Welcome back to the channel everyone today, i want to talk about whether amc can hit a hundred thousand dollars per share based on the recent nickel short squeeze 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. What's just happened to the price of nickel, why it's happened and what caused it and whether this could happen to amc as well. I also want to talk about whether we should be worried.

If you didn't know, a number of different exchanges actually halted: the trading of nickel, both the buying and the selling of nickel. Based on this recent short squeeze. Could these exchanges also halt the trading of amc, or was the trading halted for a very particular reason? So this chart here is the price of nickel during the recent nickel short squeeze. This chart is showing the price of nickel in us dollars per ton, as you can see through 2015, through to 2020, the price of nickel rose from around ten thousand dollars per ton.

Up to around fifteen to twenty thousand dollars over the last few days, there's been an absolutely massive increase in the price of nickel, which has been compounded by the nickel short squeeze as well as you can see from this chart. The price of nickel hasn't been this high since 2008, and actually, as you'll, see from the following charts. This was only a snapshot taken during the short squeeze. This wasn't even the peak price for nickel, but matt mann says people doubt how high amc and gamestop can go.

Look at nickel. When was the last time. This happened right before the 2008 recession. We can also see the price of oil going absolutely crazy as well.

Almost back to those previous 2008 highs and it's rumored that the price of oil could be going even higher, potentially as high as 200 to 250 dollars per barrel. This is a more updated nickel chart where the price reached over a hundred thousand dollars per ton of nickel, holger tweeted, saying the london metal exchange or the lmx hooks trading in nickel after an unprecedented 250 price, spike left brokers struggling to pay margin calls now, as I said later on in the video i'll talk about the lmx halting the trading of nickel and whether the trading of amc could be halted in this particular way. But he says top producer. Xin shang is under pressure to meet those margin, calls prices spiked as short position holders scramble to close out this is the bloomberg chart headed, saying nickel surges to a hundred thousand dollars per ton in a historic short squeeze now this is actually starting to already have Some massive massive impacts and massive repercussions: zero hedge posted, this article saying one of china's largest banks - fails to pay their margin call after today's monster nickel squeeze zero hedge said around the time.

Peabody was served with a 534 million dollar margin call on its hedged coal future short, which it funded with a new 150 million dollar unsecured revolving loan from goldman sachs. One of china's largest banks, was also served with a margin call for hundreds of millions of dollars. On a nickel short gone terribly bad after the price of nickel did well this. However, unlike peabody a unit of the china construction bank corporation, one of china's big four banks was given additional time by the london metal exchange or the lmx to pay hundreds of millions of dollars worth of margin.

Calls that it missed on monday, amid an unprecedented spike. In nickel prices, but on top of that one of the latest confirmed casualties is chinese entrepreneur, zhang wanda, known as big shot, who amassed a massive short position in nickel futures who now faces billions of dollars in mark to market losses after the metals parabolic move gwanda? Who controls the world's largest nickel producer? Seeing shan holding's group has closed out some of his company's short position and might be forced to close out the entire position. It wasn't clear what grander's losses could be, but it's reported to be more than 2 billion dollars and, as i've said earlier, meanwhile, the short covering chaos on the lme or the lmx prompted the exchange to suspend nickel trading, both the buy side and the sell side On tuesday, i think this part here is really interesting. It says some traders say that this reminds them of the 1985 tin crisis, which saw the exchange, suspend tin trading for four years, as many brokers were forced out of the business.

So actually many stock brokers or trading platforms actually went bankrupt and went under and therefore the trading of tin was halted for four straight years now. I think the reason why the trading of tin in this instance was halted for so long is because most likely, all of the brokers or any of the brokers that offered tin trading all went bankrupt. Therefore, there was no brokers left to handle tin, related trades, adding to the confusion. The london metal exchange said it would cancel all trades executed on or after midnight uk time on tuesday in physically settled nickel contracts in the inter office market on the lme select.

Now again, i think this part here is really really important and really specific to this individual short squeeze, because in relation to nickel, they're physically settled nickel contracts where actual physical barrels of nickel are delivered. Now, obviously, when you buy your amc shares, there's no portion of the company - that's physically, delivered to your doorstep, like with nickel trading and therefore this short squeeze and trading halt is very, very particular guys. Mumu and futu have just announced that future does not accept payment for order flow and therefore you don't have to worry about your trades, going through sketchy, dark pools or being given to citadel. And if you sign up with moomoos in the link in the description below and make your first deposit, you can get up to five free shares, values up to five hundred dollars each and a guaranteed free share worth around twenty dollars.

Moomoo is also a brilliant commission. Free trading platform that helps you, trade, like a pro they've, got tons and tons of technical indicators and advanced charting tools. They publish daily short selling information position, cost distribution and much much more and finally, moomoo is also an insanely easy to use platform and is very, very customizable, so guys be sure to sign up to moomoo, using the link in the description below to get up to Seventeen thousand five hundred dollars in free shares and another guaranteed share on top of that. So now we know, what's actually happened to the price of nickel and who it's impacted.

Let's talk about why it just happened now. I think we've got a mix of a few different factors that came into play. We had very, very low or very little amounts of market liquidity and therefore minor moves or minor orders were amplified and had major price impacts. When there's millions of tons of nickel being traded every single day, you need a very, very large order to cause a large price difference.

