Tag: AMC Margin Call (Page 1 of 3)

Shareholders Are Preparing for An AMC Short Squeeze

AMC Short Squeeze
Stock Market News: AMC’s high short interest and borrow fee indicate a short squeeze is near.

Shareholders are preparing for an AMC short squeeze as the stock continues to trend upwards and break new levels of resistance.

The movie theatre stock is up +18.40% on the month and up more than +37% in the past week.

Volume has steadily increased and even surpassed the average trading volume of 30 million.

AMC shareholders are speculating big moves may be underway as the rising price triggers short sellers to close out their positions.

AMC’s current short interest is still high at 19.76% per Fintel.

This means there is plenty of shorting in the stock for retail to trigger another massive price move like they did in January but more specifically in June of 2021 when the stock soared to $72 per share.

AMC short interest today

The company has performed well considering it almost faced bankruptcy early last year.

AMC Entertainment has beat quarterly earnings since 2021, striking confidence for an AMC short squeeze in 2022.

And the cost to borrow short shares has also skyrocketed in recent times.

Borrowers are now paying a whopping 66.4% to short the stock!

This is big news.

Let’s discuss it more below.

AMC Short Interest Today

According to Fintel, AMC’s short interest today is sitting at a high 19.76%.

AMC shot up to $72 per share last year when the stock was heavily shorted around 20% short interest.

AMC’s short interest came down to approximately 14% when it had reached its all-time high of $72.

The stock’s price may have come down a long way, but shorting has increased since and so has the short interest.

But AMC is seeing a slight bounce as it rejects the major level of support around $6 per share, currently trading between $7.50 and $8.

Heavy buying pressure is all the movie theatre stock needs to begin following previous trends back up to $9, $14, and $20+ levels.

If retail investors are able to successfully trigger this event, a short squeeze is inevitable.

What makes AMC more interesting now than ever is how high short sellers are paying to borrow the stock compared to earlier this year.

Stonk-O-Tracker is reporting a whopping 66.40% short borrow fee rate.

AMC Short borrow fee rate

This is the annual fee it is now costing hedge funds to short the recovering movie theatre chain.

Liquidation across the markets could explain the obligation to keep up with such a high fee.

But that’s not all, AMC’s short borrow fee rate was as high as 77.80% on Wednesday.

The question is, how long will hedge funds be able to keep up with these losses as retail investors continue to buy and hold AMC stock?

FUD Grows but the Community Still Stands

stock market news and updates - AMC
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There are many doom prophets infiltrating the retail community urging investors to sell their AMC shares.

Claiming that AMC is dead, and it will never squeeze.

Now more than ever, short sellers opposing heavy retail volume are trying to scare shareholders out of their money.

But the AMC community is still standing strong.

Is an AMC short squeeze happening soon?

The probability of retail investors squeezing shorts again is not a far-fetched idea.

We could begin to see bigger price action very soon.

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Report: AMC FTDs Spiked to $9.9 Million in October

Market News: AMC FTDs top $9.9 Million for the month of October.
Market News: AMC FTDs top $9.9 Million for the month of October.

The latest report on AMC FTDs shows failure-to-delivers spiked to $9,906,536 for the month of October so far, with data still coming in.

This is equivalent to 1,640,155 FTDs.

FTDs, or Failure-to-deliver occurs when one party in a trading contract (whether it’s shares, futures, or options) fails to deliver on their obligations.

These failures derive due to buyers not having enough money to take delivery and pay for the transaction at settlement.

In the case of sellers, it means not having the goods to meet that transaction.

Failure-to-deliver can occur in options trading or when selling short naked, per Investopedia.

AMC Entertainment has been a big target for short sellers looking to profit from the demise of the century old movie theatre chain.

Let’s discuss it.

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AMC Gets Hammered by Clearing Houses

AMC FTDs - AMC Failure to deliver
AMC FTDs – Stocksera AMC Failure to Deliver.

According to Investopedia, AMC FTDs can occur if there is a technical problem in the settlement process carried out by the respective parties (clearing houses).

Seeing as Citadel Clearing LLC transacts orders worldwide, there’s a major conflict of interest here.

