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Ep 117 citadel vs sec, stock market volatility cryptos bounce dumb money w/ matt – Matt Kohrs

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Citadel vs SEC, Stock Market Volatility & Cryptos Bounce
(AMC, GME, DWAC, PHUN, TSLA, Bitcoin, Ethereum, Shib & Solana)
Dumb Money w/ Matt Ep. 117
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So soon don't be mistaken, the apes won't be shaking or breaking because we're going to the monday very soon going to wake up on the moon brand new yacht and the mcdonald's in my living room, bright, yellow, lamborghini, 50 meter, swimming pool, champagne. Oh, you got a mansion too. Oh that's right, held them tight, jack titties every night we was in way back when they tried to chop it down to ten henches couldn't come for him. Ace was strong until the end.

Now, let's pretend had enough of these feelings, but the eggs were rebelling because we never be selling till we sent it to heaven now we'd be out of yelling, hey screw. You kenny bought my wife, a minivan to share with the boyfriend, but i pull up in the benz plates saying olive cranes going on an airplane, don't think we'll be back again celebrating every day like it's, your birthday screw kenny cause we're holding on for delight getting Damned or breaking today's expectation, probably more manipulation. If you did, your creation of a crooked operation brought more while it was low, got more dips and trader joe's. Oh, you thought that we'd let go what the hell you take us for holla.

If you spend your last dollar on bananas, while living in squalor, we don't claim to be scholars. We the smooth brain dummies and we never stood totally yeah. We do this for love and we do this for our honor, a follower. 11 ain't got nothing on us.

We the planet of the apes anymore, as we trust m-o-a-s-s. Oh hell, yes, gon na, send it into space, go fire up the jets done. My dd call me out and john rocket man. This is the way gon na be girl, reunits, ground control.

To make your time we bout to have liftoff call us neil eight strong, gon na keep don't be mistaken, the apes won't be shaking or breaking because we're going to we're going to the mountains. Let's go, let's go. Let's go welcome to this power hour for today, monday october 25th, and what a power hour day we have in front of us should be very, very exciting. I mean we're already seeing moves.

I mean we and i'm gon na talk about this more obviously, but the discord. Congratulations! Congratulations in the discord, absolutely destroying it on tesla um that seriously so many people in the discord just made so much money on tesla, they're still making money. I know a lot of them are potentially, maybe i'm rubbing off on them like a little bit too much of like holding it too long, but um i this morning. I let you all know that i got in tesla and when i saw that dwa broke down below, i don't know 88.

I cut that. I used my free capital to get more tesla and then i already am up more than that, because tesla's just been running like an absolute madman. According to wrench capital, tesla's, already gained 120 billion in market cap today, it's finally over a 1 trillion dollar evaluation. Absolutely insane, but just to clarify i had a small dwac position.

I cut that i got even more tesla and i'm just riding it. I haven't sold any of my tesla. Yet i want to see how today ends uh good chance. I swing it over till tomorrow, but i want to see what happens in the next 57 minutes, but just so you all know, i'm gon na talk more about tesla, specifically of like, what's going on the levels to watch, because it's exciting right now, whatever's going on In tesla it is absolutely like just freaking insane um, the ar guy.

I sold my dwac for tesla same playmat. Shout out. Oh just you know for dwac um i mean i thought it was a little bit weak and i just thought: tesla was more interesting in terms of a i'm just trying to it's for research. Did they block me um? I just thought: tesla was a stronger plane.

It ended up being a stronger play, but just so you know when it comes to dwac the shell company of a shell company for truth, social, it did come out that iceberg research, the people who were previously short amc now say that they are actually short dwac. We are short dwac now that the initial excitement has passed. We see only risk for investors in near future, based on trump's track record at current price. Renegotiation is likely to keep more of the merge company for him.

Uh not opinion on the probability of success of tmtg, but stackholders don't own a piece of this project, yet trump has leverage not them, i'm not the biggest fan of iceberg research, but this is a good point like it really is um. This opens up a can of worms of how the deal could be structured with dwac and the former president trump truly does have all the leverage um that doesn't necessarily mean it has to go down. It doesn't mean that it has to go up. It's just something to consider: it's not necessarily a quote-unquote normal stock movement, just so everyone knows what's going on there, but i need to make this explicitly clear.

I just found this out 30 seconds before starting the stream. The decision for to get out of dewac and going to tesla or tesla and restart my tesla training career uh. That was just made on the discord because they were all hyping me up, so that was completely completely worth it. But i think it's a valid point about this pack but, like i said i don't have the most respect for iceberg research in more of a general sense all right before we get into the interesting things just so you know where we're at on the day.

Amc trading at 36.87, which is a 0.76 percent gain gme, is at 173.53, which is a 2.2 percent gain amc. Net return of 724 000 shares today estimated short interest of 16.26 percent gamestop. A net return of 85 000 shares today an estimated short interest of 10.9 percent. Let's talk a little bit about the overall market, ding ding ding ding ding ding ding ding.

We hit an additional all-time high. Today we are just cruising higher and higher and higher um right here: 455.90 all-time high, never seen before in the market, we're just cruising and we might see another one, we're only about 40 cents off. We might see another new all-time high by the end of the day, but what's this a nice rally of one two, three, four, five, six, seven eight nine days, that's absolutely incredible with one of these little mess up days on friday, cues also looking good. I called that 374 378.

Let's see which one breaks. First, we could play it. That way looks like we're getting the break of 378, which just makes me bullish a play up to basically 383 just below that seeing quite a bit of strength. But first we do need make sure it's not a fake out breakout.

