on the way up as broad money enters. The market, but margin debt is also the big accelerator on the way down.

As this borrowed, money gets drawn out of the market and vanishes by paying off debts, thereby creating selling pressure, as obviously these hedges and institutions have to sell off their stocks to draw that cash out of the market. High levels of stock market leverage are one of the preconditions for a massive sell-off, because obviously all of that additional leverage means that when the sell-off happens, it will be amplified and much more severe in its financial stability report released earlier this month. The fed is particularly worried about high leverage among young stock market investors or the retail investors investing in amc and gamestop. Like you and i obviously the fed's said in that stability report.

A potentially destabilizing outcome could emerge if elevated risk appetite among retail investors retreats rapidly to more moderate levels, and actually this has also been picked up and discussed by astro. He tweeted saying everybody needs to see this citadel apex and subscriber and potentially some other finra members are all reporting an all-time high in margin usage. This has also led to the reverse. Repo behavior and volatility is through the roof on relatively minor occurrences, and he says something is growing, obviously, with citadel apex and susquehanna all reporting all-time high amounts of margin usage that basically means that their margin usage is capped out.

They've used all of the money that they can possibly borrow to shore amc, and that's also why you haven't really been seeing these short positions increasing. Yes, the price of amc has been going down, but the short positions in size haven't been increasing. The hedges are just selling shares between each other trying to push the price down, but they obviously can't short any more shares a because all the shares were already shorted and they've created. So many synthetics they just don't know what to do anymore but b.

It's because they've borrowed all of the money that they possibly can in order to short amc and gamestop. Therefore, we're now at that decision point they've borrowed all of the money they possibly can they're an all-time high in margin usage and therefore their short positions are maxed out. We just need to focus on continue buying the amc stock and we will effectively overpower them. I've obviously spoken about that spring theory on the channel before and therefore that coil of amc is compressed to its maximum amount.

The hedges have borrowed the money all of the money they possibly can in order to push amc down, and obviously, we've been buying the stock to coil up that spring. Now it's at that point where we can continue buying the stock, but they can't short anymore and obviously, when it's fully coiled and can't coil anymore, it will spring upwards as they get liquidated, have to sell off their stocks, pay back those margin, loans and cover their Amc shores now i also want to talk about the amc nfts and how those sales are doing and what this means for amc as a business and also for their future of nfts. This post on reddit says: if you have investor connect or stubs, you have an obligation to claim your nft. We need to claim all 86 000 available nfts so that adam aaron can have an example of nfts being successful within their business model.

This paves the way for more nfts and an nft dividend in the future. If adam aaron can see that we love nfts, he's obviously going to continue creating more nfts and if we can show him that we love nfts so much, maybe they'll pay a dividend or give a gift of nfts to every single shareholder for every single share. That is held adam recently, tweeted saying our amc. First, ever nft with sony and spiderman nowhere home caused amc's online ticketing traffic on sunday, night and monday morning to soar to the highest ever in amc's entire history, and he said: oh did we sell tickets, but we are sorry, wait times got long with the unprecedented Volumes now this is obviously brilliant for amc as a business, because they've just seen their highest online traffic ever in history in the last 100 plus years to buy tickets.

Just because of this nft. Therefore, adam aaron now knows that nfts are a great idea and is likely to create more and more in the future, and this is also brilliant for amc as a company, because it's a domino effect to send amc into orbit. You want the nft. You have to buy the ticket, you buy a ticket that generates profit for amc, but you're, also a stubs member or part of the investor connect team, which also generates more profit for amc as well.

It will cause people to become stubs members that weren't, therefore driving more revenue. It would drive more people to buy tickets that wouldn't have necessarily bought them just for the nft, and it will cause people that aren't investors to invest in amc to get their hands on more nfts. Now, all of that is going to be brilliant for amc, because it means they have more investors, more money from stubs members, more money from tickets, more money from nfts, and therefore it will drive revenue massively for amc as a company as well. Now joseph kuro has actually picked up something else that adam aaron has said and how it has some relation to the amc squeeze adam aaron recently tweeted saying previously announced doge and shiba inu.

So don't get head faked by this canine drummer drumroll, please. Obviously that was tweeted just before his sunday announcement and joseph crowe piqued significant curiosity with the word head faked so ahead. Fake trade is when a securities price makes a move in one direction, but then reverses course and moves in the opposite direction. Therefore, maybe adam aaron is suggesting that amc is gon na stop falling in price and it's gon na blast off to the moon.

Once more now you might say: well, i've never really heard the word head fake used in investing and that's a fair comment, because i'd also never heard the word head fake and didn't even know that it had a relation to investing. But somebody else i follow on twitter finance, lancelot used the word head fake in a sentence and he's not even remotely related to amc. Here, he's talking about a potential head fake and a reversal with a potential coming market crash and coming recession. It seems like in adam aaron's recent few tweets, adam aaron has been suggesting a lot about shares being fully sold out about how the float is obviously sold and about how the amc stock could be just about to turn a corner now.

Matt cause has also suggested this could bring even more potential to a future amc in gamestop partnership. He tweeted saying this is awesome. You have one company, that's rumored, to be building out an nft marketplace and you have another company that is now in the world of nfts as well. He said i'd also like to highlight, but this means an amc in gamestop potential partnership in the future just got even more likely.

We know a few months ago that adam aaron had been discussing with ryan cohen, about a potential future partnership. I speculated at the time that it could be the ability to play games inside an amc theater, but maybe amc and gamestop will even collaborate on an nft project. Amc could issue potentially 513 million nfts to shareholders, and those nfts could be traded through a gamestop nft platform. How insane guys be sure to let me know down in the comments below what you think about citadel's margin being absolutely maxed out and what you think about the amc nfts, basically already being fully sold out and how this is good for the future of amc.

And if you haven't already be sure to sign up to maimu to get those five free stocks valued up to 500, each linked in the description below and as always guys. If you enjoyed this video, be sure to check out some of my others. Alternatively, subscribe to the channel and ding that notification bell, because that way, you'll be alerted when i upload a new video cheers.