source *** SEC Probes Ryan Cohen’s Bed Bath & Beyond Trades Billionaire took $120 million position in housewares retailer, then abruptly sold it

Ryan Cohen sold his 11.8% interest in Bed Bath & Beyond in August 2022, just days after tweeting positively about the company. PHOTO: MARK ABRAMSON FOR THE WALL STREET JOURNAL By

Dave Michaels and Lauren Thomas Sept. 7, 2023 5:45 pm ET The Securities and Exchange Commission is investigating billionaire Ryan Cohen’s ownership—and surprise sale—of Bed Bath & Beyond shares at a time when such so-called meme stocks were all the rage with investors. Cohen took a $120 million stake in Bed Bath & Beyond and pushed for changes to the housewares retailer’s sales strategy, but abruptly sold his 11.8% interest in August 2022, just days after tweeting positively about the company. The five-month investment netted him a profit of nearly $60 million. Cohen’s interest in the company spurred a frenzy of trading that caused its stock to soar 34% in a day before collapsing after he disclosed the sales, before which he had gotten three new members appointed to the board. The SEC has requested information from Cohen about his trades and his communications with officers or directors at Bed Bath & Beyond, according to people familiar with the matter. The regulator has also sought records from some of the company’s current and former board members. The SEC’s civil investigations sometimes take more than two years and can end without the regulator bringing formal claims of wrongdoing. Cohen founded online pet retailer Chewy and later developed a deep fan base of individual investors who herd into the stocks he buys. He most notably took control in 2021 of videogame retailer GameStop, where he currently serves as executive chairman. A group of Bed Bath and Beyond investors sued Cohen last year in Washington, D.C., federal court, alleging he committed fraud because he was aware of bad news about the company that hadn’t been disclosed when he sold his shares. They claim his statements on Twitter and in SEC filings were part of a pump-and-dump strategy that left small investors nursing big losses. In an order issued in late July declining to dismiss the investors’ claims, U.S. District Judge Trevor N. McFadden called the timing of Cohen’s trades “sketchy.” Cohen’s ability to attract a bandwagon of retail investors grew from the depths of the Covid-19 pandemic, when traders triggered by social-media posts and online communities such as Reddit began gambling on meme stocks. According to the investors’ lawsuit, Cohen misled investors when he tweeted on Aug. 12, 2022, in response to a negative news article about Bed Bath & Beyond, that included an emoji showing the face of the moon. Some investors took it as a bullish signal, indicating that Bed Bath & Beyond stock would go “to the moon,” according to the lawsuit. The stock rose 12% that day, according to FactSet data. In his response to the investors’ lawsuit, Cohen denied misleading the market about his trading plans. He decided to sell, he said in a court filing, because the stock price had “unexpectedly increased to a value that exceeded what he believed it was worth.” Cohen also said that one of his earlier disclosures told investors that he could sell some or all of his shares. He didn’t change that statement, so investors were on notice that Cohen could dump his stake at any time, his court filing said. In declining to dismiss the case, Judge McFadden wrote that investors “plausibly alleged that the moon tweet relayed that Cohen was telling his hundreds of thousands of followers that Bed Bath’s stock was going up and that they should buy or hold.” In the week after his tweet, Cohen filed two public updates to his Bed Bath & Beyond holdings. The first, on Aug. 16, 2022, said he hadn’t done any trading during the prior 60 days. The second, filed on Aug. 18, said he began selling all of his shares two days earlier. The company filed for bankruptcy in April and has closed hundreds of its stores since last year. Write to Dave Michaels at [email protected] and Lauren Thomas at [email protected]

source *** I seem to remember the BlockBuster stock along with lots of the other Cellar Boxed stocks doing strange stuff around the time of the original squeeze.

If I’m not mistaken that was the original impetus for the creation of the so called “eXpErTs MaRkEt”. Because we have to sAvE rEtAiL iNvEsToRs from themselves.

It’s criminal how many companies Wall Street has been able to victimize with these Bust Out & Cellar Boxing schemes.

User 1fuzzypickel and The-doctor-is-real have put in a tremendous amount of energy in compiling lists of companies that have fallen prey to these private equity driven leveraged takeovers. The list includes some very well known names such as: Blockbuster, OfficeMax, Pizza Hut, K-Mart, Neiman Marcus, Pier 1 Imports, Sears, Toys R Us, Circuit City, JC Penny, Radio Shack... and the list goes on, and on, and on.

You can find the lists here:

Request: Help me create a master list of companies BCG has bankrupted, is actively trying to bankrupt, failed bankruptcy attempts, and other various scandals they’re tied to. ***

Can we make a list of the companies that BCG has sabotaged? ***

I think I have a fair grasp on how it works but it is difficult to see exactly how all the pieces slot together inside Wall Street’s black box full of imaginary numbers.

This is an intro to the Wall Street take on the classic Mob “Bust Out” scheme.

You really have to consider shorting and the “Bust Out” activities as more of a “group” activity rather than a direct dynamic between only one or two Wall Street entities. All of them have a part to play in this feted little scheme. And sure, there’s probably some stronger (RICO) ties between a few of the players here and there, but overall they don’t really even need to communicate between each other much. They can play the game just fine without too much talking, because it’s like musical parts in a band. As long as they all know who the victim company is - they can pretty much just hum along in time with each other. They all know how the song goes.

Predatory Lending and the debt trap is one of the core requirements for a successful Wall Street “Bust Out” operation.

It typically starts with getting a Board Member onboard the victim company. This can often be done through Corporate Vote Manipulation. Corporate voting is surprisingly easy to manipulate. All you have to do is borrow enough shares prior to the company vote and you can vote those shares to achieve whatever corporate action you want to accomplish. Initially the first goal is usually to get a Board Member (or members) onboard the victim company.

Once a Board Member(s) are on board you need to “trim the fat” to make the company reliant upon Wall Streets services. Specifically Debt. Debt, especially cheap debt is how they get you. How they own you. The Debt trap is why Wall Street generally does not allow companies to carry large surpluses of cash. It’s generally leached out through the Board members bonuses, their “golden parachutes”, extravagant expenditures like the company jet, the “overpriced consultants”, payed out to the majority shareholders as dividends, etc...

This is done so that companies “run lean” and they often don’t keep much cash on handset all. Instead companies borrow cash from Banks to pay big expenditures. Some even run so lean that they will not even keep enough cash on hand for payroll.

They take short term loans for things like payrolls, operating expenses. The loans are a key component. You make a company reliant on debt, and then you own them. The scam works because the stock price of a company works something like a credit score. Banks use the stock price as a key component of an analysis of that companies credit worthiness.

