# ETF Rebalance
RGTI is facing a perfect storm this Friday, December 19th, with massive forced selling incoming.
The $3.2B Defiance Quantum ETF (QTUM) is rebalancing and must dump $30 million in RGTI shares and another $10 million in IONQ.
This isn't speculation; it's a mechanical event. RGTI is also in other ETFs rebalancing the same day, meaning even more selling pressure is coming for a stock with a low float.
Calculation:
https://preview.redd.it/auvc8qx5yl7g1.png?width=1055&format=png&auto=webp&s=d1825d7be223a21b90c341de0d0d4a177ef7100e
RGTI is part of other ETFs also the one's circled in red will be rebalanced on the 19-Dec and if the calculation is similar they will also sell RGTI is large quantities.
Since most other ETFs are bond+stock type etfs with varied weighting we may see a slightly different outcome, but the point remains - RGTI has gone up over the quarter and unlike other companies it has a P/E that's negative EPS < 0 and stock price too high
https://preview.redd.it/aqd5pibjyl7g1.png?width=1288&format=png&auto=webp&s=622bf3a30c890f85a06425d0c19697a13aac7bcb
# Insider Selling continues
https://preview.redd.it/j75o7zbbyl7g1.png?width=1377&format=png&auto=webp&s=98433d1b8d2f16c0785481a7ce0d34868aca508f
While the ETFs are forced to sell, insiders have been voluntarily bailing for years. There have been **zero insider purchases since June 2022**. The latest sells were just days ago on December 10th. Most damning of all, **the CEO owns zero shares** in the company he runs. The people with all the information are showing zero confidence.
Last sell was 7 days ago 9-Dec.
This is happening to a company with laughable fundamentals. RGTI has a $10 billion market cap but generated less than $2 million in revenue last quarter. It's burning through $43.6 million in cash every 9 months, propped up by selling shares to retail investors. The valuation is a complete fantasy disconnected from reality.
This Friday, a wave of forced selling is going to crash into a stock that insiders have already abandoned and that has no fundamental support. The correction is going to be brutal.
**Position: +100 RGTZ. Total of 350 RGTZ.**
https://preview.redd.it/f3ai3mfm0m7g1.png?width=725&format=png&auto=webp&s=c862792d93e3bc693fadfec66cfade216154b712
NFA...obvi.