Welcome back to channel everyone today, i want to talk about whether the hedges can cover a single digit amc price and what would happen if they did cover their shares down in the single digits. So stay tuned and let's make some money, and now i want to dive straight in with the key information. So first i want to talk about why amc is actually dropping. Obviously, us apes, the retail investors own at least 80 percent of the float, and we are not selling if anything.

Potentially we own the float multiple times over because of all of the synthetics. Now i do think that some of the hedge funds and institutions that are long on amc are probably selling off amc in small amounts to reallocate their portfolio. For example, i don't think that vanguard have sold off their entire 40 million shares, but i do think a lot of hedge funds and institutions are going to be reallocating and redistributing their portfolios, and that does mean they are going to have to sell some amc to Buy and invest more in other stocks that have either dropped more than amc or haven't dropped as much as amc. Reallocating and redistributing their portfolios is something hedge funds and institutions do a lot, especially in volatile market conditions like we're, seeing at the moment, and therefore they are selling some of their shares, but not in the tens of millions or hundreds of millions of shares and therefore The main reason why amc is falling at the moment is obviously because the hedges are illegally, manipulating the amc stock and illegally shorting with the use of synthetic shares.

Now, obviously, i do think that, because hedge funds and institutions are redistributing their portfolio, that is causing amc to drop. But obviously the larger reason is because of the illegal manipulation now, because the hedges basically have this unlimited sale button to create as many synthetic shares as they like. It is possible that they could push amc back down to save two dollars a share. But the question i want to answer today is: could they cover at two dollars a share and what would happen if they did cover? If you didn't already know muma currently giving away up to seventeen thousand five hundred dollars in free stocks, just for signing up and making your first deposit, which you can do using the link in the description below now, you might say.

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So you can discuss new trade ideas with other members of the community. Now i've got a poster on reddit that goes through and explains with an analogy, but i also want to then explain with my own analogy shortly after and this guy says so. I've noticed that there seems to be some confusion about what could happen if the price were to drop back into the single digits. Some people were suggesting that would automatically allow the shorts to cover their position and leave us as bag holders with no shorters left.

He says i thought it might be helpful to clear this issue up with a simple analogy. Hopefully it helps to explain it. Imagine someone is digging a hole. They've piled up all the dirt from the hole when all of a sudden the groundskeeper walks over and tells them they have to fill the hole back in.

So they turn around to start shoveling, the dirt back into the hole only to realize that some cheeky monkey has run along and grabbed up all the dirt from the pile and therefore there's no more dirt to fill in that hole again. So he digs a second hole and uses the dirt from the second hole to fill that first hole. The groundskeeper comes back, says good job, but you now have to fill in the second hole. So he tries a new tactic and takes out a piece of paper.

Coloring it in brown and throws it on top of the hole the groundskeeper looks at it and says: okay, that's all right for now, but in the future, you've still got ta fill it back in with real dirt and therefore, unless the monkey returns, the original pile Of dirt - or he buys the original pile of dirt back from the monkey, he's forever going to be digging new holes and therefore, as long as we hold, they have nothing but synthetics and no real shares, regardless of what they do with the price to cover those Original shorts, they need our real shares now. I also wanted to explain it in my own way. Let's say: there's currently a hundred million shorts in the market and amc is trading for around thirty dollars a share. Now we know that there is obviously more than 100 million shares being shorted because of all the synthetics.

Maybe it's a billion shares, maybe two and a half billion, maybe it's 5 billion 10 or 20 billion. I don't know the exact number, but what i do know is that the hedges have doubled down triple down and quadrupled down on their shorts over the last 11 12 months. And that's why the price has been falling since say june july time, because they've been adding to their short positions and what happens if they cover all of the shorts that are in the market right now that hundred million shorts, maybe it's two billion or five billion. I just didn't want to write all these extra zeros if they cover all of the shorts that they have right now, it will cause the mother of all short squeezes.

So what happens if they continue to short amc legally or illegally, all the way back down to five dollars a share or two dollars a share? Well to do that, they're, obviously going to have to increase their short position. I've therefore used the figures: 100 million shorts increasing to 200 million shorts - maybe it's 1 billion increasing to 2 billion 2 billion increasing to 4 five billion increasing to ten whatever it might actually be, but at the end of the day they are going to have to Increase that short position to drop amc, even more so say, amc has been shorted down to five dollars a share or two dollars a share, for example. So what happens if those hedges want to cover those new shorts, those new shorts, they made to drop amc down from thirty dollars to five dollars. So if the hedges cover those new shorts - or maybe they cover the difference between 100 million to 200 million shorts, which is half of their position or a billion to two billion or whatever it might be well, if they cover those new shorts, amc is obviously going To return back to 30 per share and they will still have their original short position remaining because, obviously to cover those new shorts or to cover those new 100 million shortage shares.

