Welcome back to the channel everyone today, i want to talk about how citadel just used their secret algorithm the other day in order to crush the price of amc. But i also want to talk about what impact that actually had on amc and explain how all they've done is delay the inevitable so stay tuned and let's make some money and now we're gon na dive straight in with the key information. So blake strack tweeted, saying signs and signals yes citadel successfully pulled off a clever and totally artificial amc momentum, kill and reset. In the first 15 minutes of tuesday's market open, they exploited idiosyncratic, limit up and limit down circuit breaker rules and they may have overplayed their hand.

Obviously, on tuesday we saw amc, shoot up right out of the gates of 34 and then all of a sudden stop make a u-turn and fall all the way back down to 27 and below now. Obviously, in yesterday's video, i explained exactly how they did it today. I want to talk about their algorithm and what impact that's actually had on that amd stock going forward. So, if you didn't already know, cidel have a very expensive algorithm that they've developed over a long period of time.

What you may not have known is that citadel actually recently tried to sue somebody for stealing their algorithm. This article is titled citadel security settles with fund over their secret algorithm. This is citadel securities reached a truce with a british hedge fund over the attempted hiring of a senior trader, ending a lawsuit that was set to consider the makeup of a secret algorithm. Obviously, citadel didn't want this case to end up in court and their secret algorithm.

Be exposed and therefore they just decided to settle with the british hedge fund. So it says the agreement followed claims that gsa capital obtained information on a closely guarded trading strategy when it sought to recruit a former quantitative researcher. So citadel securities was seeking at least 40 million dollars in damages, but obviously decided to settle out of court before their secret algorithm ended up being exposed. So the algorithm is centered on a crucial, automated trading model, known as the abc strategy that costed our securities more than 100 million dollars to develop.

It says the algorithm was so secret that just 15 of the company's 3 000 employees had access to its strategic logic. I believe this abc strategy is the exact same algorithm that was used to crush the price of amc the other day now. Obviously, this abc strategy algorithm is so secret, and obviously so, illegal and market manipulative that only 15 people in the entire company at citadel know of its existence and how it works. Now it says the gsa, in a legal filing for an earlier hearing, said that it had no plans to run a high frequency strategy for trading stock and therefore it sounds like citadel's abc strategy.

Algorithm is a high frequency trading strategy, obviously designed to crash momentum. But so what exactly has happened to amc as a result of the use of this algorithm? How exactly does citadel push the price down so fast and i think the answer to that is going to come. Courtesy of both user of intellect and the real dark pool user of intellect said. My data, which is self-collected based on historical discrepancies of ortex, s3 and fintel, shows a massive amount of gamestop and amc may be purchased or covered over the next few days.

Now, if they don't, both of these stocks will end up on the regulation. Sho threshold securities list in april. So if you didn't already know the regulation sho threshold securities list is a list of securities whose transactions failed to clear during the previous trading days. Basically, if shares could not be located for certain transactions over the previous five days.

In a row, then, the stock ends up on the threshold securities list now. Obviously, these settlement failures may be indicative of naked short selling, although they may also be caused by benign factors such as administrative errors now which i've spoken about the regulation sho threshold securities list a number of times on this channel over the last few months. I have also spoken about how these hedge funds can effectively reset these transactions in order to ensure that amc and gamestop end up being removed from the threshold securities list after as well. But i do believe, amc and gamestop will end up on the threshold securities list.

Due to the massive influx of naked shorting over the last few days, obviously, amc is currently 100 utilized and has been now for the last three or four weeks straight and therefore the only way these hedge funds can push the price down is by ensuring that a Market maker, like citadel, creates tons and tons of synthetic shares. Obviously, if all the legit shares are a hundred percent utilized, then the only way to push the price down is to find a market maker willing to create synthetic shares and then borrowing and shorting those synthetic shares to push the price down now. Obviously, if this happens in large quantities, the stock will end up on the regulation, show threshold securities list and darkport also says with the shorts fully utilized or 100 utilized. How exactly did they short today 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 invest in cryptocurrency, especially now that it's starting to break out. I personally like to use blockfy and right now, if you sign up to block for using the link in the description below you can currently get up to 250 in free bitcoin, more than 500 000 people and 350 institutions globally use blockfy to manage over 10 billion Dollars in assets, the blockchain platform is also entirely free to use and requires no minimum balance. Block fight also offer a rewards credit card with an introductory rate of 3.5 cashback on your purchases also paid in crypto, so 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 you guys be sure to sign up to block five using the link in the description below to get up to 250 dollars in free bitcoin. Now it says on monday there was accelerated, buying and large block orders. Obviously there was a massive influx on buying on the 28th, as the price ran from 18 all the way to 29 per share, and he said meaning in that upward movement.

