Stock Market Meltdown Megathread

[dirtytoeddawg]

Citadel Securities is the largest designated "market maker" for the New York Stock Exchange. As a market maker, the job of Citadel is supposedly to faclitate trades by matching buyers to sellers, and provide liquidity to the stock market. To give an idea of how big they are, they claim to have generated over 4 billion dollars in revenue during the first half of 2020.

However it is suspected that Citadel Securities is cooking their books and uses a "dark pool" to front-run trades. Front running a trade means they do not give you the best price and manipulate trades to benefit their own investments. However since dark pools are hidden from the rest of the stock market, this cannot be proven. Outsiders would need access to their insider data.

It is believed that Citadel Securities has opened a massive short position on Gamestop, and is in fact "naked shorting" the stock. This means they have sold short more shares than Gamestop has issued to the stock market. They could not possibly close this many positions by buying them back, and this means they are in reality, bankrupt.

However they would only go bankrupt if caught. If regulatory agencies like the SEC don't actually do their job, and Citadel continues to cook its books and hide all the data, then they could potentially get away with what is possibly the single greatest act of fraud in all of history.

Retail investors have taken note that "failing to deliver" (or FTD's) have been on the increase over the post few years. This is short sellers refusing to buy back the shares they sold short. This is a violation of the contract however our regulatory agencies don't seem to care and punishment is usually a tiny fine, if they get punished at all.

Most other countries have a mandatory buy-in law that requires short sellers to buy to close, or face stiff penalties. Some countries have banned short-selling entirely.

Which is why a movement has formed to direct register all shares of Gamestop. Once we have our names on the stock and every share is accounted for, there should be no more shares of GME being traded on the market. That means no more short positions. No more failing to deliver.

If all shares are locked up in DRS, all shorts would have to close, but they could only do so by buying our direct-registered shares. We have all the water and they are out in the desert dying from dehydration. They would have to offer us a price to entice us to sell. We would set the price. The stock price would have to go up, and this would cause what's called a short squeeze.

Except it wouldn't be just any other short squeeze. Nothing like this has ever happened before. No company has ever had all its shares locked up in DRS. No other company that we know of has been shorted to this extreme. We expect the "mother of all short squeezes" or MOASS, to happen. We 100% legit expect this to send the price per share into the millions.

And when Citadel Securities goes bankrupt, so will multiple other hedge funds and banks. It will be the collapse of the stock market as we know it. Economic doomsday for the United States.

Interesting. I see estimates of 30% currently under DRS. That’s quite the leverage. I Still don’t underestimate the powers that be to change rules before it’s over to protect themselves.

God speed

 

[MalO]

FDIC meeting today. Give it a listen.

No youtube video. It's embedded over at reddit. So you'll have to listen to it there.



It sounds like they are expecting 2023 to be a war zone and they are expecting a huge run from our financial institutions.

 

[MalO]

The guy in the first video mentions title 2. I think he's referencing orderly liquidation under Dodd-Frank.

Dodd-Frank: Title II - Orderly Liquidation Authority

www.law.cornell.edu

Title II, the Orderly Liquidation provision of the Dodd-Frank Act, provides a process to quickly and efficiently liquidate a large, complex financial company that is close to failing. Title II provides an alternative to bankruptcy, in which the Federal Deposit Insurance Corporation (FDIC) is appointed as a receiver to carry out the liquidation and wind-up of the company. The FDIC is given certain powers as receiver, and a three to five year time frame in which to finish the liquidation process. Title II is aimed at protecting the financial stability of the American economy, forcing shareholders and creditors to bear the losses of the failed financial company, removing management that was responsible for the financial condition of the company, and ensuring that payout to claimants is at least as much as the claimants would have received under a bankruptcy liquidation.

doooOOOOOOoooooom

 

[MalO]

^ That's a lot of unrealized losses.


