A brokerage just got caught lying about gamestop, circa january 2021 and the sec caught him and hit him with a fine, and it hopefully, is just the first of many to come, because it's about time that the sec is doing what they need to. With this whole debacle of taking away the buy button, so i'll be sharing the entire details of that particular story, but then related to gamestop amc redbox. I want to take a look at their charts and also the craziness, that is, the data supporting them on ortex. Some of it is still jaw dropping, but i also first want to take a look at the overall market and how i think that this recent bullish prediction for the overall market is going to continue at least fingers crossed into the near future.

So i'll be giving all the details of what i'm seeing there as well, but before we get into all that, if you enjoy this type of content, don't forget to help me out the algorithm by smashing that, like button and joining up with the moon gang by Hitting the subscribe button with that being said, let's hop right into it. Well, ain't! She, a beaut clark, look at all that green, green, green, the s p, 500 up two percent: the q is up 2.77. The small cap up 2.2 amc, jamie redbox - will be getting more into those, but they are green, green green now really to kick this off. Let's talk about the overall market recently.

What is it about? Two days ago, i made a prediction of why i was bullish on the overall market, the tldr version of that it's multifaceted, but it's mainly this. I think that everyone has fully digested what is going on with the fed right now from a technical perspective, the market was extremely oversold. We had a little bit of bullish divergence. I think it was time for a technical bounce, but i also think just where we are not only in the year, but also the month.

It's going to be time for some rebalancing, as in based on the really sell-off that we've seen from january 5th. To about now, it's about time for some of these bigger players just because of the rebalancing to put some money back in, so there were a couple of things we were seeing in the macro economic backdrop and i'm like hey it's about time. For one of these. What's referred to as a bear market rally now, are we technically in a bear market? No, but we're definitely in a bear trend.

So in these events, when the markets generically trending down, you know kind of defined by lower highs and lower lows, that's a downward trend. You do get some nice volatile pops to the upside now. The reason i'm bringing this up is because in the short term, maybe even in the medium term, i'm thinking the alpha plays a little bit to the bullish, the long side. But i want to make it clear at least for the overall market.

I don't think we've seen the low of 2022 put in quite yet. I just want that out there thus far the prediction's coming true and i think there is the excitement to the upside. But i stumbled across this and you got to give this a list and, speaking of the fed, remember the saying: don't fight the fed and they are very much the player, the organization that is kind of running the game right now, at least in terms of the Overall trend of the market, you got ta, listen to this and i don't know if 60 minutes is gon na take this video down. But this is just hilarious or to say you simply flooded the system with money.

Yes, we did that's another way to think about it. We did. Where does it come from? Do you just print it we print it digitally. So we you know we as a central bank.

We have the ability to create money, uh digitally and we do that by buying treasury bills or or bonds or other government guaranteed securities and that that actually increases the money supply. We also print actual currency and we distribute that to the federal reserve. Banks: boy: oh boy, does the money printer go bur that stuff those memes absolutely hilarious, but what does it actually mean so for quite a while? Okay: let's look at the announcement of the pandemic, the world kind of shutting down going belly up well right around. In late march of 2020, the fed said: hey we're going to step in we're going to help out we're going super dovish and they implemented in a policy of unlimited quantitative easing.

They lowered interest rates to the bottom floor and then they started printing money like a drunken sailor, as you just heard, they ended up putting about nine trillion dollars into the economy, and this ended up letting it rip and rip and rip. So the money supply went through the roof, they were buying everything mortgage-backed securities, uh, various forms of bonds on the corporate level and the government level. They were doing everything they can to basically keep the game rocking. Well, if you looked at this chart, when do you think something changed to me, i'm seeing this pattern of higher highs higher lows and it looks like it kind of peaked right at the start of the year.

Well, that's exactly when it did! On january 5th, we got flmc meeting minutes from the december meeting. That said, hey we're going from quantitative easing to quantitative tightening, so we know they're in the process of raising interest rates, but on top of that they're going to qt, which means kind of normalizing. The balance sheet that nine trillion dollars that they shoved into the economy, they're undoing that and starting on june 1st. It's at the pace, i believe, of 47.5 billion and then three months later in september, they're gon na jack it up to 95 million a month.

So if you do the math they're calling it out to us that okay, we think we can take care of this debacle, this nine trillion dollar debacle in about three years, the reason i'm bringing this up and i get it it's a little bit dry. I can even feel it through the camera that your eyes are glossing over, but in terms of what is the market doing? What is the market not doing? This is the type of stuff that you have to be a little bit knowledgeable about a little bit privy to because it can clearly dominate it. We announce unlimited quantitative, easing the market rips to kingdom come then we announce we're getting rid of that and boom the market starts to sell. This is not a coincidence.

