What's up everybody? It's sam! Oh man! Here we go here, we go here we go here. We go just plain. What is up? Everybody welcome to trace trades. We have technical analysis, different stocks in the stock market, as well as potential buy, hold or sell opinions on these.

Given stocks droppers by saying i'm, not a financial, advisor and or expert so take what i say: the green assault, let's get into the video today. My friends we're showing you guys, ticker symbol, rkt rocket companies from the new york stock exchange man. This has been a controversial stock. I see a lot of uh a lot of different opinions flying out there, and i i figured that uh.

I would tell you what i think of this stock to to be completely blunt with you and completely honest, i think, you're getting a mixed bag of different things happening. I think one you've got some some bots that are pushing this thing on different uh red threads. Trying to convince you to sell your game, stop at amc to get into rkt right, as you can see right now. I do have a position in rkt, but let me also show you that i have my full position at amc.

Nothing has changed in the least bit and i do not think that you need to sell out of your amc or gamestop in order to get into rkt right. But i i do think there is some validated points here with rkt and i would not be talking about this. Otherwise, as you guys know, i do not like chasing stocks. I would not buy into a stock if i think they just got no upside remaining, because i don't like screwing people right, but i've done a little bit of digging thanks to a reddit user who i watched on another youtube video here recently he put together some Awesome dd and i'm going to break into that with you guys and show you why.

I think this actually has some decent potential for a short-term uh squeeze a short-term upside right. So i didn't take a position in this stock. I'm gon na show you guys my uh my account here really quick. You can see that i've already made a pretty decent amount of money on this.

My total profit loss is 795 dollars and my my total uh profit right now is 417 bucks, so i've i made a pretty uh pretty decent uh amount of money off of this stock so far, and i still think that it's got upside, which is why i'm Talking about it here on the channel today, so we're gon na go over the fundamentals of the company: the why? Why is this uh? Why is this not a dead cat, not a kid, not a cat, not a cat baby uh, but anyways. I'm gon na tell you why. I think this is not a decap why this still has remaining upside some due diligence has been thrown together. Some short interest numbers the utilization according to ortex, some institutional ownership.

That is really really significant right. We've got a lot to talk about, so let's just get into the video we're going to finish off with the charts as well. Try to show you guys the best possible entry points. The indicators that i've got pulled up are the rsi relative strength index anything over 70's overbought.

Anything under 30 is oversold. Then i've got the 200 ema, which is this purple trend line on the 15 day ma, which is its blue trend line 200 minutes exponential moving average. This is the price action based valuation trend line over 200 day. Moving period gives us a macroscopic perspective of price action and the 15 day emma is the moving average.

This is the price, action-based valuation trend line over 15-month period, which gives us a microscopic perspective of price action. We use all these different indicators and some different uh different chart setups. In order to give us the best possible entry points and exit points on this stock, i will not be holding this stock for very long, maybe one day, maybe two days, i don't care. If i'm leaving some some bag on the table right, because this is not my primary focus, this is just having some fun along the way and having having a blast with the journey.

So, let's get into the video now i want to start off here and show you the short interest, according to fintel right we're going to get into the the dd the dude due diligence, the due diligence in a bid so check out yesterday out of all the Market volume we saw 375 million. We actually saw 103 million total short volume, which is 28 of the total market volume. On the day. Now, look at the stock price action right.

All that short volume came in and it got gobbled up. It got eaten up, didn't stand a chance against the green volume that came into this yesterday, which is significant. Men lie. Women lie numbers, don't lie right as long as those numbers are accurate, which take with a grain of salt.

We know that sometimes fintel under-reports their their short interest right. They may take the short interest volume or the short volume from one exchange and then the market volume from all exchanges, so that might even be lower than it actually is, but this catches, my interest, check this out. I'm going to update this just to make sure. There's no no update you know available, but as of 41 minutes ago, all that's available to short is 2 000 total shares.

That's insanity, that's absolutely crazy guys! So if we were to come over here - and i was gon na try and make a purchase right - i'm gon na say i'm gon na purchase. You know ten dollars, i'm gon na do extended hours right. Ten ten shares in limit hours check this out. Please choose your existing long positions of the security before placing okay.

