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THESE Stocks Will Short Squeeze Next! What it Means for ALL Investors! - YouTube
Channel: Felix & Friends
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felix here guys and we are looking at the top 10聽
stocks that are ripe to be short squeezed today聽聽
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the ones with all the highest indicators聽
status i'll show you that in just a second聽聽
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as always guys remember this is not a financial聽
advice this is just entertainment only and this聽聽
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whole short squeeze sector is becoming quite聽
interesting because it's probably quite a big聽聽
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item here 100 trillion us dollars in naked聽
shorts are rumored to be out in the market聽聽
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so we're going to look at what that all means guys聽
and if you want to understand a little bit more聽聽
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about how this works i recommend my courses聽
below guys there are promotional codes 29聽聽
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make money and become financially independent and聽聽
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still in the works 115 lectures plus coming up聽聽
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if you really want to understand how to trade聽
options with proper strategies and long-term聽聽
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themes and also if you really just want to聽
understand what the hell is going on with the聽聽
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rest of the world you know what are naked shorts聽
and synthetic shares and all these things and how聽聽
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you can create them because it isn't difficult so聽
i teach you all that check out the coupon codes聽聽
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down below 39 off on that one it's make money on聽
the options course so yeah i can cling on to it聽聽
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right then let's get cracking so what have we聽
got here well i wanted to share this with you聽聽
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this is actually fintel a great website for uh a聽
lot of information and um as you can see obviously聽聽
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subscribe to here and you can see well let me move聽
myself a little bit to the corner here so you can聽聽
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see the headlines you can see they have a short聽
squeeze score and what is that exactly well it's聽聽
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a metric that they come up with and they combine聽
short interest float the volume a month or month聽聽
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price month a month on the borrower fee ratio聽
um and now if you um the short interest float is聽聽
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basically the number of shares shorted divided by聽
the tradable shares so float other tradable shares聽聽
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because they are often shares that are simply聽
not traded because they are somehow locked up聽聽
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in one way or another when that number is about聽
40 i would say we are in insanity high land and聽聽
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that is normally when you look at and you think聽
well this might well be right for short squeeze聽聽
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the second item really that is i think a聽
key one here is the borrow fee rate and that聽聽
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is typically about 0.3 percent per annum to聽
borrow a share and look at these numbers here 162聽聽
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if you want to borrow our a medical system so if聽
you have some ra medical systems call your broker聽聽
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and tell them you're willing to lend it because聽
you want to get 162 uh payment for that from the聽聽
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broker or the broker will take a cut but i mean聽
you might be against the whole shorting saga聽聽
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completely and it might be against your religion聽
to lend our chairs but there is definitely money聽聽
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to be made there so what are we gonna look at聽
well what i've done to start with is i've put a聽聽
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similar table on our patreon which of course are聽
very welcome to join guys links below as always聽聽
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and here it is and what you can therefore do is聽
you can filter because even though it comes up聽聽
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with this short squeeze score that goes to 100聽
and you know some of them are 99 98 97 97 97 97聽聽
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incredibly high um does that mean that these top聽
10 stocks here say are the 10 that are gonna get聽聽
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short squeezed today well let's have a look at聽
a couple of them and literally just pull them聽聽
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up here and google and you can see okay that's聽
looking like a bit of a squeeze there on our a聽聽
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medical uh moses again similar story fourth聽
of june 8th of june uh washington prime well聽聽
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i mean that's also gone from two dollars to 445 uh聽
prior south therapeutic similar story three and so聽聽
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i'm not going to go through them all but you can聽
just see here they've all tremendously shot up so聽聽
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the data isn't wrong but which are the lowest risk聽
options if you wanted to play this and you might聽聽
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say this is not something i would ever invest in聽
this is casino stuff but isn't it still important聽聽
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to understand what's going on in the market聽
and we're going to touch on that at the end聽聽
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as well is you know what is this actually what's聽
the impact of all of this on the average long-term聽聽
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stock investor and i don't mean that you are聽
average i just mean you know these sort of normal聽聽
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people here i know you can see somebody in the top聽
popping up uh one of our lovely patreons so what聽聽
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you can do is you can click on here you can filter聽
by condition so say we make the short interest聽聽
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greater than 40 and hit the okay button and聽
now we're left with just uh how many is this um聽聽
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doesn't tell me does it 12. that is left with 12聽
okay that have the highest short interest float聽聽
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so that means all of these at least 40 of the聽
tradable shares are shorted which is a huge amount聽聽
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then you can see the volume momentum and聽
price momentum so the prices have gone up聽聽
