So so so so do we are back, we are back and um. I see some people are under the impression that we should stop with christmas music, but let me give you a quick reminder today is only day two, i believe of thickness. We have. We have quite a few more days to go while we're enjoying this beautiful season of thickness.

Oh man, oh man, oh man, oh man, folks, this only happens once a year. This is only a little what two week period once a year we're gon na enjoy it. We're gon na revel in it we're gon na have a good time. Let's get some of that holiday cheer going mute until thickness ends.

Oh it's thickness. It is definitely thickness how what's going on randy hello good morning good morning, good morning, folks, it is tuesday december 14th and it is it's. We have another inflation report and it came in hot. It came in very, very hot, i'm talking it busted onto the stage hotter than madonna in her prime folks.

It is it's a hot one, we're talking about the wholesaler report and people are not the most happy with it, especially given the fact that we're supposed to be hearing from the fed today they start their meeting the last one of the year. It concludes tomorrow. We get information at two powell speaks at 2 30 and the way things are kind of lining up. It's not looking so bueno, not looking so bueno for the overall economy, and we have some things that we want to talk about with that.

But what i need to, i guess, do my my best my utmost to articulate with this particular thing is just because something's going down doesn't mean it's bad, it's an opportunity. Remember here. I hope you've been here long enough. I've hoped that i've explained well enough that you have the capability of making money if the market goes up down or even sideways.

That could even be said on true about amc very honestly and i'm going to get into the technicals of it. There's a realistic chance that amc is going sub 20.. I'm looking at that 1920 dollar range. We have key support from late january in 20s.

That's a possibility! Maybe i'm right! Maybe i'm wrong. I see they're selling they're selling across the entire board. It might not be, it could be these portfolio managers who are running funds that track the entire russell 2000 and they have to sell just to properly still be tracking the russell 2000. There are obviously various things going on and the entire point that i really hope that i'm driving home with all of you is when it comes to the market in the market.

Action do your best to be devoid of emotion, be smart play. The levels play the tranches support the resistance, always respect your risk to reward, but also i don't want people to see red and then kind of think that, like that's it and you're losing money. If you see red there's opportunity somewhere, there is always always opportunity somewhere. You just have to be willing to look for set opportunity, and you also have to be willing to.

I guess, put in the time to learn the skill set that is necessary to properly capitalize on whatever opportunities are being presented to you. So, overall days like today and right now, it is it's setting up to not be a fun day. Folks, i'm telling you right now, especially with this inflation report coming in, but it's setting up to not be a fun day. If you are of the mindset that the only way to make money is by exclusively like buying and sitting and hoping that things go up, uh right now, if you're here in amc, if you're here in gme, it's been a rough go of it for the past Two to three weeks, the past three weeks have been very, very rough.

We know many shorts haven't covered anecdotally and later i'll. Do a poll in stream just to kind of illustrate my point. I think many of the apes, at least that find themselves on this particular stream - aren't gon na go anywhere um. I i see anecdotally many people are like okay, i'm still holding have the shorts covered, no okay cool, i'm still in it.

So i think, there's a vast majority of outstanding shares that are locked up by apes. That really really aren't just going to do anything like cool whatever my risk is zero. Maybe that's not everyone. There are various things going on that.

I think this could be more related to institution institutional selling, etfs rebalancing just because they always have to have the proper proportion in amounts. I think there's some other things going on in the background that i want to talk about specific to amc and gme. But overall, if you want to know what's going on with amc and gme, i think it's far more valuable for you to pay attention to the overall market. I'm talking the s, p, 500, the nasdaq 100, the russell 2000, and maybe even the dow.

You know i'm not the biggest fan of the dow, but if you want to track the dow 30, that's very very important too. I know some people have been trying to cite the fact that amc and gme are negative beta. I just don't agree with that. I think that's a poor understanding of what beta is or isn't and it really gets into the nuances of the math behind beta and you have to break out like your nerdy glasses and get your pen and your pocket protector and you're starting to talk about variance And standard deviation and normally distributed prices, and it's an important conversation to have a as soon as you start having it.

People's like eyes start to gloss over uh, but it is on it's very important to understand because of that and those details. That's why you really wouldn't want to apply beta of amc or gme really to the overall market. I don't know where i would even use gamestop's beta at all, but if you had a beta for amc, i think it would be most appropriate to apply it to the russell 2000 opposed to the s p 500, just because it's probably more appropriately described in that Basket, but even beyond that, it's a bit of a reach, it's very important when doing beta, to understand that you're dealing with a quote-unquote normal stock. What do i mean by a normal stock? Well, i mean from a mathematical standpoint that the price action is normally distributed.

