Tag: AMC Apes (Page 1 of 12)

The Cost for Hedge Funds to Short AMC Rises

Hedge Funds short AMC
Market News: The cost to short AMC stock increases

The cost for hedge funds to short AMC is rising.

Short sellers have been prophesizing the fall of the movie theatre industry after the pandemic temporarily crippled the largest movie theatre chain in the world, AMC Entertainment.

Overleveraged institutions, who many have discovered to be involved in major conflicts of interest, have been able to manipulate the company’s shares from rising through a variety of tools only accessible to financial institutions.

The demand for the movie theatre chain stock has been masked in dark pools, or other foreign exchanges; only a fraction of retail’s money has been observed on the lit exchange (NYSE).

Nonetheless, retail investors have become a massive support for the stock and the company.

So much that even as short sellers drag out getting squeezed from their positions, the cost for hedge funds to short AMC has risen.

Let’s go over the numbers.

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AMC’s CTB and short borrow interest fee increase

AMC cost to borrow

AMC’s cost to borrow (CTB) has steadily increased over the past weeks.

According to the reported short interest data provided by Ortex, AMC’s CTB is now at 17.78%.

Ortex’s cost to borrow represents the annualized % of interest on loans from brokers to their clients, i.e., hedge funds.

There are currently 196.09m AMC shares out on loan.

196m shares on loan X 17.78% (CTB) = $34.8 million in interest.

It’s costing short sellers $34.8 million per year to short AMC Entertainment.

This is the fee hedge funds are currently paying to bet against retail investors long on AMC stock.

And this is only including the shares out on loan that are recorded or reported for the public.

The total amount could be less or more.

Stonk-O-Tracker has recorded the interest rate of shares to borrow to be as high as 28.30%.

This number of course fluctuates, but interest rates struggled to move past 1% at the beginning of the year.

The rise in fees plays in retail’s favor.

Related: AMC Nears High Demand Levels: What to Watch For

Will high interest fees force hedge funds to close?

will AMC Squeeze?

High short borrow fees may play a significant role in the closing of short positions for AMC Entertainment stock.

The cost for hedge funds to short AMC will only continue to rise as the demand to borrow these shares is there.

At this point, it seems financial institutions will need to decide when they’ve had enough.

Combine big price action with increased borrow fees and you strengthen the probability of short sellers closing their positions.

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Will AMC Stock Squeeze in 2022? [Short Interest Data]

Will AMC Squeeze in 2022?
AMC Short Squeeze – AMC Entertainment 2022 – AMC Stock Price – AMC Stock Squeeze

Will AMC squeeze in 2022?

The Fool thinks you should sell your stock, but retail investors aren’t budging.

Mainstream media who serve hedge funds in a conflict of interest have been egging retail investors to not buy the stock all of 2021.

If you listened to The Fool who told you not to buy AMC when its share price was low, then you would have missed out on a trade that went as high as 3000% in gains!

While the runup to $72 per share might have caused AMC’s short interest to drop to 14% from 20%, AMC’s short interest has now gone up to 21%.

Ladies and gentlemen, AMC stock has plenty of room for growth in 2022.

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Welcome to Franknez.com – the blog that provides retail investors market news with integrity. Today we’re discussing AMC’s short interest data to determine whether it will squeeze in 2022.

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Mainstream media wants retail to lose

It’s no secret the financial platforms who have been attacking AMC stock are tied together.

Wall Street Journal’s parent company is News Corp., who also owns Barrons, MarketWatch, and DOW Jones Newswire.

Well, there’s a relationship between Citadel Securities’ CEO Ken Griffin and News Corp (he owns stock).

This creates conflict of interest because of the influence these people in power have who are shorting AMC stock.

Citadel Securities is one of the top 10 financial institutions shorting AMC stock.

So, let’s look at the data that shows whether or not AMC will squeeze in 2022.

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AMC Short Interest Data (2022)

AMC Short Interest Data 2022

AMC’s short interest is currently at 21.55%.

The short interest tells us the percentage of a stocks float that is being shorted (shares have been borrowed and not yet closed).

Because AMC is heavily shorted at 21%, this is a short squeeze play in 2022.

A 21% short interest is equivalent to approximately 196.09 million shares on loan (shares that have been borrowed and have not yet been closed).

When AMC’s short interest dropped from 20% to 14% (6 points), the share price rose to $72 per share.