"securities sold, not yet purchased" = short positions.
That's a lot of unrealized losses.

https://www.dtcc.com/-/media/Files/Downloads/legal/policy-and-compliance/CPMI_IOSCO_Quantitative_Disclosure_Results_2021_Q1_1.pdf

Page 6:

National Securities Clearing Corporation (NSCC) At the end of the first quarter of 2021, NSCC’s 12-month backtesting coverage level was 99.7%, with the 1-month coverage ratio for January at 98.8%, 99.9% for February, and 99.5% for March. The median backtesting deficiency for the quarter was $3.3 million, which included a maximum backtesting deficiency incurred on January 22, 2021, for $1.06 billion. The largest deficiency incurred during the quarter was mainly driven by a single security exhibiting idiosyncratic risk.

One security exhibiting idiosyncratic risk? On January 22, 2021 you say?

 

[MalO]

This is Greenspan talking about the repeal of Glass-Steagal in 1999. It was passed in response to the Great Depression to prevent a market crash like that from ever happening again.

The reason it was repealed is because our financial institutions have become predatory. They don't want to protect retail investors or even their own shareholders. They see us as cattle. When we invest, our money is farmed to give them profit.

And now the dogs have returned to thier vomit. The market is going to crash, and I have no doubt it will be even worse than the Great Depression.

Glass-Steagal should never have been repealed.
Short-selling should be illegal.
PFOF should be illegal.
Dark pools should be illegal.
Regulatory agencies like the SEC, CFTC, and FINRA should be punishing financial crimes much more severely. Fines should always exceed the profit earned from a crime, otherwise it's not a punishment it's just the mob offering "protection" and taking their cut.

 

[MalO]

Some great DD I just found about the CFTC and swaps reporting. I always thought it was odd that the CFTC delayed swaps reporting. Now we find out why:

The DD:

The Dodd-Frank Act:

https://www.govinfo.gov/content/pkg/PLAW-111publ203/pdf/PLAW-111publ203.pdf

Page 355 of the act:

SEC. 741. ENFORCEMENT. (a) ENFORCEMENT AUTHORITY.—The Commodity Exchange Act is amended by inserting after section 4b (7 U.S.C. 6b) the following: ‘‘SEC. 4b–1. ENFORCEMENT AUTHORITY. ‘‘(a) COMMODITY FUTURES TRADING COMMISSION.—Except as provided in subsections (b), (c), and (d), the Commission shall have exclusive authority to enforce the provisions of subtitle A of the Wall Street Transparency and Accountability Act of 2010 with respect to any person.

741 became a meme last year because Ryan Cohen was tweeting in a pattern of 7 tweets one month, 4 tweets the next, and then 1 tweet the month after that, and he repeated this for a while.

Nobody made a connection to the enforcement of Dodd-Frank until now.

There have been some investigations into swaps and it was suggested short positions were somehow being hidden inside swaps, and the CFTC delayed the reporting of swaps until 2025.

Dodd-Frank does regulate swaps in fact if you search the PDF for "swaps" you get 443 hits. It's deep and I'm not going to try and understand it all but yes there are lots of rules about swaps. The key takeaway is section 741. The CFTC is responsible for enforcing Dodd-Frank.

Now that we know about section 741, the big question is why is the CFTC delaying reporting of swaps? It's the CFTC'S FUCKING JOB TO REGULATE SWAPS so why are they not doing their job???

This is like the IRS asking people to not file their tax returns. Why would the agency responsible for investigating swaps and enforcing the Dodd-Frank act not report swaps data?

Why???

Because a crime being committed and the CFTC doesn't want to hold the criminals responsible.

 

[MalO]

If you want to know more about the CFTC delaying swaps reporting:

CFTC delays application of new swap reporting rules – now what? | Insights | Bloomberg Professional Services

On January 31st the CFTC published a no-action letter for their amendments to part 43, 45 & 49, relating to the implementation of amendments to swap data reporting rules .

www.bloomberg.com

CFTC Staff Issues No-Action Letter Regarding Compliance Date for 2020 Amendments to Swap Data Reporting Rules | CFTC

www.cftc.gov

The delay was requested by the ISDA (International Swaps and Derivatives Association)

But that's just a bullshit excuse. Any group of rich people can form an association. The CFTC is the enforcement body that is supposed to be punishing criminals for their crimes.

