Tag: GME (Page 1 of 3)

Will GameStop See a Massive Short Squeeze Again?

GameStop Short Squeeze
GameStop GME stock – is GameStop Squeezable?

Just when we thought GameStop’s short squeeze was over we begin to see GME gain some momentum.

GameStop has been the heart of the wallstreetbets movement and continues to have a strong sentimental hold on retail investors and gamers alike.

The retail investors who missed GameStop’s first squeeze either bought AMC shares or bought GME while it was still high.

And if you got in when it fell back down to $40, well you’re doing pretty well right now.

So, will GameStop see a massive short squeeze again?

Here’s what we know.

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GME stock

GameStop closed at $129.69 on Monday, June 27th.

Trading volume is currently sitting at 2.4 million with 4 million now being GameStop’s average volume.

Understanding the short-seller

GameStop has taken the entire internet and finance world by a storm. What is happening nowadays.

Retail investors over at r/wallstreetbets have opened Pandora’s Box on short-sellers and hedge fund institutions.

Short-sellers are investors who short the stock.

Shorting a stock is the process by which sellers essentially bet on the stock price to drop.

They borrow stocks at a higher cost and sell the stock low, profiting the difference.

Short Selling GameStop Stock
How short selling works

We’ve seen GameStop drop down and consolidate at $40 after its gamma squeeze peaked close to $500 per share back in January.

As of June 27th, it is trading at $129.69.

The stock has made a massive climb after some serious consolidation. It looks like GameStop is prepping itself for another gamma squeeze.

Could we finally see that GME squeeze everyone’s been waiting for?! I think its time.

See, GameStop’s short interest is still rather high and not all short sellers closed their positions back in January.

This means the stock still has loads of room to go bonkers.

What is a short-ladder attack?

short-ladder attack is a strategy performed by short-sellers where they bid on the stock at a significantly lower sell price and purchase it from one another.

Thus, driving the share price lower.

How do you spot a short-ladder attack?

When the stock knows nothing but gains, but something keeps pushing it down until over and over again, that’s when you’ll know.

Why GameStop has potential for a second short squeeze

  1. Short-sellers didn’t learn their lesson from the first time. GameStop stock is still being heavily shorted.
  2. With GameStop becoming a technology company, its value has not only significantly gone up but it now has even more potential to keep driving its momentum.
  3. Retail investors have a strong conviction towards GameStop investment. This means they’re not willing to sell the stock which in turn creates a supply and demand scenario with short-sellers who have to close their positions.
GameStop NFT Marketplace News

Short Share Availability and Short Borrow Fee Rate

You can see GameStop’s short share availability and short borrow fee rate using this link (via. Short interest data)

This number of course changes every day and can be expected to rise as hedge funds continue to short GameStop stock.

However, the short borrow fee rate isn’t a catalyst for GME to squeeze.

I’m excited for my subcommunity that holds both GME and AMC stock because both are about to skyrocket past Pluto.

GME Stock Analysis

Roensch Capital goes over the data for trending stocks.

The information is very easy to understand and gives you insight in the market from an analysts perspective.

Be sure to check out recent videos as they’re being uploaded to stay updated with any changes that occur in the market with GameStop.

Important Advisory

It is important to note that I am not a licensed financial advisor.

Like many traders and self taught investors, all speculation is based on educated estimations based on highly reliable analysis, patterns, and documented news charts.

Volume is key to a second GameStop short squeeze

Just like AMC, GameStop will need to see a continuous runup in share volume.

When retail investors continue to buy and hold GameStop stock, short-sellers shorting the stock eventually have to buy back the stock.

This demand and supply scenario results in various gamma squeezes.

The gains we’ve seen with GameStop have been a series of gamma squeezes, or incremental gains.

Usually what follows after gamma squeezes is a short squeeze if it has enough volume.

The volume of shares depends on how much retail investors are purchasing GameStop stock or selling it.

GameStop Stock
This chart is only reference and is not GameStop’s current price – GameStop Squeezable

You can keep an eye on it via. Yahoo Finance.

How Soon Will A Second GameStop Short Squeeze Happen?

There is so much volatility occurring in the stock market at the moment.

Such volatility is usually a sign of an upcoming short squeeze as we saw back in January.

Not only are retail investors experiencing a lot of volatility, but GameStop stock seems to be in bullish territory which is great for volume.

FOMO (fear of missing out) continues to bring in new retail investors which is a great driving factor to the stocks volume.

GameStop announces fourth quarter earnings for 2020 (ARCHIVE)

GameStop announces fourth quarter earnings for 2020
is GameStop squeezable? – GameStop Short Squeeze

Saving GameStop

Retail investors now have the power to save any company they wish to save.

Now it’s only a matter of time for GameStop to step up and raise capital so that they can innovate and provide more value back.

GameStop is currently looking for ways to operate more efficiently.

While the Reddit community was able to keep them from going bankrupt, the company as a whole will need to continue kicking butt.

Here’s what’s been going on with GameStop recently.

Current GameStop news

GameStop wallstreetbets
is GameStop still squeezable? – GameStop Short Squeeze
  • GameStop introduces Matt Furlong as the new CEO of the company.
  • GME shares are still up nearly 1100% this year-to-date with the company’s valuation at $15 billion.
  • Bullish GameStop options are still currently being heavily traded

Prior to GameStop, Matt Furlong worked at Amazon in Australia overseeing the growth of operations.

