Get mind blown. The feds are cutting off what could be the last lifeline institutions have for borrowing money. They’re hunting down a whopping $720 billion dollars from a reverse repo.
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What is a reverse repo?
A reverse repo is where feds loan out money to institutions such as hedge funds due to cash flow issues. The reason an institution would borrow money from the feds is because they don’t have other cash reserves. When hedge funds borrow money from the fed it usually means it’s a last resort type of situation.
How does this connect with AMC?
Why is this is significant to AMC and the ape community? The feds need their money back, like now. This could explain all the selloffs in the markets. It seems like institutions have liquidated a lot of their positions in the both the stock and crypto markets in order to pay back the feds now.
If hedge funds and institutions don’t have enough capital left in their margin accounts then they’re going to be in some real deep waters. This could finally be the end of it my friends. Short sellers’ nightmares have truly become a reality. I hear margin calls baby. Lets dive in some more.
Right off the bat I want to point out that the Federal Reserve is collecting $720 billion back from institutions who borrowed the money. What’s insane is that this maturity, or expiration date is on NET15 from the issue date of Wednesday June 9th, 2021.
This means institutions who borrowed all this money have to pay it all back by June 24th. This could very well explain why the stock market as well as the crypto market have tanked recently. Institutions need cash ASAP.
It’s likely institutions such as hedge funds needed to liquidate their accounts in order to pay back the feds. I mean what else could have possibly caused the entire markets to tumble all at once?
If institutions were borrowing money from the fed as a last resort, what does this mean for hedge funds moving forward? Will hedge funds who borrowed money from a reverse repo be able to cover their minimum margin requirement? And if so at what costs?
Will hedge funds be able to pay back the feds?
Hedge funds borrow money from reverse repos betting that they’re going to make money from it before they pay back the feds. Unfortunately for them this might not be the case this time.
Any institution that has been shorting AMC, GameStop and other ‘meme stocks’ will be paying back the feds at a loss. But it gets worse for short sellers.
Not only are they paying the feds interest, but they’ve also paid a short borrow fee interest all year to borrow stock. Hedge funds are getting hit with a storm of karma if you ask me.
According to Business Insider, hedge funds lost well over $6 billion dollars since the start of May alone and short sellers have lost another $5 billion dollars since the start of the year. Millions more are disintegrating by the day.
Hedge funds are having a terrible 2021 to say the very least. I said this many months back and I’ll say it again. They should have closed their positions when AMC’s stock price fell back down to $8-$14. But I guess ego is king right? Their year is about to get a whole lot worse.
Key Points
Reverse repo’s are when feds loan money to institutions having cash flow issues
Institutions have to pay back $720 billion dollars by June 24th
Hedge funds continue to lose millions to billions each day and are running out of lifelines
Short sellers could face margin calls very soon if they cannot meet minimum margin requirements
This is a very exciting time for retail investors. Something incredible is unfolding right before our very own eyes.
Not only is history being written, but justice will be served for the 2008 financial crisis. The average retail investor is about to make the trade of a lifetime.
Will AMC finally squeeze?
I personally think we’re about to start seeing gamma squeeze after gamma squeeze. This will primarily be due to the continued buying pressure from retail investors as well as institutions losing a lot of money, resulting in willingly closing out their positions. And if it’s not willingly then the significant loss of money could lead to immediate liquidation through margin calls.
Short sellers will cave in, they will lose. Whether it’s now or later it really doesn’t matter. But they will. Just like a short squeeze, their fate is inevitable.
AMC Stock – Feds are done with hedgies
Trey’s Trades – Fed reverse repo
I want to leave this video from Trey the man himself regarding this topic on the reverse repo. If you aren’t subscribed to Trey yet be sure to do so.
He’s a technical analyst that sparked this entire movement with AMC’s short squeeze. I have a tremendous respect for Trey and will always give credit where it’s due.
And lastly. . .
If you found this article to be of value be sure to share it with the rest of the community. Most hedge fund affiliate media platforms will not report the positive occurrences that play in the retail investors favor.
It is up to us to help new retail investors become aware of the situation at hand and all news related to AMC.
This is why I publish articles that support the AMC community and the cause to the absolute fullest. The public deserves to know this information and they deserve this chance 💯.
By now you’ve probably heard all the hype surrounding AMC Entertainment. If you’ve been following me for a while then you know I’ve been covering AMC since the beginning of February.
It is absolutely amazing to see more and more people begin to invest in the stock market. You can bookmark this step by step guide on how to invest in the stock market in case you haven’t opened your brokerage account yet.
My goal is to help guide you in your journey to becoming financially free.
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Why are people investing in AMC stock?
People have the chance of a lifetime.
AMC was forced to close its doors to the world when the pandemic hit. AMC Entertainment suffered huge losses and hedge funds began doubling up on their short positions in attempts to bankrupt the company. Their goal was to get rid of the most respected movie theater franchise of all time, profit, and wash their hands clean.
Retail investors gathered on subreddit communities and decided to buy the stock and drive the price up; like they did with GameStop. This teamwork caused a gamma squeeze driving the price action from $2 up to $20. This allowed AMC Entertainment to raise enough capital for bankruptcy to no longer be on the table.
Since then, AMC Entertainment has been able to raise more than $2 billion dollars from life long partners. These partners have supported AMC since the inception of the company 100 years ago.
Retail investors saved AMC and are now looking to squeeze short sellers out of their positions.
AMC is currently the heaviest shorted stock in the market
Analysts discovered that AMC has a massive short squeeze potential. A short squeeze is a massive move up in price action. Short squeezes are violent and may produce 100%, 1,000%, and 10,000%+ gains.
What we discovered is that hedge funds shorting AMC Entertainment were overleveraging their positions. Meaning they were borrowing shares from brokers at an interest to drive the price down.
