AMC stock yielded more than +3,000% gains last year when the stock surged to $72 per share.
Is a new all-time high on the horizon?
AMC Entertainment stock has been trading lower since the stock split occurred, but both AMC and APE shares continue to slide.
In a recent YouTube video on my channel, I touched topic on an indicator I use when day trading called the TTM Squeeze indicator.
It tracks and signals strong upcoming momentum on both the up and downside, and I’ve been keeping a close eye out on AMC’s weekly timeframe.
This same indicator confirms the rally up to $72 per share last year as well as the entire downtrend we’ve seen since.
Here’s what it’s showing may come next.
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AMC TTM Squeeze indicator
I gave a quick 6-minute introduction to AMC’s TTM squeeze indicator on my channel last week; you may watch it below in case you missed it.
But I’m going to be publishing a brand-new video updating the community where AMC stands and what we can expect moving forward based on this indicator, later this week.
Be sure to subscribe to the channel and opt in for notification so you do not miss it when it comes out.
In this article I want to go over the possible BIG rally that may lie ahead for AMC Entertainment stock given the circumstances of specific factors.
One of the biggest being momentum.
AMC saw gains upwards of +3,000% last year when retail investors purchased the stock en masse, which snowballed into FOMO from more retail investors and even institutions.
The reason it worked was because AMC had a high short interest and institutions gained confidence in the opportunity as investors piled in to squeeze short sellers from their short positions.
AMC’s short interest dropped from 23% to 20% before it began to move up.
The stock gained momentum when the short interest further dropped to 14% before picking back up this year.
And luckily for retail investors, AMC’s current reported short interest is at 21.30%.
Bookmark: Free Live Daily Updates: AMC Short Interest
What’s it going to take for AMC to surge again?
It’s going to require retail momentum and institutional investor confidence for AMC to surge like it did last year.
This bullish momentum is what triggered a small percentage of short sellers to close their short positions, further fueling the rally.
If AMC’s TTM Squeeze indicator has a complete transition from bearish momentum to bullish momentum, then AMC stock will be taking its first steps towards another massive swing this year.
I will be going over the indicator later this week on my channel for the weekly timeframe update.
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amc is about to go to pluto and beyond
Will Ape stock ho up too?
Excellent question! I have been constantly researching the answer to this question. It is absolutely fascinating how deep & complicated this subject matter gets, too! First, it has been made apparent that all the FUD spread about APE being victim to further liquidations for Adam Aron to raise funds makes it prone to losing excessive equity in any investment. Thus many people suggested just selling your APE & buying AMC and holding that! However, it became evident that APE services a very real purpose in the manifestation of all essential circumstances to make the Short Squeeze happen! Yet, Adam Aron can’t say this because he is liable if it comes to invoke cult investing! How is that for a paradox? But the purpose of APE, I believe, was to have a pure measuring stick to know how diluted AMC stock truly is. And, Adam Aron even gave the hedge funds & market makers the opportunity to create a truce where they take this short positions as a loss in a buy back but not to the point that it bankrupts them! That would mean an moderated short squeeze that will squeeze higher but not as high as it could (e.g. $1000 to $10,000). But the hedge funds spat in the face of Adam Aron and wanted their short interest positions to prevail! So they go at this in full force to prevent any squeeze from happening! Second, since APE is essential to make squeeze happen, I ended up converting everything form AMC to APE with the understanding that if we sold all APE, the squeeze wouldn’t happen, and that Adam Aron’s further dilutions will be exercised in step with the increased equity of APE shares! Therefore, his ability to sell extra APE and liquidate it to pay AMC debt essentially requires the scenario that this works, the squeeze happens, and he utilizes that increased value of the shares as the means to symbiotically share the extra wealth with both holders and AMC to pay its debt! If AMC pays its debt (~$5 billion) then the short interest will be greatly disadvantaged and of little interest to the hedge funds, institutions, & market makers that hold this short interest position! So, ultimately, the squeeze can’t happen without APE! Third, however, since there are clearly going to be more naked short positions on AMC (since it has been around longer & accumulated more) than APE (which is virtually brand new), when this does squeeze and successfully drive out of short interest holders, AMC having more naked shorts exposed, will go to a higher price than APE which has a few but not nearly as many! And, finally, this leaves with the question: What is going to be the difference? Currently it my understanding that APE might only squeeze as high as $100 to $400. Where AMC could squeeze from $1000 to $20,000 very easily! Since this won’t be federal government regulated (and they say they won’t step in), this could go as high as $20,000 to $50,000 for AMC. So will this pull APE along with it? I believe to some extent it naturally would but probably not as much as AMC itself! Because once this squeeze is over the stocks will come back down to probably around $60 to $100 in value and then merge back to together! So what to do? That is the question that I have been wondering! Buy & hold both? Or, hold in APE & hope that APE squeezes first in order to allow us to redistribute our profits into AMC shares to enjoy the double squeeze? That is the question & strategy that I constantly contemplate!
Let’s start a discussion! Leave your thoughts below.
Could we discuss a holding strategy which would: 1.) ensure the great potential of a squeeze to take place, 2.) allow APEs to strategically utilize the Retail Investor’s limited equity for the greatest benefits (Return of Interest), and 3.) allow Retail Investors to hold our equity in APE shares (since it can’t be held in Options & Is essential to make the squeeze happen) and utilize the AMC Options as the primary investment mechanism through which Retail Investors hold the higher priced equity in AMC shares at cheaper potential prices. This way it would accomplish all the goals of maintaining & securing APE share holdings and still allowing the benefits from the higher short squeeze of AMC than APE!