New short positions have brought AMC’s short interest up to 21% again meaning there are many shorts that have yet to be squeezed from their positions.

AMC’s short interest for 2022 is updated here daily for free, via Ortex.

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Whether AMC’s stock price is up or down, the short interest tells us a large portion of AMC’s float continues to be shorted.

The short interest is the main recipe for a short squeeze.

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

Will AMC Squeeze in 2022?

will AMC squeeze in 2022
Will AMC stock squeeze in 2022? Game over short sellers | AMC Stock 2022 – AMC Stock Price

AMC has a high enough short interest to squeeze shorts from their positions in 2022.

Sitting at 21% short interest, it’s more than enough to get the price up well into the high hundreds of dollars per share.

Whether regulators will investigate naked shares, FTDs, and other forms of counterfeit shares for hedge funds to cover is another topic.

AMC will need momentum if it’s to see another massive runup in share price.

Furthermore, hedge funds will lead their customers into losses for the second year in a row if retail investors continue to buy and hold the stock in 2022.

AMC Entertainment stock has plenty of room for growth and mainstream media doesn’t want you to know it.

Related: TD Ameritrade mistakenly reports 40.25% short interest

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Who is AMC stock for?

Popcorn

AMC stock is for the retail investors who are willing to take a little risk to multiply their investment through a short squeeze play.

A short squeeze play is a long commitment with incredible upside.

If you’re lucky enough to get involved in the ape community you’ll find yourself fighting for a fair and transparent market, where your voice means everything.

Reasons why AMC wont squeeze in 2022..

I’ve always been transparent with the community.

There are many of you who got in when I first began publishing the data early last year and are sitting on unrealized gains today.

And although AMC could have squeezed during various occasions last year, there are still things that can hinder AMC from squeezing this year.

Here’s a list of things that will refrain AMC from squeezing shorts from their positions:

  1. Retail investors start selling AMC stock
  2. Retail investors stop buying AMC stock
  3. New buyers aren’t introduced to the stock or short interest data
  4. Number of day-traders increase
  5. Regulators don’t enforce margin calls / protect retail from market manipulation

The AMC community has not had a problem holding or buying the stock.

One of the biggest problems the community faces today is regulators not protecting retail investors against the predatorial strategies from hedge funds.

The community has always been a beacon for change.

Apes will need to voice market concerns to elevate awareness.

Related: These Two Signs Will Tell You a Short Squeeze is Over

Market regulation in 2022

Market regulation 2022 SEC

AMC stock had multiple chances to squeeze in 2021, however, hedge funds always found a loophole that would prevent them from reporting information, or trading stock in the lit exchange.

Market manipulation continues to be a threat to every retail investor in the market.

AMC Entertainment was on the brink of extinction, it was about to go bankrupt.

Hedge funds took this opportunity to overleverage their short positions in the stock, betting it would close forever.

Once retail investors got in and saved the company, the community uncovered a number of market manipulation tactics that allowed hedge funds to prevent the stock’s share price from soaring.

The fight for a fair market continues in 2022.

For the ape community, this is more than just a short squeeze play.

It’s about freedom.

Read: 10 myths about the AMC apes the media has wrong

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BREAKING: Executive Order 14032 Could Be a Big Deal for AMC Stock

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AMC Nears High Demand Levels: What to Watch For

AMC Bullish
Market News: AMC TA indicates bullish momentum is near

AMC Entertainment stock is nearing a major demand level as share prices continue to decline.

The stock closed at $8.58 on Thursday after hitting a low of $8.30 on the intraday chart.

Volume on Thursday fell below the average of 46.3 million by 20.9 million.

But AMC is treading a fine line as the high $8 and low $9 levels have proven in the past to be a strong support for the stock.

Breaking below $8 could send the price to test a high demand level around $6.50 per share.

In this article I’m going to explain what shareholders should look out for in the next coming weeks.

Let’s get started!

Momentum levels are on the brink of reversing

If you’ve watched one of the latest videos on my channel regarding the TTM Squeeze indicator, then you know all about the massive impact this indicator is signaling.

Watch this quick clip on YouTube – Subscribe for more content and updates.

The TTM squeeze indicator is an indicator that signals heavy buying or selling momentum.

When AMC began to run up before ultimately hitting its all-time high of $72 per share, we see this indicator was already predicting heavy bullish momentum.