Short selling is the process of borrowing a share, selling it much lower, and profiting the difference when they pay back their lender. Short sellers usually bet on the price of a stock to tumble.
Here’s an example of short selling
AMC’s stock price was around $30 back in the booming party economy of 2016. Say short sellers borrowed 10 shares of AMC for $300 betting it would drop. Shorts would then sell the stock at the market value of $300 (you and I purchase it at $30) and wait for it to drop in due time. If the stock price fell to $25 per share then the short seller could buy back those 10 shares, profit the difference ($50) and give back the 10 shares they borrowed back to the lender.
AMC stock is going up, what happens then?
Here is what’s attracted millions of retail investors and huge institutions such as Wells Fargo, Vanguard, Morgan Stanley and many more to AMC Entertainment.
AMC stock is no longer on the brink of bankruptcy and it is having an extremely healthy bullish run. The reason we’ve seen consolidation and red days is due to the massive amount of short ladder attacks conducted from short sellers and hedge funds.
A short ladder attack is a method used by short sellers where they transact synthetic shares amongst one another to drive the price of a stock down. This is only one of many ways we’ve seen foul play in the stock market.
Hedge funds shorting AMC are losing millions of dollars every day they don’t close their positions
Now here’s where it gets interesting. What happens to short sellers when a stock they’re shorting is going up instead of down?
The fee to borrow the share from their lender goes up and they’re pressured with two options.
Pay the short borrow fee and continue to hold your short position in hopes the stock price will go back down, or
Close your position, take your profit or loss, and possibly go long instead
Now, hedge funds such as Citadel and Melvin Capital have been quite stubborn. They’ve continued to overleverage their short position in AMC Entertainment to drive the price action down.
However, the AMC community isn’t leaving. It’s personal now and they’re willing to buy and hold the stock until shorts are squeezed out of their positions. Analysts have figured out that retail investors can continue to drive the price action up with enough volume in the stock.
Recently, there’s been a surge of new retail investors buying AMC stock. This increase moved AMC up to $15.50 after hours. Short sellers eventually drove the price back down to the $12 range; however, seasoned retail investors aren’t phased. AMC stock is currently trading around $57.00 now. The stock continues to go up.
The data shows a MOASS
MOASS, mother of all short squeezes.
Brokers have never seen this much shorting occur in a single stock in the existence of the stock market. The data predicts a short squeeze unprecedented like anything we’ve ever seen historically.
This is primarily due to the amount of synthetic shares and overleveraged positions that must be covered during a margin call. A margin call could force shorts out of their position resulting in a short squeeze.
How high can AMC’s stock price go up to? There’s no ceiling. However, more data will be released as the stock begins to squeeze.
Massive institutions have begun to liquidate assets in both the stock market and crypto market. Retail investors cannot cause the extreme price drop we’re seeing in both markets.
I speculate institutions are building capital to prepare for margin calls or raised margin requirements.
Proposal ICC-007 APPROVED
This proposal provides brokers with the flexibility to raise margin requirements on investors holding risky investments, such as a short position in AMC.
Brokers need collateral. If short sellers cannot meet the margin requirement then they will be forced to liquidate their entire positions, resulting in several gamma squeezes and inevitably a short squeeze.
If margin requirements are raised then shorts will have to either deleverage their positions (gamma squeezes), or fund their accounts with capital. Is this massive selloff in both the stock market and crypto market related to potential AMC margin calls and regulations? I think so.
The reason why retail investors are buying AMC stock is for the opportunity of a lifetime. Not only is the public starting to invest but big institutions on retail investors’ side known as ‘whales’ are bulking up on the stock.
“Beware of the stock” (paid) articles
Platforms such as the Fool, MarketWatch and InvestorPlace are hedge fund affiliates. Retail investors encourage newcomers to do their own due diligence oppose to reading FUD articles (fear, uncertainty, and doubt).
Is it too late to buy AMC stock?
That depends. Look at AMC’s current share price. If it squeezes to $100, $1,000, or even $10,000+ would the trade have been worth it if you bought today at it’s current share price? You decide.
More info on AMC stock
Here’s where you can find more helpful information regarding AMC stocks’ data & predictions, technical analysis.
On the very top right part of my blog you can see my top 6 articles at the moment are on various AMC posts. These posts go further into detail with DD (due diligence) surrounding AMC stock and the short squeeze data.
Best YouTubers covering AMC Entertainment stock
Trey’s Trades
Credit will be given where it’s due. Trey’s Trades is the man, the leader of this AMC movement. Nothing but tremendous respect for this brother. Take the time to watch his videos, I promise you you will not regret it.
Roensch Capital
For less entertaining but otherwise very valuable information on AMC stock, watch Roensch Capital. RC provides commentary on chart analysis.
ReviewDork
I was quick to connect with Gabe from ReviewDork. His videos are honest, genuine, and entertaining to watch. This channel is currently one of my favorites covering AMC and I know you’ll enjoy Gabe’s videos as well.
Questions regarding AMC stock?
Join my Discord group. Members here share new videos, posts, and conversations relating to AMC. Members here get the links to new articles first 😉 If you join the newsletter you will receive weekly emails from me when I post a new article. You can always connect with me on social platforms to see them as well.
Lives are about to change for the new and seasoned holder in AMC stock. With a surge of retail investors in the stock, the SEC is finally cracking down on hedge funds. AMC community, you were loud and they heard you. Here’s why I think there’s an AMC margin call right around the corner.
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I recently published an article exposing the ‘lobbied SEC’. The lack of regulation on short positions in AMC has been ignored for too long. Many of you shared this post on Twitter and used the hashtag #SECdoyourjob. I’m confident they saw YOU. So thank you for standing up for change because you got their attention.
Everything is falling right into place for AMC Entertainment stock
Hedge funds betting against this stock are destined to lose. Here’s why:
AMC’s fundamentals are no longer fragile. Retail investors and institutions alike are buying the stock. AMC Entertainment is experiencing a surge in sales revenue now that the movie theater franchise is open.
