Welcome back to the channel everyone today, i want to talk about how shorts are in big big trouble, because even cnbc is saying that at this point a recession is almost inevitable, so stay tuned and let's make some money, and now i want to dive straight in With the key information, so the street, which is partially owned by jim cramer, is even reporting that short sellers are not in a comfortable position. This is bronte capital's althea fund, which has short positions in gamestop and other meme stocks announced unsatisfactory quarter. One results. It says the battle between gamestop and amc apes and the bears is far from over lately.

Gamestop and other meme stock companies have been handing it to those who've been betting against them. The amalfia fund, created by australian based capital management, firm, bronte capital, has a long and short strategy on the short side of things: they've taken up short positions, betting against almost every single major meme stock, including both gamestop and amc. Now, obviously, the reason why this hedge fund, posted unsatisfactory results is because, towards the end of march, amc and gamestop started to run up at the end of march amc closed its trading around 24.60. Now amc around 24 was causing many many hedge funds, just like bronte capital to be feeling the pain.

Yes, obviously since then, amc has fallen back down to around 15, but has not yet fallen below those previous march lows at around 12 to 13 dollars per share. I think amc has been holding up very, very well considering the wider market aka, the s p, 500 and the qqq or the nasdaq has been falling and has fallen past those previous february and march lows. We know that as the market is falling, amc and gamestop will fall alongside the broader market, but when those margin calls start happening and the market starts crashing, amc and gamestop will rock it off. Obviously, when the market is crashing and these hedge funds are feeling the pinch and end up forcibly being liquidated, they will be forced to cover their short positions, and many of these hedge funds, like bronte capital, were already feeling the pinch.

When amc was only trading around 24 per share, imagine what will happen when amc starts trading back at around 34, 50, 70 and above and that's why i think when one domino falls and one hedge fund ends up being liquidated and forced to cover the amc shorts, All of the other dominoes will fall as well and amc will squeeze. I think it's important to remember that, even though amc is falling at the moment, the current price of amc doesn't matter because the market hasn't yet crashed and these hedge funds haven't yet been forced to cover their shores. We know that these shorts have been adding to their short positions, all the way down the shorts added at 34.. They added at 30.

They added it 25, 20 and again at 15 to continue pushing the price of amc down. Many of these shorts obviously have an average short position of below ten dollars per share or below fifteen dollars per share, and that's why they're still in the red - and they haven't yet got a profitable short position and obviously these shorts are losing more and more money. As the wider market and the nasdaq continues to crash and therefore will be feeling the pinch even more as the days go by and obviously when that recession, that market crash does hit, the shorts will be forced to cover their short positions, causing the amc squeeze and At this point, not just me, but even cnbc is saying that at this stage a recession is almost inevitable, and this comes directly from the former fed vice chairman roger ferguson. He said that at this point, the best we can hope for is that the downturn is mild.

This article says that for months, former fed governor roger ferguson is worried. The risks of a recession were rising now he said a recession in 2023 or even 2022. This year is nearly unavoidable and he said that at this point the chances are definitely over 50 and he said it's a result of fresh signs of spreading global economic weakness, including in china. He said the rest of the world is also slowing pretty dramatically just when the fed and other central banks are starting to raise interest rates, to try and curb inflation, and he said, despite the signs of a slowing economy, the fed has no choice but to continue To raise those rates, he said the central bank will validate the market's expectation of several half percentage point rate hikes this year and he said if the economy could escape with only two quarters of negative gdp aka a six-month market crash.

He thinks it would be a win and even the guardian, a uk newspaper is reporting that even the bank of england believe they are duty-bound to actually trigger a recession to try and curb inflation guys. If you didn't already know, you can currently get five free shares of amc worth up to three thousand five hundred dollars each and a free share of twitter. On top of that, so that's around seventeen thousand five hundred dollars worth of free shares just for signing up with moomoo use. The link in the description below and making your first deposit, mumu and future have also officially announced that moomoo does not accept payment for order flow and therefore you don't have to worry about your trades, going through sketchy, dark pools or being given to citadel moomoo.

Also, recently won the award for being the best trading platform at the fintech breakthrough awards. Mumu is very easy to use it's incredibly customizable and it will help you to trade like a pro boomu has tons of technical indicators and advanced charting tools, mimi publishes daily short selling data position, grass distribution and much much more so guys be sure to sign up To moomoos in the link in the description below to get up to five hundred dollars in free stock and a free share of twitter. On top of that, an x official says, policy makers must shrink the uk economy to limit upward pressure on prices made worse by brexit and current inflation. The article says: britain's central bank policymakers are duty-bound when they meet this week to push the uk into recession.