Well, i did it yesterday. I did it yesterday just to test it out and it would not even let me attempt to place a short order position now that i'd be interested in it, but i was curious to see since the short shares availability was so low and it wouldn't even let Me it said there are not enough short shares available for you to fill your order, which means this is being shorted to the max, it's being absolutely killed right now and uh they're getting eaten up they're, not winning this fight, which means in the short term. This is still a live ball right, the shorts are not, they haven't covered, they haven't covered, there's only 2 000 total short shares available as of right now on this stock. Now, why was this compared to the overall? You know.

You know market cap how the market, not the market cap, the outstanding shares right. How many shares are typically on this stock. Well, we pull up market watch. We can see the overall the overall, you know outstanding shares the float, the whole nine yards here.

We can see that the shares outstanding is 103 100 million uh, and then we've got a public float of 108 million whoa hang on a second we've got a higher public float than we do. Shares outstanding, more market manipulation, guys crazy, crazy stuff check this out. I've got ortex pulled up and i've got some some different numbers utilization, not 95.1 percent, and let this be an indicator of where amc could possibly go. I've been saying this law is blue in the freaking face.

I've been saying this was blue in the face. Amc could very very easily do what rocket is doing right now, because we've got even higher utilization on amc than we do on rocket, but nonetheless that is an extremely extremely high utilization rate. Now, what does that mean? What is this utilization this refers to and you can possibly if you want to read it. This refers to the total lendable shares that are available to short, zero percent means that no shares have been lent.

100 means that all available shares have been lent, so that number is extremely high right. It's down a little bit from seven days ago, but i would anticipate that is because some shorts have covered their positions, but obviously not a lot of them, because we still have only 2 000 total short shares available on the stock. That's big numbers! This is really crazy. That's an insane number the days to cover on loan basic car is the short interest divided by the three month.

Average volume right. The 6.75 is an insanely insanely high days to cover that's astronomical. This basically is saying that it is incredibly difficult right now for shorts to cover their position and come out profitable, which makes it a huge bull case. This is a big big, big bullish.

Sign casabarro check this out. How much does it cost us to borrow right? Now, on a short position: 59.39, as of 12 hours ago, that is huge and that interest rate continues to go up the more risky. It is for shorts to hold a position in a stock right, 59.39 percent, huge huge, huge numbers now get this. This was thrown together, i'm not this intelligent.

This is thrown together by somebody on reddit right, and i want to give credit where credit's due he is called the big short, the underscore big underscore short underscore 2020.. He was on the uh on a podcast with somebody on youtube explaining the situation i watched it, and i was very intrigued because i saw this as an opportunity to scalp the stock. I thought you know what i'm going to ride some some little. You know waves on my lunch break, i went and i got on my phone.

I made a couple bucks on my uh. You know i was on the toilet. 10-15 minutes made a couple bucks right. I did that about three times throughout the day and i got home from work and some people were talking about rocket.

We talked about rocket on my live stream and i was like you know what this might actually have some more upside, so we did some digging and i completely am on board with what is what is being talked about here on this stock, and you know what There are guys out there on the channel who have been telling me. Rkt was going to do some crazy stuff and i i brushed it off, and that was honestly, my friends i wish i would have listened to you. I had a position in this. Probably three days ago - and i let her go - i let her go, but i am i'm still.

I'm gon na hold this. I'm gon na hold this for a little while here at least a day, possibly two days and uh. We're gon na show you why so there's i'm gon na point out the crucial information here. If you wan na check this out, go to reddit, all you got, ta do is type in the underscore big underscore short underscore.

2020 you'll find his post he's. Putting a lot of time into this dd and he also uh he he knows his stuff, he knows his stuff. So, let's start off with this institutional ownership, we've got 103.51, which is 119 million. Total shares that institutions own 373 of these.

How is this possible? How can they own more, you know, shares that are actually available to the public. Well, this would actually explain why you know we've got the public flow which is higher than the shares outstanding. That could be a piece of the puzzle here. Well, how's this possible.

