AMC Entertainment stock is up almost 1500% year-to-date and it seems to have found a new floor around $30. Retail investors are wondering what in the world is going on with AMC. Wasn’t it supposed to keep going up?
This is actually good news apes. The first time AMC stock rose to $20, it found a new floor at $5 per share. We then saw the stock reach as high as $70 per share with purchasing volume momentum. The bottom multiplied by 14 times!
Think about what this means for AMC now that it’s reached a new floor. This new floor of $30 per share is 6 times that of the previous floor. So what if we multiple the new bottom by 14? That’s $420 per share.
Welcome to Franknez.com – today I want to talk about what’s going on with AMC stock, why has it been trading downwards, and when will it start moving up again.
Lets get started!
Although short sellers managed to drive AMC Entertainment stock a little below $30 today, price is only psychological and I’m going to explain why.
How Do Shorts Keep Driving Price Down?
Dark pool percentage has been extremely high recently. Although trading behind closed doors is driving AMC’s price down, this can actually be seen as somewhat good news.
Why? Because hedge funds are running out of options and are being backed into a corner. See, it’s all psychological warfare now. It’s about coming up with strategies to get the retail investor to sell his or her position.
Because when you sell, you lose; especially if you cut your losses. This could explain why the short borrow fee has been so low for months now. It’s possible naked shorting occurring in dark pools is causing. Look at this dark pool percentage, via. STONK-O-TRACKER.
Dark Pool Trading
64% of short selling has been through dark pools. This is how hedge funds have been able to drive AMC’s share price synthetically. The price we’re currently seeing with AMC is the byproduct of market manipulation.
Regulations are being put into place but we must take these with a grain of salt. They are either bullish or neutral. It’s important to keep making noise and getting the attention of the media.
AMC’s stock price is psychological. Short sellers are facing massive scrutiny from government parties. Our government does not want to baby sit these hedge funds anymore. We must give law-makers the benefit of the doubt and maintain a positive mindset towards change because it starts with us as a community first.
Downward trends heavily influence volume. Apes understand that buying the dips is how short selling is countered. However, most new retail investors aren’t apes; they’re simply new retail investors.
There’s no doubt in my mind there are some new retail investors who cut their losses. I know apes have not – we did not come this far as a community to give up.
Institutions Buying AMC In August
I understand a few of you want things to happen now, it’s only human. However, apes aren’t worried because:
- Shorts have not covered yet
- AMC continues to be the #1 shorted play in the stock market
- And 3, institutions continue to take advantage of this dip
That’s right. Large institutions are bulking up on AMC stock right now.
As you can tell, large institutions have increased their positions in AMC stock during these red days. If AMC was a losing play, why are large institutions buying the stock?
It more than likely has to do with the same reason the AMC community keeps buying it. AMC is primed for a short squeeze. We’ve been talking about for months now about a dip before the rip.
This could very well be the last time retail investors can pick up shares for the price point before short positions are covered.
Now I want to show you just how strong the the top 10 AMC Entertainment stockholders’ conviction is towards AMC stock.
Top 10 Owners of AMC Entertainment Holdings Inc
It seems even whales are beginning to adopt this apeish movement. AMC Entertainment’s top 10 institutional investors keep bulking up on the stock.
Think about that for a moment. They’re not selling, they’re holding and buying just like us. Ladies and gentlemen, AMC Entertainment stock is not bearish, it’s apeish.
Names you’ve heard are probably Vanguard, BlackRock, and Charles Schwab. Charles Schwab is a whale and if you remember, they just recently raised the margin requirements for short sellers shorting both AMC and GameStop stock.
Vanguard is also a trading broker that has never halted or restricted buying of any ‘momentum stock’. The top AMC institutional investors want to make money. If they’re data wasn’t telling them AMC is primed for a short squeeze then why would they be buying the stock after all these months?
Patience is a virtue, community. AMC’s current share price is psychological. If you’re a new retail investor that’s on the brink of selling, well; it would suck if you sold right before this squoze right? Ouch.
No Amount Of Shorting Can Bankrupt AMC Entertainment
This is important to remember, AMC has cash now. No matter how low short sellers make the stock to appear, your moon tickets are still worth what your conviction towards the stock tells you they’re worth.
What if someone actually knew when AMC would squeeze? What if they told you it would squeeze later this month or by the end of this year? Would it make holding easier?
I’m sure that released a small dose of dopamine didn’t it? See, we’re scared of the unknown. We want to know. In our situation, we have to rely on our conviction towards the stock and its data.
If you build a strong conviction towards the stock and the data holding becomes so much easier. I don’t know when AMC will squeeze but I do know the data says there’s a massive probability of it happening. And I am excited for the future. Because ultimately this worry and anxiety you’re experiencing as the stock price is going down won’t matter.
And you my friend would have built a stronger character during your transition to that new chapter.
Support the community by sharing this article
Lets be honest, we all have to hear it. When I’m feeling low I borrow strength from my Discord community or through community leaders producing content and DD on AMC topic. We all feel it from time to time.
So, if this article gave you a little bit of strength, help guide another ape.