Hey everyone me kevin here well, folks, the truth is out on gamestop and the events that unfolded in january. It is apparent now that what happened in january was not a short squeeze on gamestop. It was a short sneeze and in this video we're going to talk about how powerful the ape army really is and how it's actually way stronger than anyone expected and this sec report that i just spent over an hour and a half going through word for word. I actually did most of it live on the channel.

You could see it is mind blowing in this video, i'm going to give you the highlights. Let's get into this, because this gamestop short sneeze happened on my birthday january 28th. So it's really special to me all right folks, let's get right into this number one the sec says gamestop is quote quote: this is their wording? Okay, like somebody's got to frame this or make t-shirts of this. In my opinion, okay, the sec says gamestop is quote the most famous of meme stocks.

I love that i really frame that all right number, two uh - and this is gon na - be the first couple of these - are gon na, be a little bit of background to help. You understand the rest best execution for stocks, which we keep hearing brokers, talk about. All we give you the best execution does not mean best price; it just means the best speed or best quality or, quite frankly, best whatever's available at the time. So when a broker tells you you got the best execution, it does not necessarily mean you got the best price number three: the median account balance for robinhood account holders is 240 and the average age of customers 31 years old.

One six number, four one. Sixth of the accounts made through apex clearing through companies like weeble have an average age of just 19 years old, in other words, not the accounts of the age, but the people who have those accounts so one-sixth of all the users using apex clearing again websites like Weeble have an average age of just 19. number. Five market makers can either make trades through public exchanges, which is public information or internally, which is off market through what are sometimes called dark pools, but more technically known as internalized trades or consolidated trades number.

Six. According to the sec, a combination of factors led gamestop to skyrocket, and this you should write down, because this is the definition of a momentum movement, one large price movements. So, in other words, you see large movements in price people are interested. Large volume changes so quantities and the amount of shares moving, not just the price of a share going up, but a lot of shares trading large short interest number three, four frequent reddit mentions they even mentioned youtube.

Potentially five significant coverage in mainstream media. Those are the five criteria really for a momentum based stock kind of neat to write those down so again. Large price moves, large volume, changes, large short interest, frequent redditer youtube mentions and significant coverage in mainstream media number. Seven.

Until recently, gamestop was one of the only stocks that had its short interest, go up over 90 percent since 2007 and 2008. They did also state that it is normal for stocks to potentially go over 100 percent short interest when people re-lend shares that they then short, that is okay, they said. Well, i mean they didn't explicitly say it was okay. They just said this is how it happens and by not really saying it's not okay, they're kind of saying yeah like it could happen.

It's just really really rare number eight. Yes, hedge funds did, in some part at least certain hedge funds, like quantitative, hedge funds and trading hedge funds did actually participate in buying shares of gamestop to make profit off the trade. So there were hedge funds that were actually competing with retail investors, which makes sense, and there were hedge funds that did likely according to the sec, buy shares of gamestop to cover their shorts. However, the sec did not find that drops in short interest, actually led to large price increases alone, though the drops in short interest contributed.

The sec says that large price movements really came from more people just buying shares and huddling them. So, in other words, not the squeeze basically putting to bed that the idea of gamestop's price going up was caused by a short squeeze. There was short covering, but we didn't really see a short squeeze. It was a lot of retail buying and hodling that led to this, which is really important for what ended up, causing all of this to fail.

We'll get to that in just a moment, which i think this is a really good part to mention that if you, like my perspective, consider out checking out the program's link down below on stocks and the psychology of money, you get all my buy sell alerts, whether It's for crypto or for socks or for options check that out down below. It is the stocks and psychology of money program, and there are also programs on building your wealth through real estate. Investing property management real estate agent sales, you name it check it out down below there's a coupon code, 41 off that you can use that price does go up in 11 days, so check that link out down below number nine uh. Instead of a short squeeze.

We likely had continued buying pressure occurring from social media because everybody wanted to maintain a short squeeze. So, even though a short squeeze wasn't happening, we all felt united and trying to maintain a short squeeze, and this led the army, the army of retail investors, us to continue to buy and huddle. It was the reason to keep fighting and we did leading the price to continue to go up now. What about a gamma squeeze remember a gamma squeeze is when hedge funds or institutions buy shares to delta hedge call options that are going in the money.

If that was really foreign to you, don't worry about it. It basically means when people are buying yolo call options that actually start becoming profitable institutions might have to buy shares to hedge those call options. So don't worry if that still doesn't make sense. Basically, the more things go to the moon, the more things go to the moon.

The sec found that a gamma squeeze was not a reason. Gamestop went to the moon. They said that options trading actually peaked around january 27th, which was the day before we saw gamestop. Actually go to the moon of about 484 dollars and they said that this increase in peak options trading was actually driven by put purchases, so market makers were actually buying call options with the apes rather than buying shares to hedgehog puts crazy, but they did mention that Between january 22nd and january 27th, we saw a lot of people actually getting out of options like getting out of call options, and we stopped put volume increase more, so people were increasing their bets against gamestop by the 27th and 28th, which means the odds of a Gamma squeeze wouldn't really make sense, because the opposite was actually happening in the market at the time, crazy, so no short squeeze no gamma squeeze dark pools, yes, but what about naked shorting? Well! This is when you short a stock that you don't own and you have no intention of actually finding somebody to borrow the shares for you just basically short it without actually owning the shares or knowing somebody where you could borrow them from from it's evil.

