Is it possible AMC squeezes this week due to the executive order that’s going into effect?
AMC finished the week strong up more than 20% last week.
The movie theatre chain surged almost 18% on Friday alone.
Stocks have been on a free-fall as the SPY and NASDAQ pull the entire market down with them.
However, both the SPY and NASDAQ finished up 6% last week which could indicate a potential reversal is underway.
There are very important things happening in the market right now, especially with AMC Entertainment stock and I’m going to go over it.
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It’s now costing short sellers a lot more money to short AMC stock
A major change has happened in the past week.
The cost to short AMC stock has dramatically increased from 2% to now 7.1%.
Short sellers are now paying more to short AMC stock.
This is a pattern long-term AMC shareholders are too familiar with.
AMC’s short borrow fee began to rise last year moments before the stock saw big price action.
An increasing fee incentivized a small percentage of short sellers to close their positions driving the stock price up.
Today, there are more short sellers in AMC than there were when the stock price soared to $72 per share.
AMC’s current reported short interest is 22.85%.
The number of shares on loan are at an all-time high meaning there are now more shares that have to be returned than there were during AMC’s run to $20 and $72 per share.
AMC has the perfect short squeeze setup.
And as the fee rises to short AMC stock, shorts will have to make the decision to either deal with it or close their short positions.
Related: Short Sellers Are Now Paying More to Short AMC Stock
Executive order 14032 will trigger margin calls
Executive order 14032 will prohibit institutions to use Chinese securities as collateral, which will result in large margin calls.
This executive order replaced 13959 from the Trump administration.
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.
This order could be the reason AMC squeezes next week, or rather the reason why we see large price movement very, very soon.
Only time will tell exactly how this executive order will affect AMC and other heavily shorted stock.
But the data is there, and the coincidence is far too big to simply ignore.
You can read more about executive order 14032 and get access to the government document here.
No dates, but the stars are aligning in retail’s favor
No matter how you look at it, another AMC surge is imminent.
It’s very possible the SPY also hit a bottom around the low $400 levels.
This means the stock market could be seeing a reversal very soon, granted that the SPY continues to break upwards.
A short squeeze play though, is different.
AMC’s short interest data is there, there’s no doubt this is indeed a short squeeze play.
And whether AMC squeezes next week or not, short sellers are in a very tough position right now.
The markets are bound to go up again.
Failing to close at these all-time lows could prove to be a very big mistake.
Retail investors, brace yourself – winter seems to be over.
I’m curious to hear your thoughts.
Leave a comment down below.
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Related: Here's Why It's The Perfect Time to Buy AMC Stock Today
About The Author
I believe they will put their finger in a dyke and!,…pray. The computers doing all the AI based algorithmic frontrunning retail stock purchases then use darkpools so as to move the price and realize profits from every retail trade. Set it and forget it! Heyyyy! Melvin Capital,…announces they will stop trying to outdo his hero at shitadel and start a new long only fund since he fucked up the original fund losing value of working individuals 401k. Only 1 day later he announces that his new fund will be starting a new short sales based stradegy with the new fund.
TL;DR hedgies,…r fuckt
Brandon should be insulted at every opportunity. He was the dumbest senator we ever had , the dumbest vice president, and now the dumbest President. He has been in public office for his entire life since graduating from law school. He has been a politician for many decades, so he should have many accomplishments you could brag about, but I bet you can’t name 5 things he has done in office that has benefited our country. Without using google name 5 bills that he authored as a senator, heck I bet you can’t name 3 off the top of your head. Brandon has used his position as VP to enrich himself and family. You complain about someone calling Biden Brandon by insulting that person. You are a hypocrite. Most liberals are….
Thanks Martin 🤝
This is yet another factor to consider – I’ve seen TA showing upwards of $300 too.
Same, same – can you imagine that!
Thanks Annie 🤝
God. I hope it goes even higher. It would probably make some retail investors millionaires or really, really comfortable. That Gamestop frenzy last year was insane.
Thanks Frank! Great article as always
It really depends on whether or not we level up or enter the big short squeeze. We could level up to the 40s range. Other TA says we could go as high as $110. Then, the question is, will we have the big squeeze at those levels? or…will we wait for another catalyst.
Feel This AMC Haters ! https://www.yahoo.com/entertainment/box-office-top-gun-maverick-151556697.html
Hey that EO number is from last year. Is there a new one?
Always appreciate your articles Frank! Keep up the good work 👍
what will the squeeze price look like Do not want to get out early or to late. What can we expect???
Fred
At least 200 or 300 a share. Maybe more
Lets ALL hope Brandon doesn’t delay the executive order just to bail the Hedge Shorter’s out .
instead of insulting him (Brandon 🙄 what are you 12?) you should be thanking him. duh. but i realize that’s just too much to ask from you cult45creeps… def not the sharpest tools in the shed!
How are your gas prices? Asking for a friend… speaking of sharpest tool, have you even heard Brandon speak lately?? Typicsl libtard… #lgb
Speaking of talking lately,have you listened to your orange god lately?
repuke ican
Holding AMC tighter then ramen noodle shits
Yes.. The key and most important job retail sellers can do is keep the daily volume numbers HIGH!!
Buy buy buy regardless long term December 16th Box office numbers for AVATAR II projected to be Record setting numbers — all time highs…fundamentals .looking great with the 2 latest acquisitions Gold mine and theater marketing Co. Don’t forget NFTs and crypto. Things are looking great as we leave Cinemark in the dust this week, market cap speaks for itself,.
David bought another share today. Don’t have much money and we have to pay rent. Could have bought more but wanted to keep some “Dry Powder” for next week
Something else to consider…after two weekends of Top Gun we get Jurrasic to bring in even more revenue. Like AA said, 2nd quarter is going to be BIG!
Yup! Fundamentals have drastically improved and will continue to improve.
🔥🔥🔥
Let’s start a discussion! Leave your thoughts below.