So if they can drop the price of a particular stock low enough through Naked Shorting, the victim company will not be able to pay their day to day bills and will go bankrupt immediately unless they obtain emergency financing from somewhere else. That’s when the predatory lenders come in. They will be willing to provide emergency funding, but at a steep cost.

The predatory lenders will often use what is called a Convertible Bond to provide funding to the victim companies. What a Convertible Bond does; is allow the predatory lenders to convert that bond into shares. The Predatory Lenders are secretly involved with the Naked Shorters that are trying to drive the stock to zero. What the predatory lenders do is structure the loan in such a way that it’s extremely difficult to pay off on time without penalty.

When the victim companies enviably can’t meet the terms and conditions of the loan, the predatory lenders “convert” those Convertible Bonds into shares and dump them on the marketplace. This further depresses the share price of the company. It’s called “Death Spiral Financing”.

Once the share price is close to zero the predators refuse to continue lending, this bankrupts the company, forces a sale, where the private equity predators again come in and scoop up the companies assets at pennies on the dollar.

The Private Equity Companies benefit by being able to keep or sell off the victim companies assets.

The Naked Shorters (Market Makers) get to keep all the profits of selling those Naked Short Shares and they get to “Cellar Box” the remaining shares of stock that has reached around $0.0001 to ~$0.0004. Cellar Boxing is taking advantage of the arbitrage between the 100% spreads at the price “cellar”. If you own $1,000 dollars worth of a stock at $0.0001, your stock value can never decline. And if you drive up the price of that stock to $0.0002, you now have $2,000 worth of stock. And because they never close those positions, they get to keep the Naked Shorting proceeds Tax Free.

The Predatory Lenders (Banks) profit by keeping the proceeds of the loans and from selling those shares obtained from the Convertible Bonds.

The DTCC benefits from all the FTDs because of how FTDs are “resolved”. The DTCC charges a “small” fee (much smaller than the actual price of the shares) to maintain those FTD records, so the more FTDs, the more money they make.

The Board Members deliberately drive the company into the ground, get fat bonuses for doing so and golden parachutes on the way out. They probably get kickbacks from bringing in the “Overpriced Consultants”. And they get to move on to their “next assignment” to bankrupt the next company.

The “Overpriced Consultants” like BCG extract fat fees from the Victim Companies and have a dual function to keep the Victim Companies on the path to Bust Out and as a data breach funneling information back to the Naked Shorters and the Private Equity company. The data breach is important because it allows the Private Equity to either sabotage innovation or to front run products.

The the Lawyers and Judges in important jurisdictions are also often involved in keeping both the regulators deaf and dumb but in making sure that court decisions swing in favor of the Private Equity as often as possible.

The politicians get paid fat “speaking fees” to look the other way. They are also fed juicy stock tips through their Wall Street lobbyists. The court officials (judges) are given lavish vacations and other monetary benefits (goods, property) to rule on the side of Wall Street. The SEC is also effectively kept deaf and dumb by the aspersions of its own staff. SEC staffers all have a big fat carrot dangling in front of the courtesy of big financial institutions. The staffers all want to move on to those cushy Bank or Institutional jobs in the financial industry that involve using their experience to circumvent the regulations that they often wrote while inside the SEC.

The other beneficiary of this little scam is the company that is going to take over that market that the Victim Company has just been forced to vacate. Amazon for example has benefited immensely by the “Bust Out” scam. They have taken over electric components from RadioShack, Home good sales from Sears, on demand video from Blockbuster, office goods from OfficeMax, Toys from Toys R Us. The list goes on and on: K-Mart, Neiman Marcus, Pier 1 Imports, Circuit City, JC Penny...

Wall Street has figured out that they can make more money by destroying companies than by supporting them. Everyone wins and makes money hand over fist doing so.

Everyone except the Victim Companies and their Retail / Household Investors. They get fucked. Hard.

Bonus material: The Bust-Out ***

https://www.reddit.com/r/Superstonk/comments/np33hr/amazon_bain_capital_and_citadel_bust_out_the/

https://www.reddit.com/r/Superstonk/comments/s4moop/bustout_the_movie_stock_edition_players_include/

https://www.rollingstone.com/feature/wall-streets-naked-swindle-194908/

https://www.rollingstone.com/politics/politics-news/greed-and-debt-the-true-story-of-mitt-romney-and-bain-capital-183291/

Wall Street Whistle Blower - Laser Haas https://youtu.be/aURQbtmgrfQ

[!watch](https://youtu.be/aURQbtmgrfQ)

~ ~ ~ Laser Haas ~ ~ ~

Former Morgan Stanley employee. —“Gaming Wall Street” https://youtu.be/i-tKiiHWGkE [!watch](https://youtu.be/i-tKiiHWGkE)

~ ~ ~ I naked short sold stocks EVERY single day ~ ~ ~

EX-HEDGE FUND MANAGER EXPOSES THE TRUTH ABOUT NAKED SHORTS https://m.youtube.com/watch?v=WUAfc4S3djU

source *** by DrEyeBall

Legacy Swaps, Margin Requirements, Phase 6, oh my! I AM NOT SEEING ENOUGH CONVERSATION ABOUT THIS Sept 1st margin requirement that has been delayed longer than usual...

I tried posting this earlier but it contained the virus word that is blocked by automod here.

The following is discussion of the rule published by the CFTC in Jan 2021 with a recent proposed rule change. Herein I post a summary of the rule (important terms bolded), my interpretation, and speculation on how this relates to our beloved stock. I would like more EyeBalls on this. The Rule explains that the majority (492 of 514) entities would fall under this rule; seems rather important to me and not many have discussed this thoroughly here in detail.

Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants

Final Rule Jan 5 21 / Document Citation: 86 FR 229

• Old Rule: Margin requirements start Jan 1st every year based on average daily aggregate notional amount from Jun-Aug.
• New Initial Margin (IM) requirements started Sept 1 2022 based on average month-end aggregate notional amount (ANAA) positions over Mar-May of that year. Margin requirements are required every Sept 1st based upon the Mar-May monitoring period. Previously this was a daily average with margin requirement starting on Jan 1st and based on Jun-Aug of the prior year. If the entity’s position is >$8B then margin requirements are in effect. Most situations use a risk-based model (ranging 1-15%), but certain participants can elect to use a standard model.
• ELI5: entity marks positions during a timeframe and if they meet the criteria they are subject to posting the margin (IM) requirements on the listed date.