It's complicated, it is based on trust and being able to clean it all up after the fact, and the sec's determination here was no, that naked short selling was not a big cause of price action in gamestop that most failed to deliver, which can happen on longs And shorts, making it kind of difficult to determine if there are short fail to delivers or long failed. It delivers but either way most failed to deliver. It's cleared within a day and there were no quote: no persistent fail to deliverance. So wait a minute if there was no short squeeze no gamma squeeze no naked shorting.

Why did the stock go up that much simple folks? People kept buying it and they bought it and they held it, squeezing liquidity. This led to significant off exchange trading via dark pools, which likely led to poor pricing for consumers and wide spreads and big profits for the market makers. It also again reiterating this led to extremely low liquidity. Remember if you're on the public market generally, more liquidity, transparent pricing, dark pools, not transparent pricing wide bid, ask spreads lots of pauses and halts on the trading stock.

That's a sign of low liquidity. In fact, these automated pauses aren't the suits trying to screw us, although maybe that's what they programmed them for. I don't they're really intended whether we believe it or not. They're really intended to pause the market to allow people to put in more buy sell orders.

So we have more liquidity in the market, and so the market could try to function normally again, but because everyone was hodling. This wasn't working leading to a lot of pauses and the price continuing to go up. Remember folks, the definition of momentum, large price moves, check, large volume, changes, check, large short interest - note not short, squeeze just large interest short interest, giving people a reason to participate in the trade right, frequent, reddit and youtube mentions and significant coverage in mainstream media. We had all of these things, so what killed momentum? Well, it was none other than the pausing of trading specifically from companies like robin hood, who blamed the nscc for bankrupting margin requirements that would have basically demanded so much money from robin hood that they would have potentially gone bankrupt.

But ultimately, the sec found that it was up to the brokers to pause or restrict trading. It was ultimately the broker's responsibility. They did not have to pause or restrict trading if they could have come up with the money. The margin requirements for the nscc, which, in fairness, robin hood, was able to within 48 hours, potentially as soon as 24 hours come up with the money they needed, so in theory, trading didn't have to get restricted, but we hear from robin hood that this was a Five sigma event and that their hands were tied because of retirement requirements from the nscc which, in fairness to the nscc, because everybody wants to blame them.

The nscc actually waived penalties during this time, because otherwise brokers would have to have come up with even more money. So it's almost like the nscc is like yeah. This is crazy. We're going to try to be as nice as possible here, maybe everybody's at fault.

Who knows the way the system was set up was designed to clearly screw the retail here, but anyway. Now this is interesting because of essentially all this high volatility and these wave penalties, but still companies like citadel taking 55 percent of all the internalized trades during the peak of this gamestop crisis and virtue taking 26 percent of all these trades, there are rumors and speculation That companies like citadel and virtue ended up colluding with companies and brokers, and this is just a rumor - could totally be wrong and and not factual at all. And there are even lawsuits around this that potentially robin hood and citadel and virtue of these companies colluded to say, hey, look. Our buddies, like melvin capital are losing their pants on shorts they're getting burned.

Can we just restrict trading and try to let this momentum die? Really fast, nobody knows, i guess, we'll find out more in lawsuits. Obviously, that is the suspicion right now again the sec found. It was ultimately up to the brokers as long as they were capitalized well enough - and this has obviously led to the argument that well robin hood should have had more money. But again robin hood's argument is like we could have never planned for this, but then again they were able to raise the cash really quick.

So who knows so at the bottom line of the report? The sec recommended less gamification, which kind of feels like a slam on robin hood and more short, interest, reporting and transparency on dark pools. This was a staff report, so it doesn't actually say anything about what the sec is going to do. They're just sort of trying to outline what the heck happened and so folks there you have it. What happened? Retail investors got a nail in the coffin shoved into them on january 28th, screwed from continuing the movement, and then everybody jumped chip so think about it.

We were like, we were like a big old trojan horse and we were ramming the castle ramming the castle really hard, but all of a sudden somebody came around and took our battering ram out of our trojan horse. I guess it wouldn't really be a trojan horse if it's a battering ram, but i think you get the picture and all of a sudden we're like. Oh well. We can't really do anything anymore.

Okay, let's leave and everybody jumps ship and uh. You know the stock crater's like 80 now, obviously gamestop is recovered, but yeah folks, the sec here saying not a squeeze dark pools exist. We've got uh, no gamma squeeze not a real issue with naked shorting, but instead we had a massive momentum movement that got crushed by brokers. There.

You have it folks, if you find my insights, helpful, consider checking out those programs linked down below on building your wealth and subscribe to the channel share the video. If you liked it we'll see in the next one thanks so much folks, goodbye.