Translated from Italian Using Google translate (Italian Apes, feel free to correct)
Original article: https://www.money.it/Dubbio-ritorno-Gamestop-Fed-short
The Question behind GameStop's return: is the Fed "instigating" a short squeeze?
05/26/2021 - 09:25
Another record for the reverse repo: the system is bursting with liquidity and the endgame for Quantitative easing is approaching. At the same time, the media returns to recommending purchases of meme stocks and their valuations explode. Just like in February. And the short interest on Standard & Poor's also rises to the maximum of the year. Does anyone think of an "alternative" form of using excess cash, by forcibly hedging short positions?
If the reverse repo facility (RRP) has literally exploded with liquidity for days, a symptom that Quantitative easing is dangerously approaching the endgame phase, how can you buffer the situation without having to accelerate dealing with the facts - and not just words - that taper that such a deposit trend seems unequivocally to claim? Perhaps, creating the conditions for another wave of short squeezes similar to that of last February, capable on the one hand of engaging liquidity on the market for forced hedging of bearish positions and on the other of bringing the retail investor, burned by sharp declines, closer together. Recoiled but still loaded with stimmy money from the federal program which will expire at the end of September.
The question arises, connecting the dots of what happened on the market yesterday, almost as if the underground and apparently disconnected moves of the subjects in the game were dots of the mysterious Week. Starting from the reverse repo of the New York Fed and from this graph:
433 billion in use, 38 more than the day before, 190 billion more in a week and third highest level ever. In short, the Fed continues to flood the liquidity market with its purchases of securities on the secondary market for 80 billion per month (plus 40 of Mortgage Backed Securities) but this is beginning to no longer know where to store that cash. **And then he... keep reading on reddit ➡
...And no you didn’t.
Stop upvoting these fake ass stories and blasting them to the top of the sub. The only reason people are making these stories up are because you guys are suckers and will upvote and shower any half-baked post with awards. These posts are just as bad as FUD because they generate unnecessary hype and speculation which is the last thing we need at this stage in the game. We really need more skepticism and critical thinking in this sub. It’s only gonna get worse from here so we need to be resilient and stop soaking up everything that’s fed to us.
I asked him about GME, the stocks, and his thoughts on current market volatility. He was very upset and confused. Repeatedly saying "I'm a landscaper, I don't understand what your saying", fucking shill. He's worked at Evergreen Lawn, Garden, and Hedges for 8 years, he knows the ins and out, he knows their tricks.
The fact he wont even acknowledge what the stock market is lets me know how deep this truly goes.
SEE YOU APES ON TUESDAY!
Oh, hey, let me just finish up this game of Smash Bros, grab a coffee, smoke a bowl real quick, watch a few episodes of Twilight Zone, then let's deep dive into this DD. It's a certified smooth-brained wall of text I promise.
I hope this write-up finds you well. Don't mind me. Just a playdoh-munching ape with a rambling problem and a stubborn interest in Wall Street's unscrupulous activities. Remember; hedge funds thrive from making money off EVERY TRANSACTION. Like 08' when they built nuclear bomb CDO's, sold them to unsuspecting investors, shorted them, then coordinated with ratings agencies to downgrade the bonds. Turns out the Stock Market is a ponzi scheme endorsed by the U.S government (what did you say Kenny? Or was that Janet Yellen just now?). Fuckery and corruption is afoot, but how did we get here?
So... let us journey to a simpler time; before the AMZN.
To put it bluntly; HEDGE FUNDS STOLE THE AMERICAN RETAIL ECONOMY. ahem, I will explain...
By naked shorting competing stocks, hedge funds can invest the proceeds (from that naked short sale) into AMZN stock, essentially; Wall Street steals money from a competitors' market cap and artificially inflates the price of AMZN stock. I believe this is the largest successful financial scam/grift pulled in history.
AMZN stock is the highest % returning stock in the last decade. Amazon was only $43 per share at 2008 lows.
Understanding Jeff Bezos; the
"modest" mastermind VP Quant of D.E Shaw:
You know Jeff Bezos; the Former CEO of Amazon (the web-focused retailer for literally every product you can think of) has amassed quite a shameful amount of wealth in the last 2 decades. Currently worth over $200B.
You may be familiar with Bezos' modest lifestyle early on in his career, he himself mentioned still driving his 1997 Honda Civic after Amazon went public (making Bezos worth $12 Billion) and claims he did not believe in indulging in a wasteful lifestyle.