Shorts betting against the stock have bitten more than they can chew by continuously shorting AMC stock through the use of synthetic shares.
Regulators are now taking the necessary precautions to ensure they don’t lose money as hedge funds continue betting against a soaring and bullish stock.
Retail investors now have the higher floor. The CEO of AMC Entertainment is in touch with his shareholders. Celebrities such as Chance the Rapper have publicly announced the opportunity of this investment. And more people are learning how to invest in the stock market through the platforms such as Franknez.com and other subreddit communities.
Wanna know what hedge funds have? Absolutely no respect nor support.
ICC-2021-007 proposal gets APPROVED
This is huge news for retail investors holding AMC. This document is 9 pages long but I’ve done the DD to help you understand what this proposal means for AMC and how it can trigger a short squeeze.
Approved on 5/18
Many retail investors have been curious as to what this proposal means and why it’s such great news for AMC. This article is going to provide you with a quick rundown of this new proposal and will be updated as new margin call news begin to develop.
1. Flexibility on margin requirements
This proposal provides brokers with flexibility on margin requirements for institutions (hedge funds) maintaining a position in risky plays, such as a short position in AMC.
If brokers feel a short position is too risky then they can raise the amount of equity required in an account.
2. Regulators request collateral
The proposal ensures regulators have some sort of collateral from all the shorting that’s been occurring. Regulators want to make sure that hedge funds have enough cash reserves to meet their minimum equity requirement
Risk management is the biggest takeaway from this proposal.
Regulators are going to start raising margins depending on how risky the plays are for certain institutions. Their purpose is to limit the amount of leverage hedge funds are able to use. The ICC does not want to be responsible for closing out closing hedge funds’ positions.
This is where we can begin to see shorts cover their positions. If an accounts updated margin exceeds the accounts capital, the broker can either margin call them (cover some risk) or completely liquidate their positions until the margin no longer exceeds the capital.
Overleveraged accounts could get margin called
Now, because hedge funds shorting AMC are betting against a bullish stock that only knows up, shorting the stock at the moment is ultra risky. Regulators are going to start demanding higher margin requirements as collateral.
Short sellers are sitting on nearly $1 billion dollars in loses, via REUTERS. A margin call usually occurs when an investment suffers enough losses that the investors margin account goes below a certain amount.
If hedge funds shorting AMC fail to meet a margin call requirement then the broker can begin liquidating their assets without notice. Regulators will only step in to liquidate accounts if hedge funds continue to take a nosedive in loses.
Furthermore, hedge funds are drowning every day retail investors hold the stock.
Expect a surge in price action and volatility
Retail investors can expect a surge in price action in AMC as well as volatility. Hedge funds are still borrowing shares to short the stock meaning they have ammo in their arsenal to drive the price down during upticks.
Shorts are going to begin covering their positions as the stock continues to skyrocket and as margin requirements are increased. A short squeeze is inevitable. Retail investors need to hold, stay the course, and be patient.
Citadel buys AMC stock
Citadel just recently bought AMC stock leaving many retail investors curious behind their motive.
Will they try to reduce their loses through a debit and credit scenario where they’re forced to close their positions but also break even from a squeeze?
Or is their motive to sell and disrupt AMC’s short squeeze? Citadel’s motives will become clear as this squeeze begins to unfold.
Why do I think Citadel is going long on AMC?
The entire market is crashing. These institutions are beginning to deleverage. Pretty soon there’s going to be margin calls liquidating accounts left and right. I think Citadel bought AMC long in order to keep the stocks value. They know they’re losing and they know AMC is now a value play.
A margin call will ensure they have no money left so I personally think AMC is Citadels collateral, or emergency fund post squeeze.
The CEO and President of AMC Entertainment, Adam Aron, just tweeted that retail investors now own more than 80% of AMC’s float. This is astonishing.
If you’re holding AMC stock then you my friend have something very valuable in your possession. Retail investors literally own AMC Entertainment right now. This surge in price action we’ve seen so far is simply momentum. Shorts eventually have to buy the stock back and we won’t have to sell it; inevitably moving the price up even more. Hold apes. This is about to moon.
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I’ve noticed a lot of sentiment from the community. Apes who’ve been holding their position in AMC for months now, aren’t phased by red days. However, new retail investors getting in on this trade are quick to express their concerns.
This is only normal. It’s up to us to educate and inform new retail investors on what’s going on so they can determine their own conviction towards this trade. Today’s article is going to simply be a message and reminder to the community that all is well.
The data speaks for itself
One thing I’d like to remind seasoned apes along with the new retail investors is that the data speaks for itself.
What do we know? AMC Entertainment is being heavily shorted and as long as it is, shorts can be squeezed out. We know that the manipulation in the market is real and it’s only helping short sellers prolong the inevitable.
Short sellers still have to cover their positions and retail investors hold majority of it. Supply and demand baby.
Seasoned apes aren’t going anywhere
Retail investors who have been holding AMC stock since February continue to hold. New retail investors getting in on this trade worry older apes will take profits.
Why aren’t seasoned retail investors taking profits on tens and hundreds of thousands of dollars right now? That’s because AMC’s stock price is no where near its potential.
We aren’t looking at the profit we’ve made on paper. We are not looking at short term gains. The data we’ve been shown by technical analysists point towards a short squeeze. We’re not there yet.
AMC’s chart is fundamentally healthy. We haven’t seen any wild volatility but rather ascending and consolidating levels of support.
The community is prepared for the squeeze and believe me you’ll know when it begins to happen. AMC’s price action is getting comfortable in the double digits before it moves up to triple digits.
The stock market is a device for transferring money from the impatient to the patient
I want to remind the community to remember your why. I’ve been fortunate enough to hear a lot of your stories. Most of us are taking this opportunity for bigger and better opportunity.
