Welcome back to the channel everyone today, i want to talk about the possibility of the sec, replacing citadel and all other market makers. I also want to talk about the hedges new dirty trick, which is apparently exempt short volume, so stay tuned and let's make some money - and i want to dive straight in with the key information - and i want to start by breaking down this explanation from apparently exempt. Hey there sec, we said we knew exactly what was making the share price of amc drop. We predicted that we'd be able to show the data to prove our point.

Predictions are so powerful for when you're right and can show for it a thread. Our followers and visitors of our website apparently exempt already know what short exemption is and what it does the sec does too. We filed a complaint for it. After all, if you, the reader of this thread, don't please consider visiting our website.

So, let's start - and obviously i want to start by looking at the apparently exempt website and explaining what short exempt really is. Obviously, we know what a short sale is, and it's the bet that a stock price is going to move downwards. So what is short exempt short exempt refers to a short sale order exempted from the uptick rule regulation. So, basically, when ssr is, in effect, hedges can't short, while the stock is moving downwards, but there are some exemptions that they can get to still allow them to do this called short exempt.

The current regulation allows for a comparatively small number of restrictions and, within those restrictions, are an even smaller fraction of exemptions to that role. These exemptions are intended to allow brokers to best serve their customers in panicked markets. Short exempt. Orders are allowed to initiate short selling of securities, even during times that may be otherwise restricted.

These are statistically very rare, and most retail traders would not or should not experience the effects of these restrictions or their exemptions, because the modified uptick rule only kicks in under extreme circumstances. So obviously the ssr or short sale restriction basically prevents anyone from shorting the stock. In these red bars, if the stock previously the day before, moved down 10 or more, this is supposed to prevent a run on the stock, basically meaning that it can't fall more significantly. The days after, but obviously in some circumstances.

There's a special exemption to this rule and you can still show in these red bars, although supposedly that restriction, and that exemption is very, very rare and basically never happens so who regulates the short exempt transactions? Well short, exempt transactions fall under regulation, sho, which is overseen by the sec, but short exempt trades themselves are self-regulated. The expectation held by the sec is that each broker, dealer executing short exempt trades, will maintain a record, an accurate record of each and every short exempt trade. But obviously we know that this is simply not the case and those accurate records are not being maintained and the short exempt transactions are being abused. Also guys, i wanted to let you know about moomoo's biggest promotion.

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Three free shares valued up to three thousand five hundred dollars each, so that's over fourteen thousand dollars just for signing up with moomoo and depositing. On top of this, you also still get that free share of neo as well, making it six free shares and, as apparently exempt suggests, as we've determined the parties. Abusing this algorithm, we identified will use the unregulated short exemption to circumvent regulation, sho's, uptick, rule short exempt volume of short volume or suv of sv. For short, is the metric we utilize to determine the use of this algorithm.

They then suggested where they got the data from and that the public price data is published by the nasdaq. So yesterday, being tuesday was the first time in a long while that amc dropped over 10 and subsequently triggered the ssr. Now we have the data to back it up, as you can clearly see, sev of sv suddenly jumps to well over 10. So if we look at the first week of november, we can see the short exempt.

Volume is typically around 100 to 150 000 shares. We can also see short volume itself, varying between 1.6 million shares and 5.7 million shares, so no real pattern there. But what we can see is the suv of sv kind of ranges between three to six percent and doesn't really go much higher. But on that very red day that we had on tuesday, where we triggered that ssr rule, we had a whopping, 242 000 short exempt volume transactions.

This was also very interestingly on a day that saw very, very small short volume, with only 1.5 million shortage shares. So we only had 1.5 million shortage shares, but yet the price dropped 11 and we had a whopping amount of short exempt transactions, so clearly a massive boatload of transactions that were mismarked as either being long transactions when they were short or short exempt. When they were not sure exempt to be clear, we added data from the days prior as well to show this only happens on big drops. This had nothing to do with retail, cashing in retail, being disappointed with earnings or whatever fairytale media wants you to believe it was an intentional algorithmic abuse.

We have filed a complaint to the sec. We still haven't received a reply, but we can't directly change this until they act. I think it is very, very important that the sec are made aware of the abuse that goes on with the short exempt rule, so hopefully the sec can step in and say right. We gave you the opportunity to self-regulate, but you're not taking it seriously and you're abusing your powers that way the sec can basically shut it down and give their own proper regulations now somebody that might have some insight insider knowledge about all of this is peter han.

He replied to a post talking about naked short sales and those short sale exemptions. He said i'm not going to get overly speculative about this, but there is some chatter from some that the sec will replace the market makers with something else to reflect. The conflict of interest and ability to create naked shorts or naked shares or synthetic shares at will. Obviously, these market makers, like citadel, have abused their privilege.

I think it's becoming ever more apparent that market makers do abuse that privilege. When you have somebody like citadel, that is a market maker and is also a hedge fund, you can see they will clearly work together to make sure the hedge fund gets the desired outcome. If the hedge fund is shorting a stock, the market maker will do whatever they can to ensure the stock price goes down, such as creating naked shorts or synthetic shares, and also marking transactions as short exempt when they really aren't yes, obviously, their argument will be well Citadel, the market maker and citadel the hedge fund is two completely separate companies and there is no conflict of interest, but at the end of the day, both of these companies are owned by the exact same person. So there is a very, very clear conflict of interest.