Look for that continuation, but you're gon na see a general theme here across the board. Things are very, very green, same thing: we're looking for a breakout in iwm, it's running into the resistance from september, 2nd just below 230.. If we can get above that close above it, i'm looking for that play up to 3 232 234 and a half, but lots of bullish. Positive long bet opportunity we're seeing across the board right now in terms of amc.

Very much wanted to hold this bottom trend line uh. We have one two three four official touches of this trend line, i'm looking for demand to be found here and hopefully in the short term, or a gap up to 38.80. If, in the scenario that the supply is too much and it breaks below this, then i would be watching for support at the low from september 30th, which would be 33.74. Obviously i want the support to hold.

I very much wanted to hold. I think there's a good chance of it, but you have to be prepared for any eventual outcome in terms of gme we're just kind of halfway in this region: uh the support of 165, the resistance of 175, obviously we're looking for the break of 175 and a Gap fill up to 180 60, which was the low from october 21st. So that's just your like quick charts of a lot of the stocks we're talking about. I will specifically be diving more into tesla, but i just want to give that like its own little segment, but other things going on today, tax on billionaires, unrealized gains will likely be in budget package.

According to democrats, this was reported by the wall street journal. The proposal, which would likely affect fewer than 1 000 of the wealthiest u.s taxpayers, would help pay for biden's social policy and climate legislation. So a couple important things to say here about: what's going on, first of all, numero uno, they are as always sticking it into something that it should not be involved with. This is pork barrel.

Why would a special tax on unrealized gains be involved in a budget package and that's how they get crap like this passed, and let me just continue: i'm not here standing up for billionaires um. Let me just like really get this thought out there. First of all thought one: no, no! No! No! No! No! You should not be able to within one bill post all these different things that don't matter at all to it like it should be very cohesive. I don't know every bill should be less than five or ten pages like if you cannot read it right away and everyone in america.

Basically, everyone understand what's going on. These are hundreds, if not thousands of pages they all throw in their own random things and they're. Just like it's the pork barrel of this situation, so right away, that's stupid, but let's say we lived in some la la land where our government made a bit more sense and they actually voted on individual things. Let's talk about this one particular thing: if i were presented with a bill to tax billionaires, unrealized gains will likely be all right, so just unrealized gains that that's absolutely insane.

So what this is saying is at the end of the year, at least right now in the u.s to my knowledge at the end of the year, your realized gains, as in you opened a trade and you closed the trade you're gon na pay taxes on your Net gains at the end of the year, as in you open and close it like. What's your net total or if you have a net loss, you can write off a certain amount right now to my understanding, what they're looking for is at the end of the year. It doesn't matter if you close out the trade. It's just is your portfolio net up or down? You would pay on that.

So there is a scenario: let's say: you're up 20 on a stock and you're only in that stock at the end of the year, you're gon na pay taxes on that. You will owe uncle sam that, but the very next day, let's say something comes out and the stock like takes a dump, it doesn't matter, you still have to pay the taxes, even though you never realize the gains um. So, just conceptually it's stupid, i i don't get it i'll, never understand it, because i think it's a, i think, it's theft. I think this is one of the most egregious acts of theft that our government has ever tried to display and with it, of course, like the the question there is like well, if you're gon na do this, are you gon na? Let everyone write out all their unrealized losses.

Of course they're not gon na. Allow you to do that. So it's very one-sided. If i were to even entertain the idea - and a lot of you are like well matt like okay, it sounds crappy, but they're billionaires like why, like okay, it sounds like we could use their money.

They have a lot of money like some would argue too much money, let's use it to better the world. This is my argument to that. There's been no point in us congress congressional political history. Ever ever ever ever that we've, given our government an inch and they haven't attempted to take a mile.

Maybe this is a bit like pessimistic of me in my short 27 years on this planet. I have learned - and i i hope to be proven wrong, but i would vehemently argue that i'm gon na be right on this. If this happens, it's just a matter of a time before they change it, a little bit: okay, billionaires and now all of a sudden. If you make above x like a couple hundred million next cycle - okay, now it's just in general, if you're a millionaire, okay, we need a bit more money, so we're going to start taxing the unrealized gains on, let's say if you're above 500, 000.

next political cycle. Well, no, we need more money, we're going to tax the unrealized gains on everyone. Like i said at the start of this, this is in no way me matt standing up for billionaires. I think they have the ability to fight for their own rights.

I'm attempting to fight for our future rights, like i said, there's been no point in history of the us that we've given the government an inch of power and they haven't attempted to take a mile, and if you can't recognize what this is for, like what it Is truly of giving the inch now, if you think they're, just gon na be like? Oh, no, no they'll just stop there. They said they're gon na stop there look it! It's only gon na affect fewer than a thousand people matt. How could you possibly be against it? It's a better use of money. I get that.

I just don't think it ends there and i would strongly argue it won't end there, and i would also take it one step even further and say i honestly bet that this would not have an impact on anyone in politics. They're going to write some sort of special loophole that, yes, if you're, a u.s citizen or in the u.s you're going to be paying taxes on your unrealized gains, but for whatever reason, they're going to come up with a reason. Trust me just give them time that politicians it's going to be the normal thing of like oh okay, we're just going to have to pay on our realized gains. I guarantee it goes that way.

If you give it enough time, this is insane. Yellen was supporting it, but keep in mind. Yellen was also the person who was just supporting that the irs should have all information of any transaction over 600. Once again, it's another piece of, i guess almost thought from them, like we get a little inkling of where they're really coming from.

These are egotistical, narcissistic power, hungry people and they're they're, the hungry, hungry hippos of how much power can they get the government because they're in government, and they want more power to for their own ego? It's we see all these little stories of this. This is not against right. This is not against left. This is me being against our politicians, who are way way too power hungry and they're gon na abuse it every second they possibly can.