However, when the liquidity is very, very thin, even smaller orders can have large price impacts when you couple that, with the price of nickel, naturally rising over the last few years, you are going to have a number of institutions or a number of hedge funds that have Been shorting nickel that are getting closer and closer to being margin called. Therefore, you may only need a small price rise or a small price spike to cause a wave of liquidations which pushes the price of nickel even higher, as all of these shorts have to buy back their nickel short positions and also when you throw in a key Catalyst on top of that, like russia, being the third largest nickel producing country and also neuralis nickel, a russian company being the second largest nickel mining and producing company worldwide being restricted from trading with the rest of the world. You have a key catalyst that all of a sudden takes out tons and tons of supply from the market, which will cause the price to rise if we took the price of diamonds, for example, and then removed half of the entire world's supply of diamonds. Obviously, the remaining diamonds that are left are all of a sudden, going to be worth a whole lot more.

So therefore, this crazy short squeeze was more caused by the specific catalyst of tons and tons of nickel all of a sudden disappearing from the available market. That obviously made the remaining nickel cost more money or made the price of the remaining nickel go up, which then further caused the short squeeze to amplify the problem. I think, if we zoom in here, you can almost see exactly what happens. The price of nickel was trading for around 25 to 30 thousand dollars per ton when all of a sudden, those sanctions were placed on russia, removing tons and tons of available nickel supply from the market that caused the price of nickel to rocket upwards towards 40.

50. 55 000 per ton. The price then started to cool down, as all of these liquidations were processed and tons and tons of these market participants were liquidated and forced to cover their short positions, which all of a sudden caused the price of nickel to absolutely rock it upwards. All the way past a hundred thousand dollars per share or per ton.

Now i think if the trading a nickel wasn't halted, the price of nickel per tonne could have gone much much much higher as there would have been tons of other nickel shorts. That would have been liquidated all at the same time potentially pushing the price of nickel up to 200. 300. 400.

000 - maybe a million dollars per ton. So i think this could happen to amc absolutely. Would we have to reduce the prices somewhat? Potentially, you could theoretically reduce the prices on this chart to twenty dollars. Forty dollars sixty dollars, eighty dollars and a hundred dollars, but then you also have to factor in the amount of synthetic shorts in amc which would cause the price to go way way higher and also you have to factor in the fact that trading wouldn't be restricted Because i believe trading in nickel was restricted for a very specific circumstance.

I think the trading in nickel was restricted for two main reasons. The first reason is due to the sanctions that have been imposed on russia, which all of a sudden took out tons and tons of available nickel supply from the market. Therefore, effectively manipulating the supply of nickel into the market aka market manipulation. There was all of a sudden, a giant portion of the market that couldn't access the market to trade nickel, but also couldn't access the market to buy and sell physical nickel either.

This is somewhat similar to hundreds of millions of synthetic amc shares being deleted from people's accounts, with no permission whatsoever if the market was manipulated and hundreds of millions of synthetic shares that you and i are holding were deleted from our accounts without permission. That would be a form of market manipulation and the stock would need to be halted now. I think the second main reason as to why the trading in nickel was halted is because the physical settlement in a lot of these forward contracts or futures or options are physically settled in physical, tangible, nickel reserves. Now.

Obviously, the fact that russia has been sanctioned and therefore can't fulfill these nickel orders means that trades can't actually be completed as the actual physical nickel product can't be delivered to the option holder or the futures holder or the forward contract holder. Therefore, because these trades can't physically even be settled, therefore, trading has to be halted until a time when trades can actually be physically settled and therefore i do not believe the trading in amc will be halted for this specific reason, because one trades in amc aren't settled In physical amc tickets or physical amc popcorn, it's just the buying and selling of amc stock. There's nothing physical or tangible to deliver and number two. It's not physically possible to delete hundreds of millions of shares from brokerage accounts.

We hold those shares. We've paid for those shares and they are active in our accounts. They can't just be deleted out of thin air by the market makers that created them and therefore there's not going to be a circumstance where hundreds of millions of amc shares are removed, forcibly from the market due to political sanctions. Obviously, those hedge funds have to buy back the shorts and either return to the market makers or cancel them directly to be able to cancel the synthetic shares.

Now. Investor turf, also tweeted, saying breaking news: melvin capital's gabe plotkin was reportedly short, 100 million dollars worth of nickel shortly before the price rallied 250 percent. Now i don't know if this is actually true, because obviously there's no bloomberg link and there's nobody else. That seems to be reporting this story, but something that is very very much true is gabe.

Plotkin and melvin capital lost a ton of money, the other day on different positions, bob ross, tweeted saying today's big algae down down for melvin capital. This is a number of melbourne capitals: positions filtered from their largest positions to some of their smaller positions, as in iaa and lyv are their two largest holdings. Iaa melvin, capital's largest holding, was down 8.4 on the day. Yesterday, lyv was also down.

12.3 percent bill was down, 9.5 bbwi was down 8.67 and you can read the rest for yourselves by the looks of it. Melvin capital's entire portfolio yesterday would have been down somewhere in the region of 8 to 12. That is an absolutely catastrophic loss yesterday for melbourne capital and just goes to show actually how close melvin capital really are to being liquidated and being margin called. But it also seems that melvin capital aren't the only fund or the only institution.

That's feeding the pinch over the last few months, unusual wales, tweeted, saying jpmorgan's revenue is down 10. This quarter due to unprecedented events. This goes to show just how low and how light the current market liquidity really is, and this is part and parcel as to what just caused the nickel short squeeze guys be sure to. Let me know down in the comments below whether you think amc can hit a hundred thousand dollars per share and, if you think, trading will be halted and as always guys, if you enjoyed this video, be sure to check out some of my others.

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