All right all right, i got an important question for everybody watching right now: who's ready for kraken kingdom, baby lito, i'm not supposed to hit my chest. I'm sorry! Let me just put this back really quick andy who what is up everybody welcome to the tracerates. We freaking talk fast and don't skip class. Maybe i like the preference by saying that i'm not a financial advisor or expert so tell me to say the greatest thought.

Let's get into the video so today, my friends, my family and fellow guerilla gang. I want to talk about the short situation right, specifically speaking on the opportunities that they've had to cover their positions for a very long time. I think on a sunday morning, it's a great opportunity to discuss really truthfully how crazy the situation is and how far the apes have come to get where we're sitting right now, so we're going to go over reverse repos, because i think this is actually going to Show you a really holistic picture on how systemic this whole issue is, and that amc is a culmination of all the systemic problems. You know and malpractice that have taken place here in the stock market over the last couple of decades.

I want to go over the orthotics that i'll show you the average days the shares have been on loan, the average short interest positions right and, most importantly, just the opportunities that they've had to get out of their position and how much of a pride an eagle Play this really is because these big pros, the smart money, have gotten outsmarted by the dumb money, the freaking apes, orangutans silver packs, the primates out there who have ended up making a good amount of cash and we'll make more to come. So with that being said, let's just start off here with reverse repo, so i'm going to walk you kind of through what this process is. If you don't know, it's actually a lot simpler than you think it is right, but the fed's reverse repos have hit historical numbers, 503 billion dollars, as of june 9., now check this out. I just want to show you this chart, because this is a pretty interesting thing to see.

Let me look at march 31st. 2020. You might think to yourself, okay, what would that spike have been? That was when covid quarantined the whole country to shut down here in the united states right. That was when things went crazy right.

The entire country, you know was slammed by economic issues. A lot of businesses shut their doors for months and months and months. At a time, so it makes sense at that point in time, for there have been reverse repos right to essentially borrow money from the feds, the federal reserve you can think of. Essentially, as this big you know, pool of cash that they borrowed from right.

We're gon na walk you through this whole process here in a second, but that makes sense. Then it dipped down to nothing. You had a pretty much, no reverse repose out of the market, because this is meant for short-term securities right. It's meant to make up for a lack of cash flow so that you can, you know, basically supply the economic.

You know situation and climate of the united states market right, so it drops down to zero and all of a sudden here, 2021. You have this huge historical spike up to over 500 billion dollars of liquidity. That's been borrowed out by the feds. Now that is a huge, huge, huge, huge number and i'm not going to walk you through why this is so critical right.

So, what's a reverse repo? To put this very simply, you can think of this as a short-term or a long-term loan. Typically, with these sort of dollar signs, you would want to take out a short term loan, because you don't want to accrue interest right, any sort of loan as an interest rate you could think of as a cost, to borrow liquidity similar to what you see in The stock market, right, if a lender is lending out stock, there's a cost of bar, that's associated with whoever the d is, that is borrowing from blender right. So here's two steps. It's as simple as this, the feds in this situation have uh lended out money right.

This is a reverse repo. On the flip side, you have regular repos right and repos would be when the feds are borrowing money, but reverse repo they're lending out money right. So you've got money. That's been lended up by the feds over to parties who are interested in borrowing cash.

Why would they want to do this simple, as it gets right? There's no crazy answer here, it's as simple as they don't have cash supply. They don't have enough money to sustain operations and they're, trying to essentially put a band-aid on whatever sort of cash problems. They have right. It makes sense back in march, there's a lot of economic problems to do it now that raises some questions.

The country's reopening things are starting to look pretty good right. The the market is is better than it's been since literally a year ago. Right, there's a lot of great things that are happening in the u.s economy. Right now, getting us closer to some sort of normality.

So now that you've got that you know blended out of the way step, one they've lended up cash, and that goes out to institutions right now. They have to eventually return this plus whatever sort of interest they've accrued on their positions right, so they return their loan and the feds receive their money back simple as it gets. That's a reverse repo right now. Let's just get a look at this.

This is what's really fascinating and intriguing to me is: as of june 11th, you had 547 billion dollars on reverse repos. Now, look at this chart right. You could think of this as a stock chart. Essentially, it's the same sort of thing when something goes up too much too fast.

