Community, this new proposal is massive. The NSCC is taking accountability as a third party between lenders. We now have a referee in the market saying everyone needs to play fair. Here’s what’s going with proposal NSCC-2021-010.
Update: this proposal will be filed on August 23rd and effective on August 24th per this FINRA letter, page 3. Bookmark this page for additional updates.
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AMC is about to start climbing again. What is going on with the NSCC essentially cleans the slate for retail investors. The AMC community will now be able to drive AMC’s share price without illegal tactics in the stock market.
All the opposition that prevented AMC Entertainment stock from reaching $100 per share is no longer able to drive the stock down. The momentum that retail investors create moving forward will result in higher and quicker upswings in AMC stock.
Breaking away from $30-$40 range
This could very well be the last straw for hedge funds and short sellers. There’s nothing after plan z except to close their positions because things just got a whole lot tougher for them.
All retail investors need to gamma squeeze AMC at this moment is to bulk up on the stock. While the AMC community has already been doing this, short sellers only increased their dark pool trading usage.
This illegal backdoor has allowed hedge funds to heavily short AMC stock through a rinse and repeat process retail investors have no control over. Well, the NSCC is stepping in to take accountability for every transaction being made in the market.
The NSCC will act as a third party to oversee transactions between lenders to stabilize the stock market. This means the markets will not be as volatile. And this is all possible due to proposal NSCC-2021-010. But more on that in a moment.
Time to play offense
Right now is the time retail investors will have to go on the offense if they are to drive AMC’s stock price back up. By drive AMC stock up, short sellers are negative millions of dollars on paper.
Charles Schwab have already raised margin requirements for both AMC and GME stock. JP Morgan on the other hand is implementing intraday margin calls up to 7 times per day to ensure short sellers have enough cash at hand to cover their positions.
This puts short sellers in the most extreme condition they’ve ever been. That’s because the more money they lose on paper means the more money they’re being expected to fund their margin accounts with.
Before, they were able to short the stock down to avoid immediate liquidation. Now, proposal NSCC-2021-010 prohibits short sellers from creating failure-to-delivers as well as naked shorting!
This means they can no longer short AMC stock in extreme measures using naked shorting like they have been. The FTDs? All call options in the money should now be properly executed which will result in gamma squeezes that will drive up AMC stock up; breaking the $30-$40 range.
If you bought in during AMC’s climb, you’re about to break even real soon. And once you do, you’re going to begin seeing profits on paper shortly after.
The NSCC is going to watch every transaction
The NSCC just took away the enemies weapons and now it’s time for retail investors to charge. Hedge funds have been stripped from their power to manipulate AMC through naked shorting and FTDs.
Short sellers know cannot take another round of momentum. This momentum could cause immediate liquidation by brokers if margin accounts fall short of requirements.
The NSCC requires collateral
If that wasn’t enough, the NSCC-2021-010 also requires that lenders have the collateral at hand when trading stock. So now hedge funds have JP Morgan, Charles Schwab, and the NSCC requiring them to keep an insane amount of cash at hand for once they get squeezed out of their positions.
The NSCC is essentially going to make sure everyone’s money is there before positions begin to get liquidated. This cash collateral is going to prohibit short sellers from overleveraging their positions.
You take out overleveraging and you take out the excessive manipulation. From this perspective, the biggest thing hedge funds fear the most is extreme volume from the community again.
We’re talking about executives selling their cars, homes, properties, assets, you name it; to keep their margin requirements up. Will it get to this point? Not unless short sellers close their positions now.
Hedge fund scrutiny intensifies
Hedge funds have been under extreme scrutiny recently. Democrats have even begun broadening consequences for hedge funds causing disruption in our economy.
In fact, if the Capital Markets Engagement and Transparency Act passes, hedge funds would be required to publicly disclose their bets against stocks as well as dark pool data.
The SEC just recently cracked down on 27 financial firms for FTDs. And although Citadel was not on that list, the feds are investigating them as well as Robinhood for market manipulation.
There might have been a point where it felt like short sellers had the upper hand in the markets but not anymore. Retail investors now have the SEC, NSCC, and the Feds auditing the financial system.
The AMC community is forcing change. If you’ve ever shared a FrankNez article, a Trey’s Trades video, or shared a Reddit post, you’ve manifested change.
I’ve said many times before. It’s you as an individual within the community that has so much power to make things happen in the real world. The AMC community and the movement will be recorded in financial history.
Millionaires in 2021
About 625k people are becoming millionaires every year. 2021 is going to see hundreds of millions of people become millionaires this year alone. This biggest transfer of wealth is going to be historic.
It will be up to you to learn how to manage it, invest it, and create a better world for future generations. The torch is being passed down to us so be patient.
If you found this article to be of value I only ask that you please share it and help other apes in the community get a grasp on this amazing news. I’m going to continue to cover AMC as this incredible chapter unfolds, inevitably coming to a close.
If you haven’t gotten a chance to explore the blog be sure to do so. I’ve been producing content on long term stocks and crypto for diversification.
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