Shorts did technically cover some of their smaller positions in order to free up additional shares to shore. He said those large block orders most likely are shorts, covering a very small portion of shorts, but rather than returning the shares, they reused them to short again. Basically, these shorts freed up any shares they possibly could and requested that citadel generate additional synthetic shares in order to ensure these shorts had enough ammunition to push the price down. They knew that after the 40 gain on monday, the 28th, the amc was primed to run and potentially end up in the short squeeze.

They had to ensure that amc did pop off the open due to all the retail orders going through, but then they had to ensure that they had enough ammunition to short the price of amc back down enough to trigger that limit up limit down hall. Now, obviously, the main problem with this is that, even though citadel and the shorts did escape for another day, it still doesn't change the fact that a they've created more synthetic shorts and b, they still have to cover their original shorts and now the additional shorts. On top of that now you may say tom: their plan is to obviously never cover their short positions, so they don't care about how many synthetics they actually create, and while that is true, i want to talk about how the shorts are still trapped and how we Are actually winning because otherwise they would have pushed the price of amc back down to two dollars and below and by now they would have had the stock delisted if they could escape. So this post on reddit, says if the market makers are still able to manipulate the stock at thirty dollars.

How can we expect a hundred dollars two hundred dollars three hundred dollars, a thousand dollars, ten thousand dollars and let alone the mother of all short squeezes? He said it took a conversation i had with someone who knows little to nothing about the stock market. That convinced me that i'm not going to leave his friend said when the market is up. You sell when the market is down, you buy that's the name of the game. Everything in the middle is just playing chess.

If you can't handle playing chess play another game because you're in the wrong game, when amc is down, we buy shares and when the mass happens we sell the shares. Everything in the middle doesn't really matter because it just means that the squeeze hasn't yet happened. He said they took the buy button away. They hauled the stock to a lower price.

Why are they doing this if they can't get out of the play if they could cover their shorts, they would have covered by now if they could push amc below two dollars? A share and get it de-listed and relegated to the otc exchange, so they never have to worry about their short positions. They would have done that by now as well. Not only has it been a stressful year for us retail investors holding amc, but it's been a very stressful year for the hedges every single day. They have to worry about retail investors, buying more shares and more options and causing the squeeze time and time again.

Amc has been running up over the last year, only to be crushed by the hedges now. Obviously, this is a very stressful situation for the hedges and therefore to avoid all that stress, why don't they just push amc down below two dollars? A share? Get the stock relegated because then they don't have to worry about retail investors if amc is relegated off the stock exchange onto the otc market. Retail investors can't buy amc stock because there's not any trading platforms or very few trading platforms that allow you to buy shares in otc companies and therefore these hedges would be stress-free if they just push amc below two dollars a share and get their stock relegated. But after a year of constant daily stress, they still haven't done that.

Why? Because they can't, they know, the retail investors are buying the stock and they know that they are trapped and, at some point will end up being squeezed time and time again. They try to prevent the squeeze practically every single day at this point, but at some point at some time the hedges will mess up and amc will end up squeezing, and i think two people that absolutely know this is the case is ryan, cohen and adam aaron, Because, once again they are still coming out with smoke. Every single morning, yesterday, adam aaron tweeted, seeing amc's basis in 46.8 million shares and warrants of highcroft is 1.07 each. He said we took some mindless flack from wall street pros two weeks ago, but right now, i'm in the kitchen preparing for them some aromatic crow soup, crow stew and crow pie.

You also attach this photo saying: eating crow and loving it recipes for the judgmentally challenged. Therefore, adam aaron is still coming out of the shores, but also so is ryan cohen with another tweet. This morning he said who's more reprehensible hedge fund, short sellers or overpriced consultants. Again, this is a dig at the partnership between those overpriced consultants like bcg and those hedge fund, short sellers like citadel and all those other short hedge funds out there ryan cohen, knows that the two of these parties are working together and he knows their game and He is outsmarting them, both ryan cohen and adam aaron are so confident and have been so confident over the last two or three weeks or so now.

They know that both amc and gamestop are just about to squeeze, and they know it's only a matter of time. Guys be sure to, let me know down in the comments below what you think about citadel using their secret algorithm and how you think this has impacted amc and, as always guys, if you enjoyed this video, be sure to check out some of my others. Alternatively, subscribe the channel and ding that notification bell, because that way, you'll be alerted. When i upload a new video cheers.