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substantially for all of them but not that much聽
for some of them so integrated media for example聽聽
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is only going up 11 volumes up 114 percent month聽
on month and short interest is at 113 percent off聽聽
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float so this thing is really shorted as much as聽
you probably can and you can get crazy numbers you聽聽
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can get romeo power here 226 off float is shorted聽
and you might wonder how that works but it is聽聽
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quite possible actually now the borrow fee rate聽
is what i like to look at also as an indicator聽聽
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because it makes shows you how hard it is for the聽
guys to cover the short the hedge funds as soon聽聽
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as they have fudge funds shorting it how hard and聽
expensive it is for them to cover their positions聽聽
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but there is a but and i'm going to show you this聽
here so okay i'll move myself to the top again聽聽
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can you see this is out this is聽
uh our a medical uh our med rmed聽聽
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and you can see here that the short borrow fee聽
rate is insane and why do i like looking at the聽聽
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short borrow free rates because it's updated聽
every 30 minutes and that matters because with聽聽
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this stuff you want to have up-to-date data so聽
of course this is a spreadsheet i've exported so聽聽
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take teachers with a touch of caution it'll be a聽
little bit a few hours older by the time you watch聽聽
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it lightly but the borrow free rate is something聽
that is updated every 30 minutes right because聽聽
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therefore it is a incredibly active indicator聽
and some of the other ones are not so great um聽聽
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short volume ratio that also we get that聽
number about once a day so that's pretty good聽聽
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but the fail to deliver ratio is our clearest and聽
cleanest indicator for naked shorts and what are聽聽
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naked shorts it basically means you shorting the聽
stock that you haven't borrowed a stock to cover聽聽
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your position and therefore when you come to聽
having to buy that stock you are empty-handed聽聽
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and the way that works is that your broker who聽
you're friends with and you pass in hundreds of聽聽
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millions of dollars of business basically says to聽
you um you know you asking can i can i borrow uh聽聽
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shares of rmed can you cover me if you know if i聽
need to and he goes yeah sure sure i've got those聽聽
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available anything well they well don't worry聽
about i'm doing about that i've got you covered聽聽
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and that's exactly what happens and they say that聽
to lots of people they might have some shares that聽聽
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they can find somewhere in a client's portfolio or聽
their own but they certainly duplicate those out聽聽
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so say they have 10 000 shares they tell 20 people聽
those 20 people you know that makes a 200 000聽聽
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shorts out there only 10 000 shares to cover and聽
what happens then is that you get fails deliver聽聽
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so it basically on the settlement date of the聽
short option some people are empty-handed and聽聽
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they're like hey hey hey uh my friendly broker you聽
you said you you had those and he said yeah but聽聽
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wink wink you know you you knew i never had them聽
right that's sort of the conversation that happens聽聽
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and why is this recorded well it's meant to be聽
sort of clerical errors you know uh recording聽聽
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errors little mishaps that happen but look at rmed聽
610 000 shares were not delivered because they聽聽
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didn't have any they couldn't find any even though聽
of course they were legally obliged to have them聽聽
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and that happened on the last day reported聽
that it's the 14th of may and today is聽聽
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the 9th of may so this data is like聽
3-4 weeks old and this is the edge聽聽
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that of wall street and the hedge funds have聽
built for themselves through regulation they聽聽
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report the stuff three weeks late we as retail聽
investors are in the dark completely on the fail聽聽
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today by the time we get the data it's it's it's聽
over right it's it's like okay three weeks ago you聽聽
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didn't have the stocks covered but what about聽
now well we have no idea so therefore i think聽聽
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these indicators like things like fails delivers聽
are not that useful and always always always when聽聽
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you look at data like this look at when it was聽
updated how often it is updated update frequency聽聽
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daily at close of the day okay that gives you some聽
information um but you know frequency infrared聽聽
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every 30 minutes all data should be like that and聽
i wish it will be at some point probably not but聽聽
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um that's why i like looking at the short borough聽
few raids because as i say they're coming every聽聽
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30 minutes so those are the most useful ones聽
out there now um what is gonna happen to these聽聽
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stocks therefore well you know if i had to pick聽
a couple of here that i would say are most likely聽聽
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to get squeezed it would be these ones well聽
actually the borrow free rate on workhorse is聽聽
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pretty cheap so possibly not workhorse聽
um i think point is possible i think um
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luminar which is surprising really because聽
i think it's actually a decent company聽聽
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yeah so i think i would probably pick out these聽
four i'd pick out arie medical vinco charge point聽聽
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illumina on the basis of combining the borrow free聽
rate that is really up to date and i'd exclude the聽聽
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rest of it now you can of course look at this data聽
