The Matrix is Everywhere. A Quant DD
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| Author       | Source       | 
| :-------------: |:-------------:|
|  [u/BurnieSlander](https://www.reddit.com/user/BurnieSlander/) | [Reddit](https://www.reddit.com/r/Superstonk/comments/nzajpv/the_matrix_is_everywhere_a_quant_dd/) | 

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[DD 👨‍🔬](https://www.reddit.com/r/Superstonk/search?q=flair_name%3A%22DD%20%F0%9F%91%A8%E2%80%8D%F0%9F%94%AC%22&restrict_sr=1)

Greetings Apetards, hold on to your tits.

Why you should not take financial advice from me:

1.  I put things in my mouth that I shouldn't; play dough, brown crayolas (because keto).

2.  I drank from the gutter as a child and got giardia and my brain was affected.

3.  I ate [M](https://imgur.com/a/2hsRx5M)[achineel fruit](https://www.southernliving.com/garden/trees/manchineel-poison-tree) while on vacation 2 years ago because they taste good. But they make you feel very bad.

4.  Copious amounts of substances that have made my mind incompatible with normal life.

Ever since [u/HomeDepotHank69](https://www.reddit.com/u/HomeDepotHank69/) rallied the Quant Apes and showed [increasing levels of correlation](https://www.reddit.com/r/Superstonk/comments/nu9qq9/hanks_big_bang_quant_apes_glitch_the_simulation/) among a number of shorted stocks, I've been wondering- just how big is the House of Cards? This technical DD attempts to answer that question by mining price data for over 6K tickers and identifying stocks with similar price action to GME.

As a salute to HD Hank's work with other Quant Apes, I ran my own independent correlation analysis and created a slightly more eyeball-friendly version of the results:

[![r/Superstonk - The Matrix is Everywhere. A Quant DD](https://preview.redd.it/8oc8uadoj4571.png?width=2002&format=png&auto=webp&s=883e5db6a01056b047c30f4ef67eeb3d38dcaa41)](https://preview.redd.it/8oc8uadoj4571.png?width=2002&format=png&auto=webp&s=883e5db6a01056b047c30f4ef67eeb3d38dcaa41)

In 2020, these stocks had low correlation; which is typical in a free-ish market. In 2021, we see a huge surge in correlation rates. IMO, this is indicative of hedge funds using the same or highly similar HFT algorithms to manipulate prices.

Now that we know that shorted stocks have suddenly started moving together in 2021, we can hypothesize that there are even more stocks out there that are also correlated.

Analyzing 6,319 tickers taken from North American companies trading on NYSE and Nasdaq, during the January 2021 blip:

-   16 stocks gained more than 500%

-   39 stocks gained more than 300%

-   279 stocks gained more than 100%

These numbers are interesting to me because it gives us some insight into the scale of what we are dealing with. As HD Hank said, 1 stock squeezing is *extremely* rare. I would add that 279 stocks displaying similar price action during the January blip is somewhere in the realm of god-tier what-the-fuckery.

OK, but the blip doesn't mean shit if "Shorts Have Covered"TM

[![r/Superstonk - The Matrix is Everywhere. A Quant DD](https://preview.redd.it/sxalstfqc4571.png?width=1278&format=png&auto=webp&s=14fcfea7182b84b309280719f82bb2f6d6b89b14)](https://preview.redd.it/sxalstfqc4571.png?width=1278&format=png&auto=webp&s=14fcfea7182b84b309280719f82bb2f6d6b89b14)

Shorts have a lot more covering to do.

So let's look at only those stocks which have been able to sustain the gains made during the January blip. Of the 279 stocks that gained more than 100% during the blip:

-   5 have maintained gains of 1,000% or higher

-   14 have maintained gains of 500% or higher

-   25 have maintained gains of 400% or higher

-   43 have maintained gains of 300% or higher

-   74 have maintained gains of 200% or higher

-   135 have maintained gains of 100% or higher

Fun Fact: The combined market cap of the 135 gainer-maintainers is 203 Billion.

If the shorts had covered, we wouldn't be looking at this many stonks holding on to ridiculous gains for over 4 months.

Of these sustained gains, GME is the king at 2,463.86%. AMC comes in second at 1,735.11%

[![r/Superstonk - The Matrix is Everywhere. A Quant DD](https://preview.redd.it/qs0qkcborz471.png?width=1306&format=png&auto=webp&s=187408c522c47c0de806639890f3c8e62f810bdf)](https://preview.redd.it/qs0qkcborz471.png?width=1306&format=png&auto=webp&s=187408c522c47c0de806639890f3c8e62f810bdf)

*Note that of these 135 stocks, there may be a few whose gains are unrelated to shorting/hedgefuckery/apes. That said, based on my criteria for this analysis, all 135 of these stocks experienced a big jump above their baseline in late January 2021 and have exhibited similar price action since, all while trending upwards far above their baseline while maintaining gains.