If we are not checking on him, i don't know who, in the back listening right now needs to hear this. Do not forget a key important aspect of being an american. The government works for us. We do not work from them and it seems, like our government, are the exact people who forget that they clearly work for us, but as soon as they get elected, they seem to forget that that important little detail right there.

Obviously, as this develops, i clearly hope it gets shot down. I don't know if i need to say that, but like i obviously hope it gets shot down, but we'll see how it goes. Uh we'll keep you up to date on this narrative. Okay, the other thing i want to talk about big from this morning was the start of this case citadel securities llc versus the sec.

That's right. The ex securities and exchange commission was sued by citadel securities uh. This is case number 20-1424 and it's in the u.s court of appeals, which is going to be important in just a little bit. So if you want to know what the hubbub about this is all about, i highly implore you to look at this right up by dave lauer.

Obviously i look up to him. I've had the privilege to interview him three times and i very much respect everything he has to say he has a wealth of knowledge. I highly i will link it to the video below this reddit link he's running up. Basically, what's going on and i'll give you the kind of the high level view, but there's, as you can see a lot of information in here.

But let me do my best to explain what's going on. But if you want more detail once again check out dave. Lauer's post entitled citadel's lawsuit against the sec over iex's d, limit order type. So here's what happened - iex is a lit exchange.

It was created in 2012, later became an nse and national security exchange in 2016.. In 2012, you had this group of people, i believe, working at rbc who noticed that whenever they put in an order, they got a worse fill. They saw the price, but whatever it was, it was a little bit higher and this group of smartypants people were like. That's really weird, and this eventually became the birth of iex iex, created an entire exchange to trap to battle against latency arbitrage.

The market many times is a bet of supply and demand. Is the company going to improve? Is the market going to like this company? What's the public's perception of a particular sector, but people around 2010ish started to realize that they know in no way had to carry risk of a situation of. Is there bet right or wrong? It was more so of because of technology and market structure, and i'm talking about like actual plumbing like the hardware they realized they could be faster, as in they could see, orders coming in and front run. This is a very high level x, like explanation of.

What's going on, but that's what these guys, who eventually made iex notices like whenever they made an order. They got a worse film, they're like well, who knew it was coming in and why were they able to like, beat us to the punch and make a little bit of money? And that's like a high frequency trader? That's their model. That's their business model. Make a little bit of money on a lot of trades and they they end up being net profitable by like billions of dollars.

It's absolutely crazy, so anyway, iex noticed this and they set out uh to make it and one of the the key aspects of iaex was a it's called like a speed bump and this speed bump. Whoever is engaging on iex. There is a 350 at max micro. Second delay so 350 microseconds.

Just to give you an idea, this was actually said by a lawyer in the court case this morning, who was like standing up for ix and explaining the case of ix. She said if you blink that actually took 200 times longer than the speed bump that iex imposes. So that's like just to give you an idea of the speed. It's it's 1.

200Th of the time it took you to blink, that's the speed bump, but that little speed bump is enough to mess with all the high frequency traders that it really helps prevent latency arbitrage, where you're being front-runned by all these very fancy: hardware, machines and um. All these other high-frequency traders and all their other tactics that they have so that's a little bit of a background and from there they've tried to stand up for market participants even more as in iex, by creating this d limit order. So this d limit stands for discretionary limit and once again it's all in this write-up just read it over, but the highest level view is iex. They see your order.

You put in a d limit order and let's say you put try to buy stock xyz and you put in an order at ten dollars well using a very similar model that all these other high frequency traders do. They use this model to see if it's about to change and the way high frequency traders do it like. Oh, it's about to change. We could front run you.

What iex essentially does? Is they change your order like no, you can actually get a fill at 9.99. So it's beneficial to use it because you're getting a better fill because they're about to be predictive of like some huge order going on like hang on. This might sway the market or they see a bunch of change on various other venues like such as other lit exchanges. The new york stock exchange, the nasdaq.

They see that a change is incoming and this d limit order. It allows them the ability to quickly change your order to help you get a better fill. That's the high-level view of what you need to know going on this d-limit order was first presented in 2018.. They took it to the sec i.exit and they said hey.

We want to let this go to the world, and this was like about time, one million that citadel got involved and they said nope uh. In fact, citadel tried to stop iex from becoming a lit exchange, but that's a whole different story. The the history of these guys is citadel, just always continually suing iex iex iex, and this time they happen to be suing the sec about an iex market type. But anyway i digress 2018.

It gets presented and the sec was hearing the case on why it should or shouldn't be allowed and citadel did everything in its power to drag it out for an entire year and it finally went into action in october of 2020.. Um, excuse me so it was presented in 2019. It was in the court cases for a year got approved and it was october of last year. It's been running for a year.

It's like actively arrived right now on iex, but when they heard it out, like obviously citadel a year ago, lost that case and kind of a question of why like, if, if you're presenting this, that doesn't really make sense because iex is presenting it as hey. It's better it. It helps battle. High-Frequency traders and latency arbitrage and citadel has like some convoluted argument: um that it's not and the sec obviously didn't agree with them and that's why they approved it and that's why it's been running for a year so fast forward till right now what is going on In the court case that started this morning - and just so you know it continues tomorrow, we'll be listening to it.

Once again, they are now suing the sec saying that they did not properly understand the quote: unquote harm that delimit would present to people, and now the u.s court of appeals has to hear this case like to my understanding, u.s court of appeals. To my understanding, this is one step below like the supreme court. They they have, i guess, really jacked this level up and i find this so interesting uh. This is new to me and i, like i, was researching this over break was, and i'm gon na get into this in more detail, but they already lost the case to the people who know about the markets like they lost the case to the sec.

Iex prevailed, which is interesting so now this almost seems like a last-ditch effort to be like well, let's bring the case in front of people who are not necessarily experts like if you listen to the cases today. This was number case three, the two cases before it. One involved a sawed-off shotgun and the other one involved like an actuary and some sort of insurance payout. This is not a a group of people, these judges who necessarily have market expertise, but with that being said, if i listen to this now, once again, the judges were impressive.

They were highly informed and they asked great questions. But to me it seems like a last-ditch effort like like a flailing attempt for citadel to try to stop iex and what they're doing for the markets. So it is, i don't know it's a good 30 45 minute list and it's up there. It's on youtube.

You guys can all listen to it. I had it on the stream all morning, but i wanted to talk about three key takeaways that i had from day one round one of the fight of citadel securities versus sec. The number one takeaway was that the lawyer for citadel securities - and if you listen to it, you can almost tell that he messed up uh. He he sounded awkward and he tried to take it back and it was like kind of an off the cuff like.

Oh, we have you and then awkwardly later he realized. He said something he shouldn't have said. He basically said at first. This is right at the beginning and it's so so interesting.

They he said the sec was saying. Are you arguing that latency arbitrage is a thing that does not exist of like he's like no like? Maybe it was a thing a decade ago and right there? Maybe it was a thing a decade ago. That in itself is crazy. Interesting because if you read the book, that's all about iex and it start it's called flash boys, it's a great read.

I like ripped through it in like two or three days, it's very fascinating about the start of iex in that book. I don't even know what chapter was. I was trying to find it, but i couldn't um. They were talking about how, at that moment in time in the early 2010s, how iex and everyone that thought this about the latency arbitrage of people front running other people.

They were treated like paris they're, like you're, crazy. You don't know what you're talking about that doesn't happen fast forward an entire decade. A citadel now is like oh yeah. No, no, it's probably a thing like that was the thing that when a decade before this like before this very moment, they were saying no way you're a crazy person.

It doesn't happen at all, so i can't emphasize the importance of that enough. I've read that myself in the book where they're like we were meant to feel crazy, that it was a thing and now citadel once again just admitting it was the thing which is very similar to how citadel is now highly supportive of payment for order flow. But in 2004 citadel argued that payment for order flow is very harmful to the overall system. You see this pattern within citadel, where given enough time, if they can figure out how to make profit on something, they will take a 180 degree spin of their overall opinion.

So that was the first thing that i thought was very interesting from day one. They basically just admitted that they said like latency. Arbitrage is a thing and now they're saying it's not a thing now, but that's what they said a decade ago and now they're admitting that it was a thing a decade ago. So a little bit of confusion there on, i would say their part number two.

So all this, the argument is about latency arbitrage. Is it fair that iex can do the speed bump which, like they are trying to bring up they're like why weren't you against that originally and they're like well? We didn't know about it and now they're arguing about like d limit which that price improvement happens within that little speed bump. That iex has implemented to fight latency arbitrage and now they're, taking it this step further to actually improve your price. If they see things going on so, for example, let's say this - is they even use this example and they were purposely kind of sidestepping the truth a bit? They use the example of, let's say you're, trying to buy a thousand a thousand.

I guess apple, you go to the new york stock exchange, you buy 500, you go, there's nasdaq, you buy 400, you have a hundred left over just because that's where the liquidity is at and you have to go, fill get it filled on iex. So what's interesting is - and this is why i'm saying that they're kind of sidestepping the truth of the situation is they're like oh, okay, well, what iex's system does? Is they see that they're getting a fill everywhere else? They know that a change is incoming. So at that point it can go both ways. So let's say it goes from 10 to 1001 and that's, i guess inherently true, but the scenario that they're creating to argue that they're purposely trying to take advantage of people who have lack of a knowledge of the market.

So these big players, whenever they do it, they intentionally account for time. They know, based on what exchange they're going to. There are certain latencies and any quote, unquote smart player. What they do is they do all their orders simultaneously, taking into account the delay to get to a certain exchange, and once again we are talking about microseconds, but it does matter because that's the word like the world we're dealing in faster than you can blink your Eye so any smart player knows that they're like if i want a thousand they'll see where the liquidity is and they'll they'll do the proper delays.

So they get it all filled simultaneously and their argument to these judges is like well. If we do it naively, as in like we just throw it out and then basically you're going to get left over like toxic fills, maybe you've heard that from dave lauer in the past um. I've also just recently heard the term as like. It's referred to as retail exhaust like just the little extra ones at the end, it's toxic, no one wants those fills and it ends up getting a worse fill.

So all of this, this is what they try to present to the judge today, when that's why i'm saying they were trying to sidestep it, they came up with a a counter example that no smart player would ever use. No big player would ever use and they were intentionally trying to make iex look bad, and then they took that one step farther, as it all relates to this latency situation, and the judge brought up a very, very good point of citadel securities is inherently against any Form of latency that iex is showing to the market they're acting like it takes a million years, and that's why he had some example he's like well. If i tell my kid to come down - and i say immediately, i expect him to come down, but if he stops and reads his book well, like remember, we're talking way way faster than you can blink you're an eye that, like that's the speeds, we're really talking About so to us, it makes no difference it takes longer than it does for us to hit the enter key, but it protects us in the way that we're not getting front run by high frequency traders and so they're always against this latency that protects us and, What's funny is their overall argument to the sec? If i were to best like really summarize, it is it's harmful to us citadel securities. We as citadel securities, represent retail.