That's like kind of the curve thing that you've probably slept through in math class. I would strongly argue that amc's price action is not normally distributed, because it is the result of a black swan event that is clearly closely associated with gamestop, so to say that anything about amc or gme is normal, not only from a grammar standpoint, a definition of A word standpoint, but also from a mathematical standpoint. I think, that's quite a bit of a reach and if we have questions or discussions about that, we can cover that in more detail when, after the bell goes. But before that, let me get you set up for today.

Let's all get our helmets on, because it seems like it's going to be quite a quite a bit of a day of fighting so pretty much in the red. The dow features s p 500, the nasdaq oil, all red red red. The 10 years are up right as of right now, but we're seeing quite a bit of red in the pre-market action. Five things to know before the stock market opens tuesday december 14th wall street set to drop after hot inflation data ahead of fed meeting, and it is hot, as i previously stated, it is hotter than madonna coming out onto the stage in her prime folks.

It's another hot one, the i guess final quarter of this year, the final fiscal quarter of this calendar year - uh, that's that's been the story of it. This will be remembered as all of the reports being hot hot hot inflation data. The u.s stock market extend tuesday's decline after another hot inflation report, and what they're talking about is right here. Wholesale prices measure rise 9.6 in november from a year ago.

The fastest pace on record wholesale prices increased at the quickest pace ever in november in the latest. Sign that inflation pressures bedeviling the economy are still present. What a word we need to try to do our best to really integrate that into all conversations today, bedeviling inflation's bedeviling, the economy are still present. I like that.

Maybe if you are looking for a potential way to get that in uh to your common conversation, maybe you're at the water cooler at work today and you're talking about it, a potential sentence you could use. Is man john? I can't believe how much ken griffin in citadel securities is bedeviling the entire wall, street establishment and then john, would say: yeah quite bedeviling. That's one way you could potentially use it, but i think we should try to integrate this just in case where any of us are getting ready for the sats. The producer price index for final demand products increased 9.6 percent over the previous 12 months.

After rising another 0.8 in november, economists had been looking for an annual gain of 9.2, so you're, seeing this not only in the price produce index, but the consumer price index and various other things. Some of the initial readings that we're getting out of kind of the real estate sector, also concerning from an inflationary standpoint, excluding food and energy prices, rose point seven percent for the month putting core ppi at six point. Nine percent also largest gain on record it's hot. It is hot what you need to know about it is, it is very, very hot, and it gets a little bit more wild so with it.

I i just don't get it because you have some commentary from jim cramer on december 9th, as in five days ago. Jim cramer says u.s economy strongest he's ever seen. Well, i have a question. Then: why do u.s consumers expect short-term inflation to rise at twice the pace of wage gains to me, and maybe i'm too young, maybe i'm too stupid.

Maybe my santa hat is secretly a tin foil hat. That's around my head way too tight and it's bedeviling any of my logical form of thought. But this is no bueno folks, u.s consumer expect short-term inflation to rise at twice the pace of wage gains and we're trying to wrap our head around the commentary that it's the best economy we've ever seen when the fed is about to do some insane amount of Quantitative easing gymnastics to undo what's been done in the past year and a half we're looking at tapering and about to get into this to like potentially end as early as march of 2022, and we might be looking at a rate hike the first one in june. Potentially, a second one by the end of 2022, what i feel like i'm living in looney tunes land - all this stuff - i don't know someone is wrong out here, someone's getting something wrong.

It doesn't something's going on in the background for the overall economy, the overall market and then we're supposed to just sit back and be like. Ah maybe we just don't understand it, you know who maybe doesn't understand it. You know maybe the people who have been trying to pitch us this for the past year, two years that everything's fine inflation is transitory. The job market is great, don't worry about the mass exodus of millions and millions of people.

Don't worry about the outpacing of inflation versus your income? Don't worry about the 180 plus high-level congressional staffers that were just cited for not properly disclosing their trades. Don't worry about the federal reserve, switching from bonds to stocks right before announcing one of the most impressive and insane and goliath-like policies of unlimited quantitative easing ever don't worry about the extreme amount of off-exchange trading to the tune of 40 to 60 percent, hampering any form Of price discovery, don't worry about the extreme amounts of ftds, not only in meme stocks, but really across the entire equities market. Don't worry about that because the people on the big tv told you that everything is fine and there's nothing to worry about it and if you think it's wrong, it's probably just because you haven't looked into it enough and you didn't believe the person in the suit And tie on tv telling you that everything's fine, don't worry about it. It's all good! There's! Nothing! There's nothing to see here! Folks uh! This is it's just so wild.