This is a reminder that this is real, it’s happening, and it will require your patience. Certain days will be green, some will be red; or on discount. Detach yourself emotionally from the price. Practice this and the ride will be much easier.
I don’t usually rant like this but I want to express to the community that everything is going well. Everything will be fine. Things come to us at the right time so prepare for it. Your life is about to change. Keep hodling on and remember your why.
Keep sharing DD (due diligence)
Before I close this article I want to leave you with these last thoughts. Continue to share positive articles and DD from apes in the community. The content is nothing without you.
When you share a video from Trey, or an article from me you might find valuable, you keep someone else informed. You keep the community growing stronger than ever.
Thank you for being here today. I will continue to publish new articles for the community every week. If you haven’t joined my Discord group here’s a personal invite. I’ve created this safe community for retail investors to discuss AMC stock with confidence. See you there.
I’ve taken notice many new retail investors aren’t familiar with what a margin call is yet. This term is used a lot within the AMC community when referring to hedge funds.
I’m going to explain what a margin call is in simple ape language and further explain how this relates to hedge funds shorting AMC stock.
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I want to begin by saying thank you to the community who’s been reading and sharing my articles with new retail investors. You’ve been able to help out so many people and without you none of this possible.
What is a margin call?
A margin call occurs when the value of an investors brokerage account falls below the broker’s required amount. This is when a broker demands that an investor deposits additional money into their account so that it meets the minimum requirement.
A margin call is usually an indicator that a security (asset) held in the margin account has decreased in value. When a margin call occurs, the investor must either add funds to their account or liquidate (sell) some of their assets in that account.
Why does a margin call occur?
It may occur when an account runs low on funds usually as a result of a losing trade
A margin call occurs when a demand for additional capital is required to meet the minimum margin requirement
Brokers may force traders to sell assets, no matter the current market price, in order to meet the margin requirement if the trader does not deposit the funds
How does a margin call work for short sellers (hedge funds)?
Short sellers will always have a margin requirement because their practice involves selling a stock that is borrowed an not owned.
This means that short sellers will always be required to fund their accounts and meet the minimum margin requirement.
If the value of the position falls below the margin requirement, short sellers will be forced to close their positions or increase funds into their account.
Short sellers face major heat
Seeing as AMC has never been this high before, short sellers are more than likely already funding their accounts so they don’t fall below margin requirements. This means Kenny is taking money out of his pocket to keep his short position open in AMC and other so called ‘meme stocks’.
AMC’s highest share price was in the low to mid $30 dollar range back in 2016 before this squeeze play. This means hedge funds and short sellers have negative balances at the moment. Right now they’re feeding their accounts from their pockets.
Retail investors vs short sellers
Retail investors have the upper hand right now. Short sellers are losing a lot of money on paper, and in reality. It really is a game of who caves in first. The AMC community may continue to surge the share price as long as the stock is being bought and held.
Short sellers will be forced to put money from their pockets into their margin accounts or close out their entire position, so as long as the share price continues to keep them negative.
The result? A short squeeze.
When will short sellers be margin called?
Short sellers can be margin called at any given moment. I wouldn’t be surprised if some accounts were already margin called, forcing the investor to fund their account above the margin requirement.
How will we know when shorts begin to cover their positions in AMC?
AMC’s share price will be experiencing several gamma squeezes driving the price action up. These movements will be incremental and much smaller than an actual short squeeze. AMC’s short squeeze will be violent. Hedge funds with a lot of money can hold their positions much longer than individual investors short selling the stock.
When large institutions shorting AMC stock begin covering their positions, we’ll begin to experience the start of a short squeeze.
Retail investors participating in this once in a lifetime trade must continue to do what they’ve already known for months. The tide has turned and soon AMC’s short squeeze will begin to unfold.
If you found this article to be valuable let me know in the comment section below. I love hearing from the community and value your thoughts and opinions 🤝.
AMC stock soars with volume and fundamentals. Short sellers have yet to cover
AMC Entertainment stock has a Fintel score of 99 of 100 for a short squeeze. AMC stock is up more than 2600% year-to-date and shorts haven’t even begun to cover their positions.
What does this mean for the average retail investor? You can still get in, but hurry before this rocket flies past Pluto.
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Contrary to what the mainstream financial platforms are advising, AMC Entertainment stock is only getting warmed up.
AMC stock is the #1 stock in the market right now. It’s also the most held stock in the market at the moment. AMC Entertainment’s market cap is currently sitting at 28.2 billion.
AMC also has a massive opportunity to move from the small cap Russell 2000 to the large-cap Russell 1000.
Will AMC stock keep going up?
AMC Entertainment stock will continue to fundamentally rise due to an increase in retail investors buying the stock. Gamma squeeze after gamma squeeze should put AMC’s stock price above $100 once we break the $80 level.
Once AMC’s stock price passes $100 I don’t doubt we could start to see short sellers begin to close out their positions. AMC is currently trading at $55.
New retail investors getting in on AMC right now are going to make money no matter what.
AMC is extremely bullish
AMC Entertainment has no means of becoming a penny stock again. The cinema industry is picking up the pace with new movie titles out-earning one other.
The company has raised billions in capital and any talk about dilution actually plays in AMC Entertainment’s favor. AMC’s fundamentals and positive news continue to be a support for retail investors holding the stock.
AMC’s volume is mainly being driven by the data that heavily supports an upcoming short squeeze. Majority of the AMC community has been holding their position since early February. This batch of retail investors are now seeing massive gains but aren’t selling.
New retail investors join the fight
New retail investors might be curious as to whether AMC’s share price will continue to rise. If you just joined the community of apes you’re more than likely under by a few dollars per share or up some.
Good news is you don’t have to worry. AMC Entertainment has a better setup than it did when we were holding months back. You’re in a safer zone than most of us were.