[https://www.cnbc.com/2018/01/18/why-amazons-jeff-bezos-drove-a-honda-after-he-was-a-billionaire.html](https://www.cnbc.com/2018/01/18/why... keep reading on reddit ➡
Excuse the click-baity title. I don't know how accurate my conclusion is, but the parts are all there, sourced and listed below. The title is not misleading, alarmist yes, but for good reason.
On another note, I dedicate this write-up to u/sharkbaitlol. Last night before HOC 2 & 3 dropped, he posted a well-written post that he ultimately deleted due to mass reporting (I think) and harsh criticism; it was completely unjustified. He said he removed his post because it wasn't directly related to GME, but just like this post of mine, it actually was/is. Rule 5 says "Other stocks ... can be mentioned if related to Gamestop," and his and my post are related to Gamestop by nature of Citadel's involvement.
TL;DR - Adam Aron, Director/CEO/President of AMC, joined an SPAC as an independent director on May 6. A week later on the 12th, Citadel bought in to that same SPAC. As two weeks pass, up to today, various institutions, including those who either shorted or worked with shorters on GME, bought shares, calls, and puts on AMC. Many names we've seen before, like in the thread "The industry players again GME," and other large Wall Street firms stacked up on AMC stock before the run-up this Monday.
On May 12 this year, Centricus Acquisition Corp. ("Centricus") was purchased (like 33.6% stake) by Kenneth Griffin ("Citadel") (Note: ownership is split between 7 entities, but they're all either directly controlled by or share partnership with Kenneth G., so going to just call them all "Citadel" unless the need to differentiate comes up). Centricus is an SPAC that, as of March 31, had $1,159,689 in cash not held in trust and available for "working capital purposes" (not making a point, just saying).
About a week before that on May 6, Adam Aron was announced to join as a director of Centricus, "appointed to serve on the audit committee, the nominating committee and the compensation committee." He was paid with 20,000 class B shares along with a promise of future pay through Centricus' future merger (slight restrictions though).
[https://sec.repo... keep reading on reddit ➡
Hey there, dildos and dildettes. I normally keep my DD to myself and my friends, but if I can convince my cautious anchor to reality that GME is going to the moon, maybe I can help you do the same.
If you don't have someone keeping you grounded and real, you should. Fiery passion only beats cold hard facts in Julie Garwood novels and succubus hentai.
OBV = On Balance Volume and typically it follows the price movement closer than Citadel interns follow this sub for the latest image of Kenneth as an alien covered in nipples. (You fuckin weirdos)
Here's the OBV on some stocks that mean something to normal bipedal hominids:
Very clearly you can see that the price movement and the OBV need to get a room. Now let's look at the OBV of GME. It should have the same line as the one on your RH homepage right?
Fuckin WRONG. Now I know what you're thinking:
>But u/OverlordHippo how can you call us dildos when you didn't even crop your screenshots.
Blow me, I just realized it and I'm not redoing it.
So, what's the formula that turns numbers into lines here? Come on now, let's not pretend you'd understand it. Think of it like this though; There are daily posts showing the buy/sell ratio being a win for the Apes. The OBV confirms that.
What does this mean? Look at the GME picture again and imagine the price movement continuing the way it should have without the good old fashioned HF fuckery. It looks like it should be sitting around $550.
That's $550 without any shorts covering. Shorts covering equals = buying. Buying = price goes up. OBV shows buying is dominant, yet price goes down = shorting enough not to just stop it from going up, but to push it down significantly. Tits = Jacked.
We're not talking about your personality here. We're talking about a stocks relationship with the rest of the market. The market beta value is hard set at a value of 1.
If a stock has a Beta value greater than 1, it's price will move in relation to the market's movement, but to a greater degree. If a stock has a Beta value lesser than 1, it's price will still move in relation to the market's, but to a lesser degree. It's rare, but a stock can have a negative beta, which means that it has an inverse relationship with the market.
Most st... keep reading on reddit ➡
TL;DR To all the shills screaming "SuPeRsToNk iS lItErAlLy QaNoN", here is a complete list of market manipulation tactics used by Hedgies so far as documented by PhDs, professors, CEOs, and people that are generally in all accounts way smarter than you. Enjoy. 💎🙌 🚀
As shills and FUD posts continue to attack apes on their personal decisions to hold GME shares, I feel that it is necessary to create a central hub displaying every market manipulation tactic used by hedge funds in this GameStop Saga so far. To be absolutely honest, the mere fact that there are shills that care so much about other people's personal financial decisions is basically proof that the GameStop situation is not over. That being said, I understand that there are people suspicious of r/Superstonk and that actions by certain members in this subreddit is definitely not helping. If there are any journalists willing to report on this incident, this can be a good place to start researching as well.
