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AMC Stock - In this video, we continue into the repo and reverse repo market, & give an updated explanation as to how this will affect the stock market.
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Good morning, a few beautiful people, today's naked shorts, coming in from freaking shark baby, because it's shark week every single week, you know what it is. What is up, everybody want to trade straight three freaking talk fast and don't skip class baby. I can preface by saying that i'm not a financial advisor expert so take me, say the greatest self, let's get into the video, so i kind of want to touch on uh, reverse, repost and repos again, because i put out a video here yesterday and the underlying Message was great, like the the end state being the exact same. This is exactly what you want to see right, but i think i can do a better job of explaining what's really happening here.

So if you weren't able to check this out as the feds are done with hedgie games, i talked about reverse repos, where i think you're about to see a huge influx of cash getting moved around a different spot, but i just wanted to take a couple minutes. This morning, to to really walk everybody through this a little bit easier, so we're just gon na walk through, essentially what a repo is where reverse repo is and how this affects the economy, the u.s stock market, specifically shorted stocks, because i really do think it's going To play a factor in the overall amc game: stop all these heavily sorted stocks, uh just based on, what's been used with this capital, so without further ado, let's just get into this video, so repo versus a reverse repo right. What does this actually mean? So repo reverse repo, both transactions that take place between the federal reserve, aka, the feds and big banks or firms right. So what happens here well in repo? It's very simple: you've got a buyer and you've got a seller, just as you would have in any sort of transaction in a repo.

The feds are the buyers and the banks and firms are the sellers and what are they? What are they transacting so essentially, when this sort of thing happens, you've got a repo, the feds have an end goal in mind, right and typically in this sort of situation, it means the economy needs stimulated right. So what would that mean? It would mean that banks and firms don't have a lot of money to help stimulate the economy. So if, if the feds, for example, were to buy something, give cash to the banks or firms in you know essentially transaction for treasury bills or securities that can help stimulate the economy. So how does that happen right? It actually lowers interest rates.

You can think about it very simply: you've got a higher amount of supply. You've got more money that can be lends, which gives you less overall demand right. So higher demand is going to raise prices for things. Lower demand is going to lower prices for things.

So typically, the feds are giving out money to big banks and firms. What this is going to do is lower interest rates for mortgages for loans. It can help stimulate the economy. It can just loosen things up right, and why did this happen? Well, if you look back in march, for example, right the economy wasn't doing very well everything shut down, something was actually in stated called the supplemental leveraging ratio which, which gave big banks money from the federal reserve when all the stimulus is getting passed around a lot Of money was getting printed right and this set up the economy to sort of survive and weather the down days and the bad stuff that was happening right.

So this is a repo. The feds are the buyers they're, giving money to the big banks and firms in exchange for treasury bills and or other securities. The banks and firms are the sellers right now at some point in time. The influx happens right, it's a call, the repurchase agreement and then a reverse repurchase agreement because they are guaranteeing each other that at some point in time, they're going to transact that same thing.

Back right, the feds are going to get back what they need. The banks are going to get back what they need right, so reverse repo, which is what we're going to be talking about here. As i mentioned in yesterday's video, the reverse repo market is extremely high. Right now, the overnight reverse repurchase agreements all the way up to, as of june 9th, what appears to be 502 billion dollars.

June 11th, we got 547 billion dollars and in yesterday's video i talked about 720 billion dollars getting agreed upon by the federal reserve on june. 9Th, which is going to be received within 15 days, this is going to come from big banks and firms, so reverse repo. It flips you've got defense who are actually the buyers and the banks who are or act as i was. The feds are the sellers and the banks are the buyers right, so the feds are selling treasury bills and securities to these banks in order to get their cash back now in this sort of situation.

What would be the reasoning for this? So you know think: back in march the supplemental leveraging ratio comes out, they're, trying to stimulate the economy they're trying to get big banks enough money to essentially lend out extra cash. Lower interest rates on loans give more money to big institutions and investors who are trying to essentially stimulate the us economy in the us stock market. Of course, we all know we all know what they did with that cash instead aka shorting stocks and trying to bank on the economy crashing right, which is kind of ass backwards, if you think about it, but nonetheless, that's what happened and what happens essentially is the Economy tightens right so you're taking money away from these big banks and firms which is going to end up raising interest rates now. What's the reasoning for this is because when you decrease supply, demand goes up right, so maybe your mortgage interest rate will go from.