TTM Squeeze indicator - AMC Stock
TTM Squeeze indicator – AMC stock

The TTM Squeeze indicator is the chart at the very bottom whereas the top is AMC’s price action.

Dark green shrinking candles indicate the stock is on the brink of losing momentum and often times serves as a sell indicator.

We see that as the dark green momentum candles shrunk, AMC’s price action is followed by a massive crash.

Now let’s take a look at what happened when the TTM Squeeze indicator switched from bullish momentum to bearish momentum.

As the indicator transitioned from bullish momentum and began to show signs of bearish momentum, we can see AMC had a drastic drop in share price.

The TTM Squeeze indicator predicts big moves ahead.

A new transition is in play

So where is AMC today?

AMC is actually in a period where bearish momentum has begun to die out, leaving room for buyers to takeover.

It makes sense as AMC’s share price is hovering just above key levels of support, which have also been known as high demand levels.

Below you’ll see the TTM Squeeze indicator shows bearish momentum has completely gone out on the weekly timeframe.

The transition from red to green momentum candles will signify big moves lie ahead for AMC Entertainment stock.

But we’ll need one or two of these weekly timeframe momentum candles to serve as confirmations.

If these candles break through, then it’s a clear indication AMC is on track for some massive price action.

Related: How to Invest in the Stock Market for Beginners

What’s on the other side of the coin?

If AMC fails to establish this momentum through buying pressure, short sellers will be able to take over once again.

AMC’s share price would further plunge, and that would be an article for another time.

But for now, the transition towards bullish momentum seems much more likely.

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AMC Shares Could Fall More Before Massive Breakout

AMC stock news today
Market News: Technical analysis shows AMC is on the brink of a breakout

A massive AMC breakout could be underway as technical analysis shows a ‘bullish wedge’ pattern forming.

The pattern may also be referred to as a ‘descending broadening wedge’ which I’ll explain in more detail down below.

Today I’ll be going over some technical analysis for AMC and walk you through the levels to keep an eye out for.

By the end of this article, you will know my analysis on approximately how low AMC may go before a bounce and breakout.

And also, proof and indication massive price action is inevitable in the coming weeks.

This is exciting.

Let’s get started!

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Breaking down AMC’s levels

AMC has been setting itself up for an incredibly bullish run over the past 20 months ever since retail investors first began purchasing the stock in January of 2021.

The battle between buyers and sellers has created what’s known as a ‘descending broadening wedge’ over the long run.

This means retail investors never truly left despite what mainstream media has attempted to portray.

But when looking at the technical analysis of the pattern, we can see a massive rebound could be underway.

Retail investors will have confirmation once price hits a major level of support followed by bullish price action, indicating the start of a reversal.

How low will AMC go before a reversal?

AMC has a very strong level of support around the high $8 to low $9 range but we may even see the stock price drop as low as $6.50.

The next major retest price level is around $19.70 where we will meet a big resistance zone at $28.30, respectively.

If AMC is able to break this level, the movie theatre chain stock will retest $35.20.

Breaking $40 is the key to greater momentum beyond previous share prices.

If you’re not familiar with Trey from Trey’s Trades, he posted AMC’s technical analysis chart pattern and compared it to this descending broadening wedge pattern.

These indications tend to be extremely bullish and break upwards most of the time.

It’s very possible we see AMC breakout in the coming weeks or months.

It’s important to note that technical analysis only allows traders to identify the possible movement of a particular security.

AMC stock hit a low of $8.85 during pre-market hours on Monday and began to trend upwards during the trading day.

5 minute timeframe AMC stock
5-mintue timeframe – AMC stock

We’ll need to keep an eye out on AMC’s levels to identify whether this is the reversal from a descending wedge pattern, or whether there is still room for AMC to fall before a massive breakout.

Now I want to switch it over to the weekly timeframe and show you why big price action is actually inevitable.

On the verge of transitioning from ‘Sell’ to ‘Buy Momentum’

If you’ve watched my 3-part video series on day trading, you know that one indicator I use is the TTM Squeeze indicator.

This indicator measures buyer vs seller momentum and is a strong confirmation bias signal pointing towards big and upcoming price action.

AMC Technical Analysis

We can see that the TTM Squeeze indicator showed bullish momentum when AMC spiked to its all-time high back in June of 2021.