This compilation will start with the overall thesis on Naked short selling, the influence of the DTCC, and then go on in a somewhat chronological order of the discovered tactics.
Top of the list is obviously the book Naked, Short and Greedy by Dr. Susanne Trimbath. Below is a link to buy her book.
If you are interested in the impact of Naked short selling on proxy voting, here's an article recommended by Dr. Trimbath during the Superstonk AMA. It was written by Bob Drummond and published in Bloomberg Markets.
And of course, here's the link to the AMA interview with Dr. T herself.
If you simply want a fairly concise version of what is naked short selling, here is an article published in The Journal of Trading by Robert Brooks and Clay M. Moffett. You should be able to finish this in around 45 minutes.
Wed, June 2, 2021, 5:07 AM
(Reuters) -Shares of AMC Entertainment surged another 38% in early deals on Wednesday and were set to open at a record high as individual traders on social media forums were unfazed by a hedge fund flipping its stake in AMC, calling it overvalued.
Hedge fund Mudrick Capital Management sold 8.5 million freshly issued AMC shares at a profit on Tuesday, a source said, immediately after buying them. AMC had earlier said it was prepared to make acquisitions with the new issuance, worth about $230.5 million.
Extending a red hot rally, the cinema operator's stock traded at $41.90 on Wednesday, leading gains among the group of "meme stocks" including video game retailer GameStop Corp and BlackBerry Ltd that have attracted the attention of small-time traders on online platforms such as Reddit's WallStreetBets.
"It's not rational, but do not bet against it," said a Berlin-based trader.
AMC's stock has surged more than 1,400% this year and, at nearly $42, is trading at more than 10 times the median analyst price target.
The number of messages related to AMC on trading-focused social media site Stocktwits rose more than 7% on Wednesday, with most of them reflecting a positive sentiment.
AMC daily stock trading volumes in the past week have reached their highest since January, according to Refinitiv Eikon, while data from Fidelity showed it continued being the brokerage platform's most traded scrip.
GameStop was up 4.5% in premarket trading, while Koss Corp jumped 13%. BlackBerry's U.S.-listed shares were last up 18.6%, bringing their total yearly gains to more than 75%.
(Reporting by Sagarika Jaisinghani and Aaron Saldanha in Bengaluru and Thyagaraju Adinarayan in London; Editing by Sriraj Kalluvila and Shounak Dasgupta)
Literally the ONLY thing that will get me to sell my GME shares is the back side of MOASS.
Not FUD, not AMC, not price drops, not cryptoo, not messaging me, not marketed disinformation campaigns, not IAMGME hashtags, not flooding this message board with bad memes.....NOTHING
LET ME REPEAT, NOTHING, will get me to sell my shares until MOASS.🚀
See y’all on the Moon.
Edit: Thanks Apes for the awards! This was just my morning coffee rant!
Edit #2: I had this calm come over me as I drove the kids to school this morning. A total realization and buy in to this whole experience. I can honestly lose what I have in GME, all of it, and still go on in life without much changing. But I now have reached a zen where I will have no emotion throughout MOASS selling on the way down.
LEAVE ROBINHOOD. They dont deserve to make money off us after the millions they caused in losses. It might take a couple of days, but send Robinhood to the ground and GME to the moon.
But they only managed to make it drop 11%, tomorrow they will try to continue the drop and they may be able or they will not have ammo left.
All the NASDAQ went red, more than likely because SHF where selling their other positions to continue to short GME.
Congratulations to every Ape for holding and buying this dip.
Law of nature: Shorts must cover. And today was anothee day where the SHF added fuel (more shorts) to the MOASS.
See you in the moon!
The other day in the post "Italian News Article Tells of Incoming US Market Chaos" fellow Ape u/Nixin83 posted a very interesting article that has unfortunately gone unnoticed; we thought was worth bringing it to the attention of everyone so we could have a look at it.
To give you an overview, it talks about how we might be heading towards a new market crash, GME, the signals from the Hedge Funds, liquidity and cryptocurrency.
The interesting part that sets it apart from many articles we often read, is how they acknowledge the Squeeze is still an ongoing matter that could actually fire in the next months and why according to them.
