Market is currently experiencing a liquidity crisis today i want to talk about what a a liquidity crisis actually is how it's going to impact the wider market and importantly what kind of impact. It's going to have on amc. So stay tuned. And let's make some money and i want to dive straight.

In with the key information. So zerohedge tweeted. Saying not only is there zero liquidity. There's almost no volume either he.

Said monday was the lightest volume session of the year with only 932 billion shares traded across all us equity exchanges breaking the previous low mark of 94 billion back on the 11th of. July but you may say tom 932. Billion shares across all exchanges. The new york stock exchange the nasdaq the cboe and every other exchange actually sounds really really low and that's because well.

It is really low back on the 27th of january. 2021 amc alone traded 12. Billion. Shares gamestop also traded hundreds of millions of shares and other meme stocks across the market also traded billions in cumulative total back in.

January. 2021 meme stocks alone traded more than 932. Billion. Shares.

Let alone all of the other shares in the market on top of that simulation saw that tweet from zero hedge. And asked the question saying. How do you know the market is just a ponzi scheme using computers and algorithms designed by the one percent to take retail. Money and he said.

Simple because amc alone traded 12. Billion shares. In a single day. That's amc alone not including gamestop or other meme stocks or all other stocks in the market on top.

I like the stock tweeted saying it's amazing how gamestop and amc are tracking downward on exactly the same path. He said it's incredible how investors all sell at the exact same time. He said. The algorithms and high frequency.

Traders are so efficient programmed by the market maker masters. The fraud is so noticeable. I think right now all you have is these range bound high frequency trading algorithms that is the only volume in the market because we know the market is being propped up by the plunge protection team and these algorithms. Everybody is staying out of the market retail investors aren't buying other than buying amc and gamestop and they're also not selling again these major funds have already sold out of the majority of their stocks that they can escape from and they're also not trading either all you have now is these hft firms ping ponging.

The price back and forth in their specific range bound. Algorithm that's set by the settings. That's why we're seeing such low volume and such low liquidity in the market at the moment. Retail traders aren't trading other than buying more amc and gamestop and we're not selling and institutions aren't trading either institutions aren't buying more because it'd be crazy to buy right now institutions aren't selling because the good institutions have already sold and these over leveraged.

Legally operating institutions are stuck and can't sell all of these institutions are buying their time and waiting to see which way. The market starts to turn again retail investors are also waiting as well other than buying more and more amc and gamestop these institutions that are stuck are panicking. They know that we're buying more amc and gamestop and they're getting ever closer to being squose. The only thing.

That's propping up the market right now is these hft algorithms and jeanette yellen's plunge protection team. Which has 142 billion dollars to temporarily prop up the market guys. If you haven't already be sure to sign up to moomoo right now using the link in the description. Below you can currently get 10.

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It says. Most americans are unaware of the existence of the exchange stabilization fund. Or esf. This is obviously the actual technical.

Name. Given to the plunge protection team. It's the exchange stabilization fund. It says together with the fed.

It's morphed into the us treasury secretary's plunge protection team. It says. The esf was created in 1934 to provide support to the us dollar during the great depression as recently as march. 2007 the esf was fairly modest in size with assets of just 459 billion dollars.

But thanks to steve minchin. The esf skyrocketed to a staggering balance of 682 billion as of september 30th 2020. According to the most recent financial statements of the esf dated january 31st 2021 it now has assets of 142 billion dollars as it had to repay a large chunk of this 500 million. You may say tom 142 billion dollars.

Isn't that much to prop up the stock market. Which is valued at somewhere around 40 trillion dollars. But don't forget the plunger protection team typically props up the s p 500. And then many other funds and high frequency trading firms carry the rest of the stocks alongside it on top of that the plunge protection team often purchases options contracts aka call and put contracts and dictates.

The market that way so actually 142 billion dollars. When invested into s p. 500. Call contracts can make quite a significant difference.

But that is effectively the only thing moving the market at the moment. It's the esf and the plunge protection team propping up the market and those high frequency trading firms. Doing the rest of the job and the same thing can also be seen in amc specifically not just in the wider market as a whole. He tweeted.

Saying amc. Only has 13 million shares of volume when the average is 20 to 30 million and often a lot higher around 100 million and above. He said. This isn't a normal stock market it's market maker fraud he said wait until we run up the volume will be in the billions in a single day.

If not more when that volume all of a sudden changes from 13 million shares in a day to 12. Billion shares in a single day. If not more that's when the amc squeeze will really kick in right now. We're effectively just waiting for the market to crash.

These institutions aren't buying stocks and retail investors predominantly across the market aren't buying stocks either only in amc and gamestop and obviously when this market does crash. It will cause a wave of liquidations and it will spark that amc squeeze where we start trading billions of shares in a single day. But something very interesting that was noticed by luke groman is the fact that cayman islands. Has now moved up to being the number five foreign creditor for the united states in june.

The first time it's ever been in the top five the cayman holds 25 times more us treasury bills than saudi arabia but he said don't worry guys all of those treasury bills are held entirely by the reserve assets of the cayman itself and not any other foreign sovereign or us. Corporate entity. Looking for a safe harbor for all of their dollars in case of a liquidity crisis aka a liquidity crisis like we're experiencing right now we know all of these hedge funds like citadel. Specifically have been hiding their assets in the cayman islands for some time now a number of the guys over on twitter.

Rizzo. Jan jack hang loose cory and many others have been doing some brilliant due diligence in terms of just how much citadel has hidden in the cayman islands. I think by last count it was somewhere between 200 and 300 billion dollars worth of cash assets that's currently hidden overseas in the caymans now astro has also noticed these hedge funds seem to have made a mistake they've accidentally copied the amc algorithm for ethereum classic. He tweeted saying a lot of people were asking me to look into the correlation between amc and etc or ethereum classic saying it's unreal how similar these two actually are he said the candles are amc and the blue line is ethereum classic.

He said he wrote an indicator to allow for offsetting one chart to the other just slightly you can see here obviously the candles are amc and the blue line is the price of ethereum classic. Which interestingly is tracking amc. Almost on a daily basis. And he said but since the start of the year.

It's been following amc. Almost on a daily basis to an absolute t moving up and moving down at the exact same time practically at the exact same rate as well. So it seems like these hedge funds have accidentally copied that amc algorithm and used it for ethereum classic. As well and interestingly cryptocalio.

One of the big guys in the crypto community reckons. The ethereum classic is just going to keep ripping up until the ethereum classic merger and again that's something very very interesting. Because amc may also just be about to go through a merger of its own obviously amc could potentially be merging with disney or one of the other streaming platforms or could be creating a giant merger with gamestop itself toys r us and blockbuster as well now. The fomc meeting happened today and it resulted in another 75 basis point rate hike.

While this isn't a 100 basis point rate hike. A 75 basis point rate hike is still nothing to be sniffed about and it still increases rates and mortgage rates higher and higher and on top of that. Jerome powell. Said that further inflation surprises could still be in store.

Obviously as they didn't rise by 100 basis points it's likely inflation could continue to rise even further even past that 91. Percent and jerome powell. Also said that nobody can be certain that we will achieve a soft landing. He said from going a soft landing is guaranteed so he's now saying we can't be certain that a soft landing is even achievable.

But guys be sure to let me know what you think down in the comments below as always guys be sure to ding that notification bell. Because that way you'll be alerted when i put a new video cheers.