So thus, if something's harmful to us, it's inherently harmful to retail, that's like legitimately. Their argument is like we don't like it it's bad for us, we represent retail. Hence all this methodology is bad for retail. That's the mental gymnastics that they go through, but what i found interesting to wrap up part number two here is and you're allowed to do.

This, but if you go to any of these lit exchanges, you can be, you can pay for, what's referred to as tiered access as in a faster access to that exchange. Once again, the difference is in microseconds, but it's publicly available. You can get it for the new york stock exchange of the nasdaq blah blah the list goes on and on and on so the judge brought up the fact they're like well hang on. How are you arguing about iex and this speed delay when you're here? One of the biggest like, i guess, consumers of faster access like iex, was trying to take the high horse of like no.

We should all be there fast at like the exact same time, and there should be none of these delays and like, of course, they're trying to take the altruistic route. But it really doesn't make sense and the judge kind of smacked it back in their face when they're like wait, you pay for fast access like this. This tiered access, which is a faster access to all of these exchanges. So it's kind of like the pot calling the kettle black.

So i thought that was very interesting and just so you guys know there is tiered access. If you want, you could pay for a faster access, but it's really in the world of high frequency traders, because the people like us, as retail, we're not going to get much of an advantage by shaving off, like 100 microseconds anyway number three and the final one. That i thought was interesting from this. Is it's really coming back to what i was starting this off, with of just where it was the u.s court of appeals? I naively thought that this would be in front of a group of market experts who would be hearing out the case.

Not a quote-unquote normal court case who, right before this heard something about a sawed-off shotgun heard something about an actuary insurance payment with another company. And then are hearing citadel securities versus the sec, and my mindset here is like okay, citadel securities already realized that they lost to people who knew about the market. They lost their case against iex when they were talking to the sec. So now they're trying to sue the sec in front of the u.s court of appeals, which is one level below the supreme court, and i think that they are banking on people who don't have this expertise, unfortunately for them.

Fortunately, for us, these judges seem to be. I guess very well, i guess informed about the current situation, but what i want to leave you with to really wrap all this up is you could almost - and this is what a lot of the people on the space call were talking about, and i just want To resonate it just in case you haven't heard it because i think it's spot on, i think there's almost a decent argument that citadel securities is abusing our justice system, they're intentionally clogging up our justice system for something that they know. They probably have a very small percentage chance of winning, maybe they're paying people off - maybe they're - not i don't know, but our judges and our justice system has so much more important things to kind of like figure out and wade through while citadel securities they're continually to Try to fight the same fight that they are losing and losing and losing that's. Why it's in the court of appeals because they've already lost it at least one time before probably multiple times before, and i'm no legal professional.

But you almost start to wonder: when does it get into the territory of just like clear abuse of our system of like they're, just pissing away tax payer dollars, they're, making an obfuscated argument that it hurts them and they represent retail? So it's hurting retail and they're intentionally taking attempting to take advantage of people who don't have the expertise, but fortunately it seems like the judges were well prepared and smacked it back in their face, but the entire thing uh crazy um. We don't know how long this case is gon na last day. Two is tomorrow, uh october 26th, so it continues on tuesday uh. We don't know how long it will continue at all.

We have to wait to see how many arguments have to be made: yada, yada, yada, so i'll. Keep you updated on everything that like is playing out, but between citadel securities, admitting latency arbitrage, basically trying to cover up that they they use tiered access themselves. And now it just like, i said, gets into the area of like you're abusing the justice system, uh, which i don't know. I don't see how it ends well for them, but we just have to kick back and kick our feet up and just kind of see how this particular narrative plays out now, like i said earlier, if you do want more details on the specifics of this case, I highly recommend you read this reddit post by mr dave lauer himself, all right now, let's talk about one stock that is making me a bunch attendees and beyond that it is making a bunch of people in the discord a bunch of bunch attendees.

Look at this movement look at tesla, officially, officially over one trillion dollars. We had to almost a 13 gain today. At one point, we were trading at 945, we're now trading at 1025 and we closed out last week at 900, just over 900. whoa, that's over a 10 like that's crazy, that's a huge gain! That's over 120 billion dollars added to its market cap today.

You guys know me: i have a history of being called the best tesla trader on this side of the mississippi. It's not a title that i ever asked for, but it was just a title that was given to me and i'm getting accepted. I mean just this particular side of the mississippi and i put that cap back on today. Early this morning i said i got into it and in when i was like the midday session when i was hanging out uh with all the people in the moon gang server, we're like dude.

This thing is gon na keep going keep going. So i loaded up some more here's what you have to know about tesla recently last week they had their earnings and they beat on deliveries and they had very optimistic guidance for the this current fiscal quarter. Beyond that, we got the little surprise from hertz. Today, tesla hits one trillion market cap for the first time after hurt says it will buy a hundred thousand electric vehicles.

News of the deal brought tesla stock to a record high, just one trading day after the shares topped 900.. So we topped 900, which was the previous all-time high on friday, and then we had another continuation of 13 the very next day. This is like huge amounts of money to be made. The deal comes more than a year after hertz filed for bankruptcy protection during the height of the pandemic, as demand for travel and rental vehicles dropped.

Obviously it's returning now it's helping hertz, it's helping, tesla, absolutely awesome! So that's the fundamental story of what's going on, we'll do the technicals, but first i want you to know. What's going on with ortex, not necessarily a short squeeze play, the estimated short interest is 4.17 uh, not much of a return. Today they did borrow a quarter million against it. Utilization at 1.92 shares on loan 10.72 million, so the numbers are kind of low, but i do want to bring up something.

That's happened historically with tesla uh, and this is going to be a little bit of a deviation from like what we think of a squeeze when we're talking about like amc and gm and all that stuff. So let me bring you back to mid-november of 2020.. So right here, tesla was doing its thing: it had a reversed stock split and then this was what basically got it to run up in all of august or or not a river. Excuse me a stocks plan.