You know it's possible because these same institutions that are going long on a company could also be going short, and he explains this in the article so who is showing the stock? The investors showing rkt, are the same investors, who are long rkt, the institutional investors shorting. The stock is a method, allows institutions to buy more shares at a much lower price right, so these institutions that are long on the stock. They can take a short position still if they'd like drive the price down, so they can purchase more shares at that. Cheaper price cover rides back up short the stock again right, it goes back down, they buy more shares, cover, rinse and repeat rinse and repeat: they're.

Double dipping they're, making a crap ton of money getting ready for the when the rocket goes to the moon and uh. That's just one piece of the puzzle here. So this this talks a lot about some manipulation, that's been taking place. You see this shakeout right.

So what's been happening, and he shows us in a chart set up here in a bit. Is these institutions have been riding this up and down up and down this instability for about a year? So if you look at this on a one-year chart, you can see that it hasn't done much of anything since it ipo'd. So if we look at the maximum chart here right, you can see back in 2020's when this ipo'd it would have been uh august. 31St.

2020, not much has happened since then right, it's, it's been pretty quiet, it's been up and down up and down, and that's because institutions saw a lot of potential here and they manipulated the stock, and i see you know in my discord, especially somebody addressed the fact That hey, unless you've got you know direct news catalyst and i don't blame them. This makes total sense. If you don't have direct news catalyst talking about why they should go up, don't buy it because they had a double downgrade by analysts. We're going to address that as well so manipulation right.

We've seen this take place with amc, we've seen that uh there's there's the potential for creating more shares synthetic shares that shouldn't exist in order to drive the price action down. It causes a shift in supply and demand right. So that's a piece of the puzzle here, jim cramer, has talked about this on a youtube video. I really really highly recommend you check that out.

If you want to understand the manipulation that can take place in the market, he's seen it firsthand, he knows what he's talking about so check this out. This is how they've been doing it right this previous year price action. They drive the price down through shorting. They scoop it up, runs back up, pushes it back down.

This just looks like the normal ebbs and flows of the market. However, it's not. This is manipulation, because this is a good company. This genuinely is i'm not gon na be holding for the long term.

Right now, i've got other stocks that i want to focus on, but i am going to be holding it for the short term, because i do think it's got short term potential. The squeeze board already has now i'm going to scroll down here and just find the next pieces that i wanted to talk about. Institutions paint a doom and gloom picture of rkt, while buying more shares behind the scenes. This is what i wanted to address next mentioned in a financial post.

Article is how analysts attempt to manufacture negative narratives about a stock in order to push the stock down further for accumulation at discounted pricing right we've seen this take place with amc and gamestop all over the media news you see, amc is a a crap show game. Stop's a crap show, if you buy these, you don't know what you're doing you're gon na you're gon na be a bank holder, yada yada, yada, yada yada, we've seen the whole nine yards here, but at the same time you see institutions that are buying into the Stock right, how does it make sense that on ortex we look over here at ortex right and take a peek at uh amc's? For instance, you know analyst ratings we've got five. Holding four cell ratings. I'd be willing to bet you money.

Rkt looks pretty similar, rkt nine hold ratings, two cell ratings for buy ratings. We just barely have some buy ratings here, it's definitely outweighed by the holds in the cells. So it's the same premise here. You've got a bunch of different analysts that are basically underestimating this stock, and that comes back to this.

They do this because sometimes the media and the institutions can work side by side in tandem in order to drive prices down, so institutions can get their meat and potatoes right. They can take the money redistribute back to the one percent away from the 99. This is a way for them to manipulate the stock price, so they can make money while you're too scared to get into the stock right. So take that for what it is.

Isn't it odd that, after after rockets, last earnings, which included a 1 billion dollar buyback revenue, beat eps and eps beat in a higher than expected expected guidance? Analysts come out with downgrades on rkt, not just a downgrade but a double downgrade, which i'm addressing right now right. I believe they did this to scare shareholders before rkt's much anticipated, lockup expiration period. The double downgrade only caused the stock to go down. One percent on that date and the stock has since returned to higher levels.