He also worked in brand and marketing for Procter & Gamble years before.

The skills to grow operations and to properly brand and market will benefit GameStop immensely.

What can retail investors do to tackle shorting?

If retail investors want to counter GameStop’s stock price from plummeting, they’ll have to continue to hold and buy the stock.

This short squeeze play will require patience.

Important advisory

If you hold a position in GameStop, it’s important that you ask yourself what your reason for holding is.

Does your DD provide you with the confidence to stick to it longer if need be?

If so, stick to your convictions and trust the process.

Unfortunately, I didn’t get in on GameStop before it gamma squeezed so I took a position in AMC instead.

Taking this position has been one of the best financial decisions I’ve ever made.

I would take a position in GameStop if it was more affordable.

Regardless, I like the stock and I love the community even more.

Will GameStop finally short squeeze?

I think GameStop is preparing itself to put short sellers out of their misery.

The stock has been havoc to hedge funds and we can tell they’re giving out primarily due to this massive breakthrough we’re seeing now.

And although I personally don’t hold GME stock, I have a lot of awesome memories at GameStop which I would actually like to share with you at the end of this article.

Now let’s talk about a little justice.

A major hedge fund that was attacking GameStop has now been reported to lose a significant amount of money.

Bookmark: List of momentum stocks: Interest and utilization

Melvin Capital suffered 49% loss 1st quarter

Melvin capital suffers 49% loss 1st quarter of 2021

Ladies and gentlemen this is massive. Melvin Capital is a hedge fund that has been shorting both GameStop and AMC stock.

Melvin Capital suffered a 49% loss its first quarter of 2021, via. Markets Insider.

Here’s why this matters:

  • Not only are shorts losing money every day but huge hedge funds are bleeding
  • This is a huge win for retail investors
  • Unless shorts close their positions, hedge funds will continue to suffer
  • Interest rates can skyrocket for short sellers enabling them to close their positions

Now the hedge fund is closing its doors this June 2022 after several losses.

We’ve see GameStop’s short borrow fee decrease but I wouldn’t be surprised if it begins moving back up very soon.

Hedge funds have been trying to obliterate our beloved GameStop from the face of the planet.

Something about them losing a lot of money feels like justice.

Believe me, I’m 100% for making money.

The ethical way.

You should be supporting beloved companies, not targeting them just because you see an opportunity to kick someone when they’re down.

Karma is about to get a lot worse for hedge funds betting against both GameStop and AMC.

Read: How do hedge funds manipulate the stock market?

Will GameStop stock go up again?

As long as the stock continues to be shorted and held, GameStop can expect a series of gamma squeezes to continue pushing the stock up.

This will inevitably lead to the ultimate short squeeze.

Fundamentals can also drive GameStop’s stock price up.

The company will have to run efficiently by being able to meet projected goals.

Although this is not a fundamental play, mainstream media still has some influence over this.

Short sellers continue to face devastating losses from shorting GameStop.

Hedge funds are about to burn their second hand after playing with fire again.

FAQs

Gamma squeeze vs Short squeeze

gamma squeeze are momentum gains. These usually occur from call options closing in the pocket resulting in heavy buys or purchases in the market.

short squeeze is vigorous and can spike with no warning. This is where you see 100% gains in a matter of seconds and minutes. A short squeeze can even reach 1000% and 10,000% gains.

Related: How High Can AMC Stock Price Skyrocket Up To?

What is your first GameStop memory?

GameStop memory

Leave a comment below.

Do you remember your first GameStop memory?

I’m sure you have many.

I remember the first time my brother and I went inside a GameStop it was unreal.

It was my first time inside an actual video game store. T

he coolest thing was seeing how many different games and accessories they had for all the consoles at the time.

Some of the most awesome memories at GameStop was seeing that brand new game on display.

For me, it was Guitar Hero.

My god. Seeing all the marketing behind the game and the guitar in display was heaven.

I also remember the employees giving you close to nothing for a used game, lol.

What are some memories you have of GameStop?

I would love to hear from you.

Leave them in the comment below.

And lastly…

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A lot of you have been sharing my posts on Facebook Groups, Reddit, Discord chats, and Twitter.

Words can’t explain how grateful I am for you sharing these articles.

Thank you.

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Read: GME stock: Why it can still skyrocket past $1,000 per share

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10 Myths About The AMC Apes The Media Has Wrong

Apes Together Strong
Apes Together Strong – AMC Apes

Who are the AMC apes?

They’re the retail investors fighting for market change in our financial system.

We’re the ones who saved AMC and GameStop from going bankrupt.

franknez.com

Welcome to Franknez.com – the blog that provides you with articles on stock, crypto, and market news. Here are 10 myths about the AMC apes the media has wrong.

Let’s get started!

1. “Apes Have No Education”

Apes Together Strong

Apes actually come from a variety of backgrounds and yes, professions.

Retail investors in the community range from your average 9-5 hustlers to business owners, doctors, and even lawyers.

Though many identities are kept hidden, it’s not difficult to see why.

People from all over the world have become an ape for more reasons than just money.

2. “Apes Want To Overthrow The Government”

apes are exposing financial risks

Apes don’t want to overthrow the government, apes actually just want a fair market.

