AMC’s trading volume surged to 147.8 million on Wednesday.
Prices have surged more than 39% in the past 5 trading days and almost 130% since the past year.
Investors who have held the stock since last March have more than doubled their gains in the theatre chain company.
It’s this same volume pattern that rocketed AMC to its all-time high of $72 per share last year.
However, there are more shorts to squeeze this year than there were last year.
Let’s talk about it.
Welcome to Franknez.com – AMC shareholders are having nostalgia again as AMC stock gains traction. And they’ve held for over a year because of what’s coming next.
Let’s dive right into it!
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“Let them eat crow” – Adam Aron
The CEO of AMC Entertainment Adam Aron took it to Twitter to express his thoughts on criticizers of his company.
So called ‘experts’ have been prophesizing the doom of the century old movie theatre company for over a year now in hopes to profit by short selling it to the ground.
However, the combination of a powerful retail community and innovation of the company have cost short sellers billions in losses.
And they’re not too keen on accepting AMC is no longer the company it used to be pre-pandemic.
This older generation of financial ‘experts’ have found themselves getting cornered by a new generation of educated and activist retail investors.
Retail investors today have exposed market manipulation and injustices in the system with a few predatorial strategies grabbing the attention of mainstream media.
Adam Aron has a message for the company’s doom prophets, “let them eat crow”.
To ‘eat crow’ is to be humiliated and shamed after being shown to be wrong or to be forced to admit one’s error and be publicly shamed as a result.
And criticizers have been a little too quiet as AMC’s share price has surged in the past week.
This is getting more interesting every day.
Short sellers have a serious problem on their hands
Short sellers are in quite a mess at the moment.
Retail investors are buying and holding the stock as long as it’s going to take to squeeze them from their short positions.
Successfully doing so will drive AMC’s share price to unprecedented all-time highs.
GameStop shorts are facing the exact same problem.
When AMC surged to $72 per share last year the short interest dropped from 20% to 14%, a 6% cover.
Today AMC has a short interest of 21% and the cost to borrow the stock to short it is slowly increasing.
That’s right, shorts pay a fee for holding their short positions in AMC and GameStop.
And as AMC’s share price continues to surge, shorts will be forced to keep up with margin requirements as their balances drop or be forced to liquidate adequate short positions to maintain it.
AMC’s price will rise as new shorts begin to cut their losses and buy back their shares creating a domino effect of shorts closing.
This ‘buy-back’ will further drive momentum in the market and fuel price runups.
Similar to last year’s climbs.
AMC receives 2 short squeeze signals back-to-back
Ortex alerted two AMC short squeeze signals back-to-back on Tuesday, March 22nd.
However, the stock has received a total of three short squeeze signals for the month of March.
These short squeeze signals essentially detect high probabilities of a short squeeze.
Such alerts are an indicator AMC has the perfect setup to squeeze shorts from their positions.
And while these signals don’t necessarily indicate a squeeze is about to happen then and there, it lets us know AMC is on the right track.
A short squeeze is imminent, it’s only a matter of time.
Will AMC’s volume continue to surge in the coming trading days?
I’d love to hear your thoughts in the comment section below.
Be sure to keep an eye out on the short interest and circle back for more market news and updates.