It is so so wild cnbc survey fed will halt asset purchases by march hike rates in june. Uh investors remain cautious about how the coven unicorn variant would affect the economy and what the fed might announce tomorrow, wednesday december 15th, to combat rising inflation. The fed will double the pace of its tapering from 15 to 30 billion. Remember it started at 120 billion.

That's what we're trying to like run down to zero they're, also looking at a june 2022 rate, hike moving on two studies reveal pfizer covent bill vaccine effective against unicorn. So this is from pfizer itself and then also an independent study. I believe, coming out of israel. Talking about the debt ceiling senate to vote on debt sailing as mansion holds out on biden spending, the senate is expected to vote today, tuesday, to raise the federal government's 28.9 trillion debt ceiling, avoiding the risk of a default later this month, kind of an interesting way To solve it, most of us in debt would say: hey how do i bring my debt number lower? I like this entire concept of saying, hey.

How do i just make my ceiling higher? Let's not worry about the debt, let's worry about the sailing related to the debt and just go higher and higher and higher um did i pay attention in my intro finance, check, balancing checkbook balancing course back in high school? Absolutely not, of course, i didn't pay attention, but i do. I do remember my teacher saying that whenever you're in debt just be able to take out more debt, don't worry about taking your debt, it's how our government does it uh kind of interesting senate republicans wanted to link the borrowing limit hike to president joe's proposed biden's Proposed 1.75 trillion build back better domestic spending bill, a measure they oppose, and then we have mansion he's not ready. He's signaling he's not ready when it comes to that that they're signaling. I know it's probably just like commentary between their staffers, but how much cooler would it be if they had a bunch of lights like right outside of their office, and they could legitimately signal like like a batman signal, but like i'm gon na vote? Yes, i'm gon na vote.

No, i don't know what i'm doing, i'm not even sure why i'm in dc, i thought i was going to be in my home state this week. I think we should actually build them out legitimate signals that they can push into the air that they can illuminate the surrounding air. I think that's a a better way for our government to run and just imagine that all hundreds of congress members just like light shooting up all over in dc, letting us know of like what's going on. Are they voting? Yes? No? Are they lost? Are they confused? Do they not know what's going on? Are they not happy that they haven't been getting enough money from lobbyists? All of those things, i think, could be included in a pretty cool nightly light show just to keep us all a little bit more informed about what is or isn't going on.

Moving on to some individual equities stocks on the move, gamestop amc, apple, tesla, ford, mgm. You can check this out of course, they're talking about gamestop amc recently, just getting rocked. I mean if you're watching this you've probably heard that amc and jimmy has not had the the most fortunate run ever since late november, but the short interest is going higher. Amc's estimated short interest is 18.74 and gamestops is 13.15, oh, actually a little bit higher right now, 18.83 and 14.76, so both both of these equities have a rising short interest.

Over the past two weeks, the shorts can't hold forever at a certain level. It's honestly that simple, you can cannot continually hold a short position, especially when you're paying a whatever cost to borrow fee. Remember these ctbs costs to borrow that's an annual rate, that's what you would pay. If you held the entire year, you pay in smaller increments.

Like you would just take this and divide it by the amount of training days and that's how you would own that's how much you would own every day. It is a dynamic number based on supply and demand of okay. Typically, when you see the utilization above 95 96, that's when you really start to see cost to borrow, go to some of those extraordinary numbers, but overall the way, if you're long and you can buy stock and just sit on it - you're not paying an extra fee. That is not true for a short position if you're short you're paying a fee for every single trading day in the market.

That's you're, borrowing these shares from an original owner and you're paying interest to basically the brokerage which is paying interest potentially to them. But you cannot indefinitely hold a short position. Uh, if you did, it would end up being a clear net loss, because your cost of borrower, eventually given enough time, would outweigh whatever is going on in the movement of equity. Before we get into the technicals of the overall market.

Amc jimmy and all that i want to let you know that hey spider-man, no way home, which officially comes out this friday, lives up to the hype. It's the first true event film, since avengers and game worth seeing in a theater and if you do see it in a theater potentially for selfish reasons, i hope you're seeing it in an amc, theater, the world's leaning movie theater chain. The initial reviews are in and it's awesome people are very, very much enjoying it. It is meant to be seen on the big screen.

I'm particularly excited, i hope to be getting it. I mean i'm already seeing the tickets fly off of the digital shelf here in the philadelphia.