Today I Want to talk about how we're currently in short squeeze territory? Over the last couple of days, we've seen a number of those heavily shorted stocks starting to run, putting great pressure on those short hedge funds. And that pressure May soon overwhelm These funds into collapse, so stay tuned and let's make some money. And now I dive straight in with the key information. So Kevin Mone tweeted is saying I Think a very large and very short institution had to start covering today and he attacked the following screenshot.

Here you can see a list of small cap stocks, a number of which are those heavily shorted stocks, all of which were up significantly yesterday alone many stocks up 10, 20, 30, even 47% in just one day, and that run has continued today as well. Many of these stocks, like Carvana, Affirm, Upstart, Holdings Nicola and others like Coinbase You've heard on the channel before these stocks are heavily shorted with a very high short short interest. They're obviously not Blue Chip stocks, but they're not quite meme stocks, they're somewhere in the middle. I've said before when these short hedge funds are stressed, they first start by closing short positions on Big Blue Chip stocks often starting a run in stocks like Nvidia and Tesla.

Then if they're still stressed, they close shorts on these heavily shorted stocks trying desperately to save their mem stock shorts for the very final moment. They know those shorts are the biggest. They know those shorts would destroy not only their hedge fund, but many other hedge funds in the industry as well and therefore one way to know when these shorts are stressed. They start closing short positions in heavily shorted names like Carana a firm, upstart, Holdings Coinbase and others and that's exactly what we're seeing yesterday and still seeing today.

I Don't know if a specific institution was liquidated or is just started covering their heavily shorted shorts, but it'll be interesting to see how this plays out over the coming few weeks. although I do want to preface and make clear this is just the start. Last time we saw this happen back in June and May Carana ran from $6 per share all the way to nearly $60 nearly timesing by 10 in Just 2 months upstart. We also saw running from just $11 up to $72 again 7 Xing in Just 2 months.

Over the last few days, it does seem to be starting again as upstart is already breaking out as is Carana So it'll be interesting to see just how high these stocks are carried over the next couple of weeks. Okay, it'll be interesting to see just how many short hedge funds have to start closing short positions on these heavily shorted names and if things get too out of control, will they have to start closing mem stock shorts as well. The answer to that question is yes, if things do get out of control, they will have have to close mem stock shorts as well. So I guess we just need to wait and see how out of control things get in these heavily shorted stock names.

As Dbook Trading pointed out, upstart and AI are both heavily shorted names. Stocks with 20% plus short interest is high, 30% plus is very high and 40% plus is outrageous. and many of these companies that did run yesterday obviously have these crazy high short injuri interests. We can also see that backed up by JP Morgan data because hedge funds are angrily shorting the heck out of this current stock market.

The shorts almost have larger short positions than they did back in June and back in July and therefore I expect things to get very out of hand for these shorts if these rallies in stocks like Carvana, upstart of firm, coinbase and others continues. I Also wanted to quickly recap today's S&P 500 options trade in the millionaire mindset Trading Group which led to gains of up to 117% for the members. Swi said in the pre-market that a break of this higher $433 52 would carry the S&P 500 higher which as you can see after some deoration, it finally gave us that confirmation and continuation and broke out higher. You can see this trade took place between 9:41 and 10:00 and I actually posted in the group saying that I was buying spyy calls back at just 933 and if we look at those $434 calls we can see they ran from lows of 92 to $2 per options contract for a gain of$ 17% and if you guys want to learn how to make daily gains of 117% be sure to join the millionaire mindset.

Trading Group Linked In The description below. You'll also remember that Canadian hedge fund that I spoke about the other the day the one that was banned from Trading by Canadian Regulators had caused significant losses to market makers as a result of Ftds and the one where that portfolio manager was unfortunately discovered dead just one day later. Well, it turns out the market maker that took on significant losses as a result of train or Ridge one of them was Virtue. It says here: Virtue is suing Train or Ridge Capital the Toronto based hedge fund that was placed under a ceased trade order on Monday after its founder had died alleging Trainor failed to deliver money for trades It asked Virtue to execute.

It says Virtue, a trading firm that executes orders on behalf of investment management clients, alleges that it placed 26 buy orders for Trainor in September and October but never received the required money before the trade settled just a few days later, but was on the hook for these positions because they had already bought the the shares but never received the money. They tried to sell off those shares but realized losses in excess of $5 million. It seems really weird in the space of just one day trainer was normally buying shares and then just a day later the founder turns up dead with significant losses and significant Ftds. and also the Canadian commission seemingly disclosed that Trainor appeared to be in serious financial difficulty.

As Hang added, he said maybe the community can encourage those left at Trainor to turn whistleblower on the corrupt market makers who decided to stab them in the back. I Think it'd be really interesting to see what actually happened to Trainor How they could all of a sudden in the span of just one day go from normally trading, buying selling stocks to all of a sudden. a day later the founder being found dead and also failing to deliver on tons and tons of Trades Something must have have happened or had been happening that caused Trainor to take on significant losses, either long losses or short losses. On top of that, you may have seen that Sam Bankman Freed has just been found guilty of all seven charges and he currently faces up to a maximum of 115 years in prison.

I Think it will be really interesting to see what Sam's next Mov is and also what happens in terms of the sentence. Sam could snitch on the those higher ups for a reduced sentence maybe as low as just 5 or 10 years for example. And I think one very interesting way to see exactly what's happening is to see the outcome of his prosecution. If he's only sentenced to save 5 years in prison, he either snitched or has some friends in very high up places that are protecting him.

Theoretically, he should be charged with at least 20, if not 40, 50, or even a full 100 150 15 years behind bars. But obviously, if he does end up snitching on people like Ken Griffin that sentence could be reduced significantly. And finally, I Wanted to quickly discuss how big hedge funds can easily fake their profits and hide losses for years and years falling, not just investors, but even Auditors too. The SEC tweeted saying today we charged John Hughes President and CCO of registered Investment advisor Prophecy Asset Management for his involvement in a multi-year fraud that concealed losses of hundreds of millions of dollars from investors.

And as you'll see from Auditors as well, you can see prophecy Asset Management had multiple hedge funds and reported more than $500 million in assets under management. The Sec's complaint alleges that Hughes and his Associates at the company misled the funds investors Auditors and administrator about the funds trading practices, risk and performance. They hid these losses by fudging the books by lying about assets and liabilities, by lying about security solder not yet purchased and lying about Securities purchased, not yet sold. This fund or these multiple hedge funds managed more than $500 million, but actually had invisible losses of 350 million and it was effectively only discovered when they indefinitely suspended redemptions from investors and investors started to do their digging, their researching, and their investigating.

But so, it's interesting to see that actually, many of these hedge funds can easily hide losses. not just a few thousand, but they can easily hide hundreds of millions, if not billions of dollars in losses. So these hedge funds that are supposedly generating record profits of $16 billion and building billion doll homes could actually be hiding multiple billions in losses as well. But guys, be sure to let me know what you think down in the comments below.

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