Final Rule Jan 25 21 / Document Citation: 86 FR 6850

Proposed Rule (comments close 10/10/23) / Document Citation: 88 FR 53409

• "The proposed amendment would revise the definition of “margin affiliate” to provide that certain collective investment vehicles (“investment funds” or “funds”) that receive all of their start-up capital, or a portion thereof, from a sponsor entity (“seeded funds”) would be deemed not to have any margin affiliates for the purposes of calculating certain thresholds that trigger the requirement to exchange initial margin (“IM”) for uncleared swaps. This proposed amendment (“Seeded Funds Proposal”) would effectively relieve SDs and MSPs from the requirement to post and collect IM with certain eligible seeded funds for their uncleared swaps for a period of three years from the date on which the eligible seeded fund's asset manager first begins making investments on behalf of the fund (“trading inception date”). "

TRANSITION PERIOD

• “The shift of the MSE determination date from January 1 to September 1 may defer for nine months to September 1, 2023, the obligation to exchange IM for a firm that absent the rule change would have been subject to the IM requirements on January 1, 2023. Uncleared swaps entered into by the firm during the nine-month deferral period will be deemed legacy swaps, or uncleared swaps exempt from the IM requirements.[49] As a result, in 2023, less collateral may be collected for uncleared swaps, which could render uncleared swap positions riskier and increase the risk of contagion and systemic risk.”

ELI5: If you were required to post margin on Jan 1 2023 based on the old rules, you can elect to defer until Sept 1 2023.

• "The Commission further notes that the amendment to the timing of post-phase-in compliance, as proposed, will defer compliance with the IM requirements with respect to uncleared swaps entered into by a CSE with an FEU that comes into the scope of IM compliance after the end of the last compliance phase. Under the current rule being amended, FEUs with MSE as measured in June, July, and August 2022 would have come into the scope of compliance post-phase-in beginning on January 1, 2023. On the other hand, under the Final Rule, FEUs with MSE as measured in March, April, and May 2023 will come into scope, post-phase-in compliance, beginning on September 1, 2023. As a result, for FEUs with MSE in both periods, less collateral for uncleared swaps may be collected given that the Final Rule changes the beginning of post-phase-in compliance from January 1, 2023, to September 1, 2023, rendering uncleared swap positions entered into between January 1, 2023, and September 1, 2023, riskier, as no IM will be required to be collected during that period, which could increase the risk of contagion and the potential for systemic risk."

ELI5: If you came into the scope of our margin requirements you can defer to Sept 1 2023.

CONCERNS

There are several concerns aired in the documents about how the month-end calculation can have fuckery such that entities do things to avoid meeting the margin cutoff or to improve their positions during the monitoring period. I would defer the reader to the above initial Rule for discussion there.

SIMILAR POSTS ABOUT THIS

• Excellent overview of Phase 6
• Video and commentary on Phase 6
• More commentary on Phase 6

TECHNICAL ANALYSIS

• I would encourage the reader to review 2022 and 2023 Mar-May month-end (last business day) price action - the position on that day determines whether future margin is required. Take note of how a swap and counterparty may consider managing other securities before/after swap dates.
• Notice the consistent attempts at price suppression and/or stabilization during the monitoring period.
• Pardon me for using Yahoo.

!

JAN 1 2019 MARGIN: Mar-May was monitoring period (daily avg). Jan 1st margin required. Position going as planned… ! JAN 1 2020 MARGIN: Jun-Aug was monitoring period (daily avg). Jan 1st margin required. Position going as planned… ! JAN 1 2021 MARGIN: Jun-Aug was monitoring period (daily avg). Jan 1st margin required. We should all know the company events here. Macro equity V-shaped recovery period. RC buy-in on Aug 28, Aug 31, Sept 21 2020. ! JAN 1 2022 MARGIN: Jun-Aug was monitoring period (daily avg). Jan 1st margin required. Macro market peak around Dec 2021. ! SEPT 1 2022 MARGIN: New Rule in effect (except for Legacy Swaps). Mar-May end-month monitoring. Sept 1st margin required. Macro market starts transitioning upwards in October 2022. Opinion: RC buy-in in March 22 2022 messed up the end-month calculation. ![](https://preview.redd.it/legacy-swaps-margin-requirements-phase-6-oh-my-v0-dyb9lmxxmxjb1.png?width=1470&format=png&auto=webp&s=696ab50e9ce81d87b4ad55d4509186405b85dfd9 "Image from r/Superstonk - JAN 1 2023 MARGIN: Last Jan 1st margin requirement for those NOT electing to defer to Sept 1 2023. Aug-Jun monitoring period; notice price action at month-end. [Scontinue

source *** [!watch](https://youtu.be/lphBBXBE7Vc)

~ ~ ~ 💥 BooM 💥~ ~ ~

source *** by nayboyer2

The OTC Conspiracy - The Final Chapter? Presenting 135 weeks of GME OTC and ATS data, in pictures, including a pre-split / post-split analysis, some intriguing subplots (Citadel and Virtu, Robinhood and Drivewealth, Credit Suisse, UBS and the banks), and some forward-looking statements! I'm not much for long intros or shout outs to all the OG bros

Just a simple ape who likes to rhyme, and keep tabs on all the financial crime

Citadel, Virtu, Jane Street and G1, gonna send this rocket into the Sun

So without further ado, here's some data, swing back through and thank me lata!

My wife said she would leave with her boyfriend if I make one more graph... We've come a long way from FINRA ADF to Missing Bananas, OTC Conspiracy and the Infinite Banana Tree, to today. I've learned a lot through this journey and I hope you have too!

OTC and ATS data

• OTC trades are internalized retail trades, payment for order flow, odd lots (i.e. I purchase 10 shares through "Insert retail broker", which gets routed to Citadel, Virtu, G1 Execution (Sus), Jane Street, and doesn't impact the NBBO.
• ATS trades are dark pool trades

Here's a nice video by Dave on Off-Exchange vs. On-Exchange trading:

https://learn.urvin.finance/content/on-exchange-vs-off-exchange-trading

The Data:

All information is taken directly from FINRA OTC Transparency website:

https://otctransparency.finra.org/otctransparency/OtcIssueData

Please refer to The Cooks Keep Cooking the Books series for additional information and details on Robinhood and Dirvewealth LLC 'adjusting' their reported OTC trades 8-12 months after they supposedly occurred:

Volume 1 - Robinhood

Volume 2 - Robinhood does it again

Volume 3 - Robinhood and Drivewealth

Volume 4 - Featuring Drivewealth LLC adding 3 million OTC trades

See some of my previous OTC write-ups for additional context and explanation:

119 Week OTC Update

100 Week OTC Update

21 Month OTC Update

69 Week OTC Update

This latest data represents 135 weeks (over 2.5 years). I started with August 2020, which is when RC bought in, but as we've all learned, the story starts even earlier.

