Tag: GME Squeeze

GME Stock Sees a Massive Increase in Trading Volume

Stock Market News Today: GME Stock gets halted during surge.
Stock Market News Today: GME Stock gets halted during surge.

GME stock saw a massive increase in trading volume on Monday when the stock jumped to nearly $35 per share.

The surge came after S3 Partners CEO announced GME stock could go parabolic if it rose to $30 per share.

GameStop was halted twice on Monday after the market opened and has slowly trended downward since.

The stock was forced to lose its momentum despite the heavy trading volume seen early in the trading day.

GameStop’s volume surged nearly 5 times its average trading volume on Monday but was prohibited from surging.

GME Stock Halt October 31, 2022.

Retail investors are calling S3 Partner’s announcement a setup, or trap to burn shareholders.

But Wall Street can easily create a big sell order in the market despite of heavy volume from retail, the question here is why not go long with them?

Last year, GameStop and AMC shareholders were able to inflict hedge funds who were betting against the two companies with billions of dollars in losses.

Are retail and hedge funds at war with one another?

It certainly seems so.

Is a GameStop Short Squeeze Likely?

GameStop short squeeze

Despite the market advantages financial institutions have over retail investors, large continuous volume over a period of weeks could trigger bigger price action for GME stock.

One-day rallies of heavy buying volume isn’t enough to combat market makers.

Like last year, it’s going to take continuous buying pressure to compound the momentum that will likely result in a GME short squeeze.

But I’d love to know your thoughts on the matter.

Leave a comment down below.

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How Close Are AMC and GameStop to Squeezing?

AMC and GameStop Squeezing
What will take AMC and GameStop to squeeze? And how soon will this happen?

AMC and GameStop seemed to begin squeezing in late March before being halted.

Both these stock’s short interest has not changed which means shorts have not closed their positions.

AMC and GameStop are both down 10%-20% on the five-day chart.

Volume has also significantly dropped during this bear market, which is normal.

Let’s break it down together.

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AMC and GameStop are overdue for massive price action

AMC and GameStop

If there’s one thing we’ve learned from both AMC and GameStop over the last year, it’s that they move in very similar ways.

Both these momentum stock have very similar short interest data as well.

AMC SI: 20.59% | Utilization: 100 | Shares on loan: 136.54m

GME SI: 21.63% | Utilization: 100 | Shares on loan: 20.14m

(Short interest updated daily here)

The biggest and most notable difference here being the number of shares on loan.

The short interest essentially shows us the percentage of the float that is being shorted.

We can see that millions of shares have been on loan.

These shares have to be bought back or returned at some point.

And when they are, it’s going to cause AMC and GME to squeeze.

Because we are in a bear market, it’s more likely we will see shorts close as we transition towards a bull market.

But more on that below.

Trading volume

AMC and GameStop began squeezing after trading volume surged more than 3-4 times their average volume.

The trading halt, which lasted no more than a few minutes became a lifeline for short sellers who would have been squeezed from their positions.

The two stocks saw massive price surges in late March when the market opened.

That same week we saw dark pool trading volume surge as momentum skyrocketed in both AMC and GME stock.

Since the halt, AMC and GameStop’s share price and volume has dropped, essentially erasing gains from the previous moves.

Was this market manipulation?

Several retail investors seem to think so.

The halts prevented both AMC and GameStop from squeezing shorts out of their positions.

AMC topped $34; GameStop topped $199 only moments before trading was halted.

But this halt was only meant to keep these stocks in line with the rest of the market.

Things are going to change very drastically as we re-enter a bull market.

Squeezing shorts is only a matter of time

The best approach to squeezing shorts from their positions seems to be more of a long-term strategy now than it was back in January of last year.

Both AMC and GameStop have established new grounds to work with.

We saw this happen with Tesla as it too was heavily attacked by short sellers at some point.

Tesla’s growth accumulated over time despite the heavy short selling.

Its highly likely we see a similar trend occur with AMC and GameStop.

Is there a short-term scenario where shorts get squeezed from their positions?

Absolutely.

I believe that as we re-enter a bull market, small and midcap companies will surge, enabling current shorts to close their positions.

And as traders begin to shift to call options, I expect massive price runups to go into full effect.

Institutions and traders are currently hedging against their positions in the market with puts.

This is just something bulls will have to weather out for now until the market becomes bullish again.

And you’ll see that these switches are very common in the market.

Bear markets don’t tend to last as long as bull markets.

The average bull market lasts anywhere between 973 days to 2.7 years according to Forbes.

They’ve also occurred for 78% of the time in the past 91 years.

We hodl.

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