Contrary to how apes are portrayed in the mainstream media, the community is not made up of hooligans who want to overthrow the government.

Apes simply want government to hear the communities concerns regarding the market.

Hedge funds pose risks to our financial system.

The ape community has made it a mission to create real change for a fair market thus sparking a real movement.

3. Not Everyone Is A New Retail Investor

New Retail Investors

The community attracted many new retail investors.

However, many apes have been investing in the stock market for years.

I’ve actually provided the community with my personal long-term winning stock picks for when they’re ready to diversify.

Other apes in the community show new retail investors how to read chart patterns and even how to day-trade other plays that aren’t AMC or GME.

This is the community where the average person can not only learn how to invest in stocks, but also gain magnitudes of value and knowledge.

#4. We Don’t All Hang Out On Reddit

apes wallstreetbets reddit

Although apes started on Reddit, a lot of apes don’t actually affiliate themselves as a ‘Redditor’ or with r/wallstreetbets.

AMC and GME apes have separated from r/wallstreetbets mainly due to an increase in infiltration from shills, toxic persons who’s mission is to bring down the community.

Subcommunities are now much tighter around a variety of influencers within the community as a whole.

And although we don’t often identify as community leaders, influencers have done a great job at keeping retail investors together.

#5. We’re Not 19 Years Old

AMC Apes Retail Investors

Contrary to what the media might think, the ape community is not made up of 19 year-olds.

In fact, majority of apes are much older than that.

But, I won’t give that information out to marketers.

The community isn’t naïve, there are a lot of wise and intelligent people with real stories and lots of experience here.

The media often times portrays us as rebellious youngsters.

But I believe many of us will actually be the future leaders of our nation.

#6. We Don’t Actually Eat Crayons, Well Sorta

apes eating crayons

Eating crayons is a taunt and is part of the ape community culture.

It’s a message to smart money that we’re dumb money, yet we’re making money while they lose it by shorting AMC and GME stock.

The meaning of eating crayons originally separated us from formally gathering as a community to buy these stocks.

“Buy and hold, but what do I know, I’m just a crayon eating ape.”

Although I must say, I wouldn’t be surprised if some apes do consume these delicious snacks 😅😂.

#7. “Apes Just Want To Make Quick Money”

apes don't day trade amc or gamestop

If apes wanted to make quick money, then the community would be day-trading AMC and GME stock.

However, that is not the ape way.

Apes buy and hold the stock.

Seasoned apes who got in early could have cashed out tremendous amounts of gains but continue to hold because it’s not about making a quick buck.

It’s about making life changing money through a short squeeze play.

Apes have a why.

In fact, leave a comment below what your why is.

Why do you hold AMC and/or GME stock?

#8. “Apes Worship Adam Aron and Ryan Cohen”

AMC and GameStop Partnership

The community has a tremendous amount of respect for AMC CEO, Adam Aron and GameStop Chairman, Ryan Cohen.

We support them because they’re running the businesses of America’s two favorite stocks.

We want to see them succeed, but we don’t worship them.

In fact, most apes are willing to continue investing in both companies after MOASS, especially if a dividend is announced.

#9. We’re Actually Not Jim Cramer’s Friend

Jim Cramer AMC Apes

Despite The Street’s Jim Cramer portraying to be close to the ape community, he can’t sit with us.

Few apes actually respect the guy, but he can’t sit with us.

Did I mention that?

Mr. Cramer has just contradicted himself too much and the community is huge on trust.

We have more trust for FOX’s Charles Payne and CNBC’s Melissa Lee.

#10. Apes Invest In More Than Just ‘Meme Stocks’

Apes invest in more than just meme stocks

The ape community might have a ton of new retail investors only dedicated to AMC or GME stock specifically.

However, many apes are also invested in other assets such as crypto and even NFTs.

Apes are the retail investors who are finding the early plays and putting their money to work for long-term financial gain.

Some popular crypto apes are currently invested in are Dogecoin and Shiba Inu coin.

These Retail Investors Fight For What’s Right

The AMC and GME communities are a beacon for change.

We seek to establish a fair market so that future generations no longer get taken advantage of by corrupt hedge funds and financial institutions.

I’m confident the fight for a fair market will further continue even after AMC and GME MOASS.

What else does mainstream media need to know about the community?

Leave a comment below.

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AMC apes – watch this.

When Do Shorts Have to Cover Their Positions in AMC?

When do shorts have to cover their position?
When will shorts close their short positions in AMC? When will shorts cover AMC?

Every retail investor holding a position in AMC wants to know, when will shorts cover their positions? And I don’t blame you.

This one is a little tricky. See, it’s like saying, “when will retail investors sell their positions?”

franknez.com

Welcome to Franknez.com – the blog that fights for you, the retail investor. Today I want to discuss short covering.

Let’s get started!

Retail investors have been waiting patiently for AMC Entertainment stock to rip.

You’ve been holding through the ups and downs and even buying the dips.

So, why aren’t shorts covering their positions yet? What do retail investors need to do to squeeze hedge funds out of their money?

Are shorts obligated to close their positions?

Let’s start with the fundamental question. Are shorts obligated to close their positions?

Now, there are currently no rules regarding how long a short can hold before closing out their position.

However, lenders do have the right to demand the seller closes their position with minimal notice.

