Welcome back to the channel everyone today i want to talk about citadel holding evergrande bonds and how that's going to impact citadel now that evergrande have gone bankrupt. I also want to talk about charles payne being silenced, so stay tuned and let's make some money and now i'm gon na dive straight in with the key information. So dr marco meltzer, recently posted saying this in one of my last posts, i mentioned that you can hedge against the meltdown by going long on amc and gamestop. Many have asked why, and here it is, he said, citadel a hated hedge fund has been shorting companies like amc and gamestop and many others.

However, in january, these companies received massive support from the reddit community and obviously the twitter community, and you guys, on the youtube community, by buying these stocks up in a big way and driving up the stock price. Hedge funds, like citadel, suffered massive losses, valued in the hundreds of millions of dollars, if not in the region of billions of dollars. During the run-up in january and again in june citadel is said to have even taken action by asking the brokers to suspend trading during a testimony citadel ceo, ken griffin, admitted the short positions were now closed. However, a search of bloomberg revealed that citadel not only have failed to cover the short positions from january, but these have actually grown exponentially, but now citadel can use chinese commercial paper and bonds, not just chinese commercial paper but bonds in general as collateral and receive 100 Credit on par value for them.

Now you may remember: i've previously shown you this document filed by the dtcc documenting changes to collateral requirements and what can be accepted as collateral securities that are rated triple a can still be taken at 100 of face value securities, rated between aaa and double a will Receive a 5 to 35 haircut, anything below double a receives a 100 haircut and is effectively worthless. Now, once ever grande is declared bankrupt and has a d for default status. The hedge fund can no longer use the chinese commercial paper and bonds as collateral. As a result, they're going to be unable to meet multi-billion dollar margin requirements and must sell shares or cover their shorts to meet margin requirements.

In doing so, hedge funds must buy amc and gamestop at any price. They will have to cover enough shorts, obviously to meet those margin, requirements which could be a very large portion, if not all, of their shorts, especially if a certain hedge fund or institution has been creating tons and tons and tons of synthetic shares. It will be a very large portion of their portfolio that they will have to cover entirely. Even if the market, collapses, amc and gamestop shares will soar apes.

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If the long positions in blue chips held by these funds are liquidated to meet their margin, calls or buybacks, it could spell disaster for the market itself. If the short squeeze occurs, it could lead to the largest transfer of wealth in the history of the market and the liquidation of a number of hedge funds collectively worth trillions. Now you could say: well tom, can't the hedge funds just sell off their blue chip stocks and crash the market and avoid covering their shorts. But i think, especially when it comes to the sec and the dtcc, they will want to protect the overall market and they will make these few hedge funds cover their shorts.

Yes, the sec hasn't yet exposed citadel and the other hedge funds shorting amc in gamestop, because it could lead to a market crash, but we know full well. The fed is basically trying to do anything they can to avoid the market crashing and therefore, if it's a case of picking between the overall market and picking between a few small hedge funds that are shorting, amc and gamestop, obviously the fed and the sec are going To pick the overall market, as you can see, it's begun with citadel is the company looking for a bailout like it did in 2008? It very much seems this way if citadel have obviously restricted investor withdrawals, because that's how they survive 2008, with a bailout and restricting or preventing those withdrawals. That's the goal now again like other hedge funds, the firm found it nearly impossible to borrow money to fund its positions, particularly in convertible bond arbitrage. A market citadel had rushed into during the summer when convertible bond prices were dirt cheap.

It's a strategy in which investors typically buy a company's convertible bonds, while shorting the company's common stock. It's a bet. The bond will outperform the stock if these bonds go up due to inflation and lack of liquidity. Due to the impact of evergrande, the whole sinking ship will capsize.

Add to that quadruple, witching day, the us debt ceiling and all the things we've talked about for months. Marco meltz says that citadel will be the second domino to fall on the road to a financial collapse after evergrande. Now some of you may say well tom, surely the overall market condition and the overall market health is absolutely fine. Well, this is a photo showing inflation.

Over the last year, in october, we hit a new recent record of inflation at 6.2 percent, the highest inflation data we've seen since the 1980s, but november inflation is forecasted at 6.9 percent and the actual data is being released today. That would be even higher than the october inflation you can see down here. This is the actual previous consensus, and forecast in inflation for november is between 6.7 and 6.9 percent. Now, on top of that, it looks like charles schwab are preparing for the incoming market crash and amc and gamestop squeeze with some new margin requirement adjustments for car dwac, and you guessed it amc and gamestop.

Now we know this is a new filing, because the last time charles schwab updated their margin. Requirements was back in june and obviously nobody had heard of dwac back in june. Therefore, this is a brand new margin requirement filing coming out over the last few days and they've, restricted amc, stock to 100 margin requirement for long positions and a 200 percent margin requirement for short positions, basically meaning if you have 10 dollars in your account, you can Only buy ten thousand dollars worth of amc. You can't use margin to buy more amc.