I translated it by hand as the original piece is in Italian and didn't want to risk losing anything in translation; looking forward to hear your thoughts, here it is:
13th April 2021
#Are we on the verge of a new financial crisis? The GameStop case, the signals of Hedge Funds and the rise of cryptocurrencies
by Nicola Sindaco
##Is there a link between the GameStop case, the surge in cryptocurrency prices (primarily Bitcoin), and the recent bankruptcy of the American fund Archegos? The overexposure of financial players, made possible by the quantitative easing policies of central banks in the Covid era, and the lowering of the level of credit risk, in a context of increasing deregulation and non-regulation of the Shadow Banking sector, is increasingly attracting financial actors with a high propensity to risk, with the imminent risk of triggering a new, devastating financial crisis.
#The roots of the last crisis (and the next one?): deregulation and non-regulation
The financialization of the world economy promoted by American President Bill Clinton with the signing of the Gramm-Leach-Bliley Act in November 1999, which went down in history with the journalistic epithet deregulation, turns out to be the key to shedding light on the origin of latest recent global financial crisis. The deregulation repealed the Glass-Steagall Act which previously prohibited so-called BanCorp (bank holding companies) from controlling other financial institutions, marking a boundary between commercial, investment banks, Hedge Funds, other investment funds and insurance institutions, and standardizing made the enlarged banking and financial system under a single risk model.
Previously, slackening tendencies had already b... keep reading on reddit ➡
Buy GameStop on IEX or on straight to market brokers every post should be this and every body should do this. Don’t ask me what the shit is you want to be a millionaire or billionaire look it up your self. Don’t be so incredibly lazy. If you refuse to fight the war rather than just buy your one share and say your doing something stfu.
Buy on IEX or on a direct to market broker. Buy on t+21 and 35 days. You either wanna win or you want to complain about manipulation. Buy gme on iex or direct to market broker. That needs to be every single post till this is over. Like this if you want but you should repost and flood the timeline with iex or direct to market. Only way to stop the super manipulation.
Wade explains that the only chance the hedge funds make it out of this is if they stretch out the squeeze over months and years to make people lose interest and sell.
He also explains that in the event the hedge funds go bankrupt and the DTCC has to step in and clear the books that there is a chance that they might try to settle the remaining shorted shares.
Why settling the shares is NOT in the best interest of the government is because the the whole world is watching now to see how they will regulate the situation.
Everyone from long whales, international investors, retail investors are betting on the money to print and if the government decides to step in, settle the shares and stop the squeeze it is going to piss off international investors and make them pull out of the US Stock Market.
So according to Wade's DD. It is in the governments best interest to let the money print because this has drawn the attention of the whole world now.
That's the type of confirmation bias I need. Plus I just like the stock. This is not financial advice.
By now we’re all suspicious of any hit piece that comes out against AMC, but today’s major (and oddly lengthy) MarketWatch opinion hit job has some curious connections to hedge funds. Link to MarketWatch article (4/29/21) in case you missed it:
So, like many of you I’m reading that MW opinion article today and wondering “Why would anybody — let alone 3 authors — write such a length article against AMC today?” The lengths the authors go to tear down and shred AMC was almost comical. Such detail like somebody maybe had an axe to grind against the company and it’s reddit shareholders???
I’m not even going to get into some of their analysis which is purely speculative or questionable, it’s the impact of publishing negative pieces like this that had the impact. People just see the headline and are spooked. That’s the goal of course.
Whelp, I did some digging and the guys who wrote it all work for a company called New Constructs. (No secret. It’s mentioned at the end of their ridiculous opinion article.) The interesting thing, however, is their company’s connection to hedge funds. IN FACT - they’ve run their own hedge fund focused on short selling strategy AT THE SAME TIME they were running New Constructs and publishing advisory articles about the markets!
The CEO of New Constructs is one of the article’s authors and oddly enough was also the Managing Partner of hedge fund Novo Capital at the same time they were running anew Constructs.
David Trainer, CEO New Constructs LinkedIn: https://www.linkedin.com/in/davidtrainer
I even found one of their fund offering reports from 2014 which discusses their short strategy.
To make matters more interesting, in the above report their law firm is named and what do you know, when you DD the firm who are there clients?? HEDGE FUNDS on Wall Street! You can’t make this up. One of their partners was even quoted in an article mentioning Citadel. Now we don’t know who their specific clients are but it doesn’t really matter because they’re a capital markets/hedge fund law firm based in the hedge fund holy land NYC.
