Tag: AMC Stock Reddit (Page 1 of 2)

SEC Spent $460K on “Investomania” Meme Stock Ad

SEC Meme stock ad campaign costs
Market News: SEC spends nearly half a million dollars ridiculing retail investors.

The SEC spent nearly half a million dollars on the ‘meme stock’ ad campaign that ridiculed millions of retail investors.

A Twitter user had sent in a FOIA application inquiring about the costs to produce “Investomania”, the video published on the SEC’s official YouTube channel.

The agency that was established in the early 1930s to protect retail investors took a shot at millions of investors who participated in the ‘meme stock’ frenzy.

The frenzy became one of the biggest movements worldwide and exposed Ken Griffin’s Citadel, mainstream media, and the SEC in a web of conflicts of interest which catered to an array of market injustices that favored institutional investors over retail investors.

“Investomania” was a cold hit to the millions of average people who joined the stock market for the first time.

It ridiculed new investors and diminished what could possibly be one of the biggest movements in market history.

Let’s discuss it.

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Is the SEC Complicit to Market Injustices?

is the SEC complicit to market injustices?
Gary Gensler – SEC Chairman.

The SEC has put retail investor’s concerns on the backburner for over a year now ever since the ‘meme stock’ frenzy of 2021.

Although Redditors and social media participants from around the world managed to create big success by driving up the share price of AMC, GameStop, and others (BBBY, etc.), much much more was discovered during the process.

This is why retail investors simply couldn’t just walk away.

‘Meme stocks’ became the average person’s first-ever investment in the stock market which means many entered plays based on FOMO, or fear of missing out.

When these stocks began to come back down, many faced serious losses in the process.

Those who didn’t take profits argued that the stocks were heavily manipulated and suppressed from further rising.

The U.S. House Committee on Financial Services found Robinhood and Citadel negotiated in ‘blunt’ conversations the night before ‘meme stocks’ were halted.

The DTCC on the other hand waived a total of $9.7 billion of collateral deposit requirements on January 28, 2021.

This act saved institutional investors from taking further damages and completely ripped off retail investors from either cashing in larger profits or becoming profitable in the first place.

The SEC Shows a Warm Welcome to New Retail Investors

SEC Chairman Gary Gensler said in an interview with Jon Stewart that they barely have the budget for coffee at their agency, let alone the budget to fight crime in the market.

Dark pools, off exchange trading, and various other loopholes have been used to work against retail investors feeding the pockets of multi-billion-dollar hedge funds.

Many have wondered whether the SEC or Gary Gensler himself is lobbied into allowing these market injustices to occur – a fine to play if you will.

Out of all the incredible findings retail investors have brought to surface, the SEC decided to spend nearly half a million dollars to ridicule retail investors – the very same people they swore to defend, instead of tackling real market issues.

A Twitter user shared the campaigns production and advertising expenses with the retail community.

U.S. Securities and Exchange Commission FY22 Public Service Campaign.
U.S. Securities and Exchange Commission FY22 Public Service Campaign.
'Investomania' advertising costs.
‘Investomania’ advertising costs.

The costs of the “Investomania” meme stock advertisement campaign also include skits on ‘crypto’, ‘margin calls’, and ‘easy money’ aimed at the retail crowd.

Former SEC Branch Chief Lisa Braganca stated she was “very disappointing to see SEC disparage investors in meme stocks as if they must have done it thoughtlessly”.

“Especially when the SEC permits most trading to take place in dark pools… how about a video about dark pools @GaryGensler?”

Leave your thoughts below

Is the SEC complicit to the market manipulation that’s occurred over the decades?

What do you think was the purpose of the SEC’s ‘Investomania’ meme stock advertisement campaign?

Was it merely fun and games or do you think it was out of line?

Leave your thoughts below.

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Citadel Has a Long History of Market Manipulation

Citadel Market Manipulation
Market News: Citadel and friends are entering the crypto space | Ken Griffin.

Citadel and friends are entering the crypto world very soon.

EDX Markets plans to bring ‘traditional finance’ to the crypto space, a not so ‘traditional’ space to begin with.

The exchange made up of Citadel, Sequoia, Paradigm, Virtu, Charles Schwab, and Fidelity is debuting in November.

EDX Markets will start trading a limited number of spot, crypto tokens starting with a November trial period, with the official launch in January, per Bloomberg.

Similar to trading equities and options, EDX will allow investors to buy and sell digital assets through their existing broker dealer, rather than an outside venue or directly through a crypto-native exchange. 

“We’re taking some of the best features of traditional finance and bringing it to the digital markets to make it more efficient, and bring that cost saving to investors,” Nazarali said.

Nazarali is the former global head of business development at Citadel Securities.

But as many are aware, these financial institutions have a long history of playing unfair.

Will these sharks taint the crypto space too?

Let’s look at Citadel’s market manipulation history.

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Citadel Market Manipulation

2015

In 2015, an account operated in China by the brokerage arm of US hedge fund Citadel was suspended.