Charting these stocks makes it pretty clear that the hedgies are losing control

[![r/Superstonk - The Matrix is Everywhere. A Quant DD](https://preview.redd.it/mj5uu2ebd4571.png?width=3634&format=png&auto=webp&s=9eea5bd3ab14acc7d5938987d19d9f86adb597ee)](https://preview.redd.it/mj5uu2ebd4571.png?width=3634&format=png&auto=webp&s=9eea5bd3ab14acc7d5938987d19d9f86adb597ee)

Note what a normal market looks like on the left vs. where we are now.

TRUTH or FUD!

FUD: Retail buying is the only factor driving prices up. Gamer Apes and Movie Apes are just really good at meme hype and people are FOMO'ing into these stocks in droves, and then periodically bailing out when the price action gets too spicy.

TRUTH: The fact that other stocks which don't have a community behind them are still holding onto their gains from the blip 4+ months ago AND are experiencing wild price action similar to GME, while ALSO trending upwards following their own exponential curves, tells us that *SQUEEZY MARKET FORCES* are the primary driver of what we are seeing.

IMO, retail simply doesn't have the purchasing power to maintain 100% to 2,000% gains across 135 stocks. Especially not in a post-pandemic world where nobody works and we all just gamble away our government teat-milk based on 2-star-quality wallstreetbets DD.

[![r/Superstonk - The Matrix is Everywhere. A Quant DD](https://preview.redd.it/wxyuzh9m30571.png?width=718&format=png&auto=webp&s=b2ee2a9c4ec406443037e4f5ecf4a57f21289c79)](https://preview.redd.it/wxyuzh9m30571.png?width=718&format=png&auto=webp&s=b2ee2a9c4ec406443037e4f5ecf4a57f21289c79)

*It's not that I hate my job it's just that I hate having to have a job

This analysis again led me back to HD Hank & The Quant Apes work with price action correlations among groups of stocks. Taking the top 75 gainer-maintainers from the earlier exercise, I created a correlation matrix for those stocks across 2020 and 2021. We want to see if correlation increased in 2021.

Greener cells indicate higher correlation.

[![r/Superstonk - The Matrix is Everywhere. A Quant DD](https://preview.redd.it/neqpx9ijq4571.png?width=1632&format=png&auto=webp&s=770d7f5e9664dead065a9eb612936a47881cdbf4)](https://preview.redd.it/neqpx9ijq4571.png?width=1632&format=png&auto=webp&s=770d7f5e9664dead065a9eb612936a47881cdbf4)

*The diagonal white line is a byproduct of how the matrix is constructed- disregard. Also, I chose the top 75 because I didn't want to wait 3 hours for my laptop to process the larger dataset.

I know these just look like shitty QR codes, but the results are significant. *The aggregate correlation value for this set of 75 stocks in 2020 is 22.19, while the aggregate in 2021 is 60.9 (hehe).*

*This means that correlation among these stocks increased by nearly 3x in 2021*. A free market doesn't do this. A manipulated market does.

Conclusion

The House of Cards is much larger than we know. Greedy SHF's thought the pandemic was an infinite money glitch and over-extended their short positions on brick and mortars and other vulnerable industries because it "literally can't go tits up". They were so over-leveraged that the simple ape strategy of buy-and-hold became the proton torpedo down the death star vent shaft. What we are witnessing now is the beginnings of the chain reaction that blows up the whole thing.

If you aren't Star Wars savvy, [click here](https://www.quora.com/How-did-Luke-Skywalker-destroy-the-Death-Star) for an explainer.

It doesn't take much to topple a House of Cards- the real challenge is simply having the guts to do it.

[![r/Superstonk - The Matrix is Everywhere. A Quant DD](https://preview.redd.it/y8fbknwz80571.jpg?width=2000&format=pjpg&auto=webp&s=d313208f5fa017cb4773086c9e7c556597bdef4e)](https://preview.redd.it/y8fbknwz80571.jpg?width=2000&format=pjpg&auto=webp&s=d313208f5fa017cb4773086c9e7c556597bdef4e)

So wen moon? Moon soon my dear apes. For the moment, [we are here](https://www.reddit.com/r/MovieDetails/comments/hml9ua/in_the_big_short_2015_the_analyst_from_standard/).

[![r/Superstonk - The Matrix is Everywhere. A Quant DD](https://preview.redd.it/bac2kx5m40571.png?width=960&format=png&auto=webp&s=f8bc7e886865d2b52cbc88b414e129d94cb6e7c6)](https://preview.redd.it/bac2kx5m40571.png?width=960&format=png&auto=webp&s=f8bc7e886865d2b52cbc88b414e129d94cb6e7c6)

*** Thanks again to HD Hank and The Quant Apes for the inspiration for this post ***

EDIT: Full list of gainers & maintainers here:

<https://docs.google.com/spreadsheets/d/1WKPzllUsVD4Py_tfl6JsSlQA8slZ6bWpwDJ_f_ds5ps/edit?usp=sharing>

TL;DR - The Matrix is Everywhere. This is not isolated to a few stocks. Analysis shows potentially hundreds of stocks involved. SHF's are economic parasites that have infested the US financial system. Buy and Hold is causing them to lose control of perhaps ALL of their short positions. MOASS imminent.