Now something i thought was really important to touch on and give my opinion of is the current drama surrounding review, dork and reviewdog tweeted saying so. Here's a question that no one has the balls to ask. So if an ape has a thousand shares at forty dollars or forty thousand dollars - and they sell only to buy back in at thirty dollars, thus increasing their shareholdings without additional funds to 1333 shares, are they still an ape? I say yes and call them smart too. Now this obviously received tons of flack and push back because, as an amc ape, you should not be selling your shares and you should be buying and you should be holding as trey said.

Gabe amc and gamestop are ape stocks. They are not trades, i'm not here to tell people what to think or do but 99.9 of apes don't view that as the way it's always been as you've said, buy, hold and buy some more don't agree with you on this one, my dude now for some Time now i've preached and said that it is not worth selling your amc in gamestop shares, because that is exactly what the hedges want you to do. They want you to sell them real shares, so they can buy those shares and use them to cover their shorts. I do agree that if you have some money left over feel free to trade, other stocks and cryptocurrencies like blueprint, because then you can generate more cash and put it into your amc holdings and buy even more amc shares.

But what you should not do is sell off your amc shares to trade, something else and then go and buy back your amc or sell off your amc shares, wait some time and then buy back into amc again because, as i just said, that's exactly what the Hedges want you to do. They want you to feel that fomo for a different stock, that's running up like dwac or lucid motors or tesla or whatever it might be, and they want you to sell that amc in gamestop and, as user of intellect perfectly explains. If you buy low and sell high, you are shorting amc and gamestop because of the synthetic loop t, plus three and t plus six sell-offs are less costly for shorts if retail sells with them. Obviously, if you place a sell order because of t plus three and t plus six, the market maker has effectively three or six days to actually settle that transaction for you.

So what they could do is gather up all of those individual retail sell orders and put them through the lit exchange all at once, causing a massive massive price drop. This obviously doesn't cost citadel a single penny because they haven't shorted any more shares or sold any of their own shares, they're simply collecting our sell orders and dumping them through the exchange. All at once now citadel could also make this much much worse as well. They could also dump in an extra 100 million dollars, on top of all of our sell orders and crush the amc price in one foul swoop and obviously citadel.

Don't just do this once and say: well, that's enough illegal activity for us they do it over and over and over again repeating it for liquidity, and that's why we haven't seen many ssr days because they can effectively pick and choose when exactly to release the retail Orders as long as it's within their t, plus three or t plus six time frame, and that's why i personally prefer to treat amc and gamestop as ape stocks and not as trading stocks. I have a small portion of my account segregated to trade cryptocurrency and they trade other stocks, so that i can make more money and buy more amc shares. Now. I also wanted to touch on ever grande as well.

Evergrande is slowly being dismantled. The wall street journal says china is quietly selling off parts of evergrande's assets to chinese companies to manage a controlled implosion. It could take years to dismantle. So i wonder if mainstream media or china is gaslighting the world with a controlled implosion that they know just isn't going to happen.

As the wall street journal said, some feared, evergrande would collapse spectacularly upending global markets. Instead, china is slowly dismantling the company behind the scenes. Now i find it really really interesting that china is trying to dismantle evergrande when supposedly they've paid all of their bonds on time, but obviously that's never been confirmed, so they clearly didn't. I think china and the western mainstream media is basically trying to do anything.

They can to cover up the fact that evergrande has defaulted and tried to make sure that it doesn't spread over to global markets. Although this post explains why china might actually be purposefully trying to crash the us stock market, he said i work for a big chinese tech company and i've got a good relationship with my boss, but always restricted the chat to work talk only so a couple of Days back, i broke the boundary and told him if i could ask him a personal question and he was more than willing to listen to me. So this is how it went so straight up. I asked him what the situation was with the current evergrande and real estate bubble back home, and if we have to be worried and his boss gave a straight reply and said you are all screwed.

I asked him how screwed and he said very much screwed and he continued. He said i don't want to talk much about it, but it's all political, nothing. Business related. The chinese communist party wanted to show who the real boss is and who will be taking over the world economy.

If the communist party wanted to, they can bail out evergrande as 400 billion dollars is nothing for them. But why bail them out when they're the ones who got them in that place? In the first point we, the chinese, will be fine, because this has been prepared and controlled. In the background for the past year, as a too long didn't read, it seems like evergrande and the fall of chinese real estate has been planned by the communist party for over a year to screw over the world an american economy. Now, obviously, all of that is just one big speculation, but it's a very, very interesting viewpoint as to why china aren't bailing out evergrande, guys be sure to.

Let me know down in the comments below what you think about the sec. Replacing market makers like citadel and also what you think about the apparently exempt short volume and if you haven't already be sure to sign up to moomoo to get those five free stocks valued up to three thousand five hundred dollars each and as always guys. If you enjoyed this video be sure to check out some of my others, alternatively, subscribe to the channel and ding that notification bell, because that way, you'll be alerted. When i upload a new video cheers.