Why would jp morgan give rocket a double downgrade when his thesis is only improving? And what he's saying here when the thesis is improving, earnings per share beat in a higher than expected guidance right, so they they had a one billion dollar buyback and we're gon na address this in a little bit. I read this in this uh, this dd post right. They, they only had two billion shares, uh two billion dollars worth of shares available, so they bought back one billion dollars of that they decreased supply, which increases demand right. It's going to decrease the overall float.

So there's a higher potential for squeeze right. They beat their earnings per share. There's there's so many good things happening here and after they beat the eps, you had a double downgrade from jp morgan, pretty goofy, pretty goofy, and that tells you the whole story here right. There's a lot of good things going on with rkt we're gon na keep scrolling down.

If you wan na check out this video, like, i said, go check out this guy, the reddit post, as i predicted rkt, and i did not predict this is him. This is him: rkt leadership did not sell any of the stock. Rkt leadership is even more bullish than the greedy institutions that are loading up on shares behind the scenes. One of those institutions is blackrock who disclosed that they have a pretty decent stake.

Seven percent of the company, as of the date of their filing, which is eight million total shares blackrock, is a good, backed company blackrock vanguard to the companies that i pay the most attention to. They do not purchase into companies that they do not think has solid potential right and we're gon na show we're gon na pull up the uh, the rkt institutional ownership here in a second and see all the companies that are owning right now. But that's a big deal. They own eight million shares these guys, don't gamble.

They would not purchase a seven percent ownership in a company that they did not think was going to go up. That's significant! That's a big piece of the puzzle. That's 160 million dollars worth of shares very huge. What is an example of other stock there's a dirt institutional manipulation similar to rkt and uh.

That would be facebook. So when rocket mortgage uh rockets, uh shoot as i was when rocket companies uh ipo, they didn't do much, they were flat, but you could think to yourself. Okay was that a letdown was that a letdown, i think of facebook, and i think of the future of airbnb. I think airbnb is gon na, be another company that had kind of a flat ipo didn't do much didn't do much.

Facebook didn't do much and do much right. We see it went up a huge huge amount. In fact, facebook, according to this post, went up seventeen hundred percent from their ipo date right if you're taking the opportunity to purchase this background is at 17.48 from their ipo of 38 bucks you'd be up an insane insane insane amount, so that same thing is happening Here with rkt, the ipo they've got a lot of good things going for their company. They they uh people.

People got shield, they said you, you are you get screwed you're gon na, be a bag holder, you're silly for buying into this stock right, you're gon na get screwed. Meanwhile, you've got all these institutions: 103 institutional ownership. You've got blackrock, taking a huge stake here. You've got these same companies that are shorting the stocks, so they can increase their overall stake in the company right, they're they're, taking advantage of the fear, there's two main driving factors that drive the stock market.

It's fear and greed right fear is, is when people are scared. They get scared out of their money. Greed happens when, when a stock, and if you're gon na come into this too, if you're missing out when a stock is running up, both of these things are taken advantage of by the the purposeful planning of these institutions right, they know it. They know they manipulate the market on purpose.

How long will the manipulation last right, because facebook took a long time it took 18 months according to this post, to finally reach its its highs? It finally started moving and he's basically saying he doesn't think it's going to last long. It's not going to take long and he actually posted this a couple days before man. This dude is a wizard. He called it, he 100 called it.

He uh. He said. I don't think it's going to take that long. I think it's going to happen much faster because we've got the internet.

We've got a lot of people who will have availability information out through sources like reddit through discord through twitter, yada, yada yada, whatever it may be, and you see the beginning premise of what this could be. I know the next thing i'm going to talk about after we finish. This is going to be, you know the institutional ownerships, but after that right is this already over. Is this already over? Has a squeeze already been squeezed? My answer to you is this: i do not believe so, and that is because we've got a huge amount of short shares still being held.

The utilization's still really high short shares. Availability is still really low right, and this could be honestly, in my opinion, just a gamma squeeze. This could be the beginning of a gamma squeeze if we look at the options right, what are we seeing in terms of options on this stock? You don't even see strikes of 37 or higher. You can't even purchase these, because this is so out of the realm of expectations that they, they anticipated check.

This out. Look at all these call options that came out on the 5th of march now check this out. If you're on the 12th of march, i wonder what you're going to see huge amounts of call options. Look at this all the way up to 31.