This is rare and only occurs if the the seller isn’t paying the interest fee, or the interest fee is ridiculously high.

“A short position may be maintained as long as the investor is able to honor the margin requirements and pay the required interest and the broker lending the shares allows them to be borrowed.” – Investopedia

When an interest fee is extremely high, it makes a stock difficult to borrow which obligates the short seller to close their positions.

AMC’s short borrow fee rate as of 5/04 is: 1.00% according to Stonk-O-Tracker.

Keep an eye on this interest as it will determine just how much shorts are bleeding.

Hedge funds currently shorting the stock are losing money every day. And regrettably for them it’s getting worse the longer they hold.

Why does the short borrow fee matter?

The short borrow fee is an interest that shorts must pay for borrowing AMC shares.

And although the fee has gone down, shorts are still paying a price for going long.

AMC short borrow fee interest

They will hold in hopes to drive AMC’s share price right back down to the floor.

However, AMC is trending upwards now and has absolutely no intention of going back down.

Analysts data and AI predictions all point towards a high possibility of a short squeeze.

Even Fintel’s short squeeze score has been as high as 80-90% in recent weeks.

AMC Short squeeze Score Fintel

This short borrow fee is going to continue to go up as AMC stock becomes harder to borrow.

For short sellers, a low short borrow fee is in their favor.

They would much rather pay the fee and stubbornly continue to hold their positions against retail investors.

But, if the short borrow fee is high enough to hurt the borrower, they will be more inclined to close their positions before losing an excruciating amount of money.

The short sellers conviction is strong, even though they’ve already lost.

It’s only a matter of time before they have no other option than to forfeit.

How can retail investors help drive the short borrow fee up?

Retail investors can help drive the short borrow fee up simply by holding their positions.

When AMC squeezes, retail investors will have to continue to hold their position on the way up.

Not every short will close their positions immediately.

If we begin to see AMC’s price action rise monumentally, it is important to understand that there’s more potential because not every short seller has closed their position.

We might see AMC drop a little after it peaks.

However, if retail investors continue to hold, it’s only going to continue squeezing more shorts resulting in further perpetual gains.

Melvin Capital suffered 49% loss 1st quarter

Melvin Capital - Short position AMC - AMC short position
Melvin Capital – Short position AMC – AMC short position

Community, this is massive. Melvin Capital is a hedge fund that has been shorting both AMC and GME stock. These are the people trying to drive the stock to the ground.

Melvin Capital suffered a 49% loss its first quarter of 2021, via. Markets Insider.

Retail investors are hodling to the moon.

They are not waiting for $100 price action anymore, and some are certainly not waiting for $500+ share price anymore.

The Reddit community is set new standards for the AMC’s stock price.

Here’s why this matters:

  • Not only are shorts losing money every day but huge hedge funds are bleeding billions of dollars due to retail investors holding
  • This is a huge win for retail investors – our favorite companies have been saved
  • Unless shorts close their positions, hedge funds will continue to suffer
  • Interest rates will continue to skyrocket for short sellers, enabling them to close their positions sooner than later
  • An AMC short squeeze might be closer than we think

Here’s what retail investors can do:

  1. Continue to hold your positions, it’s free
  2. Buy the dips to counter any short attacks
  3. Share articles on social platforms that can provide value to the community and keep everyone informed
  4. Keep a close eye on the stocks performance so you do not miss the squeeze

Hedge funds are not going to be able to recover from this.

Yes, they can possibly receive help from huge banks, but this too will be at a cost.

Furthermore, borrowing money from banks won’t change the fact that shorts still have to cover their positions.

Retail investors are buying AMC stock every day. Shorts are fighting a war they cannot win.

Important advisory: I am not a licensed financial advisory. I simply have a passion for finance and writing.

What happens when a short covers their position?

A short position will be profitable if it is covered at a lower price than the initial transaction; it is at a loss if it is covered at a higher price.

In AMC’s case, shorts who drove the price down to $5 but are still holding to-date are at a loss.

AMC is currently trading around $15.72 per share as of 5/4.

When there’s a ton of short covering happening in a particular stock, it will result in a short squeeze.

What is a short squeeze?

What is a short squeeze?

A short squeeze occurs when a stock spikes in price action due to an increase of short-sellers closing out their positions.

We’ve seen a short squeeze happen with both GameStop and Volkswagen. GME topped almost $500 while Volkswagen spiked shy below $1,000 back in 2008.

Short squeezes are massively profitable for retail investors.

These one-time phenomena are how people are able to accumulate wealth in such little time.

Read: How high can AMC stock price skyrocket up to?

So, when will AMC shorts cover?

Instead of exiting, short sellers are holding. Some shorts might be waiting for a more favorable price to close their positions.

Another way shorts will be forced to close their positions in AMC is through a margin call.

This is when their accounts don’t have the sufficient funds to meet the accounts minimum amount of dollar required.

At this point they are forced to liquidate.

Now, because there’s no rule to how long they can hold their positions, they’re in the long game like most retail investors waiting on a short squeeze to happen are.

The good news is that AMC bankruptcy is no longer on the table and Wall Street analysts are even saying the industry is on a solid path to resurgence, via Hollywood Reporter.

As we continue to see a high utilization and the short borrow fee increase, we can only expect shorts will cover sooner than later.