This data is especially important given the proposed SEC rule changes. Send in your comment letter!

Citadel wants you to do Nothing

Weekly GME OTC Shares traded

This shows the total weekly shares traded OTC by Citadel, Virtu, G1 Execution, Two Sigma, UBS, Drivewealth, and Robinhood (and others) over the counter (OTC), as internalized trades from retail across 135 weeks.

• The data ranges from 8/3/2020 - 3/3/2023
• The data is delayed by 2 weeks, so we will have the data from Week of 3/6 - 3/10 on Monday (3/27) ! GME OTC shares 8/3/2020 - 3/3/2023

Weekly OTC Trades

! GME OTC trades 8/3/2020 - 3/3/2023

Weekly OTC Shares/Trade

! GME OTC shares/trade 8/3/2020 - 3/3/2023

So as not to weigh down this post, please see my previous posts for some in-depth analysis on this nefarious OTC trading activity.

Besides an overall decrease in the OTC trades (which may reflect the change in share price after the split), we see increase in shares/trade has increased, and cyclical increases in volume. We'll dig deeper into the data further down.

Weekly Range (split-adjusted and including last week)

! As you can see, we've had a lot of volatile weeks in terms of share price, but last week's adjusted Range of $43.00 doesn't really align with the significant increase in volume

SHiTeR Score

If we multiply OTC Shares /* Trades /* Range, we get a value that helps normalize the amount of OTC trading and weekly price volatility. The Range is adjusted for the split (closing price /*4). ! Helps detect crime

Who is responsible for all these shares and all these trades?

!

Let's compare pre-split distribution to post-split distribution for shares:

!

Here, we can see:

• A decrease in OTC market share for Citadel (from around 40% pre-split to 33% post-split)
• A slight decrease in market share for Virtu (from around 31% pre-split to 27.5% post-split)
• An increase in OTC market share by Jane Street (from 4% pre-split to just under 10% post-split). This is accentuated in the Shares/*Trades (SHiT score), where they have increased from 1% to 6% post-split
• A decrease in market share for Two Sigma and UBS (UBS has been completely absent for 24 of the past 25 weeks)
• A significant increase in market share for De Minimis Firms (from less than 3% pre-split to almost 9% post-split)
• I'll try to add more later! What are your conclusions?

!

The biggest shift here is the decrease in OTC trading share by Robinhood, from over 16% pre-split to less than 6% post-split.

GME OTC Leaderboard

!

ATS (Dark Pool) trading

! ATS (dark pool) trading 8/3/2020 - 3/3/2023

ATS Participants:

![](https://preview.redd.it/the-otc-conspiracy-the-final-chapter-presenting-135-weeks-v0-xu07y61mq4qa1.png?width=3050&format=png&auto=webp&s=d7e2d6156b0865662cd72c9447e8db837c2f3901 "Image from rcontinue

source

An option trap?

source ***

SEC asked Coinbase to halt trading in everything except bitcoin, CEO says | Financial Times

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The US Securities and Exchange Commission asked Coinbase to halt trading in all cryptocurrencies other than bitcoin prior to suing the exchange, in a sign of the agency’s intent to assert regulatory authority over a broader slice of the market.

Coinbase chief executive Brian Armstrong told the Financial Times that the SEC made the recommendation before launching legal action against the Nasdaq-listed company last month for failing to register as a broker.

The SEC’s case identified 13 mostly lightly traded cryptocurrencies on Coinbase’s platform as securities, asserting that by offering them to customers the exchange fell under the regulator’s remit. 

But the prior request for Coinbase to delist every one of the more than 200 tokens it offers — with the exception of flagship token bitcoin — indicates that the SEC, under chair Gary Gensler, has pushed for wider authority over the crypto industry.

“They came back to us, and they said . . . we believe every asset other than bitcoin is a security,” Armstrong said. “And, we said, well how are you coming to that conclusion, because that’s not our interpretation of the law. And they said, we’re not going to explain it to you, you need to delist every asset other than bitcoin.” 

If Coinbase had agreed, that could have set a precedent that would have left the vast majority of the American crypto businesses operating outside the law unless they registered with the commission.

“We really didn’t have a choice at that point, delisting every asset other than bitcoin, which by the way is not what the law says, would have essentially meant the end of the crypto industry in the US,” he said. “It kind of made it an easy choice . . . let’s go to court and find out what the court says.”

!Brian Armstrong, chief executive of Coinbase

According to Brian Armstrong, if Coinbase had agreed, the vast majority of the American crypto businesses would risk operating outside the law unless they registered with the SEC © Reuters

Oversight of the crypto industry has hitherto been a grey area, with the SEC and the Commodity Futures Trading Commission jockeying for control.

The CFTC sued the largest crypto exchange, Binance, in March of this year, three months before the SEC launched its own legal action against the company. 

Gensler has previously said he believes most cryptocurrencies with the exception of bitcoin are securities. However, the recommendation to Coinbase signals that the SEC has adopted this interpretation in its attempts to regulate the industry.

Ether, the second-largest cryptocurrency, which is fundamental to many industry projects, was absent from the regulator’s case against the exchange. It also did not feature in the list of 12 “crypto asset securities” specified in the SEC’s lawsuit against Binance.

The SEC said its enforcement division did not make formal requests for “companies to delist crypto assets”.

“In the course of an investigation, the staff may share its own view as to what conduct may raise questions for the commission under the securities laws,” it added.

Stocks, bonds and other traditional financial instruments fall under the SEC’s remit, but US authorities remain locked in debate as to whether all — or any — crypto tokens should fall under its purview.

Oversight by the SEC would bring far more stringent compliance standards. Crypto exchanges typically also provide custody services, and borrow and lend to customers, a mix of practices that is not possible for SEC-regulated companies.

“There are a bunch of American companies who have built business models on the assumption that these crypto tokens aren’t securities,” said Charley Cooper, former CFTC chief of staff. “If they’re told otherwise, many of them will have to stop operations immediately.” 

“It’s very difficult to see how there could be any public offerings or retail trading of tokens without some sort of intervention from Congress,” said Peter Fox, partner at law firm Scoolidge, Peters, Russotti & Fox. 