Typically, it pulls back. Something goes down too much too fast. Typically, it goes up. What do you see here right? What do you see here? You see an insane amount of parabolic growth in terms of lending.

That's coming out from these big institutions that are borrowing money from the feds right and i've pulled this up, because i think this is a great way to essentially give you the simple definition of what's happening here. Right. Reverse reports are commonly used by businesses like lending institutions or investors, to lend short-term capital to other businesses during cash flow issues. Now why would there be any sort of cash flow issues for any sort of institution out there right the country's starting to reopen again the stock market's doing better than ever has before a lot of things? You know on paper.

Look absolutely fine, but that's the key here they're trying to make things. Look absolutely fine when in fact it is not right. This is an ego and pride play and for anybody to say otherwise is is just a bunch of bologna. It doesn't make sense, and i'm going to tell you why this correlates, with amc stock right, so 547 billion dollars being lent out to big institutions and firms right to essentially put a band-aid on their short-term cash flow situation.

Where is this money going? Well, you look at the stock market. You look at a lot of different securities in the stock market, such as amc, blackberry, gamestop costs, bath and beyond. A lot of different stocks are being heavily shorted. The amount of money that's come into the stock market.

In the last six months is astronomical, this has to do with two things it has to do with the stimulus. Checks have been printed out right, new money that has been printed out by the feds, as well as reverse repos money getting pushed into the stock market. That was not there before, because it's borrowed capital and what this ends up doing. My friends is: it gives you this in this, this false growth right.

So let's just look at the daily candles on the spot. Since march, you had a beautiful beautiful bounce back up, but this is the thing right with this sort of growth. How much of this is real? You have to wonder right and i'm going to tell you probably not a lot of it and that's for two main reasons. So you had a drop down in march about 218 bucks on the spy to new all-time highs at about 424 dollars.

But the problem with this is is very simple right: what's the problem, you have an inflated supply right supply and demand. So what happens right? You increase the amount of supply which actually decreases the demand, but you don't see this on the charts because it hasn't been accounted for yet so when you put new money into the stock market, there's more liquidity in the stock market that was essentially created borrowed out. Whatever it may be, this does not get taken into the equation. Is inflation right? Inflation will inevitably happen and a lot of the money that's getting put in the stock market, although it has helped the spy is going to bet against the economy to short stocks to naked short stocks, to try and bankrupt companies that big institutions thought would not pass Covet quarantine right: this is the problem, shorting stocks that you think might go bankrupt.

That's that makes some sort of sense. I wouldn't partake, but that's just me, shorty stocks to make them go bankrupt is an issue. That's what you're seeing happen with the reverse repo market. As it is right now, an insane insane amount of liquidity - and i guarantee you a lot of this - is an amc gamestop.

All these different, heavily short stocks is getting cracked down on and it's an ego play. They continue to borrow more and more and more and more and more liquidity trying to dig themselves out of this hole. Well, this is what gets freaking awesome. My friends is, the feds are stepping back into it now.

This is a an article that a filing that came out from the federal reserve, which you can speak of as the feds right federal reserve. Statistical release came out on june 10th 2021.. As of this date, if you read through this whole filing right here, there's a piece of this that i find to be pretty fascinating, and it's right here check this out: maturity, distribution of securities loans and selected other assets and liabilities june, 9th 2021.. Well guess what? If you read the fine print here, reverse repurchase agreements - repos right, reverse repos - you've got 720 billion dollars that the feds are asking for 720 billion dollars within 15 days.

Now, that is huge, huge huge amount of money now. What does this mean right? This likely means that the feds have lent out a crap ton of liquidity to different institutions and investors. The bigwigs, the smart money right playing on house money get out of here. You want to ding the retail investor for being stupid with their cash.

You tell me this: is it smart to borrow 720 billion dollars and shred it into a stock that might end up squeezing heck? No, it makes no sense i'll. Tell you what if it makes no sense, it's because it probably shouldn't make any sense, and this makes no sense. 720 billion dollars is what the feds are asking back for as of june 9th within 15 days. Now this doesn't mean it's gon na get returned 15 days exactly.

It could happen any time between that period of these 15 days from dead from june 9th up until what would end up being the 24. I'm not good at math, but i think that sounds right. June 24th. That's a lot of money, so the feds are asking for this cash back and what happens right well in any sort of loan agreement.