If the mob asked the police really nicely to not show up to this bank at this date and time, would the police agree to not do that? Or would the police make sure to have cops on site at that date and time?

The CFTC agreed to look the other way when the mob told them to.

 

[MalO]

 

[MalO]

Things are getting spicy. We've suspected for a long time that naked shorting is happening off-exchange and in dark pools. Yesterday there was a data leak related to some off-exchange trading.

 

[MalO]

I hope the price drops to $10 so I can buy another 100 shares on the cheap.

 

[MalO]

DOOOOOOOM

 

[MalO]

JPow doesn't like that retail is still buying meme stocks.

 

[MalO]

It was found out that short positions moved overseas aren't reported to FINRA anymore:

Frequently Asked Questions (FAQ) about Short Interest Reporting

The guidance provided in these FAQs pertains to the reporting to FINRA of “short” positions pursuant to FINRA Rule 4560 (Short-Interest Reporting) in OTC Equity securities, as defined in Rule 6420, and securities listed on a national securities exchange.

www.finra.org

Q8. Is a firm required to report short interest positions that are held overseas at a separate legal entity and are not reflected on the firm’s books and records?

A8. No. FINRA member firms only are required to report all short positions that are held in each individual firm or customer account, including the account of a broker-dealer, that are reflected on the firm’s books and records, as described in Rule 4560.

So if your institution is naked shorting a stock and you want to hide that, how do you do it? First you move your shorts overseas, so you don't have to report them anymore and then you make them look like something other than shorts.

How do you make a short look like it's not a short? By marrying it with a put. "Short Married Puts" are when an institution attaches a short to a put, and calls it a put. This is apparently legal, however I can't find much of any documentation about it. I did find it referenced in this book:

"Trade Options with an Edge" by Dr. Russell Richards

Trade Options with an Edge

Would you like to have success in trading options much like the success of a casino that consistently grinds out profits each day? Casinos are successful because they have a definite probability edge on every gambling opportunity that they offer. They rely on the law of large numbers to...

books.google.com

It has a section on married puts, and mentions short married puts.

Now isn't that interesting? So you move 100 millions shorts overseas, marry them to a million puts (1 put is worth 100 shares, so 100 million shorts would only need 1 million puts) and then your overseas puts are hiding 100 million shorts that the normies would never see. No regulatory body would ever think to look there. You've gotten away with your crime!

Until a bunch of filthy apes figure it out and find your 1 million puts on some random exchange in Brazil:

 

[MalO]

There is up to 60 trillion dollars in "missing debt" in the world. This is debt that banks have hidden away in things like swaps and aren't reporting on their balance sheets because they don't have the money to pay it.

Missing Trillions : The Bank for International Settlements report

Hey everyone, get excited because it's time to talk about the most thrilling subject ever: FX SWAPS! I know, I know, it's about as thrilling as …

vallo.substack.com

 

[Timothy]

Just tell me when to buy TSLA

 

[Timothy]

I just bot TSLA at $115. Wish me luck

 

[MalO]

I just bot TSLA at $115. Wish me luck

I'm planning to buy more GME next week on the 20th. The 20th has a massive number of options expiring and we are expecting some price action. Whether it goes up or down is yet to be seen.

The 1/21/21 spike was caused by a gamma ramp. This is when the price goes up, calls fall ITM, those people buy in, causing the price to go up, making more calls fall ITM, and they buy in too.

The same thing could happen the 20th of this month. But the hedge funds have had 2 years to figure this out. They are likely planning a short attack to keep the price suppressed.

Either way I'll be happy. If they want to go further into debt so I can get a discount on more moon tickets that sounds like a deal to me.

 

[MalO]

>:0

 

[MalO]

CPI increased 6.5% last month. Starting February they will start calculating CPI a different way. This is no doubt going to make CPI suddenly look better but things won't actually be getting better. The metric will just change.

 

[MalO]

January 19th the federal government hits its debt limit.