What percent does the short borrow fee have to be?

AMC’s short borrow fee is currently at 1.00%, via. Stonk-O-Tracker on 5/04.

There seems to be some sort of manipulation or loophole here. The borrow interest rate should be much higher.

Short sellers have been borrowing millions of shares to short.

It seems they thought AMC’s 500 million share dilution was going to go through.

Funny enough Adam Aron, the CEO and President of AMC Entertainment actually scrapped that idea leaving short sellers in a deeper hole.

I personally think retail investors are going to experience the short squeeze of a lifetime.

Strap in.

Related: AMC Margin Call: The Squeeze is Inevitable

AMC’s price action will continue to go up

Journalists and analysts alike are now claiming AMC to be a big buy.

Shorts can continue to hold their loses on paper for months to come or close their positions while it’s at the current price action.

Closing now is recommended due to an overwhelming amount of attention AMC Entertainment has received.

With new titles coming to AMC movie theaters soon, we’re only going to continue to see a surge in price action due to an increase in the company’s sales revenue.

Even if shorts continue to hold, lenders will eventually run up the interest rate again and force them to cover.

If you’re a retail investor reading this article, I’m already celebrating your success.

Leave a comment below and let the community know what a short squeeze would mean for you.

AMC is on the ‘Potential Short Squeeze’ list via. Fox Business

fox business amc short squeeze list

In case you missed it, a squeeze is very possible, via FOX Business.

All the data at hand point towards the inevitable for both shorts and retail investors.

Retail investors holding AMC stock are going to experience a once in a lifetime opportunity.

Read: What The Fool isn’t telling you about AMC could hurt you

And lastly…

franknez.com

A lot of you have been sharing my posts on Facebook Groups, Reddit, Discord chats, and Twitter. Words can’t explain how grateful I am for you sharing positive and valuable information for new retail investors to look at. Thank you.

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View my most recent stock 📊 and crypto 💰 purchases on Patreon.

Will AMC Squeeze in 2022? Short Position AMC – AMC short positions –

Read: How will we know when shorts cover AMC


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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Will GME Stock Split Force a Short Squeeze?

GME Stock Split

GameStop announced a GME stock split late March which should have received more attention than it did.

GME stock surged afterhours when the announcement was made public but failed to maintain its momentum as we’ve seen in the weeks since.

What will this split/dividend mean for shareholders and short sellers alike?

Let’s break it down together.

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GameStop announces stock split in form of dividend

GameStop stock split dividend

Let’s discuss what a GME stock split in the form of a dividend would mean for both shareholders and short sellers.

When GameStop first announced the stock split/dividend news, I published an article breaking down how a stock split and dividend essentially work.

You can read the article here for a more in-depth description on the two.

But no matter how you take it, one thing is certain.

The borrower of the stock is responsible for paying any dividends to the lenders.

Here’s what we can see happen before the split/dividend.

1. Continuous shorting in GME stock

I don’t expect short sellers to ease off shorting GME stock prior to a stock split or dividend.

Afterall, we are in a bear market.

So, the market sentiment overall continues to be on a downtrend.

In a recent article titled, “How close are AMC and GameStop to squeezing?“, I explain how a bull market will trigger massive price action in both these stocks.

Primarily because the market sentiment during this time will be sending share prices upward.

Shorts will have to close to their positions to profit from this bear market, or face riskier bets on the way up.

So, while the GME stock split is bullish in nature, stocks are being kept in line due to the bearish course of the markets in general.

2. Gamma prior to approval of stock split/dividend

GameStop’s stock split/dividend still has to be approved by the board and shareholders.

The game retailer merely announced the move; however, it must undergo the approval process.

You can bet short sellers will be on a ticking time bomb before this process goes into full effect.

You see, the lender is going to want their dividend.

If you short sellers don’t want to pay this dividend to the lender, they’ll have to return the shares they borrowed in the first place.

This is where we can expect to see big gamma occur prior to GME’s stock split becoming official.

What will happen if shorts don’t deliver borrowed shares before stock split?

If GameStop’s price surges, shorts will accrue greater losses and the lender will still require shorts to pay back that dividend.

Any dilution from a stock split won’t necessarily affect short sellers, but if a dividend is approved then shorts will have to pay that dividend to the lender.

The issue of a stock split/dividend has often been seen as bullish.

Shorts betting on this play could be exposing themselves to very big risks.

Will a GME stock split or dividend expose naked shares?

There’s this concept floating around that a GME stock split or dividend yield will expose many more shares are circulating the market than there are in existence.

I can’t speak too much on this, but I would love to know your thoughts on this below.

It’s an interesting concept that would essentially unveil millions to billions of synthetic shares.

The premise behind this concept is to expose the shares and get short sellers to close every single share, resulting in a GameStop MOASS (mother of all short squeezes).

Leave your thoughts in the comment section of the blog.

What will this move mean for shareholders?

GameStop shareholders will be able to vote on this GME stock split/dividend.

A stock split will dilute the float providing shareholders with more GME stock shares at a lower price.

An approved divided will yield quarterly or yearly compensation for holding the stock.

It’s extremely bullish if you’re a shareholder and believe in the company’s long-term vision.

GameStop and Loopring just launched their beta NFT marketplace last month.