I don't know two three percent up to seven: eight 10: 11 12. Who knows how high it'll go right because lower money equals lower money to lend which increases demand, and this works with more than just mortgage rates. This works with institutions and investors right because we know that big institutions and investors are leveraging cash that they do not have, and this can easily easily come from these big banks and firms. So this is why the reverse repurchase agreement is very freaking.

I think important for what is actually happening here in the u.s stock market, so now that we have a basic understanding right, a repo, the feds are the buyers. The banks are the sellers, the banks are selling these treasury bills and their securities. The feds are giving the banks money, reverse repurchase agreement right, that's the exact opposite thing: the feds are the ones that are selling and the banks are buying right, so they are giving over cash to the feds in exchange for these treasury bills and securities right feds Are buying banks, get these treasury bills and securities feds give the treasury bills and securities back. Banks are buying right, that's how this works.

So now, let's move into the meaning of this right. How does this affect the economy and how does that affect the u.s stock market, so the economy? What this means is you're gon na have higher overall interest rates. This could be on loans. This could be on mortgages.

This could be on a lot of different stuff. Anything that you can think of, essentially these big banks controlling lending of cash, massive amounts of liquidity right. It decreases availability for lending which also directly ties into the stock market because, as we know, adele there's a lot of cash getting thrown around the stock market. That does not exist right.

It's it's leveraged money now we're going to get into this here in a second, but this also increases inflation rates right. So that's something i fully expect to happen, but how does this apply to amc? How does this apply to a bunch of different heavily sorted stocks in the market right? Those higher interest rates also upload the shares that are on loan right, because what happens here? What happens if big banks are lending cash to big institutions like citadel blackrock, vanguard, melvin capital, whoever this may be, and all of a sudden they have to tighten down on how much actual free capital they've got. What this does is it decreases the overall supply, which means that, if there's lending of capital ending of cash taking place essentially margin debt by the way, it's very high right now historic numbers near 800 billion dollars right now, 200 billion of that coming the last six Months right, what happens is if a lot of that cash is getting put back into the federal reserve? That's going to raise interest rates on all of these margins right all the margins. All the cash people are playing with that they don't actually have interest rates.

Go up that puts pressure down on people because what ends up happening is you have less overall leverage the bank's gon na say? Look, you can keep that leverage if you want we're gon na double triple quadruple, whatever the actual interest rate is right, i can't say the exact number i don't know, but nonetheless you get the point. This gets it's gon na lead to margin costs because it tightens down the overall economy right, there's less cash going around, so you can't be as loose with your money. It tightens things up, and this actually basically winds down that supplemental leveraging ratio, which was instated back in february march, in order to stimulate the economy, get banks extra capital extra liquidity so that they can essentially loan out money and get things moving right. They're trying to stimulate the economy and make it so you know everything doesn't just shut down.

We go into another recession right loosen, the economy is getting tightened up, which means that this reverse repurchase agreement is the tightening effect. So with that being said, right touching back on the 720 billion dollars, which is coming from this latest june, 9th maturity, distribution of securities loans and selected other assets and liabilities right. What does this mean tightens down these banks? The banks have to get back money to the feds, so if there's any sort of lending going on, you know whether it be with these these uh. You know treasury bills, maybe they're using this as collateral for different loans from different banks, maybe they're just using this to you know it could be a variety of different things: the cash that the federal reserve gave them.

They could have been lending out to other institutions. Other firms right and you've seen this in the stock market, the influx of cash in the stock market - and you know, frankly how many stocks are being shorted right now is absurd. It's a huge, astronomical amount of shorting amc, gamestop cops, blackberry, bed, bath and beyond nokia. Freaking space, uh virgin galactic there's so many different stocks out there that you can just watch and see what they've been trying to do with their cash they're trying to use cash.

They do not have to bankrupt you to bankrupt companies and that tightens it down right. Lower overall cash equals a lower supply which make an increase in demand right increase in demand raises interest rates; it raises interest rates and costs to borrow on loans, and higher interest rates means a higher lending pressure now. What do i mean by that right? This is how we're gon na wrap up the video, but just to make it all run home. You've got big banks here right which have huge amounts of cash and have for quite some time, because the federal reserve has given them a lot of freaking money.

Now, what do they decide to do with this money right? They're, not just going to sit on it. That's not in their best interest right. They want to make money with their money, so they lend it out right. They lend it out to blackrock.