You can't buy twenty thousand dollars worth, for example, and with shorting say: if you have ten thousand dollars in your account available to trade with, you can only short five thousand dollars worth. This is obviously to prevent charles schwab from losing out on any money when amc squeezes. Now i really like this little dick down at the bottom here as well. They've said: please note.

Neither charles schwab or td ameritrade has halted clients from buying any stocks or selling any stocks they own, and neither firm has restricted executing any basic option strategies. The same obviously can't be said for the likes of robin hood. Now i think the most important question is: how will we know when synthetics or shorts in general are being covered? Now? I guess all text data will be available, but ortex data has two major problems. The first major problem is that all text data is obviously reported on a t plus do basis.

Therefore, we won't know if all of the shorts have covered until two days after they've all actually covered and two days after every single short has covered. Well, this squeeze will be over, the squeeze will only be on while the shorts are covering and when the very very last short has covered. There's no reason to push the price of amc any higher and the short squeeze will be over and the price of amc will fall and return back to normal now. The second major problem is that all text is all well and good, but it's self-reported data and believe it or not, occasionally or most likely, most of the time hedge funds and institutions.

Don't report accurate and truthful information. That's why they receive so many fines. So obviously, why would hedge fund report to ortex they've covered all of their shorts? Now i guess one of the main ways to tell is that when synthetics and shorts in general are being covered, it will cause margin. Calls therefore, there's going to be tons and tons of news articles about all of these hedge funds and institutions like citadel, for example, going bankrupt and being liquidated.

Now i guess the only downside to this is that maybe these news articles will come out in a delayed fashion. They might only come out five days or ten days after the hedge fund has been fully liquidated and after their entire short position has been covered. So again, too late, so ultimately, you won't really know exactly to the exact time and date when the shorts are being covered. You can only rely on indicators and your gut feeling.

This is why i've said in so many of my previous videos, but it's important to sell small portions of your portfolio or small portions, of your amc holdings during the squeeze on the way up, obviously trying to save the largest portion for the very, very tippy top Of the squeeze, but by selling small portions on the way up, at least you don't miss the entire squeeze all together. Maybe you sell 10 on the first day of the squeeze another 10 on the second day of the squeeze another 10 on the third day and save the rest for the fourth day, or maybe you time it in certain price brackets or certain price intervals. Whatever way you feel most comfortable with or whatever way works best for, you is ultimately going to be the best and most comfortable and most risk-free decision. Now.

I also wanted to talk about andrew's recent tweet. He said i just wanted to share this with the amc family. Charles payne has been silenced, so there's a few emails going back and forth between andrew and charles payne andrew says. Maybe try clearing your cachet on your web browser and try again or try a password reset charles payne replied, saying nope they've simply blocked me from logging on i've been silenced, let everyone know, i'm sure i'll, be back, but it's an awful and petty business model.

Now, if you didn't already know charles payne hasn't been active since around the 6th of december. He hasn't posted any tweets since the 5th and he hasn't liked any tweets since the 6th of december either. So that's nearly 4 days that he's gone without a single tweet. Typically, charles payne tweets at least once every single day, we've got a tweet on the fifth another tweet on the fifth another tweet there on the fifth another tweet on the fifth again and many others, so he tweets multiple times per day.

So it's very unusual for him to be away for four days due to his silencing. I think this is because he's been bringing so much awareness to the amc and the eight movement, but obviously either twitter or fox news or whoever it is, is trying to silence him now. On top of this, i also want to talk about joe biden's top secret service agent cho, leaving to join hedge fund citadel the head of president joe biden's security detail is retiring and taking a job with citadel billionaire ken griffin's hedge fund. Now i imagine that because ken griffin has been manipulating the market massively for many years, there's probably a ton of people out to get him and he most likely can't step outside without an entire security team.

I guess it goes to show just how much money ken griffin really has, and it just goes to show how scared ken griffin really is that he's hiring the head of president joe biden's security detail now. Finally, i also wanted to talk about the sec's inspector general keeping his job, despite abusing his authority by protecting subordinates now. Obviously, this isn't a good look for the sec. The agency that's received widespread criticism for going easy on elon, musk, tesla goldman sachs and obviously the massive amounts of manipulation in the market, while jumping at the opportunity to prosecute small-time traders guilty of acting on bits of mnpi and other small cat penny stocks.

According to an exclusive router's report, carl hecker, the sec's inspector general, was briefly suspended in may 2020, following an investigation into serious misconduct on hacker's path. Instead of firing him, the sec temporarily suspended its own investor general without pay for an undisclosed period and now he's back on the job. It just goes to show there's obvious corruption, even deep inside the sec, guys be sure to. Let me know down in the comments below what you think about citadel holding evergrande bonds that are just about to go from being aaa rated to rated in d for default.

And if you want to stop today with all of my latest stock and crypto picks or if you just want some help with 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. When i upload a new video cheers.