Is going on i hope you're having a fantastic weekend and i hope you you're ready for an upcoming exciting week. We're kicking off a whole new and the past couple weeks have been very very green things are ripping from the bottom left to the top right so fingers crossed that that will be continuing now obviously we'll be talking about technicals and macroeconomic developments. But i also want to get into some of the recent developments about president biden's inflation reduction act and basically how it seems like we're he's at least being accused of being full of baloney and i also want to talk about the massive massive l. That ken griffin and citadel securities was handed from the sec.

This past week. So some fun things to get into and here's to hoping that the next couple weeks. The next couple months are as exciting before we get into that though don't forget to destroy the like button helping me out with the algorithm. I do appreciate it and don't forget to join up the moon game by hitting that subscribe button.

Now that we got that out of the way. Let's get rocking man. Oh. Man has the stock market been on a bullish tear to close out the week in.

The month the s. P 500 gained 15 the queues were up. 18 and the small cap sector was up. 07 over the past.

Week the market was up 33. The past month. It was up eight percent and ever since we really got this rip going we have now gained 11. Now obviously we have a lot to talk about with that but first let's get into some of the important news.

That will clearly have an impact on the economy and also the stock market watch biden speak about the 433 billion inflation reduction act deal in congress now when our elected political officials say things like the inflation reduction act that sounds good and i think it's meant to kind of sway you in the opinion of yeah like we should reduce inflation so like of course. We agree with this but when you start to look at it there are some questions let's say the least the inflation reduction act of 2020 will make a historic down payment on deficit reduction to fight inflation invest in domestic energy production and manufacturing and reduce carbon emissions by roughly 40 percent by 2030 that sounds great that sounds awesome but when it comes to our politicians. You always have to do a little bit more digging so it just came out for morton you know one of the most successful admired really famous business schools out there well what's their opinion on it they did a little bit of a breakdown and apparently the impact on inflation is statistically indistinguishable from zero. You know people with big brains those fancy pedigrees on the wall.

Kind of saying. Maybe this name a little bit of a misnomer not really accurate at all wanted to quickly share that with you because this is just the way of the government. Let's say one thing. Let's make it sound good when in reality politicians are doing what politicians do on a little bit more of a positive note this just came out on the 29th.

The united states court of appeals from the district of columbia circuit as in very high like very very close to the supreme court not that high but right up there with it citadel was suing the sec and this involved iex. Which is an exchange that has it's referred to as a d limit order. And it has a little bit of a speed bump you know like super super super quick as in you can't lick your eyes that quick and this is battling hft's high frequency traders citadel sued. The sec saying no you should not have allowed iex to create this order basically because it's going to be eating into the profit margins because they love high frequency.

Traders. But as you can see the way this went man oh man was ken griffin and citadel handed a big old l. Citadel. Security loses flash boy's legal fight over iex product once again the delimit order.

Which is basically making the mechanics and the profitability of hfts go down. So basically high frequency. Traders don't use iex and it's basically because of this big brain type of stuff that they have going on with the d limit order that's a huge win for retail. But one of the funniest things is gonna be i believe it's on page nine right here.

Citadel argues that the sec lacked substantial evidence for one of its findings and that three of the sec's decisions were arbitrary and capricious the court of appeals said we disagree now just to give that i thought was humorous. But to give you a little bit more of an idea of like what this means for everyone. Citadel securities llc. Lost its case against the sec over market order type that iex exchange of flash was fame that features a 350 micro second delay after arguing that regulators botched its approval.

This delay that is about a tenth of the speed. It takes you to blinker out so it's very very miniscule. It doesn't mean anything to normal traders. But to high frequency.

Traders. It makes a world of difference in terms of like their actual profitability. Iex called the decision a huge win for all investors and traders. And i have to agree and said that many had been using d limit over the past few years.

Even as the two sides fought it out in court. The limit was designed to protect their orders from latency advantages and give them better executions and that the data shows. It has been delivering on that promise this is a big win more than it just sounds because finally we have the court system. We have the legislation system.

We have the regulation system admitting that there is latency arbitrage. This is a huge huge development iex chief market policy officer. John ramsey. Said that the ruling was a validation of iex's efforts to make the market fairer for investors.

And other participants who are at a disadvantage to people. Using certain speed based strategies. Citadel. Security spokesperson david miller said in a statement we look forward to continuing to engage with the sec to ensure that the best interests of both retail and institutional investors are protected.

This is the part that is beyond comedy. Citadel. Is still trying to take the tune of no we're fighting for retail. We stand for retail.

