Hey folks, so do you want to make billions or billions of dollars in the stock market? Well, it's actually really easy. All you have to do is either be a short seller who publishes research reports or a law firm and here's the way the game works. You put together a really hot and sexy research report that usually ties together, things that make a company look like it's a fraud violating securities laws or lying or deceiving. Somehow, usually, you want to do this by stringing together comments from glassdoor.com or reviews of the company online or facebook conversations and messages that anybody could have in theory.

Had you strain together this information with a very creative narrative, then, before you publish either the fact that you filed a lawsuit or even filing the lawsuit before you do that or before you get rid of your or you publish, i should say now get rid of You publish your short seller report. There are a few things that you have to do. First, you short the crap out of the company you're about to publish bad news about. You could do that by buying put options or you could also just short the stock.

Probably the most profitable thing would just be buying one-week put options so that way you get the biggest most leveraged return possible. When the stock drops 40 percent, your put options could be up multi-thousands of a percent pretty wild. In fact, this literally just happened with techno glass. Just two days ago, hindenburg researched hindenburg research published a report alleging that this company was violating securities laws, a fraud and somehow tied to the cartel leading the stock to drop over 41.

In addition to either getting short while shorting the stocks or selling, puts it's also a good idea to let your buddies know who pay you, like your fellow hedge funds, an advance fee. So that way, you could let your hedge fund buddies know to also pile in on the shorts but keep everything on the down low. Because when you post this report, the media is going to pick up on it. You'll post a press release media will pick up on it.

They'll run stories on it. The stock will drop, leading the media to run more stories on it, leading to a lot of paper. Handers selling the stock leading the sell-off to continue usually the stock rebounds within a day or two of this but oftentimes. It doesn't come back to the levels where it was leaving these companies in much more dire straits in terms of being able to fundraise in the future, especially since lawsuits can take years to end up clearing.

The cool thing is, if you're, your own legal firm, it doesn't cost you anything extra to file another lawsuit. It just takes a little bit of time and you get to use a way of saying hey. We believe in our story so much that we're suing well. Folks, this is exactly the scummy way that the market is rigged when it comes to buying, puts and short selling.

That's why it's very hard to be somebody who buys puts or short sales, when you don't have the connections to this kind of research or insider information that people are going to publish or file lawsuits or publish negative research reports beforehand, unless you're in the in crowd. You don't know and folks. Finally, the sec has realized: hey wait a minute, maybe there's something sus about this. Going on bloomberg just broke a story that the department of justice has opened a criminal probe into the practices of hedge fund and research firms that rely on short selling and the question that they're asking is: do hedge funds, trade stocks targeted by research firms prior to The publication of the reports - this is where i wrote duh now the probe, not the prob, the probe will seek if there's any improper coordination or market abuses.

Now i wrote here jpm and vandertrak. It's really interesting to know about these, but what jpmorgan and vandatrack do is they actually provide data to individuals who want to prevent a short squeeze? And i shouldn't say, individuals, it's mostly institutions. So, for example, let's say you're a hedge fund and you're like okay. We have an investment of 100 million dollars in peloton and you're like okay.

Well, there's a risk that peloton's going to miss on earnings, so we're going to buy some puts as a hedge against our long position on peloton. Basically they're shorting a little bit. But then, what if all of a sudden things start going, trending on twitter or on reddit, that hey the retail army, the apes are ready to squeeze the hedges. Who've got shorts.

Well, now, all of a sudden, a hedge fund, which is really just trying to do what it's trying to do, which is be long on this particular stock. In this example, right, don't get me wrong. They're scummy hedge funds, but in this example the hedge fund's, like hey, we're just trying to protect our long with a put. But if now we get short squeezed on that put, we could lose our entire long position and so companies like jpmorgan, chase and vandatrack provide information on the ape army.

So that way they can disclose hey. You know the apes seem to be circling around. This looks like the apes are trying to squeeze this over here and they basically sell services to give hedge funds an advance notice that you're about to get squeezed, but the point of the retail army being pissed off at hedge funds and these big old firms, like Citadel or uh what was the other one? There was citron research which had massive shorts on gamestop right. The reason retail the retail army is is upset by companies like this is because of the game rigging.

I talked about beforehand how they set up shorts. Then they beat the crap onto stocks, destroy companies that don't deserve to be destroyed and they maliciously collude with each other to rob money from the retail army and the apes are sort of the counter-attack to this. The apes are a way of saying: hey, we're, retail, we're demanding the sec. Do something we're demanding the government do something to stop the bull crap.

Basically, so it's important when we think about hedge funds to really separate them. In my opinion, i mean look. They're all suits okay, but separate them into two batches. One is just the hedge fund that has long positions that also has short positions, because well that's what hedge fund does they, hedge uh against downside, risks, uh and then they're the evil funds that purposefully publish reports to destroy companies, so they could sell their research to Other people i mean think about it.

This way, hindenburg, which just pulled off this techno glass, 41 percent short, which may or may not be accurate information hindenburg, is going to attract a lot of media attention. I'm talking about him. The media is talking about everyone's talking about him and that's going to lead a lot of institutions to want to call up hindenburg and go hey um. Can we pay to get early access to your reports like we don't need long like give us an hour and uh yeah, we'll pay millions of dollars for a subscription like that.

Hindenburg makes money on the subscriptions, and i don't know that with certainty. I'm guessing uh hindenburg makes money on the subscriptions. Hindenburg makes money on the shorts. All their customers make money on the shorts boom.

The institutions win, retail and hodlers, and companies get screwed. It's a dirty game. It's so dirty that after citron research got smoked by the gamestop short squeeze, they actually said that they are going to stop publishing research reports on companies that are that they're going to go short, so they've they've promised to stop posting short reports. Basically, now one of the reports that they published after the gme uh short report just to show you how strong they can be or influential they can be.

They published a report the day after uh, jim cramer pumped excel fleet from 18 to 21. They published a report. Excel fleet went from like 21 to 35 on the positive report, which is really interesting because that doesn't hurt the company and it certainly doesn't hurt hodlers and it doesn't hurt retail. If anything, it helps right can create fomo and momentum and can also be bad advice, so it can kind of go in both directions, because at the time - and i felt like an idiot - i had just made a video on excel fleet going.

I can't own this stock. I think it's a bad investment that same day, jim cramer pumps it and the next day, citron pumps it, and then i got all these comments like nah you're such an idiot. It doubled right after you bagged on it yeah. Well, i'm glad i wasn't a hodler at 18 and i'm glad i dumped my shares that i had because the darn thing is at four dollars now, so it shows you like this whole like research world can be really really scummy.

Here's that crazy, uh, jim cramer pump and everything the jim cramer pump and then the uh, the citron positive research report and then, of course, the momentum bleed out over time because well that's right. I mean you can watch my video on it. Okay, just type into youtube meet kevin xle, but the point is uh. The sec is now vowing to protect retail investors when the facts demonstrate abusive or manipulative trading activity that is prohibited by federal securities law.

The problem is uh. You know: we've been waiting for the sec to do something to do anything for a long freaking time the sec published their their reports about gamestop, and they basically did nothing. The staff review uh alleged no wrong doing at all, but i'm glad that the sec, along with the department of justice, are now looking into this from a criminal point of view. Because, honestly, it's got to stop it's shady and it's dirty anyway.

Thanks so much for watching this video we'll see in the next one bye.