Ken Griffin’s Citadel LLC is short on AMC Entertainment stock, so there’s a very distinct connection here.

It’s unlikely FTDs have been a result of retail buyers since the majority are purchasing the equity on cash accounts where orders execute almost immediately.

Naked short selling seems to be the most probable cause here as $AMC has tumbled despite heavy retail interest.

So far, it seems like the SEC isn’t willing to tackle FTDs in both AMC and APE.

In fact, Gary Gensler says there’s a possibility that naked shorting isn’t even involved.

But I’m curious to know your thoughts on this.

Leave a comment down below.

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Also Read: Credit Suisse Warns Investors of Naked Short Covering


What Are Dark Pools in Stock Trading? (AMC)

What are dark pools in the stock market?
AMC Dark Pool

Dark pools are somewhat of a mystery to new retail investors. We hear about them a lot within the AMC community, especially through Trey’s Trades. We know that they allow hedge funds to make undocumented trades behind doors.

So what exactly are dark pools? And, is something being done about them? I want to expose this subject today.

franknez.com dark pool amc

Welcome to Franknez.com – the blog that protects retail investors from FUD media. Today we’re discussing dark pools.

Lets get started!

What is a dark pool?

A dark pool is basically a financial forum or platform for trading stocks or other securities. Dark pools are privately organized and are known to be an alternative trading system.

These ATS’s are seldomly regulated.

The concerns regarding dark pools and AMC Entertainment has been that we simply don’t know what these communities are hiding from the SEC. This slimy strategy is what’s known as backdoor buying and selling.

Why are dark pools used?

Dark pools give hedge funds an advantage in the sense that they are able to conceal their moves. We can only speculate what type of information is being hid from the public here. Details within these dark pools are not accessible by the trading public.

This lack of transparency may allow dark pools to conceal information such as:

  • The illicit activity of naked shorting
  • Explanations behind millions of fails-to-delivers
  • Any discussion regarding malpractice in the market
  • Inaccurate filings and reports

Dark pools can very well be the place where short sellers get together to discuss strategies and the ruining of companies.

It could be the reason why we don’t know how many short sellers are shorting ‘meme stocks’ and other information that would otherwise prove a fair market for both institutions and retail investors.

Is the SEC looking into dark pools?

SEC dark pools gary gensler

In a recent article regarding the high possibilities of automated margin calls, I point out some research I found on Gary Gensler, Chairman of the SEC.

He publicly announces that the SEC has been observing hedge fund activities since January and are taking action to regulate these entities shorting AMC and other ‘meme stocks’.

One of Gary’s proposals states that hedge funds could face 13-F filings. These filings would provide the SEC with insight on equity as well as dark pool disclosure.

I trust we will begin to see this new chairman make the right calls. It’s time for change and our generation will be the ones to make it happen.

Dark pools could explain the low short borrow fee

Could dark pools be the explanation as to why the short borrow fee is so low for hedge funds shorting AMC and GameStop? Now, because so much information is in the shadows, this of course is only speculation.

According to Investopedia, dark pools can charge lower fees than exchanges because they are often housed within a large firm and not necessarily a bank.

dark pools Investopedia
via. Investopedia

Why do these large firms (hedge funds) have this much power in the first place? This advantage is completely deceitful and unruly. It really does make you look at the SEC and think why in the world has no one taken action sooner.

Are dark pools illegal?

Dark pools are not illegal but they are certainly unethical. Per the SEC, we can expect real regulation to surround these exchanges relatively soon.

Bloomberg Tradebook

bloomberg tradebook dark pool SEC

The Bloomberg Tradebook is a dark pool that is owned by Bloomberg LP. Bloomberg is a financial media company that has been trashing AMC Entertainment for quite some time now.

Bloomberg has published FUD (fear, uncertainty, and doubt) articles in efforts to scare people out of their money. This raises questions regarding the ethics of these manipulators who gather behind close doors in order to stray the public from squeezing shorts out of their positions.

Other dark pool exchanges

Institutions such as Morgan Stanley and Goldman Sachs also offer private trading to their clients through the use of dark pools.

The main concern here is that the information that is made public to the SEC can easily be manipulated. Mainly to conceal foul play and inaccurate information.