You've got a crazy amount of call options starting to flow into this, and this just started running up yesterday. Right so this this, i don't think this has been short squeezed. Yet i think it's been gamma squares, gamma squares. I just feel weird saying that i think it's been gamma scrolls a little bit and i still think there's upside remaining here.

So i want to point that out. That's one thing that i think is important. So that's what he's talking about here, uh tldr! Why are we hearing so many negative narratives from the media? And this is really important and other analysts on rkt because they love the stock. Why is there such high ownership 103? Compare combined with a high short interest of 40 as of the date of this right as of the date of this, because they keep wanting to accumulate shares at lower prices.

This is institutions ploy to accumulate more shares because they know what rocket that rocket. Will moon and when i say moon i mean rocket, will at least be a six bagger in 10 years. The same happened with facebook. Rkt is still in the accumulation phase.

Green institutions have been deploying this tactic for almost a century, but this time the tactic may blow up in their face. They got busted, they got caught red-handed, they got their can in the cookie jar cop pissing pissing in the in the pond. Right because i've read it right, it did the same thing with gamestop. They did the same thing with amc.

They got caught off guard, nobody was thinking about rkt, nobody was, and this is where i see a lot of a lot of people saying you know why. I even mention this: why even mention rkt? This seems like it's just a distraction and, to some extent i think it can be. I think, if you are you're getting out of afc to get into rkt you're doing it wrong you're doing it wrong. That's not the way to do it right this just because you enjoy you enjoy uh, you know, woodford reserve doesn't mean you need to bust your bottle, the on the table.

Just because all of a sudden somebody offers you some jack daniels right. I can still have my bottle of wood for reserve. I can still hold on to that. I guess i'll sip on it, but i can also sip on this bottle of jack daniels, because they're both good whiskeys right.

They both treat me real good. They they make me feel like a good man and uh. The same thing is happening here with rkt. This, for me, is an opportunity to have some fun in the stock market, while amc is developing into the monster that i think it is going to be right.

So you're seeing it happen before your eyes, we've got all the numbers that line up and then you've got the potential for warren buffett. Rkt partnership. You know that's a theory, i'm not even going to dive into that, because that's just getting into the weeds, but the purpose being right for this. For this stock it has potential right and to address the double downgrade.

You tell me if you think this is worth a double downgrade, i'm not even going to tell you what i think, because you should come to the same conclusion that i did they've got rocket. Mortgage they've got amarok, which is the leading national provider of insurance right. So they've got insurance companies they've got two of those. They've got a technologies company a fintech company right, so they're dabbling in they know the blockchain, the cryptocurrency.

That's a huge piece as well. They've got lendesk right, a suite of products to digitize and simplify that canadian mortgage experience. They've got edison financial. A digital mortgage right they've got a whole bunch of plethora of companies at their disposal rocket homes for sale by owner rocket, auto they're trying to get into the the the auto industry right.

So they've got so many in terms of uh. You know tech leaders right you've got tesla in terms of uh company leaders such as you know, mortgages fintech, auto to me rocket seems like it's going to be a leader. They've got rocket loans, they've got rocket, auto they've got media core digital media lowermybills.com. Look at all these different services, these guys offer honestly, if you want to have your mind, blown at a company that is doing it.

This is this, is it rocket is doing it? This is crazy. I see no absolutely no reason in the least bit they should be getting slammed with this double downgrade by jp morgan and if you look at their team, i'm gon na find this very interesting. Let's check out their leadership: we've got bob walters, uh, jay, farner, julie, booth, uh, brian brown, trina, scott and angelo vitale. It's probably worth checking out what these guys have done in the past, so jay farner is vice chairman yada yada yada.

He serves as a ceo. He joined rock financial, the company that would ultimately become rocket mortgage in 1996, so he's been around for a long time. Working on this. This is one particular guy, basically founded rock financial.

He was a piece of that puzzle that started to establish that company. So that's jay farner and you could take the time to dive into each of their stories here. I'm not going to waste a bunch of time on that, but i truly do think that there's opportunity here and that's why i've got a position in this stock right now, with 165 shares at 38.80 right. This has not been short squeezed, yet it is not there's.