First thing they will do to cut costs: seize the retirements of federal employees.

 

[MalO]

The lying never stops!


It's backed 1 to 1 but it's only for international users not USA users? That doesn't make sense. If these tokens are legit backed 1 to 1 then USA users can certainly buy them because we can buy GME in the USA.

What possible reason would they have to not sell these tokens in the USA?

Once again, it comes back to short selling. As stated by FINRA:

https://www.finra.org/filing-reporting/regulatory-filing-systems/short-interest/faq

Q8. Is a firm required to report short interest positions that are held overseas at a separate legal entity and are not reflected on the firm’s books and records?

A8. No. FINRA member firms only are required to report all short positions that are held in each individual firm or customer account, including the account of a broker-dealer, that are reflected on the firm’s books and records, as described in Rule 4560.

 

[MalO]

Skeptics: bUt ThE sHoRtS cLoSeD

Me: closing and not closing are two different things!



Failure to Deliver: shorts not closing

Shorts have been refusing to close for the past 2 years. I will keep buying more until the shorts close.

*Also to meet the regulation SHO short restriction threshold, a stock only needs 10,000 FTD's for 5 days straight.

GME should have been on the reg SHO list almost constantly for the past 2 years. This hasn't stopped more shorts from being opened on it.

 

[MalO]

Inflation is theft. The money supply should be limited and not the government, not the central banks, not any private entity like the Federal Reserve should be able to conjure it out of thin air.

Increasing the money supply should be done by popular vote only.

 

[MalO]

No one seems to care unless its something that directly affects them, and even with inflation which does directly affect them, since it's not an armed robbery and instead some kind of big government boogeyman hiding in some abstract "problem with the system" they turn it off. Ignore it. Not their problem to fight.

Unfortunately that just makes things get worse.




Even now when I try to explain what's going on with GME when I start talking about liquidity and direct registration people just turn it off. My words don't reach their brain.

The founders recognized that an armed and educated population is the bane of tyranny. But what happens when the population prefers willful ignorance?

No amount of guns can save a people who don't know they are at war.

 

[MalO]

76 consecutive days that GME short volume has been over 50%

That means over 50% of all trades, were short sales either being opened or closing.

(the shorts aren't closing. Look at the FTD data)





FTD data is released every couple weeks. We have FTD data until 12/30/22 right now.

https://fintel.io/sftd/us/gme

When you look at the above, it's clear that the short interest on gamestop should be much higher than what is officially reported. However:

1. short sales are self-reported. The penalty for not reporting short sales is a slap on the wrist.
2. FINRA has rules states that overseas short sales do not have to be reported at all.
3. Regulatory agencies like FINRA, the SEC, and the CFTC cannot see off-exchange trades. Most trades happen off-exchange so they aren't reported.

The end result is we have to piece together a picture with only a small number of puzzle pieces. But the more we learn the uglier the picture gets.

It's possible that short interest on GME is well over 100% it could be 200% or 300% or more. Some conspiracy theorists have suggested it could be in the thousands of percent, with 10+ shorts for every share of the stock.

 

[MalO]

BoA chance to go bankrupt: 75%

https://www.macroaxis.com/invest/ratio/BAC-PD/Probability-Of-Bankruptcy

Current BANK OF AMERICA Probability Of Bankruptcy​

75%​

Most of BANK OF AMERICA's fundamental indicators, such as Probability Of Bankruptcy, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, BANK OF AMERICA is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.


Our calculation of BANK OF AMERICA probability of bankruptcy is based on Altman Z-Score and Piotroski F-Score, but not limited to these measures. To be applied to a broader range of industries and markets, we use several other techniques to enhance the accuracy of predicting BANK OF AMERICA odds of financial distress. These include financial statement analysis, different types of price predictions, earning estimates, analysis consensus, and basic intrinsic valuation. Please use the options below to get a better understanding of different measures that drive the calculation of BANK OF AMERICA financial health.

 

[MalO]

Today was a normal day for the stock market.