The information that is available on Stonk-O-Tracker regarding AMC and dark pools is the percentage of trading within these forums/exchanges; which is usually relatively high.

How does this affect AMC stock?

AMC stock

These private exchanges may be illegally trading naked shares behind close doors refraining AMC’s stock price from further climbing. Although AMC is up nearly 3000% year-to-date, hedge funds continue to attack it through sell walls and short ladder attacks.

And since these private forums could potentially have been getting away with inaccurate reports, the possibility of foul play in the market is certainly there.

AMC Dark Pool Trading

Andrew Hiesinger, CEO of Quant Data took to Twitter to expose AMC’s current dark pool trading volume.

Quant Data provides retail investors with real-time options order flow, alerts, dark pool prints & levels, and news. There has been approximately 34 million shares exchanged in dark pools just in today’s trading day (8/18).

This equates to $1,268,475,800.46 in notional value, says Andrew.

Andrew Hiesinger AMC Dark Pool Data

64.21% of trading in dark pools won’t allow AMC’s stock price to reflect the actual price action. This primarily because this amount of trading is done behind closed doors where buy orders aren’t being reported.

This form of manipulation is clouding AMC’s real share price. #DarkPoolAbuse has been trending on Twitter.

Bookmark this article for updated news on dark pool abuse in AMC.

How can retail investors fight these predatory trading practices?

Retail investors have several advantages over hedge funds shorting AMC and other ‘meme stocks’. The community must stay the course if they are to squeeze these short sellers out of their positions.

Not only are hedge funds losing billions, but the SEC has finally begun to implement new regulations that could automate margin calls in overleveraged accounts. I’m personally not worried. These house of cards are falling at the times they should.

Read: 6 things retail investors holding AMC stock should know

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Citadel Loses Billions: Hedge Funds Are Getting Dragged Down

Hedges funds lose billions of dollars shorting AMC Entertainment stock
Hedge funds shorting AMC & GameStop keep drowning – Citadel Losses AMC – Citadel loses billions

Hedge funds such as Citadel and Melvin Capital have lost billions of dollars, and fast.

They’re shorting a stock that is no longer on the brink of bankruptcy.

This company is AMC Entertainment and it’s revival is thanks to the millions of retail investors buying the stock.

Citadel is one of the largest hedge fund managers in the world.

And they’ve subsequently managed Melvin Capital to the ground.

Melvin Capital suffered a loss of over 50% its first quarter in 2021 due to shorting AMC Entertainment and GameStop.

At some point you’d expect your clearing house to raise awareness on your risk management right?

When you manage a group of hedge funds, you are responsible for the companies success, and failures.

What’s even more mind boggling is that short sellers continue to go against the tide despite suffering billions.

Citadel might just end up bankrupting some of its partners.

franknez.com

Welcome to Franknez.com – the blog that protects retail investors from FUD media. Today we’re discussing Citadel losses.

Lets get started!

AMC retail investors now have the lead in this war versus short sellers.

Newcomers are joining subcommunities and doing some detailed digging themselves.

Bigger personalities are talking about AMC Entertainment’s once in a lifetime opportunity.

What collectively started out as a small community back in January is now becoming mainstream.

There’s no going back.

This group of retail investors only know forward.

CNBC shames short sellers

Hedge funds lose billions of dollars shorting AMC Entertainment and GameStop stock
Jim Cramer on Hedge fund losses and short sellers – Citadel losses AMC, hedge fund losses AMC – Citadel loses billions

CNBC’s Jim Cramer has publicly thrown short sellers under the bus in a recent video disusing the power of the retail investor community.

“Anyone shorting AMC or GameStop is out of their mind. Wallstreetbets is too powerful, and trying to bet against them right now is just giving them more ammo”, Jim Cramer.

While you’re not wrong Jim, retail investors within the AMC community are known as apes, not wallstreetbets.

Jim Cramer is the host of Mad Money on CNBC and is a former hedge fund manager.

Investors shorting AMC and GameStop stock are estimated to have lost $754 million on Tuesday 5/25 of last year alone, via ORTEX.

ORTEX Short Interest Data Software

ORTEX AMC Entertainment Stock short interest and data

ORTEX is a software that provides the most timely and accurate short interest available.