My advise to new retail investors joining the cause is to be patient and enjoy the ride. Yes there’s manipulation going on in the market but the community is making enough noise now to get our voice heard.
The greatest transfer of wealth in history
Our generation is going to experience one of the greatest transfers of wealth in history. Overleveraged hedge funds are now being investigated. It’s only a matter of time before they get margin called and are forced to close their positions. The result? A massive short squeeze that’s been overdue for quite some time now.
Why is the media trying to scare people out of their money?
It seems recently the mainstream media has been both hot and cold about AMC. I think they’re beginning to see there’s no way they can sweep this under the rug anymore. Especially since more people are starting a position in AMC Entertainment.
Nonetheless, the media continues to scare people out of their money by advising people to avoid it or invest in something else. Now why would they do that? Simple. They’re hedge fund affiliates and get paid to write FUD (fear, uncertainty, and doubt) articles.
The truth is an AMC short squeeze is inevitable
Shorts keep borrowing shares to drive AMC’s stock price down. The number of short shares available has increased to 700,000, via Fintel.
The SEC seems to be taking things a little more seriously now too. FOX Business published a headline regarding the SEC charging a trading firm with naked short selling.
Naked short selling is the illegal practice of trading shares that are not available/exist to trade.
With that being said, AMC’s growing community continues to be heard. Once hedge funds are forced to close their short positions we can expect a violent short squeeze to come from it.
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Disruption. Disruption in the finance world. New age retail investors have taken notice of the corrupt ways of our predecessors. Yes, predecessors. We’re stepping in now. Here’s to a better world.
I want to begin by saying I’m not a financial advisor. But I strongly believe in the power of finance, knowledge, and freedom.
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I want to dive into FTDs and provide new retail investors as well as the ape community with valuable information that’s easy to read and pick up. And as you can tell from the title of the post, this message is also to address the ones who should be doing their jobs.
This post is going to be relating to what’s going on with FTDs and AMC Entertainment. Let me walk you through the basics first before we dive in deep and uncover what’s really going on with AMC right now. By the time I was finished writing this article I realized we have the knowledge and power for real change as long as we continue to stick together.
Thank you for being here today.
What is a fail to deliver?
A failure to deliver is a situation where one party in a trading contract does not deliver on their obligation.
These trading contracts can be in the form of purchasing shares, call options, etc. An FTD simply means a submitted purchase did not execute, or go through.
By now you’ve probably heard there’s a ton of these FTDs circulating AMC. We’ll get more into that very soon, I promise.
So, what causes failure to delivers?
There are two primary reasons why failure to delivers occur.
A buyer (retail investor) does not have enough money to pay for the transaction.
A seller (short position) does not own all or any of the underlying assets meaning they cannot make the delivery.
*I want to point out that failure to delivers can also occur if there’s a technical problem in the settlement process carried out by the clearing house.
Citadel is Robinhood’s clearing house… They process settlements from investors trading with Robinhood. And as most of you know, Robinhood halted the purchasing of GameStop and AMC stock back in February. The announcement was made on Thursday, January 28th that they were limiting the trade of both GameStop and AMC stock.
Though Citadel has claimed in court that they had no role in Robinhood’s decision to halt buying, they are one of the biggest hedge funds shorting both AMC and GME stock.
Hedge funds should not have this much power.
Clearing houses should be neutral and only handle transactions. Their job should be to report illicit activities to the SEC. The power hedge funds have must be distributed amongst branches so that they oversee each other and ensure no one branch is too powerful.
Sound familiar?
What’s causing failure to delivers in AMC?
I strongly doubt retail investors lack the spending power to meet their number of share goals. What’s causing AMC failure to delivers has more to do with the processing of synthetic shares and lack of regulation.
What we’re seeing here is:
Clearing houses cannot process the orders due to shorts and hedge funds not having possession of those assets.
An insane amount of naked shares (synthetics) are being used to drive AMC’s stock price down.
You would think some sort of agency would be created to oversee this manipulation right? I’ll get to that shortly.
What is naked short selling?
Naked short selling is the process of shorting a stock without first borrowing the asset from someone else or ensuring that it’s available to borrow.
In other words, it’s fairy dust. Non existent, not real. Straight manipulation.
Is naked shorting illegal?
Naked shorting is considered to be illegal though firms who have used this technique to bankrupt businesses have never seen accountability due to succeeding in doing so. In other words, they’ve been able to wash their hands once a businesses has been taken off the grid.
However, AMC is no longer on the brink of bankruptcy. AMC is no longer going extinct. Naked shorting this company is not going to make its retail investors disappear and it’s certainly not going to stop Adam Aron, CEO and President of AMC Entertainment from moving the business forward.
I’m confident hedge funds naked shorting AMC are certain to face consequences this time around. We’re not leaving.
The 2008 crisis
2008 is when we saw a massive surge of failure to delivers. This is because hedge funds sought out businesses who were on the brink of collapsing to make some dirty money from.
The use of naked shorting allowed failure to delivers to rise, ultimately bankrupting businesses. People lost their jobs and families faced real distress and turmoil. The parties who participated in these illegal and unethical strategies faced no consequences and boasted their ‘victory’ publicly.
Where was the SEC? The SEC has the power to stop fraud and monitor whether institutions have adequate capital relative to their trading positions as well as the proper risk management systems that could have prevented this catastrophic loss for millions of Americans.
Bare with me. I’m going to let you know exactly who the SEC is, or at least who they portray to be.
AMC’s millions of fail to delivers
The community of retail investors have just recently pulled up this data from the SEC ‘fails-to-deliver’ data.
AMC Entertainment saw over 7.5 million failure to delivers with almost 3.1 million occurring on the 13th and 14th of April, 2021.
The parties behind these purposeful failure to delivers need to be held accountable.
What can retail investors do?
Retail investors should continue to educate one another on this very important matter. The community as a whole is not only revealing the manipulation that occurs in the stock market, but uncovering the malicious intentions hedge funds have towards AMC Entertainment.
