Welcome back to the channel everyone today, i want to talk about what the market crash really means for amc and whether amc will squeeze as a result of the crash, so stay tuned and let's make some money. And now i want to dive straight in with the key information, so i want to start by talking about this post from lou. He said, nobody believed me in 2021. Surprise hold your short positions during the short apocalypse, or at least try and hold them, and there's an article here from drudge report on the super bubble super burst and how the stock sell-off has continued.

Obviously, the s p 500 did end up closing green on the day, but at one point was down nearly five percent. I personally think this is a bit of a ball trap and a bit of a fake pump before another week of selling off, and this article says it's not a tech bubble, it's a tech phone. Are we in a bubble or are we in a super bubble and what happens when it bursts, and it says bubblegum, probably or at least that's what we thought about bubbles in the dot-com era? They end in a big sticky mess that takes forever to clean up, and things have gotten a lot more complicated since then. A singular bubble that pops all at once isn't the right mental model, anymore.

Cash inflates bubbles and the global pool of money just keeps swelling, and so what do we call what we have now well economist jeremy grantham says it's a super bubble which he's defined as simultaneous bubbles across all major asset classes and therefore it's not just over leveraged Shorts, there's also over leveraged longs on tech and there's also over leveraged longs on crypto as well. There's multiple bubbles, not just one singular bubble. If you didn't already know the vix tracks volatility in the market today, the vix ran as high as 38.72 and the last time the vix was. That high was back on the 27th of january 2021, and we know what happened then, prior to that massive run-up.

In a vix in january of 2021, the last time the vix went, that high was obviously back in march of 2020 as a result of the pandemic. I think over the next few days or the next week or two we'll see whether the vix wants to go higher than that 38 region and whether it wants to close up of that region as well now, obviously, as the vix runs higher. This is a telltale sign of a market collapse, just like what happened in march of 2020 and before that, what happened in 2008 now i want to talk about what happened today with the s p. 500..

Obviously, over the last two weeks, the s p 500 has been falling pretty much every single day, especially last week, where we saw five straight days of decline. Now today, obviously, we did start with a very heavy decline where we dipped under these october lows, but throughout the day the s p 500 managed to recover. Does this mean the market crash is over absolutely not one green day in a sea of red? Isn't necessarily good news if we scroll back to march of 2020, we saw a sea of red, and then we actually saw three or four good green days, which was then followed by a lot more red and a lot more falling. Now, even amongst this falling, we did see individual green days poking their head here and there.

But overall the trend was very much a downward trend. Now again, here, i've scrolled all the way back to 2008 and again we can see tons and tons of red, followed by individual green days poking their heads here and there just because we have one single green day. It doesn't mean the crash is over and if anything, what i'm seeing here is rising volume, and that tells me the trend will continue now. Obviously, the s p, 500 and the nasdaq is down quite heavily over the last few weeks.

But what does that mean? For those over leveraged longs and those over leveraged shorts, well dave lauer, tweeted, saying i've just heard a rumor that melvin capital is down 25 month to day and they might be blowing up. There's just been an article posted by business, insider that says, melvin capital, d1 and tire global dropped by double digits in market sell-off. It's another bloody january for some of wall, street's top hedge funds. Amid a market sell-off that has torched growth stocks that soared during the pandemic, melvin capital is once again staring down double-digit losses to start the new year now.

Obviously, last year in 2021, melvin capital was down 39 overall and therefore to already be suffering more double-digit. Losses cannot be good for melvin, but why is melvin being down double digits good for amc investors and amc apes? Guys, if you didn't already know gsx or gold standard currency is a crypto backed by physical asset reserves. Therefore, gsx combines all of the benefits of a stable coin, being a tangible underpinning, while being a crypto primed for growth, as obviously the coin will increase as the value of the assets in the trust rise. Gsx is also traded on exchanges like bitmark and will be a key currency of knoxwire.

Knoxville is a payment processing service very similar to paypal, swift stripe and many others, apart from nox wire benefits from faster transaction speeds and lower transaction costs, and has some bank partnership announcements to follow so there's currently around seven billion dollars worth of assets in the gsx Trust and that's expected to rise to 20 billion and 30 billion dollars over the next two years, which will cause the gsx coin to rise rapidly in value. Gsx has also recently secured another gold mine in zimbabwe, so guys, if you want to buy some gsx on public exchanges like bitmark, then be sure to follow the link down in the description below. Obviously, we know that melvin capital and many other over-leveraged shorts like citadel, hold large short positions in amc and gamestop, but what they also hold is very large over leveraged long positions in other stocks. In the s p 500..

Looking at melbourne capitals, 13 f filings. We can see they hold a 600 million dollar position in snapchat, which is obviously down over 50 percent over the last few months. They also hold a 500 million dollar position in snowflake, which is also down over 50 percent, and also a 380 million dollar position. In a firm, which is also down over 50 percent, they also hold a 1.5 billion dollar position in live nation entertainment, a 700 million dollar position in mastercard and many other positions that are also down as well, just not quite down 50.

Yet obviously, melvin uses leverage on all of its trades, not just its amc and gamestop shorts, but also leverages its long positions as well. And therefore, when these leverage long start feeling the heat melvin is going to struggle a lot to meet its margin requirements and could end up getting margin called and have their entire portfolio liquidated. Obviously, back in january of 2021, melvin was just hours away from having its entire portfolio liquidated until it was bailed out by citadel. But obviously, this time round citadel are going to be feeling the pinch just as much, if not even more, and won't be able to come to melvin's rescue.

When melvin fails these margin requirements and is forced to liquidate their entire portfolio, they will also be forced to cover their amc shorts. Now, how do i know that this is the case? And how do i know this is exactly what's happening, william morton gme, just posted this tweet saying it's funny how these random retail stocks run big on a deep red day like today, kohl's is up. 34 percent makes users up, 13 dilards is up 12 and therefore either somebody is extremely bullish on the retail sector. Or could it be that somebody is sure a basket full of stocks like amc, gamestop and many others, and their failed delivers are due, or maybe some of these shorts were trying to pump up some of these stocks to meet margin requirements? Alternatively, immortan gme believes they may be covering some of their smaller short positions in shopify, xc, snow and many others to free up more liquidity to add to their amc and gamestop shorts.

Ultimately, user of intellect says nothing has changed for amc and gamestop. We are in a much better situation now. If you look at the grand scheme of things, no one predicted that the mother of all short squeezes will occur without a major market crash. I've always said that either the market will crash, causing the amc in gamestop squeeze or something else will cause the squeeze which in turn will cause the market to crash user of intellect says negative beta will come to play.

The price is fake and arbitrary. Now, obviously, as i've said on the channel before negative, beta doesn't kick in right away, it does take some time to kick in. As the wider indices start, falling, amc and gamestop will fall with them exactly like what happened today, but obviously, when some of those large over-leveraged long institutions are liquidated, they will be forced to cover their amc shorts and that's when the negative beta kicks in now. I also wanted to quickly give you what i think is the first major update of the amc 13 f's for quarter four.

Here we have the national bank of canada buying a whopping 1 million shares in amc. They paid around 27 million dollars for these million shares and therefore they're, technically already down significantly on their investment. It's practically halved, but obviously the national bank of canada knows that amc will squeeze guys be sure to. Let me know down in the comments below what you think the market crash means for amc and gamestop and as always guys, if you enjoyed this video, be sure to check out some of my others.

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