Welcome back to the channel everyone today, i want to talk about why the shorts have stopped shorting and why the shares available to borrow are currently so high, and i also want to talk about another instance of the buy button being turned off so stay tuned. And let's make some money, and now i want to dive straight in with the key information, so stonks batman, tweeted again showing the shares available to borrow and how they've changed between october, 7th and december 7th, obviously for amc. So, as you can see, this data comes directly from iborodesk. Obviously, the shares available to short have been increasing significantly, obviously from the lows that we saw between july and october and they've been increasing significantly every single day recently now, the last time we saw this kind of volume of shares available to borrow was back in early January, the 11th of january had 6.3 million shares.

The 13th of january had 6.6 million shares. The 18th of january had a lot as well, and the 21st of january had a lot as well. Now we know what happened a few days after between the 26th and the 28th of january amc and gamestop ran up and the buy button was turned off squashing the chance at the january short squeeze. Now you may say tom.

Well, the shares available to borrow back in may and june weren't really that high. So surely that means that shares available to borrow isn't really a good measure right, because obviously amc squeezed way hard or amc ran up way harder back in june than it did in january. But that's not technically the case. Back in january, amc ran from 2 to 20, so a 10 times increase back in june, amc ran from 801 to around 70, so less than a 10 times increase, and the january run-up was very much capped by the buy button being turned off.

If the buy button wasn't turned off, then amc would have ran much much higher and also would have caused the january short squeeze. Now i think the shares available to borrow being so high is a very telling sign. Firstly, it tells us that the hedges are currently too scared to shore amc anymore. That's why they're leaving so many shares on the table and not snapping them up every single day.

The reason why the hedges are scared to shore amc anymore is because they know what's around the corner, for amc and also for the wider market. They know the wider market is going to crash and they know that that crash is going to cause amc to squeeze. But on top of that, it's also telling us that the hedges don't actually have enough money to add to their short positions even more and that's why they've stopped shorting or stopped adding to their short positions. Now we know that the amc stock is still being manipulated.

The hedges are passing the shares they currently own between each other ladder attacking the price of amc down, but what they're not doing is adding to their short positions because they can't afford to anymore. If you cast your mind back to the last time, you watched the big short what mike berry was doing was accumulating positions in credit default swaps, but what he didn't do was use 100 of the firm's capital on those credit default swaps. He kept some money. Tucked aside, in order to pay those monthly premiums mike brewery's, big short, had transaction costs involved, he had to pay those big upfront fees and he also had to pay monthly maintenance fees for those credit default swap premiums.

So the hedges are currently in a similar boat. The hedges have this borrowing fee, which at the moment is very low at only one percent, but on top of that, the hedges also have those one-off fees to pay every single time they reset their fail to delivers each time the hedges want to pass their fail To delivers to another institution or each time they want to engage in a ladder attack with another institution, they have to pay a one-off fee to obviously cover off the risk for that other institution. Therefore, the hedges don't have enough money to add more shares or more shorts to their overall short position. They only have enough cash to reset their fail to delivers for a little while longer just how much longer they have.

I don't really know, but it is showing the hedges have now entered phase two of their plan. They've stopped accumulating shorts and stopped doubling down and tripling down and quadrupling down on their short position, and they can now only afford to pay those fees. And ultimately, this means that we are winning if they can't afford to add to their short position anymore, and they can only just about afford to pay these fees. It means that we are winning, because it's not costing us anything to hold our shares.

I mean we're currently giving away an iphone 13 pro every single day until christmas, on top of a number of other goodies like an oculus quest 2 and also those 5 free stocks, valued at 3, 500, each to being with a chance of winning the iphone 13 Pro every single day this month, all you need to do is open a moomoo account and deposit a hundred dollars to get those five free shares, valued up to seventeen thousand five hundred dollars in total. All you need to do is open a moomoo account to get your first free stock, make your first deposit of any amount, even if it's only a single dollar, to get that second free stock and deposit at least two thousand dollars to get the final three remaining Free stocks, moomoo, is also a brilliant investing platform. They've got free, real-time level. Two market data they've got advanced charting tools, they've got 24 7.

Real-Time financial news that you don't miss an important headline and they've also got a global investing community so that you can get some new stock ideas now. This is basically citadel's profit chart for 2020 and 2021.. Obviously, in 2020 citadel were making a lot of money on their amc short position, but since january of 2021, citadel have been taking on heavy heavy losses, obviously taking on a large loss in january and taking on an even larger loss back in june. Yes, they have now recuperated some of this loss, as amc is only trading for around 29, but obviously they're still down significantly from their all-time highs back at the start of january, when amc was only trading for around two dollars a share, if you didn't actually know What this chart is showing it's an inverse logarithmic chart of amc.

Obviously, their amc price increased from around two dollars to around 70 dollars. So it's effectively the emc chart but flipped upside down, and this is why citadel have restricted their withdrawals because they know they've taken on such heavy losses and they don't want their clients to pull their money out and on top of this, not only are citadel restricting Their clients withdrawals but they're, basically stopping them from ever investing in citadel again if they do pull their money out. Tophik tweeted saying citadel funds are now closed for new investors. They say if you withdraw your investment, you will not be able to reinvest in citadel.