The SEC must put a stop to naked short selling at once
The U.S. Securities and Exchange Commission is an independent agency of the United States federal government that was created to protect investors as well as the national bank after the market crash in 1930.
For reference
Lobbying – in politics, lobbying is the act of lawfully attempting to influence the actions, policies, or decisions of government officials, most often legislators or members of regulatory agencies.
So why isn’t the SEC doing anything about the illicit activity of naked short selling in the market? More specifically with what’s occurring with AMC and GameStop right now?
If you could say one thing to the SEC
If the SEC sees this article and you had a chance to get your voice heard, what’s one thing you would say to the SEC?
Leave it in the comments section below and make sure you’re heard.
Words of certainty AMC
Unapplied knowledge is wasted knowledge so be sure to spread this message with the community. We as a whole are uncovering something massive. And yes, I truly believe we can make a change here.
FUD should officially be off the table. We have all the data and certainty we need to see this through. Not only are retail investors going to profit from a short squeeze, but justice will be served for the financial crisis of 2008 and the current attacks on AMC and GameStop.
I also want to say thank you to the apes who are keeping everyone informed and to those of you who continuously take the time to do the research. Only by sticking together will the community see massive change. Stay positive.
A lot of you might be wondering what’s a good exit strategy guide for an AMC short squeeze. I have an excellent exit strategy guide for you. I will help you determine what type of retail investors surround the AMC community and help you take an approach you might have not thought of.
Welcome to Franknez.com – the blog where you can digest content on personal finance, side hustle ideas, entrepreneurship, and trending investing topics.
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I’ve received emails and enthusiastic responses on the discord to write on this subject matter. After all, it’s a very important topic to discuss, right? We all want to be ready for when an AMC short squeeze occurs.
I want you all to make money. Not just money though, stupid money. But it will be up to you to decide just how much you’re willing to gain during the process of a squeeze.
How long can a short squeeze last?
A short squeeze can last several days to several weeks. When Volkswagen squeezed it lasted about 3 days before it started descending. GameStop on the other hand lasted several weeks and has gone down very slowly.
In a recent video with Trey’s Trades, he gives his personal opinion that an AMC short squeeze may potentially last weeks, just like GameStop’s. And I agree.
With that being said, lets start by discussing the 3 types of sellers.
3 types of retail investors in AMC
There are 3 main types of retail investors holding AMC stock. Identifying which type of retail investor you are will help you determine your own personal exit strategy for when this stock squeezes. In short, they are the:
Get in and get out sellers
Anxious profit taker
Diamond hand seller
I’m going to break down these 3 types of sellers for you so you can determine and identify where your conviction is in the stock.
Get in and get out seller
This type of retail investor is in it for a quick buck. These retail investors will cash in at the first sight of profits. This group will be a very small group of people, mainly due to the lack of DD (due diligence) in the stock itself.
If you’re a new retail investor and don’t have the slightest clue as to what’s been going on with AMC Entertainment, I recommend you do a little bit of digging. I’ve published several posts for the community which you can find under the ‘top posts & pages’ column on the right side of my blog.
Negligence of researching information could just cost you a once in a lifetime opportunity. This AMC exit strategy will not yield impressive profits.
Anxious profit taker
The anxious profit taker is most likely going to be the retail investor who holds longer but takes profits at the first sight of dipping in the market.
Retail investors who cashed in on GameStop when it dropped back down to $193 after reaching $347 missed out on the bounce back up to $325. Some retail investors will fall under this category simply because of the anxious emotions that are simply human nature.
Remember this example when AMC squeezes and it starts to come down. Holding a little longer could potentially prove to be a better financial decision. Refrain from allowing anxiety to make a financial decision for you.
Your AMC exit strategy should serve you to make the most out of this trade.
Diamond hand seller
This is going to be majority of the AMC community who have been deeply involved in the research and fighting for the cause. This type of retail investor is not looking for a quick buck, they’re not looking to double nor triple their money. These retail investors are going to be the ones who get to experience a life changing event.
Diamond hand sellers are the retail investors who are going to call the supply and demand. They’re going to hold the stock past $100, $500, and possibly even $1,000. Again, we will find more out as this short squeeze begins to unfold.
These retail investors are the seasoned apes in the community who are not leaving until they’ve made enough money to change their lives and the lives of many others.
Millionaires in the making
Diamond hand sellers’ exit strategy is to take profits extremely high and then put some money back into AMC when it dips. This AMC exit strategy has immense potential to yield massive profits.
How many AMC shares do I need to become a millionaire?
This is going to highly depend on two factors.
The number of shares you have.
The share price of the stock.
If you own 1,000 share of AMC stock then that means the stock price will need to be worth $1,000 for you to make $1,000,000. Keep in mind that you will need to pay taxes on this. I published an article where you can determine your tax rate here so be sure to bookmark it for later.
And if you own 5,000 shares of AMC stock then the price will only need to go up to $200 for you to make $1,000,000.
But maybe you’re not looking to make 1MM, and that’s okay.
Your number of shares = your multiplier.
Everyone’s AMC exit strategy will be different
See there is no actual number that I can tell you when to pull out. This article is to help you identify your conviction towards the stock and the overall sentiment of the community surrounding AMC and its data.
More data will be released to the community as the squeeze unfolds which could help you navigate your way to maximum profitability.
AMC’s charts will reveal a lot of information when this squeeze happens. This is when the community will begin to take a more serious approach to identify when to sell.
How to identify when to sell
An excellent way to determine when you should sell your shares is to look at the number of shares you currently hold and make an honest assessment of how high you think AMC’s stock price can potentially go up to. Then, set a number you will be happy with profiting from.
Remember, an AMC short squeeze could last several weeks. This means you have time to identify when to sell as the stock goes up or down. You might even see yourself shooting higher depending on the stocks price trend.
