Short transcript excerpt from a YouTube video discussing market mechanics around ‘longs’ and ‘shorts’, fair market price, and the concept of wholesale inventory acquired below fair value. The speaker explains a simple buyer-side business model where market makers accumulate inventory sold at low prices (wholesale) relative to fair market value and positions may be held until liquidity returns (noting a harvest around early April).
Here's another confluence. If we look at the opposing side, which is. These are the longs. The long stop being harvested April 7 or somewhere around early April. So that hasn't changed. Longs are being positioned for the return at some point, maybe after the final bull push will come for this liquidity later. This is the return liquidity. It's a very simple business model. Let's not make it harder than it is. You need to. This is buyer buy side inventory. These people here, these shorts, these longs are forced to sell at low prices. So this is your fair market price here. This is fair value. Anything that you can buy below that is wholesale. This is wholesale down here. So the market makers took all this inventory, this wholesale inventory below fair market.
