TL;DR: Yet another financial analyst confirms MOASS potential of GME and AMC:

On the 26th July 2021, Tony Kim, an analyst with Util-Assist, made a very insightful LinkedIn post, where he discussed the impending MOASS from the point of view of Occams razor.

Occams razor is the principle whereby, when faced with two opposing explanations for the same set of evidence, our minds will generally prefer the explanation which requires the fewest assumptions to be made. Tony Kim’s public post, which garnered over 400 likes and 50 comments in the first 12 hours (by LinkedIn standards, this could be said to be very trending) exposed his belief that the narrative being pushed out is fundamentally flawed because it wouldn’t even be a talking point if there wasn’t the potential for a massive short squeeze in the market.

The text of his post reads as follows (reproduced here without editing):

The DTCC is the largest security depository in the world, having processed $2.15Q (quadrillion) in securities in 2019.

On July 22, 2021, the DTCC published SR-NSCC-2021-010. This filing sets out the procedures for short sellers to exchange securities for a cash loan to meet collateral calls in the event of a default. In doing so, its members can avoid a “fire sale” scenario.

It begs the question: Why would the largest security depository in the world take steps to shield the market against a fire sale borne by short positions if the threat of such an event wasn’t real?

Why are these safeguards necessary at all?

Because I was told that meme stocks such as $AMC and $GME were just elaborate pump-and-dump internet scams. That only an idiot would blindly hop on the social media-driven speculation bandwagon headed for certain financial ruin. That there’s no fundamental basis for investing in a dying brick-and-mortar video game retailer and movie theatre chain in the wake of digital transformation. That the stock market has become gamified like a casino. That “naked short selling” happens, but not at the scale retail thinks it is. That “dark pool abuse” is just a wild conspiracy theory propagated by tin foil hats that don’t understand basic market mechanics. That “dumb money” does not have the intellectual capacity or resources to develop an edge in the market.

Could it be that +5 million individuals worldwide are gullible enough to sponsor the greatest misinformation campaign ever concocted, orchestrating via the internet the biggest dead cat bounce of all time? Or could it be that a few bad actors got greedy, careless, and found themselves overexposed on the wrong side of a trade with an infinite downside.

The simplest explanation is usually the correct one.

It got better. In a later comment thread, Tony Kim wrote the following:

Judging by the sheer volume of filings added to the Federal Registry recently, between increasing the frequency of supplemental liquidity deposits (002) and stating the procedures in the event of default (010), it’s clear that the DTCC and its subsidiaries are preparing for some kind of shock.

As for the SEC, they definitely have their work cut out for them. Hopefully it results in a fair and equitable outcome for all. The world is watching closely. And they know it.

Tony Kim

Another financial analyst confirms MOASS potential

At this point, it’s becoming clear to see. The squeeze potential is not something which financial analysts are railing against, indeed many successful ones (like Peter Hann in this earlier story we covered) have taken the time to do their own research, and are concluding exactly the same as we smooth brained apes…. That is, the shorts haven’t covered. They are in the shit. Apes control the float. It’s just a matter of time. But it’s always good to see yet another financial analyst confirms MOASS potential is not just an Ape-Pipe dream.