No possible way with that kind of short interest, still remaining, that this is over there's not any possible way. I am going to be holding a position here. I would anticipate for at least today, possibly and tomorrow, i'm going to watch the price action very very closely, but this guy's got some extreme short-term potential, which is why i'm making this video on it - and i know i'm gon na get flack. I'm gon na get people that are saying.

How could you talk about rkt? How could you cheat on our baby amc, amy dude, i'm not i'm not cheating on amy. We've still got our position rocking an amc. I've still got my 1400 shares. I've been adding to it every single day, 1500 shares.

Actually, i've been adding to it every single day and rocket mortgage is an opportunity to have some fun in the market, while you're waiting for that to play out and develop. So that's what i'm doing here. What are you looking at in terms of a technical setup right? We've got the 15 m8 way hooked away from the 200 dma, which implies an increase in volatility right we've got. I would anticipate even more volatility to come than this huge insane pump in volume which drives that volatility without the volume you're not gon na have the volatility, and it was green volume.

Nonetheless, even though over a quarter of the volume that came in was short volume, this still got hammered. You still could see this hammer and hammer and hammered away, and there are still short positions that haven't closed on this. In fact, they've been doubling down. You see short positions that have been established as of yesterday, even though it was driving like crazy volatility and uh.

The the rsi currently sitting at 64 is having a little bit of a micro pullback right now i got my shares filled at about 38.80, as you can see right here and i'll, tell you what i will be adding to my position. If this continues to do what it's doing right now, because this has some crazy upside potential, what should you look for in terms of an entry point? This is going to be very, very hard to predict very hard to predict if you can buy into this in the 39 mids range. I think you're gon na sit pretty well, but i want to urge you if you want to take a position in this stock. I need need needs you to promise me that you're going to be able to watch the stock price like a hawk like a hawk, because i'll tell you what, if this drops below my my uh, my entry point 38 and 80 cents.

What am i gon na? Do i am going to to sell and re-establish at the bottom, i'm gon na watch very close, because the volatility on this stock is gon na be crazy. When the volume is pumping you can, you saw me moved in an hour from 29.57 up to 35 bucks in an hour in an hour, so you got to be watching really really closely because it's going to be volatile. So please stay away from this. If, if you are not comfortable with the volatility, if you can't help handle the ups and downs right, i understand that that's tough! You need to be able to watch this closely or have a training stop-loss set, or some price alert set whatever it may be, but the best possible entry point right now is that this level of support at 39.50, if you can get it there, you're going to Be pretty pretty freaking uh safe.

However, this has run up a lot. Let's run up an insane insane amount if we drop a fibonacci retracement from uh this. This peak right here, you can see it's retraced at 50 percent. It gave back 50 of that initial run.

Up up to 48.64 cents, however, that to me is going to act as a level of resistance. You were going to see that axis level of resistance. I am almost willing to guarantee you we're going to retest that here today, clearly sitting at 40 and 27 cents in the pre market doing a little bit of stair step down it's retracing, but it's holding better. It's still setting higher lows and higher highs, and you can see that right here right, you can see that we are building an upward trend line.

We've got one two three four five touch points setting high lows and higher highs. You've got this. This shooting star hammer candle, which indicates that there's some weak selling pressure strong buying pressure right this to me, you can see that we're starting to slow that down and starting to bottom out. This to me looks like a little bit of a cup and handle formation.

You've got a cup right here right. You got that big dip followed by the handle. This would be the handle that is typically a sign of an upcoming rocket, i'm not even trying to punt this but uh this. This thing looks like it's just gon na go to the moon.

I've got absolutely nothing but good things to say about how this is shaping up right now, and that is what i have for the video today. If you enjoyed it, please drop a like if it does help support the channel and consider subscribing. Let me see more content like this. Lastly, i have an affiliate in the description box down below for weeble.

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It's uh they'll help you out a lot more than i can. If there's a lot of intelligent people in there, honestly, some more intelligent than i am by far right and i've got a link to the merch store. If you like to buy gorilla, gang mug or a shirt whatever it may be, that's what i've got for you guys today. So thank you for watching the videos, my friends and i will see you all next time.

Peace.