Do you understand their anger that you changed the terms of trade for them? Just as things were getting heated up, i do, but when you say right in the middle of the game, then you’re saying as the squeeze is going on stronger and stronger, but that’s illegal, that’s, manipulative, so it’s it cannot be done. What is going on cheddar chasers. We have a lot to cover in this video, so make sure that you stick around for the entire video putting aside diamond hands and memes for a second today was filled with market manipulation that was borderline criminal before we get into the meat and potatoes of the Video, i have to preface this by saying, don’t believe every single piece of information that you hear on the news. We are in the middle of a literal, monetary war right now, and a lot of misinformation is being spread. That could even be me, i could accidentally be presenting misinformation from some of the news sources that i am giving you so please make sure that when you do find an article online you’re not automatically gravitated towards one opinion, you have to understand that there are very Powerful people at play here with a lot of money, a lot of bribery going on as well potentially in this tug of war. With that said, there is a lot to cover in this video. We are going to talk about gamestop. We are going to talk about amc and my thoughts on that as well, so make sure you watch the whole video let’s get into it.
First things first let’s talk about what happened with amc and gamestop. Today, of course, restrictions on the stocks were put in place. You could only sell the stocks and you couldn’t buy them now. What is that innately gon na do when certain brokerages are restricting buying, but not selling? Well, that is going to drive the share price down, because now the volume of bids significantly goes down when people can’t buy the stock and then what happens is there are more sells than buys that drives the share price down, causing a snowball effect of panic, selling And that is what caused game stock to fall from 500 dollar highs in the pre market to nearly 100 dollars. Gamestop was down nearly eighty percent today, from its pre market highs. Amc also fell from its pre market highs from twenty dollars down to seven dollars, and somebody please correct me if i’m wrong, but this was confirmed as far as i’m aware, robin hood was indeed closing people out of their positions. This person here was closed out of a 4 500 share position of gamestop at 119. Now we don’t know what this person’s original position was, but it doesn’t matter whether or not they were in the profit and they were holding this from three dollars or whether or not they were bag holding from four hundred dollars as a brokerage. You should not be selectively choosing to liquidate certain people’s positions and also again on the topic of freezing buying, but only allowing selling and how that is pure market manipulation.
I mean that is just borderline criminal. Fundamentally, the stock market is a place where people can go and invest in a company that they believe in in order to provide them capital to expand and scale. That is what the stock market is for, but of course there are people that make money trading and there’s nothing wrong with that. The market is supposed to be a free market, and if someone wants to put a certain amount of money in the market and they are willing to lose it, that is their own choice. There is a massive difference between halting a stock which prevents buying and selling and only halting buying again, when you only halt buying there’s only one outcome that will happen, the stock price is going to fall and that is clearly market manipulation in someone’s favor. When you halt a stock on volatility, that’s fine, that happens all the time volatility halts exist for a reason, after volatility halts stop. It is then up to investors and traders whether or not they want to buy or sell out of the halt. But that is not what we saw today. We did not see a halt on the stocks and, of course, that is also going to spark another conversation. If the sec is forcibly halting stocks, not just due to volatility, that is going to kill the momentum of the stock and then by killing the momentum that is potentially going to kill the trade for a lot of people.
That is a conversation for another video, because again we didn’t see a halt. Today we saw preventative measures from simply buying, but not selling. The reason the market is doing what it’s doing is people are sitting at home, getting the checks from the government. Okay, and this fair share is a big concept, it’s just a way of attacking wealthy people, and you know, i think, it’s inappropriate. We all got to work together and pull together that right. There was leon, cooperman, hedge fund manager and ceo of omega advisors, and i think his opinion is completely if people want to put money in a certain stock because they think that they are going to make a profit from it. That is their choice. Investors and traders do not always have to be investing based on sound principles. There is something called momentum trading, something that hedge funds have already been doing and already manipulating markets with, but as soon as that momentum shifts, they attempt to get bailed out, it’s, literally the equivalent of using the infinite ammo cheat code in grand theft auto and for The record, if retail investors are choosing to put their stimulus checks which are supposed to stimulate the economy into the stock market and creating wealth for themselves. That is a good thing that is going to further help escalate the recovery of the economy, which is completely disconnected from the stock market right now, it’s, why you have decided like robin hood to restrict trading and shares of these companies like gamestop and amc, so simply Put we are worried about the integrity of the marketplace and the clearing system.
This here is the ceo and founder of interactive brokers and he’s quoted saying that they decided to freeze buying on gamestop, amc and other meme stocks, because it was ruining the integrity of the market. Are you kidding me right now the new scenario in which fundamental values do not matter stocks that are worth single digit dollars go to several hundred dollars, for example, game today, uh jumped up and down hundreds of dollars at the time. If we are on a if our customers are unable to pay for their losses, we have to put up our own money now. Luckily enough right we have nine billion dollars of equity, so we don’t have a problem and we also have a very well automated risk management system. So we haven’t really gotten hurt to be clear, you’re worried about the middlemen are. Are you doing this move to protect yourself or to protect your customers, partly to protect ourselves, but mostly to protect, of course, of to protect our customers, but most of all, to protect the marketplace? He hesitates here. He says that, of course, this is to protect themselves and then he realizes. Oh, this is actually to protect the people and the amount of dislikes on this video i mean you can tell that the people are not happy now, whether or not there actually is an issue with the clearinghouses that may or may not be true, because there is A lot of money after the options expire that are going to be funneled from one side to the other.
However, just because there is so much money being funneled through these clearing houses. That should not give the right to manipulate the market by freezing buying and not selling again, if you’re going to put a halt on a stock, you have to halt the stock completely. How would short sellers feel if selling was restricted but not buying? Of course that’s. A situation that would never happen because the stock price would then literally go to the moon but i’m, just giving you the inverse example of what happened today. There’S also another very important piece to this puzzle, and that is the relationship between citadel and robin hood. Robin hood as a company generates significant income from payments for order flow. This is a common, although controversial practice, whereby a broker receives compensation and other benefits for directing orders to different parties for trade execution. While my friends citadel pays robinhood for those order, flows and yes citadel the same investment firm or hedge fund, that bailed out melvin capital on their short position for gamestop, all you have to do is put the pieces together and figure out that there is some shady Going on and again, this has gone beyond money. This is about a free market and about rights for people and what you’re, seeing right now after hours as certain brokerages have appearingly allowed trading to happen on a limit order, basis 274 dollars the share price of gamestop. After hours, up 42 from its close 11 up 25 for amc after it’s closed and really all i got ta tell you guys right now, you already know what i’m about to say diamond hands.
Let me take you guys, really quickly back to 2008, just to show you the volkswagen short squeeze that ran up to a thousand dollars. This didn’t take place over a day or a week. This took place over months, and i think what we’re gon na see is a very long battle in this market. Again, i think history is being made right now, even though you may not realize it. A lot of the rules and regulations in the market could be changed after all. This settles all i know for certain whether you’re in the situation or you’re, watching it get your amc popcorn out, because this is going to be a ridiculous one.