They did a four for one stock split. Maybe a five for one stock split: they did at the same time as apple. I think apple was four for one, and tesla was five for one, maybe vice versa. Anyway.

From that moment, the stock split happened on the 31st. We got the excitement of the run-up and then it did nothing, nothing, nothing, nothing, nothing, nothing, nothing all the way until mid-november, but matt what happened in mid-november. It was on the evening of november 16th that they announced that tesla would be added into the s. P.

500, this is interesting for two different reasons: number one: it kind of came as a surprise because it was snubbed multiple times before there are a certain set of prerequisites to be put in the s p, 500 and for whatever reason, tesla had those for various quarters. But the the community that decides it just snubbed them like not going to happen and why it's important is because there are many fund managers out there who run a fund that basically tracks the s p 500. So, whenever anything's added to it all the people who are running this portfolio, if they want to properly track the s p 500. Well, that means that they have to go out and buy that stock.

So there's an inherent increase in demand and also just the natural surprise to it. So anyway, we knew it was going to get added and i think it was added, probably like closer to the start of the year, but anyway the announcement, the that it was just gon na happen, got a lot of people excited and i'm gon na draw a Couple of similarities of just how you shoot up and you kind of do nothing and then you gap up, and you run well check this out. You're messing around not too much going on. You shoot up.

We have another gap. This might be the start of something crazy. Now i don't know i don't know if we're going to have a similar, how much of a run is this a similar 100 run? That would put us like closer to 2 000. That's why i jokingly tweeted out earlier today, what will tesla hit first, 1000 or 2000 as in? Will it drop 45 bucks or will it raise 955? Obviously, as being facetious, i mean - i guess it theoretically could happen, but the odds of that would be low, but anyway, coming back to what happened here.

So we have this announcement that served as a driver and the short interest was a bit higher. It was around five or six percent, but not too much higher than we are right now, but the reason it just kept going and going and going. This was just a long form like a slow but steady, almost a gamma squeeze is you continually had these people winning on out of the money, call options the premium sellers getting burned and they had a hedge. So it just continued time and time just continually push it up, never a huge day of like a 90 100 110 percent gain, but ever since mid-november, all the way up till basically the end of january, slow and steady, just gang gang gang gang gang gang gang Gang gang gang - that's tesla's, that's how it kind of does things um.

Even when you have these red days like that's, not the end of it, i think i feel like. Sometimes it makes people panic but zooming out of what happened in this two to three month time period, just a lot of strength and it was a slow and steady burn. It was never a dwac type thing where, like one crazy day, this was just like slow and steady won the race on tesla and now i'm just incredibly curious of like if that's what's gon na happen again slow and steady gets excitement, and if this is just Going to attract a lot of people to get in and i'm excited to see how high it can go now, a little bit of that is well that's a good question. We just hit an all-time high.

We have to now let price discovery play itself out we're at a new high. We have to weigh out the new levels of supply and demand and see where they're at before i do the exact technicals. I want to remind you that people who bet against tesla have legitimately lost billions of dollars and billions of dollars just recently, and if you look at it in its history, it's many many billions of dollars. Tesla has a special way of time and time again, burning shorts and almost similar to adam aaron.

Well, maybe even that next level, like elon, actively calls out shorts like if he thinks his stock his company, his brainchild is actively being maliciously shorted. He has no issue going to mainstream media and calling him out, which kind of makes it an interesting play, because you know the ceo truly has the investor's backs and he has no issue calling out shorts like whatsoever. So just a little bit of the narrative of elon and how it fits into here now, let's go do a little bit of the technicals. So, since we're at a new high, you kind of you could do a fib extension to a certain degree, but, as you can see with this fib extension that i just went from the recent all-time high to the recent all-time low, and that puts us at 1123.

So, let's just call it 1100. 1125. That's the next fib level! That's a little bit like it's, not my favorite way to really do technicals but gives us an idea of. Maybe some people are looking at it.

So, yes to the upside, that's actually my next target! I know that's crazy to say that's a hundred dollars above where we are right now, but remember we added a hundred dollars from friday until today, so we know tesla can do it and in fact it would be easier this time around, because it's a smaller percentage, But with all that, i'm not saying everything is like rainbows. Obviously we now have this gap, and you know my opinions on gaps. Eventually, tesla will fill this gap from friday's high at 910. I don't know if that's tomorrow this week, this month, even this year, eventually tesla will fill this gap, but that doesn't mean in the short term.

You might not get some crazy run, maybe to that fib level at 1, 125 in the short term, before we gap fill back to 910, but right now tesla has the momentum. It has undeniable momentum that is being spurred by the deal with hertz by the fact that last week it beat deliveries right now. Oil is sky high folks and whenever you see oil sky high, that makes the argument for electric vehicles that much better. I mean look at oil today: it hit 85 dollars and 41 cents a barrel.

This is the highest level of oil since 2014.. So we're in this weird scenario, where elon is a he's, a celebrity ceo who's, actively outspoken uh against shorts, but he knows how to drive his own narrative on social media he's in the world of evie evie. The technology is improving. Many people think that ev vehicles, electric vehicles, will hit a price parity with gasoline vehicles, diesel vehicles by like 2025 and as the technology improves and then we'll hit a dimension.

A demand inflection and just the global vehicle sales attributed to evs will skyrocket. On top of that, in the short term, oil sky, high people don't want oil, which is going to go to gas and diesel. So when that's high the highest, it's been in seven years. That makes the argument for evie even better.