Maybe they lend it out to another bank, they lend it out to citadel. I don't know why i put a c there. I shoot it out. They limited out to people right, that's essentially what ends up happening, so they need to get that money back if it's out on loan and if they can't get it back right.

That hikes up interest rates like let's just say, hypothetically speaking, they continue to lend money out. They don't recall this cash right. What ends up happening instead is higher interest rates right if they have the capital on hand to get back to the federal reserve, then so be it right, that's the they they do that we do we right, but this is the end story right. It doesn't take.

Uh, you can definitely put two and two together to get four here right: lower overall cash. Just think of it, like this lower overall cash supply equals higher interest rates for lending, and if people can't afford to pay interest rates, if they can't afford to keep up with the loans that they've got out, you know what happens next. It is freaking margin calls. So that's kind of the whole moral story behind what's happening here with the repos and the reverse repo market.

It's insane just think of it like this. If i was to put this into uh into some sort of analogy, let's say that you had. You know your your mom, who borrowed you 100 bucks and in its place you decided to give her uh. I don't know your gamecube right.

That's that's your! That's! Your repurchase agreement at some point in time, you're gon na buy back that gamecube from your mom right. You're gon na give back that cash she's gon na give you back your gamecube during that period of time. Let's say that you decide to take that hundred bucks and go super heavy in the stock market on a short stock right. You decide that you want to go and bet against the us economy, because by her giving you that hundred dollars she's trying to loosen you up right, she's saying look like i understand things are tight right now you do what you got to do you go make That money you do this, what you want to help kind of stimulate your your paycheck to stimulate your bank account you decide to go.

Take that and gamble you just had to go. Take that bet against yourself, the u.s economy. You decide to go bet against all the little guys right. It makes no sense, that's what's happening in the u.s economy right now, and i'm telling you these guys are pissing on the electric fence so, like i said, i wanted to make some clarification points for my video yesterday talking about repurchase agreements.

The underlying message is the same, but i definitely could have done a better job kind of walking through that whole process, and hopefully that gives you some good answers, and you understand what's happening here now. If that's what i've got for this video, so blah blah blah, i know those people drop a like consider, subscribing everyone. Do my friends catch you on the next one gon na tap my chest lightly, much love and peace.

By Trey

24 thoughts on “Amc stock – the feds are done w/ hedgie games pt 2”
  1. Avataaar/Circle Created with python_avatars Philip Place says:

    Hey Trey! V/Old ape from Britland here. I trade on Trading 212. Got an email ref: Share Dealing Services Terms of Business. Not gone into the details yet but it's a bit of a surprise it's come out now…??? Have any other Apes had this and can enlighten me on it? Serious question and looks ominously like an *ss covering pre-empt on the short squeeze for it's customers… need thoughts and observations. Love what you do for us…

  2. Avataaar/Circle Created with python_avatars Alfred Jennifer says:

    Mrs Victoria is legit and her method works like magic I keep on earning every single week with her new strategy

  3. Avataaar/Circle Created with python_avatars QueferSutherland says:

    Buy and hold please don't dump at 100 to 300 range. Hold the line, this is the year of the apes. This is to send a message ape army strong to the moon.

  4. Avataaar/Circle Created with python_avatars Steve Reeves says:

    I understand that market makers do not leave the office each day without every position hedged. If this is true, then how will a gamma squeeze occur? Additionally, I understand most hedge funds bought deep out of the money calls long before the squeeze began. If that is true, they should also have strong tendies as the stock is bid up!

  5. Avataaar/Circle Created with python_avatars Charlymaumushi says:

    I never heard: "give your mom your gamecube". 🤣 Fun times. Apes Strong hodl. Get shwifty

  6. Avataaar/Circle Created with python_avatars David Berry says:

    I love your intro appearing in naked shorts. 🤣🤣🤣😛 I guess I am a little slow when I I didn't put it together before this. Keep it up and give someone else a reason to smile today.

  7. Avataaar/Circle Created with python_avatars Hooters says:

    If we get internet historian to make a video about us, we fucking made it. Simple as that. "but no, the apes wouldnt stop there. It reached 1k, 2k, 5k,10k,50k 100k, the hedgies were furious" – I know u read that in his voice 😀

  8. Avataaar/Circle Created with python_avatars joe hart says:

    Trey I have a question bro please help me!does it appear the sec instituted rule sr-dtc-2021-002 and the rise in March in reverse repo coincide?