This information will come to light when we have the analytical resources.
Example of an AMC exit strategy
If you’re holding 100 shares of AMC and your goal is to make $50,000 then you’d have to sell at $500 per share. The same applies if you’re holding 5,000 shares and your goal is to make $4,000,000. Your sell target would be $800 per share.
In this scenario the stock could hypothetically speaking have squeezed high instantaneously. And again, there could be many scenarios but I’ll go with this to use as an example.
Set a profit target for yourself and stick to it.
Don’t be afraid to take your profits once you’ve set your goals down. In the end, they are your goals and your goals alone. The leaders in the community will do our best to help you maximize your gains; however, if you feel you’ve made a life-changing profit then take it.
Here’s a breakdown of how you can calculate your exit strategy.
Create a bracket
Create a bracket and note down on paper how much money you’ll make with AMC’s stock price at $100, $200, $400, $600, $800, $1,000 and so on. This will allow you to see your possibilities in writing.
Here you can determine your risk tolerance. Everyone’s will be different to some degree. You might select $600 as being your absolute bottom with your price target being $1,000.
This example is just one way you can prepare and plan for an AMC exit strategy. Your numbers might be higher than these and that’s great too. Just make sure it’s in line with the data, otherwise you might be left bag holding.
By creating a bracket for yourself you can plan and execute almost immediately when the stock hits your price target.
Increase your multiplier for bigger profits
Contribute to your position if you’re not happy with where your price targets are at.
Something I’ve personally done is I’ve added to my position after doing some math and locking down my goals. This will help me pivot in the event that the share price doesn’t reach my expectations.
My goals will require me to diamond hand this and I’m 100% okay with this.
Signs a short squeeze is over
Like any other short squeeze in history, the stock eventually has to come down. Signs that indicate a short squeeze is over include:
Price action gradually declines after several weeks to months (as seen with GameStop)
Short borrow fee rate declines
The stock will begin to consolidate oppose to running up
The overall bullish sentiment is over
Most of this data will be presented to the community by analysts and DD reporters like myself. When there are strong indications that the short squeeze is over, you will know. The community will not allow other members to get left behind.
How to prepare yourself for a short squeeze
I’m confident most retail investors who have done their homework are going to make a lot of money. One thing you can do to identify your opportunities is to continuously educate yourself as this short squeeze unfolds.
You can watch analysts on YouTube as they update the community with AMC chart trends. I will be providing you with value here as well as on my Discord group.
When should I exit my position in AMC?
As you can tell, there’s no specific number that can be generalized for every retail investor.
Retail investors should be setting their goals and abide by them. If your goal is to make $100k then shoot for $100k. If it’s to make $1,000,000 then you can certainly do so. But shoot for the moon because that’s where retail investors intend on holding onto.
So, although everyone’s AMC exit strategy will be a little different, most retail investors are diamond handing the stock. You can rest assure the community will have your back when it comes to strategies that occur in the playfield.
Scenario
For instance, if AMC squeezes up to $800 and it consolidates then we can anticipate there’s room for supply and demand. Not all shorts would have covered which means retail investors can continue to drive the price action up by holding their positions.
In this scenario you could continue to ride it out and shoot bigger. But if we see a pattern laddering down after about a week or so, then that’s a good indication you can begin taking profits (on the way down).
Can AMC really reach $1000+?
AMC, like any other stock has no ceiling. The difference here is that AMC can have one of the biggest short squeezes in history mainly due to how heavily shorted the stock is. Short squeezes are violent and suppressed movement can also play a role in its gains.
There hasn’t been a short squeeze in history that has had a community like AMC does, with the exception of GameStop of course. We also haven’t seen a battle between hedge funds and retail investors like that of with AMC shareholders.
Hedge funds suffered significant loses amounting to billions with GameStop. The last thing they want is to lose more money to a second company so they doubled down their short borrowing power with AMC. This means more short shares to borrow equivalate to more short sell loses, and potentially a MOASS (mother of all short squeezes).
One thing I do want to express to the community is to not panic sell as you begin to see perpetual gains with AMC. These series of gains are known as gamma squeezes.
They can be a result of an increase in retail investors buying the stock as well as small short sellers beginning to cover their positions.
An AMC exit strategy should be level headed. Get involved in the community to see how everyone is holding up through the gains. Chances are many retail investors within the AMC community are going to be holding the stock relatively high.
If something needs to be addressed surrounding the squeeze and its movement, the AMC community will communicate it.
Keep up with the latest news in the stock
As I mentioned earlier, a lot of people will be covering the stock as it begins to move upwards and ultimately squeeze. This means you will always have the help and support from analysts and others in the community that will help contribute to your AMC exit strategy.
Analysts I trust in the community include Trey’s Trades and Roensch Capital. You can watch their analytical videos on YouTube.
I would stay clear of headlines from the likes of Yahoo Finance, The Fool, InvestorPlace, and MarketWatch as they have been known to spread fear, uncertainty, and doubt (known as FUD).
For compact information join my Discord group
I post the latest short borrow fee rates and updates on both my Twitter and Discord Group. I will personally be updating the community with news and chart trends from analysts as this squeeze unfolds.
My mission is to help you make as much money as possible so be sure to join the community and stay informed as this event unravels.
I’m confident the community will continue to keep everyone informed on chart trends and AMC exit strategies as this historic event unfolds.
What would an AMC short squeeze mean for you?
Let me know in the comments section below what an AMC short squeeze would mean for you or your family. And lastly, if you found value in this post please be sure to give it a social share.
Hey guys! I wanted to do something fun for the community. Apes have been holding for what seems to be an eternity. Some of you have commented on some of my AMC posts what a short squeeze would mean for you. Your stories have inspired me to create this thread so that all apes can share their stories too.
With so much negativity trying to penetrate our community, I thought we could all join forces and spread some positivity.
