I know a lot of people share the same sentiment that i do about the the sec. Feels like they're complacent feels like they don't give a about happens with retail. Feels like they just sit in a corner. And complain about not being able to drink coffee while they also spend money on marketing campaigns to smear meme stocks today is the line.

This is that i don't think is good for the market two things happened today we're going to talk about it guys i'm going to trade straight. We can talk faster don't come across everybody's saying. I'm going to provide their experts. So please say they're going to solve let's get into it we're going to go over two things single stock leveraged.

Etfs and the cat system. Both of these things are problematic. The way that the sec has addressed them i'm not happy with it i want to talk about it here today because i want to know what the these guys are even thinking maybe this will gain some traction maybe it'll get people's attention. Maybe it'll make people voice out.

I don't know. But this is bad number. One single stock leveraged. Etfs.

Just recently. The sec approved this. Approved single stock leveraged etfs this happened as of july 12. 2022.

And if it feels like it flew under the radar. It's because it did very under the radar in a time of prolonged market volatility terrible timing by the way typically you don't want to introduce something new especially with leverage during a bear market. But i don't know the sec has announced it has given the green light to funds that utilize derivatives to take a leveraged or inverse position on single securities. As the latest complex product to come to market now if this in and of itself.

Does not scream to you problematic. I do not know what will let's not even get into the short aspect of a single single stock leverage atf. Let's look along. If you were long on a single stock and you're leveraged on it.

And you're able to leverage up 2 3. 4. 5. 10.

X. On a stock. You would be able to synthetically pump. This thing.

Like you would not believe the amount of money that would be attached to a single stock just going up would be so problematic that you would have fraudulents. I swear to christ everywhere. True supply and demand would not exist if you were playing these single stock leveraged etfs that's not even talking about the downside short. I don't know how many companies could get obliterated if a leveraged etf existed against a single name tesla as an example uh or amc or gamestop has lots of shorts.

Who would love to see it go to zero. So now if you're introducing a single stock leveraged etf for a single particular stock. Where maybe they're short. Sellers or long buyers.

Who have an ego and a pride and are trying to measure. Cox sizes. Well you might run into some problems that brings me to this this is problematic as an example. If this existed for tesla.

You can apply this to any ticker. Even amc right if this is amc up here and all of a sudden you're introducing a leveraged etf both long and short you could have an inverse right leverage etf against a single position moves are going to be magnified huge pushes up huge pushes down margin calls in both directions would be taking place. You'd see massive amounts of money just getting absolutely pushed. Where it should not be you do not want to introduce this during a bear market.

Why that ever would make sense to me is beyond me. Because all this is going to do is increase the amount of volatility that already exists increase. The amount of fear that already exists and this is going to scare. A lot of our guests retail investors who don't know any better out of their positions.

Because of newfound volatility that was completely avoidable problematic. You want to talk about up short positions you want to talk about people maliciously. I'm so freaking maliciously attacking stocks this is the way it can happen and it doesn't stop here because the one thing. The sec was working towards that was actually beneficial was the cat system and this got delayed until 2024.

If you don't think. This is bad well let's just keep on going huh. The cat system. The cat system is in the most simple way possible a project that the sec has been working on since 2010.

If you want to look into this more deeply essentially uh. What this is trying to prevent is spoofing spoofing is the idea that you can have a bid and an ask right. Which is buyers and sellers. Meeting.

Demand. There's a spread between the two whatever. But on a bid and ask you can have orders that are put on here right. So let's just say for a hypothetical stock.

This is ten dollars and somebody puts up a hundred thousand share. Ask and other people might notice this right you might see some buyers and sellers that look at this ask and say huh. This is kind of interesting i'm a buyer. I i don't know this kind of catches.

My eye. If there's that many people that are kind of wanting to push the price up well maybe i'll hit that ask i'll slap that ask right. But all of a sudden. The order disappears spoop.