The fuck they do and this is proof of it and then if you want to read this article on bloomberg. It gets into the scrutiny of gary gensler. Who at this point. I would argue fairly deserves it we have something going on with the sec and citadel and then more broadly with politics and the inflation reduction act.

Which is like i said earlier a little bit of a misnomer now let's talk about the overall market. Now you get the point that we've been ripping this could very well be a bear market rally as in we're not technically a bear market right now. But we're in a bear trend lower highs lower lows. But man oh man is this 11 pop ever since mid july.

A nice one i hope you got a chunk of it now fortunately. This has gone perfectly with seasonality over the past two to three decades seasonally from the end of june to the end of july. It is very very bullish. But i'm bringing this to your attention now because the start of august not so much in fact the start of august week.

Number one a little bit bearish. But then from there all the way up until mid september. It is bullish. But i just want to let you know what's going on with the first week.

Now that is for the s p. 500. Here's what we have in the nasdaq a little bit more weakness as in it might go for the first week and a half the first two weeks. But then once again after we get through that period.

Pretty bullish all the way up until mid september. Now does seasonality have to play out every year. No but i like to share it just because it gives you a little bit more of um. An understanding of what's going on from seasonal influences.

There are obviously beyond seasonality. You have big events in terms of macroeconomic events happening this week on monday. I'll be paying attention to pmi construction. Spending okay.

Yeah 9. 45 10 am. A little bit later in the week. We do have some fed members speaking 6 45.

On tuesday and then we get some other pmi stuff. Then we have another fed. Member speaking on thursday friday will be probably the biggest day. Because we get the unemployment rate.

We're going to get a better idea of is unemployment still at a five decade low in the mid three percent. So those are the events we have coming out this week. Important ones. But maybe not as big of a catalyst is probably the best way to put it as we saw last week.

But on top of it don't forget we also have earnings so feel free to check out e whispers on twitter. Feel free to screenshot this. There's many that i think i'll personally be paying attention to we have uber. We have caterpillar.

We have jetblue we have amd. We have paypal we have under armour moderna cvs. There's many here depending on what you like to trade. What not to trade obviously.

I know a lot of you watching this right now are going to care about amc that comes out on thursday after the market closes. So make sure you're paying attention to that if you're curious in the amc numbers right now. The short interest is just below 20 cost to borrow just below 10. And yes.

The utilization is still maxed out now if you happen to engage in the market. Where you're always looking for big squeeze types of plays. I just want to be completely forthcoming about this now. I never traded what was it hkd.

But this thing has been ripping over the past week. It is up almost 2 000. In three days this has gone 680 percent from 50 all the way up to 400 that is insane this is a full on squeeze. But the data is a bit wonky cosa.

Borrow sky high as you would expect it utilization max out as you expected on the threshold list surprise surprise. Something's not being delivered that should be but the crazy thing. And what i think's wonky in the data set here is the short interest is not at anything that you would it's below one percent. I mean look at it 16.

I personally find this surprising. But it's so incredibly low that i feel like something has to be off in the data set. Because what you can really see here is the fact that it's just been running like an absolute madman now to be very clear. I think.

It's too high risk to get in right now. That's why i'm personally not getting into it i have no position. If you're in it hey i hope you crush. It i hope you make a lot of money.

I just wanted to share it because it's definitely starting to turn some heads you are seeing a full on squeeze. I mean look at these all over all the major time frames. These are monstrous monstrous gains. So if you played it honestly congratulations to you am i jealous yeah.

A little. I wish i got a piece of the action. But it is kind of fun to see this type of stuff play out now just to quickly wrap it up in terms of the market. We've been ripping ripping ripping.

I see no reason to fight the current bullish trend. Things are looking very good these are my targets for 15 for 1750. I want to see how it reacts to that now obviously when you rip rip rip rip the more you go inherently the closer you are to some sort of a reversal. So i think there is going to be downside.

It might be with the first week of august as we saw there was some seasonal bearishness that's a possibility but right now the bulls are in control recently we are making higher highs. We are making higher lows. The trend is your friend you make money by riding the trend so right now until we see some reversal technical signals. I don't know it looks like the bulls are really rocking and don't forget we're not going to get one of these surprise fed announcements with the fomc because there is no fomc in the month of august pay attention to the unemployment report pay attention to this cpi report.

But we don't really have many things that could throw a whole wrench into the situation right now so it'll be interesting to see how it all plays out i hope you enjoy the video. I'll catch you in the next one and i hope you crush it in the market.