Ever again, things are getting desperate. So not only is it they'll trying to restrict their withdrawals or charge fees for their withdrawals, but they're, basically trying to scare their investors by saying if you do withdraw, you can never invest with us again. This is just another tactic that citadel are trying to use and trying to employ to scare their investors to stop them withdrawing so that citadel don't have to cover their amc short positions right now, but as a message too said that their investors, if you're mad, that They took away the withdrawal button good, we know the feeling come and join us and become an ape. Obviously we know what it feels like to have the buy button taken away.

So if those investors are getting mad, they've had the withdrawal button taken away. Maybe they should consider changing sides now, interestingly, we have another instance of another stock broker. Turning off the buy button, this guy got an email from you stock trade due to operational circumstances. You stock trade has placed some restrictions on customer activity such as not accepting buy orders or deposits, sell orders and withdrawals have not been restricted now.

This is very, very interesting. Obviously it doesn't specifically mention amc by name. I think it's just on some specific stocks. Obviously, you stock trade are seeing what's happening in the current market climate and they don't want a full foul of liquidity issues like what happened with robin hood, because trading is performed on a t-plus two basis.

Robin hood were effectively selling shares in gamestop to their customer. At say, forty dollars a share, but robin hood were having to go out there into the market two days later and buy those shares for 200. 300. 400.

A share. This obviously caused massive massive liquidity issues for robin hood and they had a massive massive margin call from the dtcc which they obviously struggled to me. So i think a number of other brokers, like you, stock trade, are seeing this and they're trying to prevent massive liquidity issues. Therefore, they're stopping customers from making deposits and stopping new customers from joining and also restricting buy orders that way you stock trade will have a lot less orders to fulfill and therefore won't have those same liquidity problems when the market crashes and when amc squeezes.

Also, as a quick announcement, the amc website is now fixed for international users. Therefore, you can sign up to amc investor connect without using a vpn. Therefore, you can now register for your amc nft if you're overseas, without having to use a vpn or go through a big faf. I currently have my vpn deactivated and usually i could never get onto the amc website, but now it's fixed.

I can again, all i have to do is scroll to the bottom, fill in my email address and select my country of residence and send off the email now, on top of this, china are now reacting to evergrande's, imminent collapse and they're, suggesting that the economy is A lot weaker than what's been reported, china's central bank expanded the supply of money for lending on monday, as beijing tried to reassure its public and investors that the economy can be protected if a troubled real estate developers, 310 billion dollar mountain of debt collapses. Now, supposedly, the communist party can prevent a credit crunch, but it wants to avoid sending the wrong signal by bailing out evergrande. Therefore, the people's bank of china has released 190 billion dollars for lending by reducing the amount of money that banks must hold in reserve. But on top of this, china's local governments have hidden debt, estimated at nearly 8 trillion us dollars or nearly half of china's entire gdp.

By comparison, local debt in the us is estimated at only two trillion dollars at the end of 2020 and therefore because china are actually hiding so much debt. The economy is in a much weaker position than they're actually presenting the chinese media are already announcing that evergrande has officially defaulted. So when the paperwork goes through, i think it's going to be a lot more of a problem for china than they're, initially expecting or initially announcing. I think this is not only going to impact chinese property developers, but also chinese financial institutions, and i do think that that's obviously going to spread over into the us into the uk into europe and everywhere else in the world as well.

Now. Finally, i wanted to touch a little bit on negative, beta or negative beta out from boston. Tweeted, saying december is going to be a really bloody month for the market. If the squeeze happens by the market crash, then it's already started.

He said i'm a little bit concerned about amc and its negative, beta or beta and he's keeping an eye on the s. P. 500. If it starts to rapidly decline like it was earlier last week, hold on and strap in, but corey says, as i've said it before look at negative beta stocks.

During past market crashes, the market drops then, a few days or weeks later negative beta stocks shot up. While the rest stayed down now, the reason why it takes a few days or a few weeks before squeezes start happening is because, when the market starts to crash, these hedges and institutions are going to do anything they can in order to get more cash to add Into their positions, these hedges and institutions are going to start dumping, crypto they're, going to start dumping, gold, they're, going to start dumping bonds, pretty much doing anything they can to survive in the stock market without being liquidated. Now they may be able to survive. For a few more days, they may be able to survive for a week or two more, and then they are going to get liquidated now again, that liquidation process is an instant.

It doesn't take two minutes, it doesn't take half an hour. It may even take a few more days after that to liquidate an entire hedge fund and therefore, if the market is crashing now and when it starts to crash more, it may take a few more days after that crash or a few more weeks. Maybe after that crash, before amc and gamestop start to squeeze guys be sure to, let me know down in the comments below why you think the shorts have stopped shorting and why the shorts have stopped, adding to their short positions and guys. If you want to stay up to date with all of my new stock and crypto picks or if you just want some help with amc and gamestop, be sure to check out the patreon and the private discord linked in the description below and become part of, the Team, and as always guys if you enjoyed this video, be sure to check out some of my others.

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