This is the penultimate DD of common sense about the #MOASS involving highly shorted securities (ex: $AMC, $GME, $SPCE)
This is going to be a worthwhile reading session separated into many parts covering the aftermath, the issuing speculated crash, and wealth preservation.
Disclaimer: Anything from this thread is not financial advice and there will be underlying financial principles that are best applied for me.
Your money is your responsibility and I am not held accountable for your individual decisions if something happens to your lost tendies.
(Part 1) The #MOASS is currently under preparation and $AMC is experiencing a wave of enormous FOMO and delta hedging which could drive the price up even more before shorts are forced to cover. A short squeeze does not start unless someone starts covering. Plain and simple.
(Part 2) Many generous apes and cats have access to analytical platforms such as #ORTEX giving us insight what is the current SI (Short Interest) including the shares on loans. It makes absolutely no sense to sell before all of these are covered.
(Part 3) Considering the movement was initiated to eliminate bad actors on the market, this became a war against Wall Street. It makes no sense to sell if we have not seen headlines about institutional bankruptcies. We are fighting fair and square based on their playing field.
(Part 4) We should be holding until most of these bad actors are gone giving a chance to the market having a clean slate with the new kings & queens dictating how the world should go: retail investors.
(Part 5) Truthfully told, once banks and clearing corporations are hurting, the FED would be forced to print to bailout these businesses including paying for our tendies. They are part of the foundation of that huge house of cards which would collapse entire markets.
(Part 6) When we're talking about bailouts, we're speaking about retail businesses as well as institutional secondary branches going bust. Literally millions of unemployment. For us, we are somewhat part of that huge house of cards because our wealth is buried in that rubble.
(Part 7) Consider ourselves to be modern explorers finding lost gold under a collapsing temple of an ancient civilization. And we would require builders to construct levers to hold founding structures until we get all the treasure out in time.
(Part 8) If you think the FED will be printing endlessly for our tendies, just consider international repercussions. The US is in a little predicament dealing with inflation where their target is 2%. They are way above that with 4.16% (April 2021)
(Part 9) As inflation goes up, the currency value decreases. It is absolutely stupid to think we all hold, even after most of the bad actors are gone, forcing the FED to print more while your tendies are decreasing in value. Hold that thought.
(Part 10) I don't think many people would be happy bringing a wheelbarrow worth of cash to buy a single loaf of bread. That's what happened in post WW1 Germany, post WW2 Hungary, North Korea, Zimbabwe, Venezuela and now we're talking about Argentina.
(Part 11) The original movement was created to eliminate bad actors of the market and we should all hold until these are gone and we should contribute to additional damage into the market and hurting more retail investors not partaking into the squeeze.
(Part 12) You want more money? Buy more shares. Every keen investor is expected to save 40-50% of their annual income, starting from a young age. Every person is in a different financial situation but saving is so important for passive income because hold that thought.
(Part 13) So you made it out from the squeeze? Congratulations! You have your tendies. But wait, don't forget about seeing a CPA, get your taxes done and solving your liabilities.
(Part 14) In this day and age, the average person, in terms of financial literacy and skills of personal financing, does not understand the differences between assets, equities, and liabilities.
(Part 15) Common investors need to kill off liabilities post-squeeze ASAP. These include credit cards, loans, mortgages, student loans.
(Part 16) The greatest minds of the finance game such as Ray Dalio, Michael Burry, and Harry Dent, are speculating, based on statistical data, that the world will be facing a severe bearish market reaching the near-levels of the Great Depression.
(Part 17) Considering the repo numbers and how the world has overextended themselves on margin, credit, and debt. We are overdue for a massive correction.
(Part 18) Based on the 2008 financial crisis, it took an ENTIRE year until the SP500 reached the very bottom (the true dip) until it took until around 2014 for its underlying stocks to recover from where they fell.
(Part 19) With the Great Depression, it took several years until index portfolios reached the bottom and even more years to recover from where they fell. Now, hold that thought.