To cap rising inflation, i think it's super interesting how the mainstream media and these officials have gone from one hand, saying that a recession will never happen. It's now saying that a recession is almost inevitable and that the bank of england and policymakers are duty bound to actually cause the recession over in the uk, the monetary policy committee meet on thursday and is expected to increase the uk interest rate by 0.25 percent. Taking the central bank's base rate to 1, the highest level since 2009 and again similarly to in the us, inflation in march, peaked at seven percent its highest level for over 30 years and right now, citigroup traders are dealing with the highest volatility since 2008.. The article says that citigroup chief exec said that trading desks are dealing with volatility levels.

That markets haven't seen in more than a decade, which is something that i find very very interesting, because the vix seems as if it's only around 32 points. But citibank are saying they haven't seen volatility like this since 2008, so it must mean that the vix is really somewhere around 53 points or above and therefore the vic should be similar to 2020 or to 2008. But the vix is currently being subdued by the powers that be that are trying to keep this never-ending market cycle turning on, but obviously there will come a time where this never-ending market cycle of pumping large cap stocks to increase available margin comes to an end. It says traders are coping with inflation, that's at its highest level in a generation and investors who are increasingly worried about the likelihood of a global recession, not just a recession in the us, or not just a recession in the uk, but a global recession and as An example of volatility she mentioned trading on friday, where bonds sold off at the same time as equities and normally the two have an inverse relationship.

Bloomberg are also saying that the end of easy money brings a 410 billion dollar global financial shark. This is the global shift away from easy money is poised to accelerate as a pandemic bond buying blitz by central banks swings into reverse, threatening another shock to the world's economies and financial markets. It says that already rising bond yields, falling share prices and the stronger us dollar are tightening financial conditions. Even before the fed's push to raise interest rates gets into full swing.

Obviously, the fed has to raise interest rates and taper spending in order to curb this inflation, but obviously inflation is already high. Bond yields are already rising and share prices are already falling before this taper has even started, and before these interest rates have really even been raised, and obviously that just goes to show that at this point, a recession is almost inevitable and the market will end up Crashing, which obviously is very good for amc, because when the market crashes, these shorts will be forced to cover their short positions, causing their amc squeeze and finally, for that, i want to quickly clear up the amc shareholder meeting and just how many shares are being held By just how many investors, as donahue george, says, if 10 498 entities own 516 million shares of amc according to this filing, exactly what did the other four million other shareholders own and, as i explained to the guys in the discord which you can find using the Link in the description below, i think, there's a bit of confusion into how this shareholder meeting is worded. It says a quorum is required to transact business at our annual meeting to obviously meet these requirements of a quorum. I think there's a certain number or a certain percentage of shares that have to be voted on.

Obviously, there's 516 million 820 595 shares, and i think that number is around 35 of these shares must be voted on to make any concrete decisions. 35 of 516 million is around 180 million shares, give or take maybe slightly less than 180 million, and i think what this wording is saying is that 10 498 users on computer share and 10 498 registered businesses hold around 8 million shares and therefore there's 172 million. More shares that must be voted on to cause anything and any decisions to actually pass, and that's why it says that there are some shares of common stock issued and outstanding, held by 10 498 registered shareholders on computer share. Therefore, the holders of at least 172 million more shares of common stock must be present in person or represented by proxy at the annual meeting to constitute a quorum, and therefore, i think what this is saying is that 10 498 registered users and businesses hold around 8 Million shares and therefore you need an extra 172 million shares worth of votes to meet that minimum requirement of 180 million shares voted on.

I don't think this is saying that 10 000 users hold the 516 million shares, because that would be saying that the float is owned around 400 times over. We know there's around 4 million individual shareholders. So if 10 000 users hold the float, then 4 million users would own around 400 times the flow. Now that would mean there isn't 2 billion synthetic shares.

There isn't 20 billion synthetic shares. There would be around 200 billion synthetic shares and i think to me, 200 billion synthetic shares does sound slightly unreasonable. I do think there's between two and 20 billion, but not 200 billion and, as john merryweather said, in an email on april 22nd, there was 516 million amc shares, there's approximately 4 million shareholders of these 516 million shares and of those 4 million shareholders. There's 10 498 of those who have registered on computer share and therefore, unfortunately, this screenshot isn't showing that the entire float is held by only 10 000 individual apes.

So hopefully that cleared everything up and guys be sure to. Let me know down in the comments below what you think about the shorts being screwed and what you think about a recession at this stage being almost inevitable 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.