The SEC declined to comment on the implications for the rest of the industry of a settlement involving Coinbase delisting every token other than bitcoin.___

source ***

Bill Hwang seeks to subpoena 10 banks, shift blame for Archegos collapse | Reuters

NEW YORK, July 27 (Reuters) - Bill Hwang, the founder of Archegos Capital Management, on Thursday asked a judge to let him subpoena documents from 10 banks, in an effort to shift blame as he defends against criminal fraud charges that the firm's collapse was his fault.

In a filing in Manhattan federal court, Hwang said the documents will show that Archegos' counterparties "played a pivotal role" in the March 2021 collapse of his once-$36 billion firm, and that his swaps trades were legal.

The office of U.S. Attorney Damian Williams, which is prosecuting Hwang, did not immediately respond to a request for comment.

Hwang's request came three days after UBS (UBSG.S) agreed to pay $388 million in fines to U.S. and British regulators over poor risk management at Credit Suisse, which lost $5.5 billion when Archegos met its demise.

UBS bought Credit Suisse last month, under pressure from Swiss regulators. Other banks also lost money when Archegos collapsed, but less than Credit Suisse.

Prosecutors accused Hwang of borrowing aggressively to fund total return swaps that boosted Archegos' exposure to stocks such as ViacomCBS and Discovery to more than $160 billion, and concealing the risks by borrowing from several banks.

Archegos failed after the prices of some of its stocks fell. That caused it to miss margin calls, and banks to dump stocks that had backed the swaps and which they had bought as hedges.

"Any disconnect or attenuation between Archegos's swaps and its counterparties' hedges bears directly on the likelihood that Mr. Hwang could have affected, or did affect, the market in the manner alleged in the indictment," Thursday's filing said.

Other banks that Hwang wants to subpoena, in addition to UBS, are Bank of Montreal (BMO.TO), Deutsche Bank (DBKGn.DE), Goldman Sachs (GS.N), Jefferies (JEF.N), Macquarie (MQG.AX), Mitsubishi UFJ (8411.T), Mizuho (8411.T), Morgan Stanley (MS.N) and Nomura (8604.T).

In March, U.S. District Judge Alvin Hellerstein rejected Hwang's motion to dismiss his 11-count indictment. Hwang has pleaded not guilty. A trial is scheduled for Feb. 20, 2024.

The case is U.S. v. Hwang et al, U.S. District Court, Southern District of New York, No. 22-cr-00240.

Reporting by Jonathan Stempel in New York; Editing by Daniel Wallis

Our Standards: The Thomson Reuters Trust Principles.

source *** by Dismal-Jellyfish

Federal Reserve Alert! Federal Reserve Board announces a consent order and a $268.5 million fine with UBS Group AG, of Zurich, Switzerland, for misconduct by Credit Suisse. The misconduct involved Credit Suisse's unsafe and unsound counterparty credit risk management practices with Archegos. ! https://www.federalreserve.gov/newsevents/pressreleases/files/enf20230724a1.pdf

The Federal Reserve Board on Monday announced a consent order and a $268.5 million fine with UBS Group AG, of Zurich, Switzerland, for misconduct by Credit Suisse, which UBS subsequently acquired in June 2023. The misconduct involved Credit Suisse's unsafe and unsound counterparty credit risk management practices with its former counterparty, Archegos Capital Management LP.

In 2021, Credit Suisse suffered approximately $5.5 billion in losses because of the default of Archegos, an investment fund. During Credit Suisse's relationship with Archegos, Credit Suisse failed to adequately manage the risk posed by Archegos despite repeated warnings. The Board is requiring Credit Suisse to improve counterparty credit risk management practices and to address additional longstanding deficiencies in other risk management programs at Credit Suisse's U.S. operations.

The Board's action is being taken in conjunction with actions by the Swiss Financial Market Supervisory Authority and the Bank of England's Prudential Regulation Authority. The penalties announced by the Board and the Prudential Regulation Authority total approximately $387 million. ! ! ! ! ! ! ! ! ! ! ! ! ! ! !

Wut mean?:

• The Federal Reserve Bank of New York found various deficiencies in the Credit Suisse's' risk management processes.
• Credit Suisse had a prime services business that operated across the US, UK, Europe, and Asia, mainly catering to hedge funds and institutional investors.
• The Prime Services Risk department handled daily risk management tasks, including setting margin rates.
• The Credit Risk Management department was an independent entity within Credit Suisse that assessed credit risks posed by counterparties.
• Credit Suisse had a client relationship with Archegos Capital Management LP since 2012 (and its predecessor since 2003). Their relationship was managed by Credit Suisse’s New York-based Prime Services and Credit Risk Management teams.
• Archegos focused on a long-short equity strategy, predominantly in tech and media, and used total return swaps with counterparties, including Credit Suisse. Their portfolio at Credit Suisse became increasingly concentrated from mid-2020 to early 2021, consistently breaching Credit Suisse's internal risk limits.
• The risks posed by Archegos' portfolio were known, but Credit Suisse took no effective action to mitigate them.
• Credit Suisse had various management and governance failures, including inadequate reputational risk review, lack of clear accountability, not obtaining enough margin from Archegos, and not effectively managing data quality for risk metrics.
• In March 2021, Archegos defaulted on Credit Suisse’s margin calls, leading Credit Suisse to liquidate its positions and suffer losses of approximately $5.5 billion.
• In June 2023, UBS Group AG acquired Credit Suisse Group AG. UBS became the successor of Credit Suisse and the Federal Reserve oversees UBS's operations in the U.S.
• UBS and the Federal Reserve want U.S. Operations to function safely and in compliance with laws. UBS has started fixing the weaknesses at Credit Suisse.
• UBS, Credit Suisse, and the Federal Reserve agreed to a consent Cease and Desist Order because of the above issues. This order involves penalties for the identified unsafe practices.
• The boards of directors of bocontinue

source *** by catbulliesdog

The Crash this Fall is Now a Mathematical Certainty, but First, Market Goes Up Author's Note: I started writing this a couple weeks ago when SPY was in the 430s. A fair bit of the "up" predicted in the title has already happened. That said I think we at least test the Morgan Collar at 4620 SPX before we top, and the gigantic IB trader's long put position is acting as resistance at 4500 SPX. There's a small chance we either match or exceed ATH before the end. There's still around $1.7 Trillion left in ONRRP to exhaust, and so far, REITs and other large property holders are adding unsecured debt to cover investor withdrawals and prop up values. This delays the boom, but means it'll boom harder when it happens.

TLDR: The convergence of bond value reduction due to rate hikes combined with CMBS notes going to zero will cause a deflationary bust with multiple bank failures, in turn tanking the market and leading to more "printer go brrr" yielding an inflationary death spiral last seen during the Wiemar Republic in 1923.

