AMC Stock: Could This Be The Dip Before The Rip?

AMC dip before the rip
AMC Dip Before The Rip

Why is AMC stock falling? If there’s anything we can learn from Volkswagen’s short squeeze is that it too dipped before reaching nearly $1,000 per share. Before Volkswagen’s share price drastically declined it had a solid bull run. Sound familiar?

Is this what’s happening with AMC stock? Ladies and gentlemen, strap on your seatbelts. Shorts are under high scrutiny and their accounts keep getting hit by intraday margin requirements.

Failure to meet margin requirements and it’s margin call time baby. This could very well be the start to that new life.

franknez.com personal finance blog

Welcome to Franknez.com – the blog where you can digest content on personal finance, side hustle ideas, entrepreneurship, and trending investing topics.

Lets get started!

Hedge funds vs retail investors

AMC continues to trend downwards shortly after a new wave of retail investors joined the ape army. Many of you are shaking in your boots right now.

Straighten up soldier, you’ve entered a financial war you didn’t even know existed. Are you going to let the people who screwed you over back in 2008 take your money again? Or are you going to hold your stock until you squeeze them out of their positions?

Community, they’re trying to scare you out of your money. Your losses on paper aren’t real until you make them real. Don’t collect your losses, hold your stock. Not financial advice, but advice from a friend.

Hedge funds have been finding loopholes to drive the price down while the SEC has gotten paid to turn the cheek. The sight has not been pretty. This is financial war.

Why is AMC stock going down?

The ape sentiment has not changed. We continue to buy and hold, so why is AMC stock going down? Could this be AMC’s dip before the rip? The answer might lie in the trades occurring in dark pools.

Dark pools are basically private trading systems inaccessible to the public eye. Trading here could be naked shorting which could be causing the price to fall using synthetic shares.

These shares aren’t real, they’re made up. If there’s anything we’ve discovered during this entire movement it’s that hedge funds have way too much power than should be allowed. That and the SEC has been compromised as we’ve seen they have absolutely no authority over these entities.

AMC’s stock price could be temporary

Reports have been made that the trading occurring in dark pools has been a whopping 60+%. This means more than half of AMC’s trading has been occurring in these private trading systems where retail investors have absolutely no way of accessing.

AMC dark pool data
AMC Dark Pool Data

Retail investors aren’t liquidating their positions, hedge funds are behind something much more maleficent. And in some cases, hedge funds aren’t even obligated to report this information.

Ladies and gentlemen, we must fight this corruption together. The SEC has been compromised and it is up to us to get loud. The good guys will win. But justice needs to be served in more than one area once this chapter is over.

A closing opportunity?

As AMC’s share price continues on this downtrend, is it possible shorts will cover? Yes they’re illegally driving the share price down behind closed doors but is it to manage their losses?

We know it’s costing them millions of dollars to hold their positions ever day. They’ve been paying a fee to borrow the stock all year. Will they take this opportunity to close their positions without significant losses and call it a day? Let me know what you think in the comment section below.

The ape community will only buy more

See the thing is that hedge funds have not exhausted the community. They’ve only made us hungrier. Our why, our reasons for this trade is much bigger than theirs.

AMC Entertainment is not bullish nor bearish, it’s apeish. And we’re not leaving until every single synthetic share has been covered.

And if you’re holding losses on paper right now and don’t know what to do, borrow my strength. I am not leaving you behind and I am not selling my position until we squeeze.

We’ve been there. I’ve been there. Our conviction gets tested when things get tough. Any major drop in the stock and expect apes to bulk up more than the first time. We aren’t going anywhere.

AMC compared to Volkswagen

AMC compared to Volkswagen

If we compare AMC to Volkswagen before it squeezed you’ll see a similar pattern here. Both AMC and Volkswagen had a bull run before beginning to decline.

This decline bottomed out before shorts covered their positions at a more attractive price. This resulted in Volkswagen to squeeze.

Think about the investors who got out of the short squeeze play as it was coming down only to find out the stock squeezed once it found its bottom.

Now put yourself in that position for just a moment. How would you feel if you liquidated your position right before AMC squeezed? I’d love to hear from you down in the comment section below, this is a challenging question.

Volkswagen, like AMC was also a short squeeze play. It took Volkswagen to rise and fall only to stand up even bigger than ever before. Kind of like life, ya know? Moral of this comparison? There was a dip before the rip.

How low will AMC go before it skyrockets?

Seeing as AMC’s highest price point prior to this movement was $35 back in 2016, it’s highly likely shorts took positions from this price range below. What they’re doing is a group effort so maybe John started shorting AMC around $20 and they’re not leaving John behind.

I mean who knows right? One thing is certain. Once AMC’s share price gets lower, apes will buy the stock at this significant discount inevitably causing AMC to rise again; forcing shorts to cover their positions.

Failure to do so would result in continuous losses. And if it takes doing this all over again I’ll do it. The short interest does not lie, the shares on loan do not lie, ladies and gentlemen the data does not lie.

The question here is, are you going to miss out on this opportunity? Or are you going to let it run its course? You decide.

Bookmark: An excellent AMC exit strategy guide: Short squeeze

Join the Discord community

I created this safe community where we talk about AMC 24/7. Members from all around the world are learning something new every day. Here’s a personal invite to the club. See you there.

franknez.com amc discord

BREAKING: Are hedge funds about to get margin called by JP Morgan?

Connect with me on social media! And if you’d like to support the blog you can do so over at Patreon.

Twitter | Facebook | Instagram


5 Comments

  1. freemoun

    Thanks for your articles.

    • Frank Nez

      Thank you for reading 馃

  2. Chris

    I hope this is the case, I鈥檝e got a few grand in amc, I鈥檓 currently at a loss now. But I鈥檓 sticking with it. Hoping for the squeeze but prepared to lose my money if it really come down to it.

    • Frank Nez

      馃馃馃 we HODL 馃挭

  3. Celso

    Hola Frank, yo mantendr茅 mi posici贸n hasta el final. Muchas gracias por tu informaci贸n. Te agradecer铆a que explicases en un futuro art铆culo si es posible que el precio de la acci贸n baje cuando las ordenes de compra son superiores a las de venta. Mi respuesta m谩s l贸gica a esta situaci贸n es que cada orden de venta contenga un n煤mero superior de acciones. Ejemplo hay 10 ordenes de venta de 1000 acciones cada una suman un total de 10.000 acciones en oferta y hay 1000 ordenes de compra de 5 acciones cada una que suman un total de 5000 acciones es evidente que hay m谩s ordenes de compra pero realmente hay m谩s acciones a la venta. Ser谩 ese el motivo por el que la acci贸n baja?
    Saludos desde Espa帽a

© 2021 Franknez.com

Theme by Anders NorenUp ↑

%d bloggers like this: