Boys, girls, welcome back to freaking, trace trades. I've been out the entire night uh. I've got freaking bad insomnia and i wanted to dive into a sneaking suspicion of mine. And it's pretty obvious you look across the broad market.

You look across a whole bunch of different stocks and see that there's massive short selling taking place, but i wanted to dive a little bit further and into what i believe was and i'm confirming to be. In my opinion, some pretty targeted attacks across a variety of different stocks such as the one that you see right here, amc. This is not the only stock that has been targeted and maliciously attacked by short sellers. Now i want to dive into what i think this is we're going to go over a couple different things here today, so i'm gon na show you guys some uh some small cap and mid cap companies.

If you don't know what those are, don't worry i'll walk. You through it i know we have a whole bunch of different education levels here. I then want to show you some data points that collectively compare these to a large cap company and why i think that there is eventually going to be a bit of pressure and a bit of uh pressing down on these short positions in the coming months, spurred By what i actually believe to be a possible short-term recession, if that does come to fruition, to cover out of these stocks, so with that being said, let's dive into the video before we do. I want to give credit where credit's due i had the idea to dive into this because of me kevin.

He did talk about this, so i decided to fact check him and i came to some pretty similar conclusions so with that being said, just so we're all on the same page, let's start off here with this right. These are what i'm, using as reference points in terms of small cap and medcap companies, as we continue to talk about these further along in the video. A 300 million dollar company to two billion dollar company uh is currently what i would call a small cap, you're gon na consider a mid cap to be two billion dollars up to ten billion dollars. The market capitalization is, if you take all the shares that are floating around on any given stock, and you multiply that by the current stock price that will give you the market capitalization or about how much money is currently invested into that current ticker or company right With that being said, i've come to find two pretty interesting trends.

The highest short interest that you see across all these different stocks thrives in small caps and the mid caps come secondarily with a medium short interest level. Now, why is this important right? Because my hypothesis and my theory is that small cap and mid cap companies are being targeted by short sellers and have been for pretty much all of 2021 and what appears to have been one of the greatest bull traps, perhaps set of all time now. Why do i say that right? Well, i i had a thought the other day and it seems pretty realistic to assume that there was some, perhaps nefarious, intent on getting retail investors into the stock market. Let's go back in time right when you were freaking, not trying to argue over whether or not you deserved a 600 stimulus check, banks, institutions and politicians being pumped truly into dollars by the federal reserve right.

Well, you still ended up getting money and, what's the most probable outcome of you, putting money into the stock market? Well, when a bunch of people decide to slap into the stock market, stocks go up, stocks do great right, people make great money, and then, who are you pulling from institutions, banks, politicians, insider traders, the fed right? They don't want you to keep that money. They really don't. Why do you think you've got danglings like jim cramer out there who pump you stocks that sell off a week later? Why do you think that price targets come out so that institutions could dump bags on you? Why do you think they talk about? Squeeze plays in the way that they do well, it's for a reason it's because they have whatever pitching you. The other side of the coin is trying to probably do the opposite.

For instance, netflix people want to get out of that uh. They talk about freaking peloton. They want people to get out of that et cetera, et cetera, et cetera, but the point being that i believe that this was a purposeful attack by institutions and by banks to try and steal from people, and i've got some data points to sort of prove this Right so all of this is coming from or text i am not affiliated with them. They do not pay me.

This is just what i use to uh get my estimated short interest on given stocks. This is based off of 85 of exchange reported data. This data deriving from finra, which is who essentially regulates and governs the self-reported data of whatever short, is existing in the market, keep in mind that shorts are not required by law or by regulation to report a short position if they do not want to do so. I have these sorted by market capitalization, so you can see here a list of 15 different tickers.

I have two etfs in here iwm, which is the mid cap index spy being the large cap index. I have two large cap companies, both of these being worth more than 10 billion dollars, and then i have some small and mid cap companies. Remember the definitions we had earlier small cap, 300 million dollars, the 2 billion the mid cap 2 billion to 10 billion. Well with that being said, i plotted this all out because i wanted to see, let's just think about all the different names that have come and gone over the last year and i remember very distinctly that people would.

I would scream and yell they'd say this. Ticker is a distraction. This is, this: is absolute horseshit you're, taking away from the movement you're taking away from other people's pockets, and this is this and that and this and that right, but at the end of the day, uh, you were actually right and you were actually also wrong. All of these plays have been in a way, a distraction, and i don't mean that in the sense of retail has been wrong.

What i actually mean by that is that institutions have been purposefully driving down every talked about ticker for the last 12 months check this out. Bvig aider microvision sundial synsonics wish fuel cell chargepoint gamestop amc plug all these tickers have short interest over 11 percent, and you can see here that, if you plot it out, this is the lowest market. Capitalization of 87 million. That's bbig, 27 short interest.

As you go up in market capitalization, the short interest by trend tends to go down. You can kind of see this overall trend right here right, obviously, there's caveats: there's there's certain uh div movements away whatever you want to call it from this trend line, but the fact remains that as market cap goes up, short interest goes down. You can see this as i've dropped, microsoft and apple, both of which are two plus trillion dollar market cap companies. With short interest of 0.65 0.58.

Now trey i get it, i get it. I get it right, the better, the company, the bigger the market cap, the less shorts, are probably going to target it right. But let's come back to this, let's look at a few of these different names right check. This out, fuel cell had an infamous retail bull, run, all the way up to thirty dollars, so now it'd be at three dollars and ninety cents.