!

Hi, I'm u/catbulliesdog you may know me from such previous DD's as: The 2022 Real Estate Crash is going to be worse than the 2008 One, and Nobody Knows about it Yet , This is How the (Financial) World Ends, Housing is a Big Bubbly Pile of Bullshit, and The 2023 Real Estate Crash Started 5 Months Ago, and It Just took Down it's First Banks (some of the links are to my profile, the relevant DD is in the pinned posts or just under "posts", can't link 'cause all the finance subs be fite each other). Plus a bunch of DD I've written various places about China and Evergrande and how nothing was ever fixed there and its going to take down the whole country. (bonus, hidden $81 Billion loss revealed today!)

I've been saying for a couple of years now that we had three potential outcomes to the current mess:

a 2008 style crash - this was the best case scenario, and it's window is long gone 1. a 1929 style deflationary bust - this is, as the title indicates, a mathematical certainty at this point, the problem is what follows 1. a 1923 Weimar republic style hyperinflation - yeah, this is the one we're gonna get when the Fed tries to print its way out of number 2. I picked 1923 and Weimar over a long list of 3rd world countries that experienced hyperinflation because of the political consequences that followed.

Bonds

I'm going to end up talking a lot about Bonds in this post, so, lets go over what a bond actually is, and how they work, because I know you lot of smooth brained virgin baboons have gained basically all of your so-called knowledge from a Chappelle's Show Wu-Tang Financial skit. A Bond is at heart a financial instrument representing debt that can be traded back and forth like a stock or other commodity. Bonds are described in four ways: Face Value, Coupon Rate, Yield and Price. Face Value is the total amount the bond is worth at maturation (the date it expires). Coupon Rate is the interest rate the bond pays. Yield is the effective interest rate when accounting for Price and time to maturation. Price is how much you can buy and sell a bond for today. So say you've got a $100 (face value) bond that pays 4% interest over 10 years (coupon rate). Mike buys this bond for $71.50 (price). You bought it from Mikey the Moron for $25 (price) because he really wanted to go get a pizza and six pack tonight. Mike made this deal because while the bond is worth more, the money is inaccessible for 10 years, its illiquid, and he really wants to impress his lady friend tonight, so he needs the money now. You're making 300%, which is 30%/year (yield), but you have to wait 10 years to get it. This is basically what happened to regional banks in March, they bought an absolute fuckload of bonds at very low rates, and now that rates have risen along with inflation, the yield on those bonds has collapsed, crushing the price. But, they needed access to money before the 10 years was up, so they had to unload their bonds at a big loss to get cash now, just like Mikey.

The Fed stopped this bleeding with stuff like the BTFD program, but just like what China did by making banks post fake deposit numbers, it's not actually a solution, and the problem will just continue to grow behind the scenes until it busts out like the Kool Aid Man during one of his frequent substance abuse relapses.

Now, there's lots of complex bullshit that gets piled on top of this, so that people can pretend they're super duper smart and too cool for school, but at the end of the day, that's the gist of it, you're buying and selling pieces of loans.

CMBS

This is basically the exact same story as 2008, except with commercial properties instead of residential ones. The valuations are fake and backed up by bogus revenue estimates. This is being blamed on the pandemic and work from home, but the truth is its been going on since 2008. When nobody went to jail, they all just moved over to commercial real estate and restarted the same fraudulent machine.

Don't believe me? Think it's too crazy to be true? Here, from the company's website, is the corporate blurb about Brian Harris, founder of Ladder Capital. Brian Harris is a founder and the Chief Executive Officer of Ladder Capital. Before forming Ladder Capital in October 2008, Mr. Harris served as a Head of Global Commercial Real Estate at Dillon Read Capital Management, a wholly owned subsidiary of UBS. Before joining Dillon Read, Mr. Harris served as Head of Global Commercial Real Estate at UBS, managing UBS’ proprietary commercial real estate activities globally. Mr. Harris also served as a Member of the Board of Directors of UBS Investment Bank. Prior to joining UBS, Mr. Harris served as Head of Commercial Mortgage Trading at Credit Suisse and previously worked in the real estate groups at Lehman Brothers, Salomon Brothers, Smith Barney and Daiwa Securities. Mr. Harris received a B.S. and an M.B.A. from The State University of New York at Albany.

I mean, jesus, look at that company list, Lehman, Soloman, Smith Barney, UBS, Credit Suisse, its like a fucking directory of shady bullshit. And the year founded? Dude waited less than a month to realize he could do the same shit he was pulling with MBS if he just added the letter "C" to the front of it. If white collar crime enforcement existed in America, this Fredo-Wannabe would have been squeezed like one of the Killer Tomatoes for enough convictions to get six dozen people Epstein'd. Honestly, I'm just kind of in awe of how much fraud and crime this guy has been part of.

Ladder Capital is heavily involved in the massive fraud that is Dollar General's real estate empire - one of the scummiest companies out there that has routinely put employees at risk and has gone so far in search of illegal profits I think they might have actually invented some new crimes.

!

MBS

Next we've got regular MBS - this is fucked in two separate ways. First, housing supply. The following is from a DD I wrote in 2021 showing that there wasn't and isn't a shortage of physical housing:

In 2004 (roughly the peak of US homeownership rates) the US homeownership rate was a bit over 69%. In 2021 it's at 65%. In 2004 there were 122 million housing units in the US. In 2021 it's 141 million. US population in 2004 was 292 million. In 2021 it's 331 million. Throw all these numbers into a blender and you get:

A 13% increase in population, a 4% decrease in homeownership rate, and a 15% increase in housing supply. Yes, that's right, the housing supply has increased faster than the population, and the homeownership rate during that time has dropped.

Now let's update that to 2023: Population - 334 million. Homeownership Rate - 66%. Housing Units - 144 million. Over the last two years we've added 3 million people, and 3 million housing units. Most people don't live alone - children, couples, roommates, etc. So, to be clear, between 2004 and 2021, we went from 41.7 housing units per 100 people to 42.6 housing units per 100 people, and in 2023 we're at 43.1/100. That's 43.1 housing units for every 100 people in America. In the last two years we've added half a housing unit/per 100 people, which as nearly as I can tell is the fastest rate in the history of America, and during that period of time, the price of the average house in America went up by 26%, from $346,900, to $436,800. (all numbers taken from the same data series at FRED to keep things normalized)

I'll say it again, over the last two years housing supply has increased at the fastest rate in American history, and prices jumped 26%.