Law firm sources: https://www.sewkis.com/practices/capital-markets-and-corporate-securities/
https://www.sewkis.com/people/kevin-neubauer/news/?_filte... keep reading on reddit ➡
Elon is a genius and I’ll tell you why.
Crypto is volatile, ups and down. In reality retail investors aren’t effected, they just HODL until it rises. He announced the use of BTC to buy his cars, untimely knowing a pump will come off that news. Hedge funds buy tens of millions of dollars of BTC. They jump on the band wagon to make much needed tendies. Free money right!? Nope. Elon just pulled the rug from under their feet the day before the liquidity tests. Now with BTC dropping below 50k, they are negative. Even at $55k, they are down. They can’t HODL like us, they need that money for the liquidity test!! They HAVE to take it out either way. Genius move on how to kill a greedy hedge fund. 🚀🚀🚀
>A tiny hedge fund won a seismic victory over Exxon Mobil Corp (XOM.N) on Wednesday as shareholders elected at least two of the fund’s nominated directors to the oil giant’s board after a months-long battle over the company’s business strategy and growth plans.
>The success by activist hedge fund Engine No. 1 in getting at least two candidates on Exxon's board marks a big loss for the largest U.S. oil company, which incurred a $20 billion-plus loss in 2020 and has been slower to embrace lower-carbon investments than its global rivals. Exxon had sought to stave off investors aiming to reshape the board to better align the company with global moves to combat climate change.
>Two of Engine No. 1's board nominees, Gregory Goff and Kaisa Hietala, were elected to Exxon's board, with counting continuing.
>The dissident shareholder group led by Engine No. 1 put up a slate of four nominees to the 12-member Exxon board of directors at the shareholder meeting in the first big boardroom contest at an oil major that makes climate change the central issue.
>Exxon has lagged other oil majors in its response to climate change concerns, forecasting many more years of oil and gas demand growth and doubling down on investments to boost its output - in contrast to global rivals that have scaled back fossil fuel investments.
>That approach boosted the company's debt load by billions of dollars in recent years, leading to a record $22 billion loss in 2020 after years of underperformance.
>Governments and companies have moved to reduce emissions from fossil fuels that are warming the planet, and investors led by Engine No. 1 have said the changing world meant that CEO Darren Woods needed to make big changes to ensure Exxon's future value to investors.
>"It's a huge deal. It shows not just that there is more seriousness apparent in the thinking among investors about climate change, it's a rebuff of the whole attitude of the Exxon board," said Ric Marshall, executive director of ESG Research at MSCI.
>Woods had argued that Exxon's board understood the company's complexity and that Exxon supports a path toward carbon reductions in the Paris accord, referring to the international agreement aimed at combating climate change.
>However, in another signal of investor dissatisfaction with the company's approach to climate change, sh
I see new posts worring about xxx and xxxx apes selling in the low 5 figure range as this would put those gains in the 7 and 8 figure range. This theory is completely false for my situation, and possibly other's. I started off with 14 shares in Jan looking to pay off a couple small loans. Now that this has dragged out for months, my motives for holding have shifted. If the float is 26m, only xxx,xxx apes or less, holding >xxx shares, need to hold and the float will never be covered. An unintended consequence to this is that xx and x share apes will be set for life. Sorry, hedgefucks! Tenders are nice, changing financial market and the lives of millions of apes is what will bring the most joy to me. Not financial advice, do what you want. I just like the stock. 🚀🚀🚀🚀🚀💎💎💎🤘🤘🤘🤘
We know you lurk here. You know what just transpired with Warden. Lowball floors; recommending stop losses; recommending market orders over limit orders; outright telling us when to sell - all of which were overwhelmingly rejected by the apes of r/Superstonk.
Literally within two hours of Warden posting his shit, he was writing his resignation and is no longer a mod.
The apes know exactly how valuable these shares are to you.
But guess what? We ain’t selling for anything less than world-changing tendies. The apes have gone through too much shit to settle for lowball numbers.
$20 million floor is not a meme.
Edit 1: the deleted post by Warden:
Edit 2: $10 mil to $20 mil. The floor for a stock that is shorted multiple times the number of existing, legitimate shares is whatever apes decide to sell at. And there are a lot of apes going for higher floors in other threads (and in the comments below). 🚀🚀🚀🚀