The company is evolving into a tech company with its ecommerce foundation and use of blockchain technology, which we will see more of in the metaverse without a doubt.

GameStop is adapting to the use of new technology for the future of gaming and I’m excited to see this space evolve.

I’d love to hear your thoughts.

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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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AMC and GME Stock Get Halted During Trading Surge

AMC and GameStop Halts
Halts are happening again as ‘meme stocks’ soar in volume and price

AMC and GameStop were halted shortly after the market opened this morning.

AMC stock reached a high of $34.09 and GameStop reached a high $199.24 before plunging.

The halts seized the ‘meme stocks’ from soaring, momentarily freezing momentum.

Shareholders might recall halts occurred last year as well before ‘meme stocks’ reached all-time highs.

Let’s discuss it.

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Momentum triggers gamma halts in AMC and GameStop

Both AMC and GameStop have more than 3 times their average trading volume today.

Could these early gamma squeezes have triggered a short squeeze in both AMC and GameStop had the stocks not been halted?

It’s certainly possible.

Although, it’s no secret these halts play in financial institutions’ favor.

Perpetual momentum could cause significant damage to institutions short on these plays.

The halts are not there for retail to regain composure, it’s for short sellers to regain their composure.

It gives financial institutions time to access the situation as it is no longer in their control.

The only control market makers have during these volatile swings are when to pause the game for themselves.

The thing is, when they resume retail investors will still be there.

So, while market makers might be able to slow down the process, they cannot prevent the inevitable.

Is history about to repeat itself?

AMC and GameStop along with other ‘meme stocks’ were halted in January of 2021.

Not only did these halts prevent these stocks from surging but Robinhood also froze the ability to purchase them.

AMC experienced halts again in May before its price ran up to more than $72 per share.

Retail investors were temporarily prohibited from purchasing the stock like they were in January.

Retail investors should view these halts as confirmation massive gains are coming in the near future.

While minor setbacks such halts might discourage bullish investors, it’s important to zoom out and look at the broader picture.

AMC stock is up more than 57% in the last five trading days.

And GameStop is up more than 36% in the last five trading days.

More than 56% of retail investors own GameStop and more than 90% of retail owns AMC Entertainment.

No one in the community is going to quit the crusade against crime in the markets due to halts.

What to look out for this week

AMC stock halted
AMC Stock Halted | GME Halt | GameStop Halt | AMC and GME Halt

Here’s what we can expect this week for AMC and GameStop.

  1. Surge in trading volume
  2. Short and distort campaigns

We can expect the same surges in volume throughout the week for both AMC and GameStop.

Retail investors are not letting off the gas pedal and short sellers know this.

For this reason, we can expect short and distort campaigns to take full flight again.

Corporate media has taken shots at AMC and GameStop for over a year, what’s to stop them now?

Despite the adversity, shorts have not closed their positions which means these two stocks have a lot of room for growth.

AMC currently has a short interest of 20.99% and GameStop has a short interest of 24.62%.

I update a list of heavily shorted stocks here daily so be sure to bookmark the page.

The short interest shows us the percentage of a stock’s float that is shorted.

10% is typically considered to be high while anything above 20% is out of the norm and deemed as ‘extremely high’ short interest.

We can spot some short covering as the short interest begins to decrease.

Are short squeezes on the horizon?

An AMC or GME short squeeze may happen at any moment.

This is why it’s imperative that shareholders hold the stock.

Investors are creating pressure through buying momentum, which increases the probability of runups and short covering.

AMC short sellers have suffered more than $750 million in the past two weeks.

Last week GME short sellers lost almost $500 million in one day alone.

The odds are definitely in retail’s favor.

Shorting AMC and GME stock will prove to be one of the riskiest bets in stock market history.

The pressure is certainly on and I’m excited to see retail come out at the end of this victorious.

I’d love to hear your thoughts.

Do you own AMC and GME stock?

Leave a comment below.

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GME Shorts Face Nearly $500 Million in Losses from Surge

GME shorts face nearly $500 million in losses from surge
Chairman Ryan Cohen purchases 100,000 shares of GME stock

GME shorts are suffering approximately $500 million in losses from GameStop’s price surge today.

GameStop soared to $123.14 per share, up almost 31% from its previous close of $94.20.

And GME shorts are facing the wrath of retail investors yet again.

Will this cause short covering to occur?

Let’s break it down together below.

franknez.com

Welcome to Franknez.com – retail investors are sticking it to short sellers again! Both AMC and GameStop saw impressive gains today, causing millions in losses for short sellers betting against the so called ‘meme stocks’.

Let’s dive right into it!

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GameStop surges nearly 31% starting the new week

GameStop surged 30.72% today causing GME shorts nearly $500 million in losses.

GME’s trading volume was also significantly higher than its average volume of 3 million.

Today GameStop’s trading volume reached 14 million, driving the stock up nearly 31%.

We’re also seeing a lot of afterhours activity.

GameStop has gains upwards of +16% afterhours.

And although afterhours price action should be taken with a grain of salt, it certainly elevates investor confidence.

Will GME shorts finally close their positions?

Be sure to leave a comment at the end of the article with your thoughts.

GME shorts are without a doubt going to continue to lose money holding on to their short positions.

The retail community has only grown which puts short sellers at a disadvantage.

Furthermore, retail investors continue to fight for market transparency and short seller scrutiny in the market grows.