Everything I can find indicates that this "excess housing" is currently tied up in ABNB/short term rental/illegal hotels, REITs, and vacant "investment" properties that are being used as tax dodgescontinue

source ***

This is an automated archive made by the Lemmit Bot.

The original was posted on /r/Superstonk by /u/pigUw on 2023-07-17 20:37:32. ***

!image

!image

Now that SEC bulletin confirms that shares need to be Book to be fully yours, not Plan.

• Purchases made through the issuer (or its transfer agent) of securities you intend to hold in DRS are usually executed under the guidelines of an issuer’s stock purchase plan, which uses a broker-dealer to execute the orders. Thus, to hold in DRS once the securities are acquired, you would need to instruct the transfer agent to move the securities from the issuer plan to DRS.

***

source *** by jhs0108

So has anyone talked about Citadel Securities massive increase in the Notional Amount of their Derivatives over the last few years yet? Cause I just found out about it and holy cow this could be big.

Preface:

So there's some knowledge to get across about derivatives and accounting. I either just learned about this or learned about it in my college's accounting 1 class.

-In accounting, an asset is either a liability or part of owners capital or owners equity. The basic formula that was drilled into my head was

Assets = Liabiliites + Owners Equity.

-Notional value vs Fair Value. Notional value is a term in derivative trading used to describe the value of assets underlying a derivatives contract while fair value is the cost of that contract. An ELI5 is fair value is like the finances of a town government while notional value is the value of all assets within the town. They're linked but not necessarily.

With that out of the way let's get down to business.

Citadel's had a very busy 5 years in derivatives world:

So I spend my Saturday nights as any young adult male in the US does. Look at financial statements of massive companies. This past weekend's theme was Citadel Securities LLC (the market maker). Now, I went through the usual suspects that have been covered to death like assets sold not yet purchased, their definition of fair value being the most ridiculous thing on the planet, etc. Then a came across this section of their notes (where the real juicy stuff is) in 2018.

!

That's a lot.

So that's a notional value of 243 BILLION USD in equity securities which for context is a lot. Below is the context.

!

Sauce: OCC Quarterly Report on Bank Trading and Derivatives Activities Q1 23

So this only shows the big 4 banks but it's not like Citadel is anywhere close to that. Especially given that all bank derivatives haven't really grown or shrank in the last few years.

!

Same OCC report. Generally stable from 2018-2022.

Right?

RIGHT?

!

Source: Citadel Securities financial statements 2018 last page.

!

It shrank. No biggie.

!

Citadel don't be so hard on yourself. I know a lot of people who gained a lot during 2020 it's fine as long as you pick yourself up from it.

!

Citadel. I'm concerned for your health.

!

Go on a diet.

So to wrap up,

2018=242 billion

2019=219 billion

2020=309 billion

2021=442 billion

2022=560 billion.

But hey, if all market makers just happen to have as much Notional value of their Equity Derivatives as all banks combined except for the top 4, that's not a big deal.

Virtu has been less busy than Citadel:

All these charts are from their 10ks

!

!

!

!

In Conclusion:

Citadel now has over 500 BILLION USD in equity derivatives while GOLDMAN FLIPPIN SACHS ONLY HAS 385 BILLION and has more in equity derivatives than EVERY COMMERCIAL BANK that isn't JPMORGAN, GOLDMAN, CITI, and Bank of America COMBINED?

! I'm Back :)

Oh...And One More Thing.

I've been hiding something from all the Citadel charts. They all have this but I'll just show the 2022 one.

!

So if Citadel dies BAML dies like Archegos did to Debit Suisse.

AS ALWAYS. BUY. HODL. DRS. ZEN.

Read more

source *** by peruvian_bull

The Monetary Event Horizon

Now, with the debt limit suspended, the Treasury is freed from the fetters of supposed fiscal constraint and can borrow without abandon.

Welcome to the Event Horizon.

!

A little over a month ago, deja vu struck Congress as they underwent their ritual debt ceiling brinkmanship. This time, the players fought over what concessions could be made as the U.S. approached the deadline of $31.4T in total debt outstanding while Yellen warned of severe austerity measures that the Treasury would have to undertake in order to avoid default.

As usual, the game was played with the typical jawboning and accusatory statements so often held by our politicians- but the conclusion was one we had not seen before. On Saturday, June 3rd, President Joe Biden signed an agreement that lifted the debt ceiling completely for two years, and eliminated spending caps after 2025, allowing unlimited government spending.

The debt limit issue would be revisited in 2025.

On the Treasury’s own reports, they list the statutory debt limit as 0. I guess they didn’t have enough room to put “Infinity” down. !

From its very inception, the United States has had a national debt. During the American Revolutionary War, the country accumulated a debt of $75 million by borrowing from domestic investors and the French Government to fund the purchase of war materials. Over the course of the following 45 years, the debt steadily increased. However, in 1835, there was a significant reduction in the debt due to the sale of federally-owned lands and reductions in the federal budget.

Soon after that, an economic depression emerged, leading to a significant increase in the national debt, reaching millions of dollars. During the American Civil War, the debt skyrocketed by more than 4,000%. It surged from $65 million in 1860 to $1 billion in 1863 and eventually reached around $2.7 billion shortly after the war concluded in 1865. Throughout the 20th century, the debt continued to grow steadily. By the time the United States financed its participation in World War I, the debt had reached approximately $22 billion. After WWII, the national debt hit a cycle high and was slowly offlaid via spending cuts, financial repression, and inflation, decreasing until it hit a low of 30% debt to GDP in 1982.

The Afghanistan and Iraq Wars, the 2008 Great Recession, and the COVID-19 pandemic have all accelerated the growth of the national debt. From fiscal year 2019 to fiscal year 2021, spending witnessed a substantial increase of approximately 50%, mainly attributable to the effects of the COVID-19 pandemic. Factors contributing to sharp rises in the national debt include tax cuts, stimulus programs, increased government spending, and reduced tax revenue resulting from widespread unemployment.

Now, the debt level is increasing faster. And this time, it’s occurring without a crisis to spur massive government borrowing.

This removal of even the faintest whiff of fiscal constraint has truly allowed the Treasury to plunge deeper into the debt black hole- in a shocking turn of events, the national debt has increased by over $1.1 TRILLION in 41 days!

!

It now stands at a staggering $32.51 Trillion- a rate of $27B a DAY.

This was funded by a mix of Treasury notes, bills, and bonds, and a small amount of something called FRNs- floating rate notes.

This recent tsunami of new Treasury issuances could be indicative that the United States is entering what is called a debt spiral.