(Part 20) Is it wise to reinvest into the market right away? Based on historical and present data, it won't be for a while. History tends to repeat itself with the financial world revisiting dark ages until we boom towards a new golden age. That's the cycle of the market.
(Part 21) What about dividend based stocks? Well, if you're impatient, be prepared to invest in the ATHs and face a dip of their stock value. The dividend amount should remain the same but a decrease of the stock value means less fund available.
(Part 22) Example: The ETF value drops but the dividend yield increases. The ETF value increases and the dividend yield decreases to keep the same dividend amount. Although, just keep in mind the less money the fund has, chances are the dividend amount will drop.
(Part 23) Just wait out for the storm to pass and buy the delicious dip.
What about real estate? Should you invest into a house or take out a loan for one right after my tendies. Absolutely not.
Second part of the penultimate DD coming out soon.
Small typo here: We should not**
• • •
Missing some Tweet in this thread? You can try to
force a refresh
Every security trading-related institution (hedge fund or investment bank) is bound by market regulators under a clearing corporation (CC).
$AMC - $GME - $SPCE
(Part 2) Every CC has their specific criteria for their registered members using their services (AUM, custody, validity of transactions) including maintaining a minimum level of liquidity in their brokerage accounts. Consider a CC being a payment processor like Paypal.
(Part 3) This required level of liquidity requirements is somewhat a failsafe to maintain borrowed assets, especially shorts dealing with margin.
(Part 1) Why quitting your 9-5 job is a bad idea right after post-squeeze?
Wait what? Why cat?
Relax. It's basic wealth preservation 101.
(Part 2) Many people after a lottery, based on a 2016 national survey, keep their daily job or continue to keep working.
The thing is, once you sell your positions, it becomes a one-time income for that year and it doesn't grow if you have not reinvested back into the market.
(Part 3) Leaving your 9-5 job is cutting yourself short and you are not shielding in anyway your millions worth of cash reserves because that boring job you have was the only hedge left against that psychological spending.
You guys are about to become part of the 1%.
But the homework is not done.
There are tiers within that 1%. The top of that 1% is Jeff Bezos, Elon Musk, Bill Gates, Mark Zuckerberg etc.
You will be part of the bottom of that 1%.
(Part 2) Truth is, 70% won't be able to make it and maintain that new status. Squeezes are just like lotteries and be sure that you are not part of that statistics.
Going back to the lambo purchase. If you choose to buy one, good for you. Your money is your responsibility.
(Part 3) Consider this. The high average of a lambo is 500k. If you commit to use that 500k for passive income, this is what you get.
500k under a brokerage account, with a solid 10% APY (with good research) will give you roughly 50k/year.
(Part 1) Remember when GME spiked towards 480$+ in January? The DTTC, a worldwide known clearing corporation, recently admitted that no institutional party has covered their short positions. So technically, that wasn't a short squeeze.
(Part 2) That info changed tremendously our outlook on the data. The current price movement of $AMC is essentially triggered by FOMO and delta hedging which the same thing happened with GME. A short squeeze is, by definition, positions being covered by short sellers.
(Part 3) Logically speaking, considering the greater amount of outstanding shares and the stock being one of the most heavily shorted securities on the market, it is quite possible that the stock could go up in the early thousands without short sellers covering.
(Part 1) "There's a small group who can do the math. There's an even smaller group who can explain it. But those few who can do both, they become billionaires" - Bobby Axelrod - Billions
Let's lay back and think rationally about this. $AMC
(Part 2) Multinational corporations and worldwide known institutions are the best ones who can figure out mass psychology and use that notion against retail investors to manipulate markets.
(Part 3) The stock market doesn't care about your emotions but when it does, the people in authority will use it to pummel you down.
(Part 1) Common HF strategy in the playbook (relevant to what might be happening right now with $AMC)
(Part 2) After meticulously observing the borrowing activity on numerous financial analytic platforms, they have been returning their low priced shorts for reducing their risk of being margin called.
(Part 3) They are going long to gain some marginal profits as we're moving up on a bullish trend.