1. A bunch of stocks halted this morning and the excuse given was baloney.


2. It turns out Kenny is a major donor to the wife of the chairman of the NYSE.


3. Binance, Circle, and Coinbase were caught moving the same amount of funds back and forth to each other like a hot potato. While transfers aren't illegal by themselves it would be illegal if they were declaring this as income. That would be cooking the books.

 

[MalO]

 

[Timothy]

I just bot TSLA at $115. Wish me luck

Just 16 days later it is at $157.

Thank you Dem morons for pushing it down to a buy point.

 

[MalO]

An old interview with Cramer. He openly talks about stock manipulation.

A quote from Ken Griffin. He's referring to a potential collapse of Citadel:


This is why there are FTD's on every ticker every day. It's why the USA doesn't have mandatory buy-ins and why reg SHO is being ignored.

They will find every excuse to not close out short positions. It's free money stolen from companies and their shareholders, and our financial institutions are addicted to it.

Kenny is of course, lying. The short sellers are the criminals, not the people going long, not the people demanding that the shorts fulfill their buy to close obligation.

You would have to be a deranged sociopath to be managing money in people's pensions and also short sell. Short selling has infinite risk.

Why You Should Never Short a Stock

Short selling a stock means you are betting on the stock decreasing in price. Before taking on this investment, you should fully understand the risks.

www.investopedia.com

KEY TAKEAWAYS​

• Shorting stocks is a way to profit from falling stock prices.
• A fundamental problem with short selling is the potential for unlimited losses.
• Shorting is typically done using margin and these margin loans come with interest charges, which you have pay for as long as the position is in place.
• With shorting, no matter how bad a company's prospects may be, there are several events that could cause a sudden reversal of fortunes.

 

[MalO]

💎👐 COMPUTERSHARED.NET

www.computershared.net

51.1%

It could drop if an institution sells off. But I hope it keeps going.

 

[MalO]

Susanne Trimbath talking about "strategic fails to deliver"


If the penalty for failing to close out your shorts is a tiny fine, then why not refuse to close out all your shorts? You have the money. If you make a billion dollars shorting all the stocks and the fine is a few million dollars, what is the compulsion to close out your shorts? There is no incentive. So you just keep shorting.

The USA needs mandatory buy-ins.

 

[MalO]

I'll just leave this here:

RSC Press Biden for Answers on Expectations of Missing Budget Deadline

Republicans demand answers from the Biden administration on whether it plans to submit the presidential budget request to Congress on time.

www.breitbart.com

 

[hmt5000]

I just can't wrap my head around stocks going up in the environment. LOL.

 

[MalO]

 

[MalO]

I can't believe it. There *was a decent senator in the United States government.

Byron Dorgan - Wikipedia

en.wikipedia.org

Democrat. (now retired)

This is crazy because Ken Griffin is funding Desantis in 2024.

GOP megadonor: I’m ready to back DeSantis for president in ’24

Billionaire CEO Ken Griffin is a bit tired of Donald Trump. "For a litany of reasons, I think it’s time to move on to the next generation,” he said in an interview.

www.politico.com

If DeSantis cozies up with rat bastards like Ken Griffin I won't support him. I was excited about him running too.

 

[MalO]

 

[MalO]

If they kept using the same metric then the next round of CPI data would again show that inflation is getting worse. The biden administration is desperate to show that the economy is improving so they are changing the metric.

"Growth will now be defined as two or more consecutive quarters of loss"

Don't trust the statistics they are pushing.

 

[MalO]

Check out the short interest on XRT.

22,600%

It's a ETF that has GME in it. The reason the short interest is so high is because they needed to keep borrowing more shares of XRT to get more GME. Liquidity is drying up.

The USA needs mandatory buy-ins. There should be no such thing as a failure to deliver.

 

[LVRebel]

This guy is saying that in 2023, he's expecting the US stock market to drop 38-40%, if not more. Posting the current state of the market for a bookmark so we can check back later.

Date: 02/15/2023
DOW: 34,001
S&P: 4131
NASDAQ, 11,999