So we have a celebrity ceo, who is probably one of the best people knowing how to use social media. We see the technology in the sector. Picking up, we see a social and cultural movement into the sector, and then we see the things that these fossil fuels, such as oil. Well, people just don't want to pay that anymore, so that actually makes the that price parity point of where people are willing to switch over that actually improves it in favor of ev.

So i know i give you a lot there on tesla, but i just kind of want to explain the situation what's going on because there's a lot of money to be made, i mean myself tesla. I created the position today and yeah. Did i chase a little bit? I did, i admit it, it was fun, but i don't know the right there. The group in the discord got me all excited.

I made two trades on tesla. I created two positions. I haven't locked anything in the ones up. 380 percent, the other one's up - 115 - that's not a bad day and with it i'm not going to close it out, because i've seen tesla too many times where kind of like friday, where it gets really close, but the very next day it gaps up.

Am i risking losing all of that money? Well, of course, i am that's why my bet is relatively low, because it's a high risk high reward play uh. You got to do what's appropriate for you, but man. I am thoroughly excited to see where this goes. Not only for tomorrow, but for the remainder of the week but uh, i think tesla in the short term, maybe definitely in the long term.

I've always been a tesla long-term bull, but i'm just curious what the the moon target is for tesla in the short term. All right, where are we at oil? I didn't realize how high it had gotten. Let's do a check on everything else and i'll get to some of your questions: right, wow, wow, wow, wow, all right, uh, amc, currently trading at 36.82, gme, currently trading at 173.20., and also, if you guys, haven't seen this fidelity is now offering if you're training on Fidelity they are offering uh routed orders to iex, so if you're on fidelity - and you want to pick that as your particular route - just so you know iex with those delimit orders, it's it's a thing. It's a thing.

You can now use relatively easily all right. Let me just double check on amc and gme amc net return now of 864 000 estimated short interest of 16.24 gme, a net return of uh, 59.4 000 estimated short interest just shy of 11, all right tiblio, oh xpev, another eevee play a crazy amount of interest Going on in expev crazy and that's for a bull squeeze just so everyone knows. Oh, i want to give you some of these numbers on amc, so i'm trying another. I was trying to find where people are getting their dark pool information, as in that volume uh.

I noticed that people are commonly posting this information of like oh okay. This is like the amount of dark pool, but trades that i saw throughout the day, but i'm very, very confused on their actual data sources. So i try to sign up for one and i see big levels of dark pool prints, but not necessarily definitely not the total volume. So if any of you out there know a good data source that gives you like the total dark pool volume.

For that day, i know of no data source that gives you up-to-date data that day. So if you know of one feel free to dm me or something like that, because i would love to use one of those, so i could show to all of you throughout the day anywho with amc the flow, the is definitely bullish. The put to call ratio was .49 favoring, the calls - and it seems like we did - have a big dark pool print early this morning, like one second into the day, someone bought 431 000 shares of amc like a second into the day, at a spot price of 36.20, and once again, that was for amc in terms of gme um, not really much going on in the dark pool today, at least from what i can see or in the options market. The the little bit of action in the options market is bullish.

So that's a that's a sign, but not an overwhelming amount of volume in terms of tesla in terms of tesla. I think this is funny so two seconds into the day, so someone bought a lot of oop. Why is that not there right now someone bought a lot of amc, one second, into the day, at least with tesla. They waited till two seconds into the day.

Why can i it just told me the amount it was like some egregious amount. It's actually really really funny two seconds into the day: they bought 280 million dollars worth of tesla um. They bought 294 000 shares at 951 dollars, which means that they've almost gained a hundred bucks uh a little bit under 10, so on 280 million dollars that are up enough. Eight percent on that eight percent on 280 million dollars they cleared 20 mil like it, was nothing they cleared.

Someone cleared 20 million dollars today on just betting on tesla early this morning. That's that's insane that just shows you um some of the money really involved in this absolutely ridiculous. Oh uh! I wanted to talk a little bit about sheep, so solana hit a new all-time high btc fighting back at an important level right now, 63k. We're looking at ethereum holding strong at 4200, but look at shebe look at sheep going if this can hold above 42.

I mean this might be above 42 and i think we're going to see a new all-time high for sheep. Just something to look for in this short to medium term, but she congratulations if you're in that um, like i said, i've never bought extra sheep. I just had the amount that was gifted to me from voyager for doing their like one of their questionnaires, and i just want to give you the update on that for the sake of transparency, so i was gifted 200 worth of sheep and right now it is Up 553, which is a 1 100 gain which is pretty cool because it's almost cancelling out my litecoin loss. I have a bad like i'm down like 50 on litecoin uh.

That was by far my worst crypto investment. By far a lot of people talking about bkkt - and i also see people talking about sheep to one dollar um, if you're in sheep, you should probably worry about one cent and then maybe 10 cents before you're talking about a dollar for it to get there. It's actually not going to happen unless they burn coin right now, just on the base on the market cap or no. No, no excuse me how many tokens there are if she hits even 10 cents, really even one cent at the current amount of tokens.

It would be greater than a lot of crypto put together like including bitcoin, so for that to possibly happen, you need to cut the supply of sheep, so you have to look for the burning the auto burning. That's for anyone who's very, very excited about sheep and hopeful for its future understand that it's naturally going to be blocked until it cuts some of its supply. There's no way in the short term that it's going to be as a market cap worth more than ethereum bitcoin any like that. It's just not going to happen, so you want to cut the amount of supply.

So the price goes up and benefits you, but the price can only get there if you cut down supply with the same or more demand um and i'm not saying anything against you like i'm in cheap. I want it to go up, but you also have to understand, like the mechanisms that are currently at play. It is burning yeah, it's. I know it's being burned right now, um, but i'm just saying you have to like.

