Welcome back to the channel everyone today, i want to talk about how citadel and other hedge funds just collectively lost billions of dollars so stay tuned and let's make some money, and now i want to dive straight in with the key information, so trade tweeted saying i Haven't heard the streaming services will kill theaters argument in a little while he said today seems like a good day to bring up again how goofy that argument really is. Obviously you - and i know that amc and other theater chains around the world are here to stay. They are not going to be crushed by streaming. Services like netflix, amazon and disney plus and many others.

Yes, streaming, services do have their place in the world, just like tvs have their place in everyday homes, but you really can't replace the imax cinema experience. The first movie was ever shown on a television back in 1931 and still to this very day, cinemas are around and they are still thriving and jackson. Hunter. Also just pointed out that netflix is down 24 in the after hours, asking guys what just happened.

There netflix released its earnings yesterday evening and posted some disappointing numbers showing a decrease in member numbers for the first time since its inception back in 2011., this caused the netflix stock to fall over 24 in the after hours down from around 360 dollars per share to A low of 261 dollars and as vegas abe says in less than six months, netflix has fallen from 663 dollars per share to around 259 dollars a drop of over 60 percent, and he says so. Where are all the articles about the poor retail bag holders holding their netflix bags and losing massively on their investments? He asks. Will the motley fool begin to run endless hit pieces about netflix? Now, where are the fools telling me to sell my netflix shares and he said that's what i thought, because of all the corruption and the fact that the mainstream media does side with the hedges and obviously promotes stocks like netflix and bashes stocks like amc and gamestop, And hangloo says he's right: if the mainstream media doesn't run at least one hit piece netflix article a week and the stock doesn't drop after great upcoming earnings, then the short and distort campaign is real. Now, obviously, that is satire, because the mainstream media won't be running hit piece articles on netflix, because there's no short and distort netflix campaign.

Obviously, the hedges are trying to shorten the store amc to protect the hedge funds from the retail investors and they're, trying to promote stocks that hedge funds are holding like netflix. Now. The reason why i say that citadel and hedge funds have just lost billions of dollars is because obviously there's a couple of short sellers, betting against amc and obviously naked shorting amc. We know there's a massive hit campaign on amc and there has been over the last year due to all these short sellers, shorting amc and creating synthetic shares.

To short it even further. But we also know that, while many of these hedge funds are shorting amc, they are long on other streaming. Services like netflix and amazon, prime, so obviously citadel actually have a net long position on netflix as well. Citadel are holding 954 000 shares, with around 3.3 million call options compared to around 4.1 million puts, and also, if we look at the value of these as well.

The total value of their call options is around two and a half nearly 2.6 billion dollars, and the short position is around 2.4 2.5 billion, so while citadel has a net position of only around 100 million dollars as a long position on netflix, it also wouldn't surprise Me if they have a much larger long position as well, don't forget this is only citadel's reported long position in netflix, just like their reported position in amc is only a fairly small amc short position, but we also know that citadel and many other hedge funds are Hiding naked shorts within the options chain by using their married and divorced, puts and the constant failing to deliver of synthetic shares, but it also wouldn't surprise me if there's a complete opposite of a married and a divorced perp, which is obviously used for shorting amc. I wonder if there's a married and divorced call option which they're using to hide their true long position in netflix. Obviously, this would be advantageous to citadel and those other hedge funds, because, if they're hiding the true extent of their long position, it doesn't expose them to other hedge funds trying to short netflix in order to crush citadel. And therefore, it wouldn't surprise me if citadel's true long position in netflix isn't just a hundred million dollars.

It wouldn't surprise me if their true long position is well into the billions of dollars for just citadel alone and obviously citadel and all of these other hedge funds will have collectively lost 25 of their entire netflix holdings, which likely adds up to billions and billions and Billions of dollars, because we know that it's not just citadel that hold a long position in netflix, there's also tons of other funds that are currently shorting amc like susquehanna that hold a long position in netflix as well. Now. This is obviously very, very positive for amc, because if these hedge funds are losing massive massive amounts on their netflix long positions, it just reduces the amount of overall margin that they have available in their accounts, effectively bringing them closer and closer to that dreaded. Marching cool.

Now guys, many of you may not have a lot of confidence in the stock market at the moment. There's all of this market manipulation and market fraud. That seems to be going entirely unpunished and that's why i personally also like to invest in cryptocurrency, especially now that bitcoin is trending upwards. I personally invest in crypto using block fi.

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That way, you can continue to accumulate more and more there's. Also, no annual fees and no foreign transaction fees either and the card is currently available in the united states, so guys be sure to submit to block file using the link in the description below to get up to 250 dollars of free bitcoin. Just for signing up and making your first deposit, obviously because netflix has fallen so dramatically, that massively reduces the amount of available profit that they have in their current trading accounts and their amount of unused margin. And obviously, when this amount of margin drops below the required level, these hedge funds will be margin called, and it may be that citadel actually had to exercise tons and tons of these put positions.

Pushing the price of netflix down in order to free up additional margin. To meet their margin requirements, so that may actually be the entire reason that netflix had this after hours full effectively just from citadel trying to bail themselves out and create some additional available margins and, interestingly enough, while melvin capital doesn't actually hold any netflix shares marvin capital. Recently, dumped a number of shares like mastercard, an alphabet or google in a portfolio overhaul. Obviously, gabe plotkin and melbourne capital have had to recently overhaul their portfolio to free up tons and tons of available liquidity to obviously not get margin called after their portfolio has been dropping so significantly, not only in 2021, but in the first quarter of 2022 as well.

