Trump Media Stocks “Anomalous Trading” Pattern

Dear Reader,

If there’s one thing I try to steer clear of in these pages, it’s political commentary. That’s not why you’re here and it’s not why I’m here either. But sometimes the worlds of finance and politics run so close, it’s unavoidable. And that’s what we’re seeing these days now that Trump Media stocks are trading publicly.

Obviously Trump Media stocks are supercharged with potential political turmoil simply because the majority owner is none other than “The Donald” himself. But there’s more to this story about Trump Media stocks’ latest battle in the markets…

Trump Media Stocks Go to Washington

You see, the price for shares of Trump Media stocks has been falling just about daily since its debut. But earlier this week, shares shot up double digits during the course of the day as investors got wind of some new news about the company…

After starting off the day falling a solid 5%, prices for Trump Media stocks completely reversed course. And they ended the day up more than 9%. That means they moved up a good 12% from the bottom to the top that day. So… What gives? This is a volatile stock, but that’s supreme volatility, even for Trump Media stocks.

Well, it turns out that the “powers that be” over at Truth Social, the company behind Trump Media stocks, are pretty sure the stocks are being manipulated unlawfully. And they’re pretty sure it’s only a handful of very big market participants trying to control the price of Trump Media stocks.

And they, via CEO Devin Nunes, sent an open letter to multiple House Republican committee leaders urging them to investigate this possible “unlawful manipulation” of Trump Media stocks and their share prices. Nunes is almost certain that there’s some naked short selling going on. And if he’s right, then there’s some illegal activity going on, potentially holding back Trump Media stocks.

Trump Media Stocks Naked Nemesis

You see, the process of shorting a stock is completely legal and a necessary function for markets to remain efficient. And when you legally short a stock, you borrow shares of it now and sell them with the intention of buying them back cheaper later to repay your loan. But what Nunes thinks is going on with Trump Media stocks short shares is something different called “naked short selling.”

Naked short selling is when you take advantage of loopholes and discrepancies between paper and electronic trading and tracking systems to sell shares that you neither own nor have borrowed. When you do this, there’s no way to be sure you can close that position when you need to, since you haven’t made sure those shares will even be there when you need them. It’s illegal. It’s market manipulation. And it’s what could be happening with Trump Media stocks.

That’s why Nunes has sent a letter asking members of Congress to probe the trading in Trump Media stocks and see “whether any laws including RICO statutes and tax evasion laws were violated.” And he didn’t just send it to any members. These are all folks who sit at the very heads of their committees:

• Financial Services Chairman Patrick McHenry, R-N.C.
• Judiciary Chairman Jim Jordan, R-Ohio
• Ways and Means Chairman Jason Smith, R-Mo.
• Oversight Chairman James Comer, R-Ky.

Those aren’t small fries he’s asking to investigate the potential manipulation of Trump Media stocks’ price.

Trump Media Stocks Battle With Citadel

And the thing is that Trump Media stocks’ CEO doesn’t think it’s just anyone out there illegally short-selling the shares. He’s convinced that Citadel Securities, of Robinhood and GameStop fame, has taken up a massive, illegal naked short position against Trump Media stocks’ price. And he’s been calling them out by name.

Nunes had already named Citadel Securities in an April 18 letter to Nasdaq CEO Adena Friedman, warning that Trump Media stocks shares “appear on Nasdaq’s ‘Reg SHO threshold list,’ which is indicative of unlawful trading activity.” He also noted that over 60% of the Trump Media stocks changing hands were traded by just four massive companies, including Citadel.

The new letter to Congress references the mega hedge fund as well. And the fund’s response is nothing short of what you’d expect from a battle royale over Trump Media stocks. The fund said, and I quote, that Nunes is “the proverbial loser who tries to blame ‘naked short selling’ for his falling stock price.”

Nunes, not one to be lambasted by billionaire hedge fund owners, blasted right back, pointing out the numerous times Citadel has been fined and sanctioned for this exact type of behavior. The CEO of Trump Media also added that the firm is “world famous for screwing over everyday retail investors at the behest of other corporations.” And that it should be “the last company on Earth that should lecture anyone on ‘integrity.’”

A Special Treat From Wealth Daily and Trump Media

It’s an interesting show to watch from the outside and it’s exactly what I’d expect from Trump Media stocks shares as this election year really heats up. And while I don’t have a recommendation here to buy or sell Trump Media stocks, I’ve got something very exciting coming your way…

You see, I recently had the opportunity to sit down with former Secretary of State Mike Pompeo and pick his brain about what he learned as head of the CIA and secretary of state. We talked about meeting foreign dictators hell-bent on seeing America fall. And we talked about where the U.S. military is compared to our adversaries and where we need to be.

I’ve got to tell you that it was a fascinating conversation and Mr. Pompeo is one of the most down-to-earth, welcoming political leaders I’ve ever met. He was very kind and soft-spoken and I was honestly very pleasantly surprised. Well, I’m going to share that interview with you here. And I’ve got an investment that goes along with it for you as well.

Forget Trump Media Stocks — I’m Getting You the Man Himself

But that’s not the special treat. You see, as Mike and I were talking (we’re on a first-name basis these days), I mentioned how I’d flip for the opportunity to talk to his old boss, the guy who made him head of the CIA and then secretary of state: Donald J. Trump.

Mike, kind man that he is, chuckled and agreed that it would be a great opportunity for me. And he even said he’d see what he could arrange, which I, of course, understood as a pleasant way of telling me, “Not gonna happen, bud.” But much to my surprise, I got a call about a week ago asking when I would be free to come to Mar-a-Lago to sit down with Mr. Trump and talk business.

Now, nothing is set in stone right now, and he’s probably got one of the busiest schedules in the world, but as of this moment, Donald Trump, along with Devin Nunes, CEO of Trump Media, have both agreed that they’d like to sit down and talk about their plans for Trump Media stocks’ future.

And when that happens, you’re going to be the very first to get access to the footage from our chat. You’re also going to see me ask a former and potentially future president to give me a call when he’s picking economic advisers if he wins come November.

After all that goes down, I’d bet I’ll have a much better read on the man, the myth, the legend, and the direction Trump Media stocks are likely to head over the next few years as those plans are executed. So make sure you keep coming back to Wealth Daily and keep an eye out for my official thoughts on Trump Media stocks’ future.

To your wealth,

Jason Williams

@TheReal_JayDubs

Angel Research on Youtube

After graduating Cum Laude in finance and economics, Jason designed and analyzed complex projects for the U.S. Army. He made the jump to the private sector as an investment banking analyst at Morgan Stanley, where he eventually led his own team responsible for billions of dollars in daily trading. Jason left Wall Street to found his own investment office and now shares the strategies he used and the network he built with you. Jason is the founder of Main Street Ventures, a pre-IPO investment newsletter; the founder of Future Giants, a nano cap investing service; and authors The Wealth Advisory income stock newsletter. He is also the managing editor of Wealth Daily. To learn more about Jason, click here.

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