We then begin to see a drop in bullish momentum (green) and transition to a bearish momentum (red) indicating a big move about to happen on the downside.

Well now, the weekly timeframe is showing a possible transition from bearish momentum to bullish momentum is about to take place.

And when it does, you can bet it will confirm the descending broadening wedge pattern where a massive break may set a new all-time high for AMC Entertainment.

This is bullish news.

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Short Sellers Target AMC’s Preferred Equity (APE)

AMC Preferred Equity APE
Market News: Short sellers aim at AMC’s newly acquired foundation, APE

Short sellers are targeting AMC’s Preferred Equity (APE), shorting both the companies’ emergency fund, and shareholders’ equity.

APE’s short interest has officially surpassed AMC’s short interest, now reportedly 30.10% via Ortex Data.

During the run to $27 we saw AMC’s SI tumble to 17% signifying released short seller pressure.

However, today we see short sellers have opened new positions, raising AMC’s short interest to 21.17% and creating bearish momentum for the stock’s share price.

Well, the same thing is happening to APE.

Short sellers have targeted AMC’s Preferred Equity hoping to make some cash during a potential meltdown.

But will it be that easy?

After all, there is a big demand for both these stocks – and with enough momentum; well, it could just create two short squeezes.

Let’s discuss it below.

Volume cools leading to the weekend

AMC and APE had big volume at the beginning of the week when AMC’s Preferred Equity debuted on Monday.

In fact, APE has now set a higher average volume than AMC sitting at 71.5 million.

That’s 22.5 million more in average volume than AMC’s.

The excitement over the new ticker has retail investors invested heavily.

But others are quickly trying to kill off any momentum created by the retail scene.

This morning ticker symbol APE rose to 100 in utilization indicating short sellers have now gone into a full blown out short selling spree.

But AMC and APE aren’t the only tickers whose volume or share price cooled down leading towards the weekend.

The entire market played in bears’ favor this Friday.

The SPY fell -2.81%, while NASDAQ fell -2.74%.

SPY has a level of support around $400 and if the market continues to downtrend and breaks this level, it’s very likely we see its next major level of support at $390.

But the market was heavily oversold which means it’s possible we begin to see a nice bounce up to $417-$420.

AMC and APE closed with 35.7 million and 13.6 million in volume respectively on Friday.

Will AMC’s Preferred Equity (APE) go up?

Will APE stock go up?
Will APE go up?

AMC and APE currently have approximately the same market cap of 4.7 billion each – due to the split.

The company was able to join the Russell 1,000 in June of 2022 when it managed to meet the $7.3 billion criteria after reaching $7.5 billion before the cutoff time in May.

When AMC reached its all-time high of $72 per share in June of 2021, the world’s largest movie theatre chain grew its market cap to an astonishing $28.44 billion.

AMC Market Cap June 2021
AMC Market Cap June 2021 – Source

AMC’s market cap increased as the value of its share price increased.

How did this happen?

Well, millions of investors began purchasing the stock like crazy – volume was reaching +500 million, +700 million, and +900 million during single trading days.

Once institutions saw there was heavy momentum happening on retail’s end, they began to jump in as well.

In order for AMC or APE to reach all-time high levels, the market cap will have to increase.

Because as soon as momentum picks up again, institutions combined with short sellers buying back their shares will further fuel AMC or APE’s market cap.

Will AMC and APE skyrocket?

This will depend on how valuable the company can become, no matter how fast or how slow it achieves this process.

Why is APE being shorted more than AMC?

According to the reported short interest data provided by Ortex, APE is currently being shorted more than AMC stock.

AMC Entertainment designed APE as a means to raise capital for a rainy day.

The company has access to a fraction of shareholders’ equity should they need to pay off debt or make a worthy investment in another business venture.

APE is a tool that allows AMC Entertainment to not only stay afloat in case of another catastrophic event, but it provides the theatre chain with opportunity to grow and progress.

Short sellers are targeting this massive foundation in hopes of crippling the century old company.

Things didn’t quite work out in short sellers’ favor last year when big bets were being placed against AMC during their bankruptcy announcements.

But retail investors were able to arm the CEO with billions to resuscitate the company, burning those who prophesized the doom of the cinema experience.

Now it seems short sellers are pursuing a vendetta against retail investors and the company.

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