We need more burning uh. The last time i checked it just had under 400 trillion, like you need serious burning like it can't just be burning a couple million. When you have 400 trillion, i think, like 393 trillion at play, it started at 1 quadrillion. There are a lot of sheep out there, i'm hopeful for it, but, like you just want the burning to happen.

Uh dwac dwac it's at 86 right now, when i, when it broke down below 88, i got a little bit concerned about it, but if it holds 82 i think has a fighting chance, but on dwac please be aware that there is a gap fill like it's, Not that crazy for dwac to drop to 52, like at all uh just so everyone knows, like 52, is very much in the cards for dwac. Does it have to get there? No and it could get there in a while, like this thing? Could bounce off of 82 and rip and fill the gap way way later? It doesn't have to happen now, but i'm just saying: okay. This is something that's clearly in the realm of possibility. Uh curious.

Why was the stock market closed today? Wait? What what's going on trey subway cup? When am i missing uh? They have been burning coin daily. Yes, she they have been burning coin daily, but they need to burn like 400 trillion. 393 trillion is a lot to do a couple mil a day.

25 thoughts on “Ep 117 citadel vs sec, stock market volatility cryptos bounce dumb money w/ matt”
  1. Avataaar/Circle Created with python_avatars Kimberly Sauly says:

    The Best trader with the best strategies and Indicator ever!
    Good job to Scott Huffman, heโ€™s an excellent trader

  2. Avataaar/Circle Created with python_avatars Muhammad Rakhshan says:

    Sir I just cannot tell you how much I admire your trading style. So simple yet so elegant. Always keeping risk management at the top. Have been trading with Scott Huffman for 8 months and yet no losses, when youโ€™re good youโ€™re good! God bless you sir โค๏ธ

  3. Avataaar/Circle Created with python_avatars SvitLana B says:

    What is happening to AMC?

  4. Avataaar/Circle Created with python_avatars Philip Tye says:

    Take a inch, they want to go balls deep.

  5. Avataaar/Circle Created with python_avatars Gonz Luis says:

    Wait is today part 2 ?

  6. Avataaar/Circle Created with python_avatars Roan says:


  7. Avataaar/Circle Created with python_avatars C M says:

    Capitol Gains Tax. The actions of the 'establishment/elite' from both side of the political aisle within the Democrats and Republicans Country Club.

  8. Avataaar/Circle Created with python_avatars C M says:

    Best Shorted Stock DWAC

  9. Avataaar/Circle Created with python_avatars Billy__theKid says:

    Your thumb nails ๐Ÿ”ฅ

  10. Avataaar/Circle Created with python_avatars Wild West says:

    Matt I wish you would contact Breitling Currency he does YouTube but on economics. Put both of your knowledge together and give us a great show! Please!!!

  11. Avataaar/Circle Created with python_avatars Wyatt Schultz says:

    matt, i love you big dog thanks for your honest, free research dd you always have for me before and after work. you really are so appreciated.

  12. Avataaar/Circle Created with python_avatars Dee B says:

    All the Trump haters somehow don't see a problem with this disgusting new administration. It's not just weird it's creepy

  13. Avataaar/Circle Created with python_avatars Thomas Pham says:

    DWAC closed at $83.68 today Monday after short seller Iceberg Research announced they short against the stock.

  14. Avataaar/Circle Created with python_avatars Frank Annis says:

    Desperate trump is helping the hedges. Do not sell your AMC shares to buy his space
    an do not sell your shares if they turn off the buy button. The hedges do not want to cover. The SEC will win against citadel in court.

  15. Avataaar/Circle Created with python_avatars Faire Lillith says:

    My favorite part of this video is when you turned into a dirt bike. "gaingaingaingain!" Love your show so much. Thank you for sharing your brain with us!

  16. Avataaar/Circle Created with python_avatars The Hudsons says:


  17. Avataaar/Circle Created with python_avatars Ghost Soldier says:

    High level frivolous lawsuits, Yup.

  18. Avataaar/Circle Created with python_avatars paul thind says:

    Matt fouls keep pumping bs and everything he says goes to the opposite….his notifications and his "algorithm" bs to hit the like is to benefit him, which is fine, but he gives no real value in life, and that is fact……thank you…

  19. Avataaar/Circle Created with python_avatars paul thind says:

    Love Matt fouls, but a few things to realize,
    1: He's not a financial advisor, which shows 100%
    2: Can't follow someone who is this much of a novice with your money, so what are you doing? TD ameritrade has so many resources that are a million times better than matt fouls….
    3. He's living off of you that's why he quit his job, facts
    4. The guy is way over his head and doesn't honestly have enough experience to realize what he's talking about.

    All of these are facts, the guy is cool, but not cool enough to fuck with your money, all facts….Matt fouls knows little about a lot…. and that is the truth and are facts…

  20. Avataaar/Circle Created with python_avatars Ted Malabey says:

    Why isnโ€™t the hearing live?

  21. Avataaar/Circle Created with python_avatars Kolt Player99 says:

    Get in touch with daily wire. And Candace Owens your message will hit a broader crowd. This bill is ridiculous. Donโ€™t let Janet yellen take our money.

  22. Avataaar/Circle Created with python_avatars Hi Shot! says:

    They are hypocrats + communists

  23. Avataaar/Circle Created with python_avatars Sophia Mirabelle says:

    My life has totally changed since I started with $ 9000 and n or I make. $ 43,450 every 11 days.

  24. Avataaar/Circle Created with python_avatars billie darling xo says:

    Thank for
    great episode Matt!

  25. Avataaar/Circle Created with python_avatars Rosalie Demetzky says:

    Love that song!

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