Heavily shorted stocks are up and it seems short sellers are about to throw in the towel. If you haven’t already seen the news about Friday, September 3rd then this is going to excite you.
If you’re holding stock in more than one momentum play, your earnings might just end up multiplying all at the same time.
Welcome to Franknez.com – I am excited for the upcoming days and weeks ahead of us. Be sure to read all the way to the end for some exclusive announcements.
Lets get started!
AMC Stock Prediction
Last week I predicted we would be breaking the $30 level of resistance after consolidating in that range all month and it came to fruition!
The following day, someone wanted me to make another prediction, LOL. We are now trading in the mid $40s and on our way to $50+.
Based on the information at hand, I now feel comfortable assessing our current situation and what could potentially lie ahead.
Proposal NSCC-005 is raising margin requirements on short sellers by 2500%! That means their minimum margin requirement is going from $10,000 to $250,000.
If short sellers cannot mean this insane demand, they will be forced to meet the margin requirements by getting their positions liquidated. Otherwise, they’ll have to close their positions and throw in the towel for good.
Apes, keep hodling. The greatest transfer of wealth is happening right now. And if by any chance you haven’t read my list of affirmations, I’ll be leaving a link below so you can keep em’ tight.
The Domino Effect
The first line of defense to close their positions will be the smaller short sellers. These will be the ones who cannot afford to keep $250k in their margin accounts. They will be the first to transfer their wealth to the community.
The second line of defense will be the short sellers who can afford to keep a quarter million dollars in their accounts. These positions will slowly begin to get closed out as they struggle to meet margin requirements as AMC’s stock price continues to surge.
They might close out a few positions in order to meet the minimum level required before they can no longer afford to. Once these short sellers have closed, we are left with the hedge funds.
Hedge funds can hold anywhere between $5-$35 billion in assets. Retail investors have the power to bankrupt smaller hedge funds by holding their positions regardless of the upswings.
The community would have to hold as AMC begins to experience takeoff. It’s during this third phase where AMC would have left earth’s atmosphere. Closing before then and you’re still on earth.
I would hate to live in that regret.
This Will Affect All Momentum Plays With High SI
The amazing thing about what is happening is that this margin raise will affect every single short squeeze play on the table right now. Momentum stocks with high short interest will also skyrocket as shorts liquidate their positions.
So if you’re holding several plays, expect them to push upwards in the next days and weeks to come.
Cheers to you.
Your Conviction Will Be Tested
The time will come when your conviction is truly tested. The quick surge will get your heart racing and probably give you pale skin, lol.
Remember that one day of massive gains is just that, one day. GameStop did not get near $500 per share in one day. It took a few days after it started ripping but each day consisted of massive gains.
Something else to keep in mind is that short sellers will do everything in their power to bring the price down this week before margin requirements are raised.
Just know that all this f’ery is only temporary. Can you imagine what they’re going through right now? Pretty soon they’re going to have to sell their cars and homes to keep enough cash in the accounts!
Ladies and gentlemen, short seller are about to lose it all.
Will A Short Squeeze Happen In September?
I think the beginning of an AMC short squeeze could certainly happen in September. And there’s no doubt we will experience a series of gamma squeezes prior to it.
And of course this applies to all high short interest plays as well.
So if you’re looking to increase your position in AMC, now is the time to do it. AMC stock is about to break $50 per share and isn’t waiting on anyone. With margin requirements going up by 2500% there’s no telling just how high the stock can go next week.
One thing is certain, massive gains are on their way.
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