A debt spiral occurs when an entity, such as a person, business or country finds itself needing to borrow money in order to fulfill its existing financial obligations.

This can happen, for example, when you take out a payday loan to cover your car finance payment or when you rely on loans to pay off your credit cards. Debt spirals are incredibly challenging to break free from because each time you borrow money, you accumulate additional interest on top of the amount you already owe.

When you are caught in a debt spiral, the primary focus is on servicing your debt rather than making progress in paying it off. As a result, debt remains stagnant or continues to grow. This situation creates a constant feeling of financial instability, where you are constantly teetering on the edge. With no extra cash available, every time you need to make a purchase, you are likely to accumulate even more debt.

This is what the United States is entering. At $32T of Federal debt, that means if rates stay at 5% the U.S. will eventually have to pay $1.6T a year in interest alone to service the debt. That doesn’t even include principal payments.

I made this graphic to visualize the process.

!

For example, let’s take a look at just the shortest-term debt securities that are maturing this month. Per the Treasury’s monthly report, around $1.17T in bills will mature in July. All of this debt was recently issued and thus the rate step change won’t be too severe, but will still have to be refinanced at current rates.

!

In terms of notes, approximately $183B will have to be refinanced as these instruments mature.

!

The amount of TIPs maturing is almost immaterial at $53B. Similar with Floating Rate Notes, of which $82B mature this month.

As these debt securities mature, the Treasury pays them off by issuing new ones, “rolling the debt” forward similar to how options or future traders roll contracts week to week or month to month.

The issue is, all these securities are refinanced at higher rates and thus cause more interest expense to incur across the balance sheet. This is fueling a massive rise in interest expense paid by the United States.

As the interest rate rises, the amount of debt issued must rise in tandem. Which means the total interest paid rises even more, and thus more debt, in a devastating feedback loop. What worsens the situation is that this process is non-linear, not only logically from the compounding interest, but from other feedback loops as well.

In June, the interest expense paid for the last twelve months hit $852B- a 28% compounded annual growth rate.

If this keeps growing at this rate, we will be paying $1.78T in interest alone in 2025.

And $2.28T in 2026.

!

The problem the central planners face is that of a true dilemma. If they raise rates to fight inflation, they’re only accelerating the debt spiral.

However, if they lower rates and begin QE, this will in time cause more inflation, which will by default increase Treasury expenditures as the prices of labor, infrastructure, healthcare and military equipment rises.

Which will increase the amount of debt the Treasury must issue. Which will push us further into the debt spiral. I have termed this the Peruvian Bull Debt Paradox. The higher they raise rates, the closer and larger the next QE tsunami will become.

The U.S. is already paying record amounts in interest expense- and the Fed hasn't even finished its hiking cycle. What happens if "higher for longer" proves to be true, and more of the $32T debt load gets refinanced at 5%??

The US paid $122B on interest alone in June of 2023. That's 18% of all Federal outlays for the month. !

The markets are sniffing this out. Last week, the 10-year Treasury broke 4%, a key resistance level seen in February 2023 before the bank failures of SVB and FRB, and September 2007. And the 2yr hit a high not seen since before the 2008 financial crisis.

! *** continue

source *** by TheUltimator5

TA - GME running on an ALGO puts the next large run in EARLY AUGUST

!

~ ~ ~Complete Algorithm (https://imgur.com/a/z8c5xsh)~ ~ ~

The reason I'm posting this for everyone to see, is that I'm fed up with the lies and the narratives that are being pushed on us. Every move is known very much in advance. This is why we get hit pieces, we get FUD and MSM spreading lies everywhere they can.

They are confident in their things they do because it is one algorithm that is making it easy.But they keep doing the same things over and over again which is making them vulnerable and predictable.

I don't know exactly what they are doing, but when they come to the end of the algorithm, its the days where we experience that massive volume. I would guess, that its the day they balance their books of crime. Remember Madoff having all these fake trading computers.

So I start with June 2021 when GME shot to 300$ and that's where it started. The swaps started there and from then on it was always C69. Double tops ended the runs, double bottoms ended the dumps.Then comes a part where 90 Calendar days are drawn out to reset the algorithm.

Reset /#1 January 7th 2022

This reset was with a high volume and a violent price swing in afterhours. +44$ Afterhours (Presplit)From then one C69 was regular.

- Timespan from one Reset to other -297 Days = 9 months & 24 daysIf we count only work days that's: 204 Business days for that algo to reset

Reset /#2 October 31st 2022

Its when S3 Capital came on Yahoo to say how we should expect something parabolic past 30$.We went from 25$ to 35$ (post split). That's 10$ and equals 40$ presplit, which is correlating to the last reset in terms of price action.

- Timespan from Reset to other -142 Days = 4 months & 22 daysBusiness days: 96 days

So roughly double of the time reduced until March Reset. (Could be due to DRS)

Reset /#3 March 22nd 2023

It is where they used the excuse of "beating EPS" / "surprise earnings".We went up from 17$ to 27$. Which is AGAIN 10$ and meets the same price action and movement.

Finding the next +10$ run

If we assume it is again 142 days, that would land us to /*/August 11th 2023.//*So do we expect some news? Because earnings it isn't.Or August 8th 2023 based on 96 Business days.

So its basically crime what they are doing and they are suppressing the real price action. If its that predictable then this has nothing to do with free market.

October 13th Friday

I mark this day when I think the whole algorithm will end and cause a massive price action upward.

Understanding the picture above

Each box that is colored with my beautiful crayons shows you the exact algorithm. They are always in the same order once the algorithm has been restarted. And I think that because its programmed like that, they can either try to restart it again, disturb the market like on June 5th and call it a "glitch".

The blue box is the algo part from where it was reset. If you look down there you can see these two algos Oct 22 and Jan 22. It shouldve made after March 2023 the same parabola form (round form) and go downward. This is where Pulte DRSed shortly after and confused the algorithm picking its route to the upside. And that is the time where they halted the market and no trade were seen for 5 minutes.This is where they reseted the algorithm by force. It prevents them from getting destroyed.

The yellow box is when the algorithm begins again.The Purple box is the bottom to bottom rounding part.The Green box is where it has no big price action but it is steadily rising.The Orange box is showing stronger price upwards.The White box is where we see a significant drop in price.The Red box is where we see bottom and flat trading until the algo resets at the end of it.

Now that you have the boxes and the algorithm. You can laugh at the medias face and expose their lies and narratives.

-Submitted this for a friend who is lacking karma, but has his nuts and bolts tightened when it comes to technical analysis. Read more