Ryan Cohen purchases 100,000 shares of GME stock

Co-Founder of Chewy and Chairman of GameStop Ryan Cohen just purchased 100,000 shares of GME stock, shown in this SEC filing.

Cohen now has a total stake of 11.9% in GameStop.

Here’s the Chairman’s response to his latest position increase.

Ryan Cohen has been public about his distaste for short selling in the market.

Among other public figures to show their dislike for short sellers has been Elon Musk (Tesla), Adam Aron (AMC), and Jon Stewart.

Short sellers have been driving the prices of AMC and GameStop down for over a year now in efforts to refrain retail from creating squeezes.

But will retail power drive GME shorts out before they incur beyond-repair losses?

Related: GameStop is evolving into a tech company: Q4 highlights

GameStop short interest data

GameStop Short Interest
GameStop shorts – Short interest data

Mainstream media has been pumping out that GameStop can no longer squeeze.

However, this narrative is false and part of a ‘short and distort‘ campaign produced to fuel corporate leaders’ short selling agenda.

GameStop currently has a high short interest of 23.87%.

I update GME’s short interest here daily in case you’d like to bookmark it for your convenience.

GameStop’s utilization is at 100 and there are currently 20.13 million shares out on loan.

In other words, GameStop has plenty of short squeeze juice to skyrocket its share price to new all-time highs.

GameStop’s massive surge to $500 last year in January triggered Robinhood to halt trading.

AMC, and other ‘meme stocks’ that were rising in share price were also halted.

GME shorts lost billions.

History might just repeat itself, only I think we all know the damages today will much more superior.

Read: AMC surges more than 15% entering the new week

Stick around for more market news

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Why Is Citadel Securities Frightened Of The IEX Exchange?

IEX AMC

The lawsuit regarding the D-Limit order type is taking place on Monday, October 25th. Citadel is suing the SEC arguing that this new order type from the IEX Exchange will harm tens of millions of retail investors, via Reuters.

But will it?

Let’s dive deep into what the IEX Exchange is supposed to do for retail investors, how the D-Limit order will innovate the market, and what it will mean for AMC and GME.

franknez.com

Welcome to Franknez.com – I’ve been doing some more digging and what’s occurring with Citadel and the SEC is a lot bigger than I thought. This is an important time in history.

Let’s get started!

Impact Of IEX Exchange In Markets

IEX Exchange

So, what is the IEX Exchange anyway? IEX, or the “investors exchange” is a fair and transparent stock exchange dedicated to investor and issuer protection.

There are more than 150 broker members using it and around 10,643 unique symbols currently being traded.

The innovation behind the IEX Exchange relies heavily upon it’s D-Limit order type that is supposed to outperform displayed order prices on other exchanges.

This means that predatory strategies such as market arbitrage, where high frequency firms profit from lower prices in foreign exchanges, will no longer be able to do so.

High frequency trading has been used against retail investors to not only gain better prices on stock from other ‘slow loading’ exchanges, but by also using this advantage to sell stock significantly cheaper.

So when you find an exchange that is showing lower prices, hedge funds betting against certain tickers may borrow high in another exchanges while benefiting the difference from selling the stock in those displaying lower prices.

The D-Limit order uses AI technology that provides more consistent and accurate data across all exchanges.

This order type is going to provide high quality prices in the market and is truly innovative and for retail.

How Will The IEX Exchange Affect Citadel Securities?

Citadel

In short, Citadel Securities and other high frequency trading firms will lose a lot of money.

The reason being is they are making money every second from using this high frequency trading technology to their benefit by getting better prices than anyone else in the market.

The IEX Exchange would put Citadel Securities in the same courtyard as retail investors, leveling the playfield.

IEX would create a foundation for a fair market and Citadel Securities is suing the SEC for it.

The use of high frequency trading is not protecting retail investors, on the contrary it’s betting against them and the SEC has recognized this saying, “Citadel enjoys unfair advantages over other participants”.

Fighting against this order type is like getting angry for having to share your cake at your own birthday party.

Citadel processes close to 50% of the entire market’s orders. The company would face massive losses from eliminating high frequency trading alone.

Not to mention, the heavily shorted stock they have been betting against.

What Would IEX Mean For AMC and GME?

AMC GME

We know that high frequency trading gives these firms a trading edge over heavily shorted stock.

They’re able to locate and identify foreign exchanges where the price is significantly lower, and use these means to cheat the system by buying back borrowed shares low; profiting the difference from selling high and driving these stocks down.

IEX would seal these cracks in the system. The D-Limit is meant to keep prices equal and consistent throughout the markets.

This order type will essentially put a halt to high frequency trading, changing the entire game in the markets.

We would have transitioned from an older world of finance, to an innovative one that may bring more participants to the market.

So, How Will This Affect AMC And GameStop?

AMC GameStop

The price moves based on supply and demand would be significantly more accurate.

I would expect massive price moves from retail momentum finally display in the lit market.

IEX is the first step towards a fair market and retail investors must support it’s innovative structure to fight high frequency trading.

Only then could we move on to the checklist of eliminating dark pool trading and other predatory strategies.

What Are The Chances Of The D-Limit Order Type Being Approved?