You obviously want to make money on that loan. So if these big institutions didn't end up making money on that loan, which, if they're shorting different stocks in the market, like amc, gamestop costs, blackberry bed bath and beyond, whatever it may be, they're in the hole they're, not making money they're down on their money. So, are they gon na come up with this stuff right? Where do they do they have a 720 billion dollars? Obviously i don't have an answer for that. All we can do is speculate right, but my hypothesis and i think a pretty damn decent one is, if you look at amc right now right.

This gives you the holistic picture on how shorts are doing in the market right now, not good they're down a lot of money. This is some more statistical information fact right that we can give you to have some sort of speculation as to what's going on. Look at this the average length of a loan as of right now on amc stock 54.39 days now, if they borrowed money from the feds right, reverse repo through the feds to essentially spot them, some liquidity until things go well we're just going to zoom back two Months right so, two months ago, right now the price is sitting at 49.40 june 11th. You look back on what would have been april 11th.

That would mean that the majority of the capital for any sort of shares on loan right now would have come at an average price of about nine dollars and fifty cents less than ten bucks a share. Now. What does that mean? It would be if you had a short position in amc stock right now, you're down 400 to 500 percent on that short position. So what happens if they borrow this money from the feds? What happens if this is a reverse repo right, they're gon na get some freaking margin.

Calls i'm saying this right now: margin calls are coming, we've been saying this forever they're playing with money that they do not physically own and they've had plenty of opportunity to get out of this play man. They just have the average length of a share on loan right. Look at this. It's absurd 54 days.

They had all this time. It was trading sideways all this time to just give up to get out of the stock to to take their small l to take their small game, whatever ended up being and just move on admit, you know what we tried they squeezed this out back here in January, but i we we gave it our best run right. We we couldn't end up bankrupting this company. We had defeat, the apes beat us whatever, but guess what they didn't.

Instead, they added to their positions and the short interest continuously climbed right. Look at this estimation. Interest of free flow look back here on april 12th. What did you see? Not a covering effect 16.97 estimated short interest of free float according to about 85 percent of exchange, reported data reported being the key word, because that's all that we know they just kept adding they kept adding it's a pride play.

Man, that's why i'm not taking my freaking foot off the gas pedal, no matter how long this takes, because that shows you how far these guys are willing to go. They're going to have historical, reverse repo numbers right, take out historical liquidity from the federal reserve to say, piss on you little guys you are going down we're going to wreck you we're going to bankrupt this company, we're going to take all of all of your freaking Money away: this is why the financial media puts out all these pieces. Saying: look you guys were betting against you you're, dumb, for investing in this. Most of these guys don't know what they're doing they're playing the freaking derivatives market, which is options right, they're going to lose their money.

What happens when the music stops playing blah blah blah? Well guess what people have been paying attention to this for six months, and these are numbers? These are facts that are people who are playing with money that do not have to beat you. What do you think of that i'll tell you what i think of that? It means i'm not stepping off the gas pedal man there's so much more to come with amc stock, the the freaking excitement the setup, the derivatives options market chain right now. All of these things are filthy. The end game is so dangerously close.

My friends, i cannot be more excited about the way that this freaking storybook is being written. This is a hell of a legacy. I really do think. There's gon na be some historical stuff that happens.

I said this months ago. I'll say it again. This is what i'm gon na close out the video with when amc squeezes right and it actually hits its peak. It runs the way it's supposed to the market's gon na.

Take a nosedive because this sort of liquidity getting put into short stocks right, shorting stocks is going to freaking wreck some havoc man. I'm telling you you're going to see the the the short again all these heavily short stocks when the margin calls come and people start covering, they have to return liquidity or they're going to run up because you got to buy back your stock. What happens with their long positions right if an institution is short on one stock and long on another they have to make up for the liquidity you get out of these other stocks. They have to sell their longer positions which pulls the market down.

I think it's going to happen man, i don't know when i can't tell you when i don't have a freaking crystal ball, but this is a setup. These are facts. These are numbers. These hedge funds are really playing a game.

Man, they're they're betting, all their life savings on double zeros at the roulette table, and i don't think they're going to win this battle. If that's what i've got for this video, so blah blah blah, i know hospital drop a like consider. Subscribing everyone. Do my friends! Catch you on the next one, much love and peace.