They'll need to go back into the market and buy 100 million shares. Therefore, it will send the price of amc from five dollars back to thirty dollars, but they'll also still have their original short position remaining and then obviously, amc will be back at thirty dollars and then what happens if they cover the rest of their shorts? That entire original short position well it'll, obviously still kickstart, the mother of all short squeezes. The only way the hedgies could realistically cover their short positions is to stop illegally shorting amc and hope that amc returns back to two dollars on its own accord from retail investors selling the stock, which obviously is not going to happen now. I also wanted to talk about a very interesting data update, which is the average days to cover hitting a new all-time high back in may the average days to cover hit around 1.76 days.

This then obviously fell during the june run up, but obviously has been increasing. Ever since, due to the reduction in volume, that's now hit a new all-time high of around 1.92 days now. Obviously, this is just the days to cover those legal shorts. All those reported shorts, but obviously the days to cover all of the synthetic shorts is gon na.

Take a lot longer. Maybe multiple weeks, based on the current volume now al from boston, has had a very, very good idea what he calls an oh poop moment when you tag citadel or ken griffin in a post on linkedin, their customers, followers their investors, their employees and just about anybody. In the finance industry sees it, so if you post bloomberg data with uncovered positions or extracts from the lawsuit or whatever else, you feel that would be interesting to citadel's customers and investors and employees. Other institutional fund managers as well will also see it.

Oops did. I do that whoops. This means unfriendly competitors of citadel could take a nice healthy long position in amc. It also means that it deters potential customers investing in citadel as well.

Now, obviously, i'm not suggesting that you go on linkedin on your personal work profile and post. Very rude things about citadel, in fact: don't post rude things about citadel at all, just post truth and factual screenshots, but this would be a very good way to deter potential investors and potential current or future employees away from citadel and could even encourage whistleblowers now, on Top of this market watch have just released a new article, which was interestingly also retweeted and reposted by fidelity investments on their twitter and also in their reddit group or their reddit page. The blame for fidelity's, mysterious gamestop oopsie lies with a firm you'd, never suspect. Now i have to admit when i read through this article, i did think it was very unprofessional.

There's a lot of interesting language used here and i found it very unusual that fidelity would retweet this and repost it in their reddit group, especially because it's so unprofessional and also highlights a crucial error or like a crucial misrepresentation of data or a misrepresentation of facts. I think the actual word i'm looking for here is a giant contradiction. Let me read it to you due to a clerical data entry error. Yesterday we provided fidelity with the incorrect potential securities lending availability data for gamestop, a vanguard, spokesperson, wrote in an exclusive statement, so market watch is suggesting that vanguard was that third party or the counterparty that made that data entry error now first off.

I kind of find this hard to believe because vanguard is such a big company again that spends hundreds of millions of dollars and has so many levels of reviews of their i.t systems. That you'd think that a fat finger error would be picked up before being provided to fidelity, but something that really stood out for me is this next sentence. The error was corrected shortly thereafter and before the markets opened, which is very, very interesting because fidelity themselves said the error wasn't corrected until 12 10 pm at midday. So vanguard is saying that the error was corrected before the markets opened.

But fidelity is saying that the error wasn't corrected until 12 10 pm midday. So therefore, you've got two giant contradictions of data and fidelity even reposted this article on their twitter and reddit pages. They said we regret this error occurred and apologize for any confusion. This may have caused.

I don't really think an apology is good enough, especially with all the regulations, and especially because this effectively made 11 million additional shares available to shaw. I have to admit, i think this market watch article was just thrown together in a hurry in order to try and clear fidelity's name on top of this. When the original author of this article was asked for proof that it was actually vanguard, he basically had zero proof and just sent a link to this article. Now, on top of this, i just wanted to quickly recap the spider-man nfts and the sales for the spider-man.

No way home tickets spider-man no way home has sold 3 million tickets for 35 million dollars or more in 24 hours. This is therefore outselling, all other 24-hour movie ticket sales in 2021, combined and multiplied by three. This therefore clearly suggests to adam aaron that nfts are a brilliant idea and he should continue to incorporate nfts into the normal business practice of amc. And finally, i think even lamborghini are preparing for the empty squeeze and preparing for the amount of new lambos they're going to be selling to us retail investors lamborghini just tweeted, saying something's, going on get ready, hashtag lamborghini hashtag to the moon.

Clearly, even lamborghini know that amc is going to the moon and they're ready for all of the new sales they're about to make guys be sure to. Let me know down in the comments below what you think do you think the shorts can cover their short positions? If they can get amc back down to say two to five dollars a share, or do you think when they cover it will just push the price of amc way back up and cause the moass if you want to stay up to date with all of my New stock and crypto picks or if you just want some help on amc and gamestop, be sure to check out the patreon and the private discord linked in the description below and become part of the team. And, as always guys. If you enjoyed this video be sure to check out some of my others, alternatively, subscribe to channel and ding that notification bell, because that way, you'll be alerted.

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