Just like the unexplained market movements observed before the 9/11 terrorist attacks, Austin Private Wealth LLC has come under scrutiny for its massive short positions on Trump Media ($DJT) and Rumble ($RUM) taken one day before an attempted assassination of former President Donald Trump. The timing and magnitude of these trades have raised significant questions and sparked widespread speculation.
The Short Positions
Austin Private Wealth reportedly shorted 12 million shares of Trump Media and 34 million shares of Rumble. The trades were executed just a day before 20-year-old Thomas Matthew Crooks of Bethel Park targeted Trump during a political rally in Butler, Pennsylvania. Analysts and independent media have pointed out that had the assassination attempt succeeded, it would have likely led to a substantial drop in the stock prices of both Trump Media and Rumble, resulting in a potential profit windfall for Austin Private Wealth, possibly amounting to billions of dollars.
The Explanation and Controversy
Following the assassination attempt and the subsequent media attention on the peculiar timing of these trades, Austin Private Wealth released a statement attempting to clarify the situation. The firm claimed that a “multiplier error” by a third-party vendor was to blame, which allegedly increased the number of shares by a factor of 10,000 for all options contracts, not just those related to Trump Media. According to Austin Private Wealth, they had only intended to short 12 contracts (1,200 shares) of $DJT.
“We deeply regret this error and the concern it has caused, especially at such a fraught moment for our nation,” the investment company said in a statement. “We are committed to full transparency and maintaining the trust of our clients. As such, we are reviewing our internal procedures and our processes with the third-party vendor that assists with SEC filings to better understand how this happened and avoid similar issues moving forward.”
Independent Media and Public Reaction
The explanation provided by Austin Private Wealth has done little to quell the speculation. Independent media outlets and market analysts continue to question the plausibility of the firm’s claims. The coincidence of the timing, the scale of the trades, and the subsequent attempt on Trump’s life have all contributed to an atmosphere of suspicion and doubt.
The firm has asserted that it discovered the error three days after the assassination attempt, a point that has only fueled further skepticism. Critics argue that the timing of the error’s discovery is too convenient and raises questions about the internal controls and oversight at Austin Private Wealth.
The Broader Implications
This incident has broader implications for the financial industry and the regulatory environment. It highlights potential vulnerabilities in the systems and controls that govern trading activities and the accuracy of SEC filings. The situation also underscores the importance of transparency and accountability in maintaining public trust in financial institutions.
Moving Forward
Austin Private Wealth has pledged to conduct a thorough review of its internal procedures and the processes involving its third-party vendor. The firm aims to ensure that such errors do not recur and to restore confidence among its clients and the broader market. However, it remains to be seen whether these efforts will be sufficient to address the concerns raised by this incident.
DJT Technical Analysis
The chart for Trump Media & Technology Group Corp (DJT) shows various technical indicators and price movements. Here is a detailed analysis:
Trend Analysis:
The stock has been fluctuating with no clear long-term trend. Recent price action indicates a sideways movement with periods of volatility.
Support and Resistance:
- Support: Around $30.00, where the price has bounced multiple times.
- Resistance: Around $42.50, where the price has faced selling pressure.
Moving Averages:
- 50-day Moving Average (blue line): Currently around $42.50, acting as a resistance.
- 200-day Moving Average (red line): Currently around $34.35, indicating a critical support level.
Volume:
The volume shows spikes, suggesting significant buying and selling activity at various points. Recently, there has been a volume spike, indicating potential increased interest in the stock.
Relative Strength IndexIn the world of technical analysis, the Relative Strength Index (RSI) stands as a cornerstone tool for traders seeking insights into market momentum. Developed by J. Welles Wilder ... More (RSI):
The RSI is at 48.18, indicating neutral momentum. It’s neither overbought nor oversold.
On-Balance VolumeThe On Balance Volume indicator (OBV) is a technical analysis tool used to measure the flow of money into and out of a security over a specified period of time. It is a cumulative ... More (OBV):
The OBV line shows a gradual increase, suggesting accumulation over time.
Stochastic RSIIn the realm of technical analysis, the Stochastic RSI (StochRSI) emerges as a powerful tool for traders seeking to navigate market dynamics with precision. Developed by Tushar S. ... More:
The Stochastic RSI is at 0.538, in the neutral zone. It suggests neither overbought nor oversold conditions.
Chaikin OscillatorNamed after its creator Marc Chaikin, the Chaikin Oscillator stands as a formidable tool in the arsenal of technical analysts. This oscillator is designed to measure the accumulati... More:
The Chaikin Oscillator is negative at -13.97M, indicating selling pressure.
MACDThe MACD indicator is essentially a momentum indicator that shows the relationship between two different moving averages of price. The MACD is the difference between the 12-period ... More Oscillator:
The MACD line is at -2.07 and the signal line at 1.86, with the MACD histogram showing negative momentum. This suggests bearish sentiment in the short term.
Time-Frame Signals:
- 3 Months: Hold. The stock is currently moving sideways with no clear trend, and indicators are mixed.
- 6 Months: Hold. The stock may continue its range-bound movement between the support and resistance levels.
- 12 Months: Hold. Long-term indicators do not show a strong trend, suggesting that the stock might continue to fluctuate within its current range.
Past performance is not an indication of future results. This article should not be considered as investment advice. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions. 🧡
RUM Technical Analysis
Analyzing the chart for Rumble Inc (RUM), we observe several key elements.
The stock is currently trading at $6.79, with a recent upward movement indicated by the green candle. The 50-day moving average (blue line) is at $6.41, and the 200-day moving average (red line) is at $6.15, suggesting the stock has crossed above its short-term and long-term moving averages, which can be a bullish sign.
The Relative Strength Index (RSI) is at 60.91, indicating the stock is in a neutral to slightly overbought zone. The On-Balance Volume (OBV) is relatively stable, showing no significant accumulation or distribution. The Stochastic RSI is at 0.710, which is high and indicates the stock might be overbought in the short term.
The Chaikin Oscillator is at 2,238,147, suggesting a bullish momentum, as it is above the zero line. The MACD Oscillator shows a recent bullish crossover with the MACD line (blue) crossing above the signal line (orange), and the histogram is in positive territory.
The stock has shown a mixed trend over the past months with periods of upward and downward movements. The recent breakout above both the 50-day and 200-day moving averages can be a positive signal.
Time-Frame Signals:
3 Months: Hold – The stock’s recent breakout above key moving averages suggests potential for further gains, but the overbought indicators recommend caution.
6 Months: Buy – If the stock sustains above the moving averages and maintains bullish momentum, it could provide good returns.
12 Months: Hold – Given the mixed trends, it is wise to monitor the stock’s performance over a longer period for sustained signals.
Past performance is not an indication of future results. This article should not be considered as investment advice. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions. 🧡
Looking Ahead
The controversy surrounding Austin Private Wealth’s short positions on Trump Media and Rumble serves as a stark reminder of the potential for significant financial movements to intersect with major political events. As the investigation into this matter continues, it will be crucial for all parties involved to uphold the principles of transparency and accountability to maintain the integrity of the financial markets.
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This content is provided for informational purposes only and does not constitute financial, investment, tax or legal advice or a recommendation to buy any security or other financial asset. The content is general in nature and does not reflect any individual’s unique personal circumstances. The above content might not be suitable for your particular circumstances. Before making any financial decisions, you should strongly consider seeking advice from your own financial or investment advisor.