This would highly depend on the judge(s) looking into this matter. There are a lot of factors that can take place here and Dave Laurer, a former Citadel Securities employee said it well in a recent interview with Trey.

He mentioned you never know what kind of deals are being made behind-the-scenes that may influence certain decisions.

And although Dave Laurer wasn’t very optimistic, I believe the energy we should be feeding is that of positive impact and real change in the markets.

The D-Limit order type would be a significant innovation in our markets and must be upheld.

It would be up to retail investors to fight for justice and a fair market should it not be upheld in court.

This is a developing story so make sure to subscribe to the blog or follow me on social media to get notified on the next updates.

Is The D-Limit Order Type That Good?

To put things into perspective, the IEX Exchange has done numerous tests observing the accuracy of the D-Limit order type.

They’ve found over several tests that not only does the AI match prices but also sets new and higher prices in the market.

The IEX Exchange would give the market a much needed refresh that would allow stocks to perform significantly better than the current model.

IEX Order Displayed Orders Improving
IEX Displayed Orders Improving

This is the closest we’ve come to restructuring the markets and is massively bullish in my opinion.

For our community to be part of this incredible innovation alone is a massive win.

This is what we do. People like us fight for a fair market.

And whether this D-Limit order type goes through or not, this is what we’re going to be known for.

Our community is a beacon for change.

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GameStop Is Evolving into A Tech Company: Q4 Highlights

GameStop Q4 highlights
GameStop Q4 Highlights

CEO Matt Furlong said during GameStop’s Q4 conference call that the company is transforming into a tech company.

The video game retailer is making significant changes to their business model and adapting to the changing world of digital and crypto gaming.

In this article, I’m going to break down the key highlights of GameStop’s Q4 earnings call.

Let’s begin.

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Welcome to Franknez.com – if you haven’t already joined the newsletter be sure to do that below. I’m publishing daily market news to keep you informed.

Let’s dive right into it!

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9 major changes happening with GameStop

There are 9 major changes happening or changes that have happened with GameStop since Q4 of 2021 and that fiscal year.

The company has invested in many great assets that are going to fuel the company’s long-term growth and transition into a tech-oriented business.

I will break down GameStop’s financials for Q4 and its fiscal year of 2021 at the end of the list.

#1. Management team of technology veterans

GameStop said during its Q4 conference that it installed a new management team made up of technology veterans.

It also introduced a more ‘equity focused’ executive compensation structure to increase alignment with stockholders.

#2. Refreshed its entire board

The company refreshed its board with stockholders and individuals who possess records of ‘value creation’ while reducing individual director compensation.

#3. Ended relationships

GameStop ended relationships with high-priced external consultants who were costing the company millions of dollars per year.

#4. GameStop recruits hundreds of e-commerce experts

Matt Furlong said during GameStop’s Q4 report that the company hired hundreds of new individuals with e-commerce and technology experience.

They reduced redundant and unnecessary roles.

#5. GameStop ends Q4 with $1.7B in capital

The company recapitalized their balance sheet raising approximately $1.7 billion in capital.

#6. Expanded product catalog

Matt Furlong said GameStop expanded its product catalog to seize more market share in areas such as PC gaming, personal electronics, and virtual reality.

#7. GameStop fulfillment centers

The company invested in fulfillment networks by standing up new facilities in the east coast and west coast.

GameStop opened fulfillment centers in Reno, Nevada and in New York and in Pennsylvania.

#8. U.S. customer service

Matt Furlong also announced during GameStop’s Q4 earnings conference that the company invested in a U.S. based customer service facility based in southern Florida.

#9. Blockchain team dedicated to developing GameStop’s NFT marketplace

And of course, GameStop invested in a dedicated blockchain team to develop its upcoming NFT marketplace.

The CEO said GameStop’s NFT marketplace will be launching by the end of the second quarter of 2022.

“We have learned from the mistakes of the past decade when GameStop failed to adapt to the future of gaming.”

GameStop CEO, Matt furlong

GameStop Q4 Finances

GameStop Q4 earnings

The company had an incredible Q4 and fiscal year in 2021.

Here’s the breakdown.

Sales in Q4 2021: $2.25 Billion
Net Sales Fiscal Year of 2021: $6.01 Billion
Losses in Q4: $147 Million
Net Income in Q4: $80.3 Million
Liquidity in 2021: $1.27 Billion
GameStop Q4 Finances

Debt

GameStop has no debt other than a $44.6 million low interest stimulus associated with the French government’s response to Covid19.

Here are 3 honorable mentions from GameStop’s Q4 earnings call:

  1. GameStop grew its power-up rewards pro members by 31.8% taking memberships to $5.8 million.
  2. The company launched and redesigned their app with improved scalability for a larger catalog and more functionality to support exclusive offers and promotions.
  3. GameStop entered a partnership with Immutable X to support the development of GameStop’s NFT marketplace coming this year.

GameStop’s Q4 earnings call was brief and straight to the point.

The company is taking the steps to transform into a tech company with the use of blockchain gaming and crypto innovation through their upcoming NFT marketplace.

GameStop’s NFT marketplace is going to increase in value as the Metaverse becomes a reality at scale.

GameStop Q4 Earnings Call – Recording – GameStop Q4 highlights

Are you a GameStop shareholder?

Leave a comment below.

Are you invested in GME stock?

What do you think the future looks like for GameStop?

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