Executive Order 14032 Could Be a Big Deal for AMC Stock

Executive Order 14032
Executive Order 14032 explained

Biden’s executive order 14032 replaced Trump’s executive order 13959 last year.

Executive order 13959 prohibited financial institutions to use Chinese securities as collateral, momentarily.

This propped up margin calls because of the large exposure our financial institutions have to Chinese securities.

When these securities were no longer accepted as collateral on January 27th, 2021, AMC stock surged.

The order was shortly amended (moved) to May 27th, 2021, where AMC stock had its second surge, reaching an all-time high of $72 per share only a few days after.

Biden then shortly passed executive order 14032 which gave institutions their collateral back for 365 days on June 2nd, 2021.

Well, those 365 days are coming to an end, and it seems June of 2022 could be a big month for AMC stock.

Let’s discuss it.

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Executive order 14032 - executive order 13959

I’d like to make clear that the information provided in this article is merely only information backed by real government documents and data.

This excerpt is not to confirm a specific date where we can anticipate AMC stock to move up in price action, but rather acknowledge what’s happened in the past that could very well occur today.

Executive order 13959

Redditors were wondering whether there was a document that confirmed the replacement of executive order 13959.

And here it is – the order was replaced by executive order 14032.

One of the biggest differences between these two orders is that the previous executive order affected a total of 30 securities.

Executive order 14032 will affect more than 70 securities.

You can view the list of companies here.

Executive order 14032 is to go into effect on Friday June 3rd, 2022.

Will executive order 14032 trigger a short squeeze?

Given the nature of the rule, executive order 14032 will prohibit institutions to use Chinese securities as collateral, which will result in large margin calls.

When executive order 13959 disarmed institutions with this collateral in January of 2021, AMC surged to $20+ per share.

The order was amended as stocks surged resulting in sharp declines, giving institutions this collateral back.

The amended date moved to late May, where we saw AMC reach an all-time high of $72 per share.

Institutions were then given their collateral back on June 2nd for a period of 365 calendar days.

This collateral will no longer serve institutions on June 3rd until the order is amended again.

The expiration date in early June leads us to conclude we will see major short covering in heavily shorted securities such as AMC stock.

And because the list of Chinese securities being affected has increased, this means the amount of collateral that will be removed has also drastically increased.

If history repeats itself, this next surge will be massive.

That’s not even taking into consideration the next amended date.

Will this executive order lead to MOASS?

I’ve mentioned in previous articles I don’t think institutions will be held accountable for synthetics, but I hope I’m wrong.

One thing I do know is retail investors will need to keep an eye out on AMC’s short interest data to identify whether short sellers are calling it quits or sticking around longer.

No matter how high AMC’s price surges, the short interest data essentially provides investors with insight on how much fuel is left in a short squeeze play.

When AMC rose to $72 per share, the short interest had dropped to 16% from 20%.

AMC’s current short interest is 21.57%.

We’ve also seen that AMC short sellers have hit a record high number of shares on loan.

This means they owe more shares today, than they did AMC surged to $20 and $72 per share.

A third runup will be huge for AMC stock.

Only time will tell whether executive order 14032 is the catalyst or not.

Related: Are Institutions Preparing to Close Short Positions in AMC?

AMC is going to reach a new ATH

I believe AMC is going to reach a new all-time high from its previous record high of $72 per share.

Simply because the data is there.

The data that told us AMC was going to $20, then $72, and now even higher, is still there.

It’s just taking longer than traders would like.

But despite how long it takes, you can’t change the data.

You can’t change the fact that short sellers now owe lenders more than ever before.

And at some point, these lenders will need their money back.

Executive order 14032 seems like a highly likely trigger for AMC stock.

I’d love to hear your thoughts on the matter.

Leave a comment below for the community to see.

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Related: Will AMC Entertainment Stock Reach a New ATH This Year

12 Comments

  1. Gorilla Grodd

    Proves that RC is a time traveler 🙂

  2. Jeff

    This should be straight forward – 14032 releases on Wednesday 2nd June and triggers a short squeeze in AMC, on the same day GME holds its AGM and votes for the stock split which in turn triggers a short squeeze in GME. What a double that would be – is this just a coincidence or has it been planned because the timing seems incredible?

  3. Gorilla Grodd

    Made a video on the fact that the Lenders will want their shares back and when they do the HFs will be in a heap of trouble.

  4. Newtoinvesting

    I’m a little confused on your comment about the synthetic shares not being paid. Could you elaborate? I love your articles and trust your insight. I just understand that portion.

  5. Ferrari Boy

    How are they not going to be held accountable for synthetics? That’s ridiculous for you to say that. So you’re saying they’re blatantly gonna go into people’s brokerage accounts and erase their shares that they paid real money to purchase? That’s spreading FUD in my eyes!

  6. dj

    i dont think its gonna happen. if we know they know

  7. Lee

    They know we know; they will stop it from helping us.

  8. Robert

    Know Joe Brandon my guess he will extend the plan and once again save their ass’s .
    Hope I am wrong.

  9. Christopher

    Thank you Frank for explaining this in more detail than what I research myself. I wasn’t aware of that the numbers were changed when the administration went from Trump to Biden however the theory is the same should have the same results. Hopefully we can see some positive results in the price section of AMC from today increase going forward till June 3, 2022

  10. Dat Gai

    I don’t think you’re wrong – also note that June 2nd in the GME annual shareholders meeting – the stock dividend will be voted in and they have promised they will implement it ASAP – likely within 10 days. So massive pressure likely for both – I’m bi-stonkual, so I can’t wait!!!

    • Lee

      It’s not a vote for the dividend; it’s voting to allow the company to increase the amount of class A shares to 1B. 10 days later the company may announce a dividend split. Still all positive anyway.

  11. Frank Nez

    Let’s start a discussion! Leave your thoughts below.

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