A ninety five percent correction. Well, how about bbig 1249 down to three dollars? Ater 50 dollars down to 282 and the ceo literally came out and said that his stock is being naked short sold, come on. I mean it's, so it's so obvious. It's obvious what this is.

Retail has been pumped a bag for a whole year and you can see it in the numbers. I don't want to hear. Squat diddly over what's happening in terms of oh market cap. All right, bigger market cap is just less shorts that pile into these things right, but this is absurd.

You look at iwm versus the spy. You see that large cap companies are shorted 14, which is already a large number, but then you compare that to iwm, which is a mid cap etf of 2 000 different, mid cap companies from 2 billion to 10 billion dollars being shorted 41. That is a targeted attack and that's worth talking about. I don't think i don't think people talk enough about how broad this manipulation this corruption, this gaslighting, this you are, the problem.

Nonsense gets pitched down our throats, it's crazy! It's nuts i mean we literally are just called stupid. Every single day i open my twitter to some asshat, that's saying how do you feel about retail losing hundreds of thousands of dollars pointing the finger at me right and i think, to myself, huh huh. I was definitely the guy that shorted amc uh 20 right. I was the guy that shorted bbig 27 percent, maybe the guy that talks about eight or shorted at 30 percent, maybe the guy that that talks about microvision short at 20, maybe the guy that talks about cents shorted at 28 percent.

Maybe they got ta talk about plug sure at 11. I don't know about you, but i think what you're watching happen in real time is retail being convinced that they are the problem when, in fact you are not. You are part of the solution, and people don't like to hear that they don't so why even bring this up right? What's the importance of this well, i've talked about this before i'll show you this chart very belief briefly again in case you'd like to see it, but this is the current outlook of the spy. I had a little bit of a gap up this morning.

You can see the 786 retracement right here. You look at the spy in the early morning right now and it had a gap up followed by pretty much an immediate fate. Uh gapped up to right. Around 440 bucks faded down gap filled, and now it's just kind of wish, washing around trying to figure out what it's going to do.

But with that being said, i do think there's a pretty solid chance of a two month correction and what does that mean for these mid cap and small cap companies right? Well? Unfortunately, it means that you likely are going to see a little more downside um. I don't know it's gon na differ from name to name to name to name right. I know that amc is a heavy target. Obviously you can see how a computeristic and algorithmic and absolutely like a ladder.

This stock has looked for the last last couple of months, but look across all these names look across them all. Look at fuel cell look at plug. Look at ader! Look at pbig, i don't even like sundial, but look at sundial. I mean all you have to do, is look at these and see how, similarly, they trade, you know what they all share in common they're, small or mid-cap companies and the smaller the cap, the higher the short interest and the point being that these stocks are targeted Because they are retail favorites, because retail investors realize that you can make more money than your annual five percent a year on the spy.

You can make more money than your annual eight percent a year on amazon or tesla or apple or whatever. The you want to buy right. They realize that there are good companies out there that are manipulated, corrupted and drop down to shadow realm, because some institutions, some bank, some market maker, some decided that that company's and it's garbage - and you guys - are stuck holding a bag from way back here. Because of what these guys are doing right, it's very incredibly frustrating and the point of solution of resolution to me is this: when and if this recession happens and it ends - and this is a point in which meet kevin made, and i think he was actually pretty Spot on when he said this, he said, i think that, where you see a lot of these shorts exit, these positions is when this short term recession ends, and maybe that drives around inflation.

Maybe that derives around jerome powell. Maybe that drives around some data points. I don't know what it'll end up being, but what i do think and what i will tell you is that when that time comes, when you see it turn around and the bullish market, these shorts always get out of a position. Because there is a known saying it's that every short seller is a confirmed buyer.

These guys will buy and i think what you're gon na see happen across all stocks. I stand by what he said with this. I think it's pretty legit is you're going to see a whole bunch of different names popping off in 2022. uh.

I i like honestly. I can't believe that i haven't connected these dots sooner. I don't know if anybody else has maybe i'm too slow. I don't know, but this is something we're talking about at the very least for for an eye opener right and secondarily for maybe something to look forward to because the last couple months, the last six months across a whole bunch of different retail favorite names.

I've just been getting slapped and while you're called dumb and while you're called stupid and dumb money - and you just don't get how to trade, you don't understand how the market works. You don't get anything right. The reality of the of the situation is this: it's not your fault, it's not your fault, you're, not the one targeting these names. For absolutely i mean.

Obviously, there are names in here who maybe don't deserve to be a 10 billion dollar market cap, whatever whatever right but there's a reason they ran in the first place. There's a reason: this went from two dollars to 30 there's a reason. I wish there's a reason that wish has done this, that it's gone from 17 to 32 and all the way down to two dollars. You want to tell me that wish wish is a one billion dollar company come on.

No, i i don't buy it, and i think that these guys will have their day of reckoning and that day of reckoning will derive from you. It would obviously be ideal if these guys would have covered sooner if they don't uh, they don't play the market at the expense of others, but open your eyes. Look at the level of corruption. Look at this chart look at the way the system's built to take advantage of you.

This is what we're out to fight for this is what apes are fighting for. It's to end like this, like this ugly graph, like these ugly charts across a variety of different names, for whatever reason or another that have been targeted, maliciously by short sellers, because they just do not want you to win. That's what i've got for this video. My friends i'll catch y'all on an evening video tonight much love light taps as always, and peace.