That's why we have the saying: do not fight the fed now with the overall market. Out of the way leading back to the quick summary there is, i think we might be seeing a bit of a pop. I think it's a little bit overextended. I think people have digested what the fed's going to do and i think there's going to be some rebalancing from big players that really represents money flowing back into the market, so i'm looking for what's referred to as a bear market rally.

Now, let's talk about some of the specifics and i want to talk about jimmy yesterday - gained a beautiful, beautiful green day and now again up 11.5 percent rdbx also had 11.5 and then amc no schlump also gained 3, and i know maybe it didn't play out the Way you wanted it, but hey a green day is a good day. Obviously i'm right there with you. I want more and more and more, but at a certain point hey if we keep getting this back to back to back, i ain't complaining, but really for this part, i want to dive into the craziness of the liar liar pants on fire with gme and the Sec, thank you. Thank you.

Thank you. Finally, stepping in sec finds broker 125 000 for halting gamestop trades for 10 minutes, then denying it happen. So the sec has concluded an investigation into an online brokerage and its co-founder and slap them with a combined hundred and twenty-five thousand in fines for 10 minutes restricting on trading so-called meme stocks, the sec charge broker dealer trade, zero america and co-founder daniel pipperton. Whatever.

However, you say that with falsely stating that the firm's customers that they didn't restrict the customer's purchases on beam sucks when in fact they did and how so this all went down. On january 28, 2021 and trade, zero was told by its clearing broker to halt purchases of these stocks through its platform. So you might have heard a little bit about this with like the likes of robin hood and not having enough money with its clearing broker seems like a similar scenario, but they were just flat out, saying: hey. No, we never did that and then they got hit with a fine.

Now do i like that they got in trouble. Yeah you're, a liar you got caught, but to a brokerage. Does a hundred and twenty-five thousand mean anything not at all. Once again, i'm happy that the sec did something, but it's another example of a slap on the wrist.

I don't know if brokers, clearing brokers, hedge funds, market makers are ever going to stop what they're doing unless the actual speeding tickets get a little bit more serious than just being that a speeding ticket anyway, good news for gme twofold: hey someone got caught lying. They had to pay a fine, we had another nice green day and i want to bring up gme right now. We broke out of the support at 125, got rejected at the low 140s, so i'll be watching that these are the main levels of support and resistance. I'm watching obviously support to the downside resistance to the upside, but today, especially in the morning, it was a wild day and then a longtime friend of the channel dave lauer had a pretty interesting tweet, a funny tweet.

I want to share, with all of you jimi with high short interest low inventory, to borrow an extremely high cost, to borrow doing that thing. It does just a normal company with efficient price discovery in an efficient market ripping at one point this morning it was up like 25 30 percent, just kind of calling out how wonky things get in the current market structure that we actually have now. The other ones were amc and right now, red box, all ripping so amc got rejected at its resistance level of around 1260 1270. So i'm looking for that - and we have some nice support around 11.50.

So those will be what i'm watching for the final training day of the week tomorrow, friday may 27th and then from there. If things get nuts i'm watching 13.50 and then 14.75 and then for redbox before we get into all the ortex numbers, i will be looking for. The gap fill to the bottom side around seven dollars. This had a wild morning and then, unfortunately, got a little bit beat up as we got into the second part of the day, so we'd love a recapture of nine and then watching eleven, but probably what a lot of you are interested in check.

These numbers out. Gme, a new one-year high in the short interest, 27.7 percent cost to borrow through the roof, 165 utilization, maxed out and obviously shares on loan 22.4 million for amc short interest. Still high 22.6 percent cost to borrow slowly but surely going up it's not that long ago. That, even with the utilization of 100 and let's say the short interest within plus or minus about three percent uh, this was around one or two the cost tomorrow.

So it's interesting to see that go up and up and up with 170 million shares on loan, and then these are the ones that these numbers put. My jaw on the ground, redbox rdbx a short interest of 160, a cost to borrow average of 745. Every single cent this goes up, it must have the shorts, their pants utilization max out and it's a low float, which means it can be very volatile of 2.6 million shares on loan and the cherry on top. It is on the threshold list, which means there's a spike in ftds, which means, in the back end, that market structure, where sometimes you see things go haywire.

The shares are not properly being accounted for. Naked shorts are a type of ftd, but not all. Ftds are naked short, but regardless we're seeing a relatively large spike and continued spike, because it's been on the threshold list for a couple days straight now, actually even longer that it's been on this, so something wonky is going on in the background of rdbx. Beyond all these other crazy, crazy numbers that we see right here, that's what i have for you today.

It was an awesome day to be an ape. Things are green, green, green, of course, i'm right there with you. I want it to be more green, but take green when you can get it on top of it. Hey some people are getting fines lining about gme, so i think you got to take the wins when they're there, so i'm very, very happy with the day, but i'd love to get your thoughts and a comment below.

Thank you so much i'll catch you in the next video.