We know that melbourne capital lost over 30 in 2021 and has lost another 20 in the first quarter of 2022 and melvin recently had to unload two million mastercard shares that were worth around 695 million dollars to free up additional cash and to free up additional margin. As i've said many times now, melvin capital will be selling down their entire portfolio and covering all of their short positions as their fun gets worse and worse now. Obviously, amc and gamestop will be their last position that they try and cover, as that position, when it's covered will not only bankrupt the melbourne capital fund, but will also bankrupt many other short selling hedge funds. Now you may have also noticed that yesterday, fidelity restricted the buying of shares through the lit iex exchange.

There's a post here on the fidelity reddit that says iex exchange choice is currently not available. He said i've been choosing which exchange to buy and sell stocks on. Since the option was made available today, the fidelity app is not providing me the choice as it was before. What's up with that, and he said by the way i do have the latest up-to-date version of the fidelity app fidelity actually replied saying we are aware that users are not currently able to direct trades through the lit iex exchange.

We are working to quickly quickly resolve this as a workaround users are still able to direct trades through our active trader pro platform ak their atp or their dark pool, or their alternative trading system platform. Obviously, this is not good for amc investors that you can direct your trades through dark pools, but not through the lit iex exchange. This could potentially be a coordinated attack against retail investors to stop them buying through lit exchanges, so that citadel and other hedge funds can push the price down further. He said as an update, direct trading on our mobile platforms will return to normal functionality tomorrow, aka 24 hours of retail investors not being able to buy through lit exchanges.

I think this is very unfair and really just goes to show how deep the corruption really is. Considering fidelity have turned off the purchasing of shares through the lit exchanges for retail investors and just to show how much deeper the corruption really goes. The dtcc have obviously got fed up of people pointing out the manipulation in the current markets and on their twitter page. Have turned off the ability for people to reply.

It says that only the people, the dtcc mention in their tweet, can reply to the tweets and therefore they've basically turned off commenting. So people don't point out the current manipulation in the market again. This is just another example of these regulatory organizations like the sec, the gtcc and finra just sweeping the problem under the rug and hoping that nobody notices, and i also want to quickly touch on the current housing market and how the current housing market is leading towards A crash which will cause a stock market crash which obviously liquidates the short hedge funds, causing the amc squeeze edward goski tweeted, saying the us average annual mortgage payment is now 35 higher than the mortgage bubble back in 2006.. The only difference now in 2022 is that we have 8.5 percent inflation and 50 times the dare he said with the fed 8 behind the curve of inflation, because obviously interest rates are still so low battling the monster known as inflation.

Things are about to get wild here. We have a chart that shows the average annual mortgage payment across the us on a year by year basis. Obviously, this peaked back in 2006 2007 as the housing market peaked just before the 2008 recession. It peaked at a price of 16 thirty five dollars, but right now in 2022, that's rocketed all the way to over twenty one thousand dollars.

This shows just how severely average annual mortgage payments have increased over the last few years back in 2019 pre-pandemic. This was only around 13 000 per year, but since spiked all the way to nearly 22 000 now this is obviously caused by a combination of house prices going absolutely intergalactic and the increasing of mortgage rates, inflation, tracker, tweeted, saying the 30-year fixed-rate mortgage rates just hit 6.875 - and he said the housing market is going to collapse. Now you may say tom, fixed rate mortgages didn't cause the 2008 recession. This was mainly caused by those adjustable rate mortgages, but obviously the problem is that when these 30-year fixed-rate mortgage rates get too high, people then move to these adjustable rate mortgages because they're cheaper and easier to pay.

You may remember this article that i covered a few videos back that says the share of mortgages that are adjustable rate, mortgages or arms doubled to 10 in january up from a 10-year low of 4 in january 2021. So, back in january of 2021, only four percent of all mortgages were adjustable rate mortgages in the last year. This is over doubled now to over 10, and i imagine this figure will be increasing rapidly considering these mortgage rates, all these mortgage interest rates are increasing so fast. It wouldn't surprise me if this has now increased to 15 or 20 over the last few months, just because of how fast these mortgage interest rates for the fixed year mortgages are rising and obviously, when the adjustable portion of these adjustable rate mortgages end up kicking in People will not be able to afford their mortgage and will end up defaulting on their loans and to show just how expensive these mortgages get.

As these mortgage rates increase inflation tracker tweeted saying this is what happens to your mortgage payment when the rates go from two percent to seven percent, an absolute bloodbath. So if your fixed rate or adjustable rate interest payment is at one or two percent, then your monthly mortgage payment is somewhere between two thousand four hundred and two thousand seven hundred dollars and the total interest paid is between 84 000 and a hundred and seventy six Thousand dollars over the life of the mortgage, but again, if it's between six or seven percent, then your monthly mortgage payment increases from two and a half grand up to four to four and a half grand per month, and the total interest paid is between six hundred Thousand dollars and seven hundred thousand dollars a massive increase from between eighty four thousand and a hundred and seventy six thousand now this screenshot doesn't actually show what the underlying home value is, but i was just using this screenshot as an example considering the 30-year fixed-rate mortgage. Just hit 6.875 percent we're now down right at the very bottom of this screenshot comparison, basically showing that, even though these mortgage interest rates have only increased by a few percentage points over the last few years for around 2 to 7, that means the monthly mortgage payments. Actually have doubled and obviously, as these mortgages get more and more and more expensive and as the value of homes gets more and more expensive as well at one point the bubble will pop and the housing market will crash and obviously, when the housing market crashes, it Will take the stock market with it? It will also take out many of these short hedge funds, causing the amc squeeze so guys be sure to.

Let me know down in the comments below what you think about citadel and other hedge funds collectively losing billions and billions of dollars and, as always guys, if you enjoyed this video, be sure to check out some of my others. Alternatively, subscribe to the channel and think that notification bell, because that way, you'll be alerted when i upload a new video cheers.