She's gone no more 100k order. Well now what happens. What did that do it created deception the problem with spoofing the definition of spoofing by the book is the idea that you are trying to create an image to deceive if this doesn't sound like manipulation corruption fraudulence. I don't know what would why would i bring this up the cat system was built and meant to prevent pretty much precisely that the sec delayed it why do they delay this there's more pieces of the cat system we could get into but uh the intricate details i find to be more significant uh when you want to just go head on into it the corruption here is what i do not like opponents including sec commissioner hester pierce does that's the name sound familiar that name should found that name should sound.

Very familiar want the agency to scrap the whole project now if it sounds familiar. It's because it is hester pierce has stood against a lot of the things. The sec is trying to do to make a more equitable market for everybody involved with the stock market and has stood against time and time again the people and if this doesn't make a raise an eyebrow it should because there are absolutely no reasons that the cat system should have been delayed she furthermore wants to actually scrap the project. Why what are the downfalls of the cat system realistically.

There's none the the downsides at least for the sec and regulatory bodies is there's more work so either. She's lazy or there's something more happening here behind the scenes uh because this in and of itself. The cat system is only going to protect people essentially what it would do is create an audit lock. You would be able to look back at every order.

That's ever been transacted every order that's been canceled every order that's been executed every order that was uh put on to the level twos everything would be tracked. So you could come back and say yup. These people were spoofing they were trying to deceive to deceive corrupt manipulate all the bad words right to make stocks go up and down it works both ways and they could put these guys uh in their place. Give them some due punishment.

Obviously. This is step. One finding the guys is step one punishing them in step two. We know the sec is not great at step two.

But you should really ask yourself why would hester shut this down. There's something pretty interesting that i found on hester pierce today and barring the fact that it's not misinformation all right if it is feel free to let me know this exists the sec has hester working for them despite this circumstance hester pierce the crypto mom who is facing a 10 million dollar fine from the us. Securities and exchange commission has been dragged before a federal judge for her role in what the sec called an april 2016 fraud. The sec accused pierce and her former husband david pierce of defrauding an investor from alabama with false statements regarding the status of an investment with the company's idex.

Which was later acquired by gvt and coin drop markets. Which was then absorbed by polio nx. The only piece of this that you need to understand is hester pierce the crypto mom who is facing a 10 million dollar fine from the us. Securities and exchange commission has been dragged before a federal judge for her role in what the sec called an april 2016.

Fraud. If you don't think this is her guess what it is she's not your crypto mom hester pierce's fight with the sec. The commissioner who often finds herself at odds with her own agency owner. Gary gensler.

Wants the sec to break its unhealthy dynamic with the crypto industry. This is undoubtedly the same knucklehead that was accused of fraud in 2016. Now the argument if you're going to make one if we're going to make one is hey are you able to work for the sec. Despite either being proven guilty or proven.

Not guilty after being flagged for potential fraudulence. Right to me. The answer is quite simple no how does this make sense tell me in what world this makes sense. The sec is trying to begin single stock leveraged etfs inverse etfs.

They're shutting down the cat system. Because of somebody who in 2016 was convict. I take it back not convicted accused of fraud 10 million dollar fine for fraud in what world. I don't understand that everything about this screams corrupt either corrupt or negligence.

I don't know which at this point dude who freaking knows with the sec. But what i'll tell you is this should anger you how does it affect you if you're looking at my channel simply for amc. The the meme stocks whatever if this happens oh you want to talk about up price action manipulated price action. That's the extra volatility that's the extra manipulation.

That's the extra firepower that people will be looking for you want to talk about manipulation. Again. How many people have watched level twos on amc. And they've seen.

100 000. Share. Orders that have popped and disappeared over and over and over giving you the idea maybe the possibility that you'll see price go up how many new people do you think watch that that think it will you solve that problem you solve another problem. The cat system could have fixed that this does the opposite of fixing anything all this does is feed more fat cats and this this son of a gun hester.

I don't know none of this makes sense to me the sec must do better gary gensler has to do better this is depressing sad. Frustrating angering it really is this is it it just doesn't even make sense man. It just doesn't i have low expectations. I know most of people watching have low expectations.

But this is beyond low expectations. This is just going backwards. I don't want to talk about it and bring some awareness hope you guys enjoy your day.