They provide users with intra day and historical data for days to cover, shares on loan, utilization rate, cost of borrow and free-float on loan.

More hedge funds under Citadel’s management will be incurring loses very soon if they haven’t already.

AMC Entertainment and GameStop stock are just getting started.

When Citadel needs capital to cover positions, who do you think they’re going to collect it from?

They’ve already liquidated accounts in both the stock and crypto markets. Up next, the hedge funds they manage.

Peter Hillerberg Ortex AMC short squeeze

“The sharp price increase can cause short position holders to try to close their positions by buying back the shares, causing additional demand which in turn can cause the share price to go up further.”

Peter hillerberg, co founder of ortex

Recently, hedge fund losses have amounted to more than $100 million on GameStop alone! This news was reported as of August, via WccFTech.

And although new hedge funds are taking short positions in both AMC and GameStop, I’m confident saying hedge fund losses will continue to skyrocket as more retail investors buy and hold these stonks.

AMC Entertainment defies Wall Street analyst predictions

AMC Entertainment’s stock is up more than 1,900% since January.

A Wall Street analyst by the name of Rich Greenfield predicted AMC’s stock price would come down to $0.01 back in March of 2021.

AMC is currently trading around $14 today.

The Wall Street analyst was last seen blocking members of the AMC community online via.

Twitter after the humiliating prediction .

He has since made his profile on Twitter private.

Related: Anchorage Capital closes after betting against AMC stock

Retail investors now own 80% of AMC Entertainment

Approximately 3.2 million retail investors currently own AMC Entertainment stock.

AMC Entertainment is the most traded stock in the market at the moment. New retail investors want a piece of the action.

May 28 – Hedge Fund Losses

While older members of the AMC community, known as apes, have gained massive profits recently, they continue to hold their positions.

As more retail investors discover that AMC has the perfect set up for a MOASS (mother of all short squeezes), hedge funds will subsequently lose several more billions of dollars in the coming weeks,

New retail investors buying the stock will have a lot to catch up on.

However, it won’t be very difficult.

AMC’s community is very unified and you can find help from individuals at any given time as well as DD (due diligence) from yours truly, Trey’s Trades, Roensch Capital, and ReviewDork to name a few.

AMC’s market cap: $426M to $7.65B

AMC Entertainment market cap
Citadel Losses AMC – Hedge Fund Losses AMC – Citadel Securities Losses – Citadel loses billions on AMC

AMC Entertainment’s market cap has grown immensely since the start of 2020 up until now.

The company’s market value has skyrocketed from $426 million in 2021 to $7.65 billion dollars in 2022.

The truth is people want to keep the movie theater business alive.

Retail investors are sticking it to the man who celebrated the economy collapse of 2008.

All while taking the opportunity to make a life changing trade as AMC Entertainment boils for a short squeeze.

This AMC movement is more than just about making money now.

It’s about the power of unification, and the strength to fight corruption in our nation.

Read: How do hedge funds manipulate the stock market

Citadel Losses in 2022

Citadel has recently taken private funding from Sequoia and Paradigm.

The hedge fund received a $1.2 billion lifeline, something they’ve never done before.

Clients have also been given an ultimatum, making it nearly impossible to return should they leave.

Things aren’t looking so great for Citadel in 2022 as scrutiny grows within the retail community.

Retail investors continue to fight for a fair market demanding the SEC to ban dark pool trading.

In a recent and exclusive interview with Bloomberg, Gary Gensler officially states 90%-95% of retail market orders are executed in dark exchanges.

A share recount threatens all short sellers

An AMC recount is a detailed investigation into who owns AMC Entertainment stock.

An AMC share recount will also expose how many illegal synthetic shares have been generated from naked shorting.

This process could last up to a month.

This process coming from a companies upper management could lead the SEC to take more serious action.

A margin call would force hedge funds and short sellers to close their positions resulting in astronomical loses.

For the retail investor holding AMC? A short squeeze.

Read: Deputy Global Treasurer resigns from Citadel

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Here I engage my community one on one and discuss AMC’s price action

Read: AMC margin call: the squeeze is inevitable

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Read: AMC short squeeze price: Expectations vs Reality


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