It was the latest casualty of regulators’ hunt for market manipulators and short sellers at the time.

The China Securities Regulatory Commission said that the Shanghai and Shenzhen stock exchanges had suspended 24 accounts as part of a probe into high-frequency trading.

The investigation focused on a practice known as “spoofing” in which an investor submits a buy or sell order but then withdraws it before a sale is completed — a practice that can mislead investors by creating the false impression that a stock is trading at a particular price.

Citadel confirmed that one of its accounts managed by Guosen Futures was among those suspended.

2017

SEC Citadel

In 2017 Citadel paid the SEC $22.6 million to settle charges of misleading conduct.

The hedge fund misled customers about the way it priced trades.

The SEC found that between 2007 and 2010, Citadel used two algorithms to execute stock trades on customers’ behalf that gave investors a worse price for their trades, even when Citadel knew better prices existed elsewhere.

“This affected millions of retail orders,” said Stephanie Avakian, the acting director of enforcement at the SEC at the time.

Citadel neither admitted nor denied the findings.

2021

In 2021, Failure-to-Delivers (FTDs) rose dramatically in the period leading up to January 28th, 2021, a phenomenon consistent with increasing short interest by market makers such as Citadel Securities.

FTDs are indictive of naked short selling, which occurs when a short seller does not actually possess the security it is supposed to borrow.

This practice is largely inaccessible to individual investors but accessible to market makers.

At the time, Citadel, Robinhood, and others restricted retail investors from buying ‘meme stocks’ in order to prevent escalating institutional losses.

Citadel eventually lost billions after betting against AMC Entertainment in 2021.

But the entire system needs a refresh – The DTCC waived a total of $9.7 billion of collateral deposit requirements on January 28, 2021, saving brokers, and screwing up retail investors.

2022

The Chicago Tribune published a piece explaining exactly what retail investors have been warning the SEC about.

Citadel Securities’ dark pool dominates a big part of the financial world, accounting for as much as half of U.S. stock market activity.

The Chicago Tribune says this prominent dark pool is run by Chicago Billionaire Ken Griffin’s Citadel Securities and has been targeting small scale retail investors.

And they’re not wrong.

Dark pools are typically involved in payment for order flow (PFOF), where they pay broker firms to receive retail order flow.

Brokers such as Robinhood and TD Ameritrade accept payment for order flow.

But retail investors have been bringing these nefarious practices in the market to light.

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Shoutout to @EduardBrichuk for compiling some of this information on Twitter.

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AMC is About to Squeeze According to this Indicator

AMC News Today - AMC Squeeze
Market News: AMC News today.

AMC is about to squeeze; I mean we’ve heard it all year.

Catalysts have proven to provide false hopes time and time again.

However, there’s one piece of the puzzle you cannot deny, and it’s happening right now.

If you’ve been following my latest blog articles and videos on the channel, you know I’m referring to a special indicator I personally use.

The TTM Squeeze indicator – it signals a major shift in momentum whether it’s bearish or bullish.

The signal just transitioned from bearish momentum to the beginning cycle of what could be massive bullish price action for AMC Entertainment.

I’ve been watching the weekly timeframe on AMC to identify its macro trajectory.

And it’s looking very good.

Let’s break it down together.

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TTM Squeeze transition officially confirmed

AMC TTM squeeze transition
AMC TTM Squeeze transition confirmed – Franknez.com.

AMC has officially transitioned from bearish momentum to bullish momentum on the TTM Squeeze indicator.

The chart shown above shows three green momentum candles gradually growing, signaling big price action lies ahead.

Last week I went over AMC’s history correlating its price action with the indicator on my YouTube channel.

And we can see just how accurate this data is.

If you missed that video, you may watch it below.

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In the beginning of the year of 2021, AMC’s price action took off as retail investors began to buy the stock in bulk.

That momentum is captured on the TTM Squeeze indicator.

The indicator’s momentum candles kept growing signaling AMC’s price action was not done running yet.

Eventually the momentum signal began to give ‘sell’ warnings after reaching its all-time high, indicating momentum was beginning to dissipate.

This is where we slowly see the TTM squeeze indicator transition from bullish momentum to bearish momentum (red) candles, and AMC’s price action gradually plummet.

After more than a year of downtrend, selling momentum is no longer what it was, and we can see it on the charts.

In order for AMC to have a clean rebound, these momentum candles will have to gradually get larger and larger.

If retail investors are unable to sustain this growth, then it’s very possible sellers will begin to take over again.

But because we are seeing these candles grow every week, it’s a great indication the stock is on track for big growth over the long haul.

Is AMC a buy?

is AMC a buy

According to AMC’s TTM Squeeze indicator, it’s a screaming buy.

The signal is showing AMC is on trajectory for larger price action on the weekly timeframe.

AMC has had a strong level of support in the high $8 to low $9 levels with many anticipating the stock has already hit its bottom.

But I’m curious to know what you think, leave a comment down below.

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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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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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Let’s dive right into it!

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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.

For more updates on AMC be sure to join the newsletter or connect with me on social media.

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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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