  9. Avataaar/Circle Created with python_avatars Your Roasted Terry Flaps says:

    1000+ shares holding since January of AMC Im not just going to HODL for myself and my future but for the rest of the apes to achieve financial freedom. But we’re all in this together DO NOT PAPER HANDS WE’RE IN THIS TOGETHER WHETHER YOU LIKE IT OR NOT LETS GO 100k 💎 🙌 MINIMUM. Insurance for the Hedgies is roughly 60 Trillion and it’s roughly 43 trillion to pay everyone back if it’s 100k per share. Whatever the reason is you’re holding…. medical reasons, financially reasons, family reasons, keep on holding DIAMOND HANDS ONLY 💎LETS DO THIS 100k 💰 LETS GO!

  10. Avataaar/Circle Created with python_avatars Oliver Wiggins says:

    There is a interesting dude, an internet search for 'signals Walter Bulls". He made a fortune for himself a few years ago. Lately, such services have appeared that allow copying the results of professionals. This guy demonstrates how to copy him automatically using such a service. We must try while the market is on the rise

  11. Avataaar/Circle Created with python_avatars David Tawadras says:

    @Trey I can tell you're more excited than informed. FYI there's an inverse relationship between interest and inflation. There are a few books out there to help you out :p

  12. Avataaar/Circle Created with python_avatars Aryn Nakaoka says:

    Do reverse repos mean that HF just made the Fed hold the short bag on $AMC and $GME?

  13. Avataaar/Circle Created with python_avatars Aleks Do says:

    I can't stop rolling this guy with the schittaaaadel double down on amc in the morning forsure everyone let's turn the tables they've been running us for years it's our turn to come up now

  14. Avataaar/Circle Created with python_avatars waterjob says:

    $AMC $GME

    💎💎LISTEN TO ME MY SEXY APES💎💎

    -IGNORE THE PRICE! Ignore the media. All they have to beat us down is our own emotions.

    -BUY AND HOLD! The ceiling is 500k to 1MIL a share! However ONLY if we buy and hold especially this week. This also means NO STOP LOSS.

    -$AMC $GME ONLY!!! FUK ANY ASSHAT FAKE APES WHO SAY OTHER WISE

    -CALL OPTIONS! At the end of this week a ton of calls expire we need the price to be as high as possible so do everything you can like blocking and reporting fud and sharing good news and trying to get more people in on this ONCE IN A LIFETIME OPPORTUNITY!

  15. Avataaar/Circle Created with python_avatars Will Berry says:

    can't read half your chart. and the Federal Reserve is referred to as "The Fed", not "da fedz"

  16. Avataaar/Circle Created with python_avatars Chris Frazier says:

    Hey bud..just wanted to say I hope all is well..don’t know if you will see this but me and my family are praying for you and yours…

  17. Avataaar/Circle Created with python_avatars Judgmentally says:

    I've been hodling since January, I still often feel like this is to good to be true, and right now I feel like that more than ever. Still Hodling this is just such fucking insane movement!

  18. Avataaar/Circle Created with python_avatars Connor Blaschko says:

    Liquidated and put half my trading account and Roth IRA into AMC to help get the gamma squeeze going!

  19. Avataaar/Circle Created with python_avatars matt mcshane says:

    i just went and pizzed on my neighbors electric fence to see how the hedgies feel.

  20. Avataaar/Circle Created with python_avatars J J says:

    Thinking about you today Trey!! Missed your live! Hope you are doing ok and take care of yourself with your heart issues. 💕 I appreciate your energy and enthusiasm. Thank you for everything you do!!

  21. Avataaar/Circle Created with python_avatars MotoNationArmy says:

    I love your energy and positivity. You truly are a person to look up to. Love your vids man. Keep it up!!!

  22. Avataaar/Circle Created with python_avatars Truth Hunter says:

    Hey Trey, I was just thinking “A big white hat would look absolutely amazing on you!”👍💎🙌😎

  23. Avataaar/Circle Created with python_avatars Mike Donahue says:

    Good to see the little love tap on the chest today! Dude… I am literally old enough to be your dad and can’t tell you how much I enjoy you and learn from you. Thanks!

  24. Avataaar/Circle Created with python_avatars Trey's Trades says:

    Hopefully this updated & simplified explanation helps clear up the Repo / Reverse Repo conversation! Much love and GO GREEN AMC BABYYYYY

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