in other ways and i encourage you to do that so聽聽
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i'm going to remove this here again and you can聽
simply for example just sort the whole thing by聽聽
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borrow free rate and just look at those and then聽
you get utenberg semi-leds uh high wind moxie聽聽
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and cos and so on which sometimes they're not all聽
that famous they're not all you know talked about聽聽
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as much as some of the others that we see a lot聽
about you know people talk more about things like聽聽
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workhorse and then lord stand motors and um you聽
know amc of course microvision those ones that聽聽
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people really know about but there are a lot of聽
other plays in here where this is also happening聽聽
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it's just not happening as visibly as with an聽
amc or with the gme or something like that so聽聽
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i kind of want to share this with you as a little聽
bit of data background as well guys if you want聽聽
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to understand this a little bit more check out my聽
course guys as i said on the stock options course聽聽
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there's a 29 off coupon it's summer goat and on聽
the options course it is the course coupon is 39聽聽
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off and it's make money you can also still get聽
two free stocks guaranteed when you deposit a聽聽
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hundred dollars into weibo and that can give聽
you 2 300 u.s dollars which is you know it's聽聽
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worth a punch i would say again the link is below聽
you're going to do that before the 17th of june聽聽
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or the course expert at course uh op um two聽
point expirations are um at the end of this聽聽
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week so they are on the uh 40 13 of july guys i聽
appreciate you watching and it's a little bit of a聽聽
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different content but it's such an important part聽
of what's happening at the moment in the market聽聽
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and what i am actually quite concerned about is聽
that if we have 100 trillion us dollars in short聽聽
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naked shorts out there then if they all do聽
get squeezed we are going to have hedge funds聽聽
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and possibly large finance institutions going聽
out of business and you have here this kind of聽聽
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world where we are pretending that they have聽
access to an asset to cover themselves but they聽聽
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cannot and therefore their um or their losses聽
it could be quite substantial so it's not quite聽聽
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the same thing as the last housing financial聽
crisis but remember there we also packed together聽聽
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a bunch of rubbish mortgages and said because聽
we've got lots of rubbish mortgages they are now聽聽
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better quality yes yes yes that's how it works聽
that's how statistics and probability works聽聽
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take a lot of rubbish combine it and it becomes聽
shiny and new of course it doesn't but that's聽聽
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what the rating agencies were doing and here聽
we have something it's different but it sort聽聽
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of reminds me of the fishiness of the market聽
at the moment that there is something untoward聽聽
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going on here we shouldn't be in a situation聽
where this is happening on a large scale聽聽
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every single day a day-to-day and i totally聽
am with everybody who's making money out of聽聽
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this fantastic if you are but remember it is the聽
casino guys it is speculative and the house has聽聽
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better data because you can just see what i was聽
showing to you you don't have access to the same聽聽
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data as uh as the big brokerages and if you're聽
a client of the big brokerage you will get the聽聽
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rumor mill information as well so you will know聽
what's happening two or three weeks or four weeks聽聽
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even before you and i know about it and you might聽
think well we're gonna win anyway because there's聽聽
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so many of us i hope that's the case but a lot of聽
these funds and hedge funds and banks are making a聽聽
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ton of money on all these trades as well and doing聽
it without paying the borrow fee rates because聽聽
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they don't want to pay 93 interest on the borrow聽
and that is kind of not quite right it's kind of聽聽
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how they're screwing us the ones on the data front聽
they should be paying those of us who hold those聽聽
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stocks a borrow fee rate and that would give us聽
more money but they don't they pretend that they聽聽
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do someone's covering it up and it's a massive聽
massive thing and now is the bottom gonna fall聽聽
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out of this at some point what will be what will聽
be the impact what if all those hedge funds go out聽聽
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of business well you will then find out that a lot聽
of pension funds would have put money into this聽聽
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there'll be a lot of government employees a lot of聽
unionized employees whose pension fund pots are in聽聽
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those hedge funds as well these aren't just this聽
is not just evil money if you know what i mean聽聽
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at which point you know is the government going to聽
bail us out again is it going to cause uncertainty聽聽
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and is it going to rattle financial markets聽
severely uh that's kind of the part i'm a little聽聽
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bit more concerned about so i'm going to keep聽
watching this space guys and i truly appreciate聽聽
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you tuning in uh thank you very much check out the聽
courses guys they're fantastic it's a wonderful聽聽
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private community as well that comes with that and聽
you can ask me questions of course in the private聽聽
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chat groups over there so i look forward to seeing聽
you on that and thank you very much for tuning in
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