Use the comment section below to let the ape community, the gorilla gang, the moon platoon, know what a short squeeze would mean for you.
Don’t forget to drop a share to inspire another fellow ape in the community. #AMCtothemoon
AMC’s biggest stakeholder Wanda just sold all but 10,000 shares of stock netting $426.7 million dollars. Wanda Group owns the largest movie theater chain in China. Retail investors are curious how this affects AMC Entertainments bull run.
It seems that the media has once again shed light on what appears to be negative sentiment in AMC Entertainment. But what if I told you Wanda only owning 0.002% in stake isn’t a bad thing? See, Wanda contributed largely to AMC’s share price from surpassing $14 due to selloffs.
Perhaps now retail investors will begin to see AMC’s stock break $15.
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AMC Entertainment and Wanda’s relationship
Despite this selloff, Wanda Group and AMC Entertainment continue to have a mutual and tremendous respect for one another. In a recent interview Adam Aron advises China’s policies require international investors to allocate their investments towards domestic companies in order to grow their economy.
With Wanda Group out of the picture, retail investors now own majority of AMC Entertainment stock.
“These individual investors likely own a majority of our shares, they own AMC. We work for them. I work for them. By definition, their interests and passions are important to AMC, their ambitions and passions are important to me.”
Adam Aron
AMC Institutional Owners
One thing that’s mind boggling to me is why no one is talking about AMC major institutional shareholders. These institutions keep buying the stock!
If we saw headlines such as “INSTITUTION increases position in AMC by x percent” the sentiment would draw more retail investors in wouldn’t you agree? However, hedge fund partners and affiliates don’t want that. AMC Entertainment continues to be the most shorted stock in the market and retail investors continue to hold for a short squeeze.
Wanda Group may be out but here are the biggest institutional investors buying AMC Entertainment stock right now.
Vanguard – institutional investors buying AMC Entertainment stock
The Vanguard Group, Inc. is an American registered investment advisor based in Malvern, Pennsylvania with about $6.2 trillion in global assets. Vanguard’s top holdings are in Apple, Microsoft, Amazon, Facebook, and Google.
Their ownership in AMC Entertainment is around 8.22% which is equivalent to a whopping 36,996,803 shares. Vanguard is AMC Entertainments biggest institutional investor as of May 23rd, 2021.
Vanguard has been bulking up with AMC Entertainment stock since the beginning of the Reddit phenomenon. My guess is they don’t want to miss out on what’s coming.
#2. BlackRock Inc.
Institutional investors buying AMC Entertainment stock
BlackRock, Inc. is an American multinational investment management corporation based in New York City. Founded in 1988, initially as a risk management and fixed income institutional asset manager, BlackRock is the world’s largest asset manager. They hold $8.67 trillion in assets.
Like Vanguard, BlackRock’s top holdings are also in Apple, Microsoft, Amazon, Facebook, and Google.
BlackRock’s owner ship in AMC is 5.45% or 24,551,774 shares. They are AMC Entertainment’s second biggest institutional investor. Like Vanguard, BlackRock has been adding to their position for months now.
Both Vanguard and BlackRock have been adding largely to their position in AMC Entertainment.
#3. Invesco Capital Management LLC
Institutional investors buying AMC stock
Invesco PowerShares Capital Management LLC operates as a wealth management firm. The Company offers investment advisory, retirement planning, and portfolio management services. Invesco PowerShares Capital Management serves customers worldwide.
Invesco’s top holdings are in McCormick & Co. Inc., Air Products & Chemicals Inc., Intel Corporation, International Flavors & Fragrances, Inc., and Johnson & Johnson.
Invesco’s stake in AMC Entertainment is 1.48% , or 6.6 million shares. This amount is equivalent to $66, 692, 730.
#4. SSGA Funds Management
SSgA Funds Management, Inc. operates as an investment firm. The Company provides portfolio management, financial planning, and investment advisory services. SSgA Funds Management serves clients globally.
Their stake in AMC is 1.45%. SSGA owns 6.5 million shares of AMC Entertainment which is equivalent to $65,562,710.
SSGA is a hedge fund that is long in AMC Entertainment stock.
#5. Geode Capital Management LLC
Geode Capital Management, LLC is an American Investment Management firm based in Boston, Massachusetts. They hold approximately $719 billion dollars in assets.
Like Vanguard and Blackrock, their top holdings are in Apple, Microsoft, Amazon, Facebook, and Google.
They hold a 1.38% stake in AMC Entertainment. Their 6.2 million shares are valued at $62,374,514.
Retail investors should not be concerned about Wanda Groups departure. There are several institutional investors that continue to add to their position in AMC Entertainment.
How much AMC stock do retail investors own?
According to Fidelity, retail investors own approximately 63.9% of AMC Entertainment’s float.
To put things into perspective, about 40% of retail investors own Apple stock and 33% own Tesla stock.
With more retail investors buying AMC stock, the percentage of owners is going to continue to go up.
Latest institutional buyers in AMC Entertainment
Latest institutional buyers in AMC stock, via MarketBeat
The chart above shows the latest reporting dates of institutional buyers getting in on AMC Entertainment stock.
You can see the latest institutions buying AMC stock are holding tens of thousands to hundreds of thousands of shares.
Morgan Stanley has a position in AMC Entertainment with a market value of $9.78 million dollars! At this point any FUD (fear, uncertainty, doubt) should be completely off the table regarding Wanda Group selling their stake in AMC.
AMC Entertainment stock is a heavy buy.
Community
Don’t forget to give this post a social share and keep the community informed. These articles are published to fight hedge fund affiliates spreading FUD in the community. Without you these articles don’t mean anything.
If you’re on Twitter, Facebook, or Instagram be sure to connect with me there. You can also join our Discord community here. This community is a safe place for you to share your thoughts on AMC and conversate with other apes and retail investors.
