Tag: MOASS

What Will Trigger AMC To Short Squeeze?

October 21, 2021 / / 2 Comments
what will trigger amc to squeeze

A lot of new retail investors have bought AMC stock and are wondering what will trigger AMC to short squeeze.

What started from small data between a subcommunity turned into a mainstream phenomenon.

And along the way, the community managed to resurrect a century old movie theater chain.

Yet, mainstream media will tell you poor fundamentals are the reason why we should bankrupt the theater chain instead.

But we love the movies and we especially love the stock.

A short squeeze play doesn’t depend on a companies fundamentals, but rather on how much stock is being borrowed to short it.

Franknez.com

Welcome to Franknez.com – the blog that fights against FUD and gives our community a media platform.

Let’s get started!

Chemtrail Of News

AMC News

There’s been a chemtrail of AMC news all year that have been part of this incredible journey.

From the community fighting regulators for a fair market, to leaked transcripts between Citadel and Robinhood during the January halts.

All this documentation will serve its purpose for a greater change.

But what will ultimately trigger AMC to squeeze?

Is there a specific catalyst that will cause the share price to skyrocket past the moon?

Or is everything tied to the tiresome battles against nefarious hedge fund tactics?

What Pushed AMC To $20 Per Share In January?

amc january

I missed the momentum that lead AMC to reach $20 per share back in late January.

But let me tell you, I sure didn’t miss the runup to $70.

And to be quite frank with you, I won’t miss the one going past $100 per share either.

So, what allowed AMC to experience these drastic upswings anyway?

Most people heard AMC was going to go up and they bought the stock. Before they knew it, it kept surging!

The stock has set a new bottom since it’s runup to $70, and is now cruising around $40 per share.

What will trigger AMC’s next runup?

It’s volume.

Volume propelled AMC to $20 per share, it propelled it to $70 per share, and volume is what’s going to propel AMC to $100 and beyond.

The sentiment is all in the volume.

Volume tells us how many retail investors are excited and frantic about a specific security.

If the volume goes down, expect a security to consolidate.

“We’re Going To Hold Until Shorts Cover”

If only it worked that way. You see, new short sellers can enter AMC at $40 per share and profit $5-$10 as the stock hits $30-$35 again.

The community is the only reason why AMC has a strong resistance.

We keep holding.

But it’s going to take a lot more than just holding the stock.

What drove AMC to $20 the first time, and $70 the second was not simply holding, but buying the stock too.

I’ve taken notice that the community has grown tired of ‘hodling till MOASS’.

There is no free ride here.

You don’t just buy one share of AMC stock and expect it to hit $100,000 because someone said it was hitting $100,000.

You cannot participate in a momentum play, and not put in momentum.

The retail investors that participated in the runup to $20 and $70 all put in momentum.

Holding without applying buying pressure is going to result in exhausting your conviction towards this short squeeze play.

You’re The Catalyst, Stop Looking

AMC Catalyst

“It’s their fault”, “this has to happen” – we need to stop trying to cut corners.

I’ve been guilty of this myself.

But it all comes back down to, what triggered AMC to move up?

Action did. Massive action caused massive change in AMC’s share price.

With enough pressure, retail investors will be able to surge AMC’s share price high enough to create short seller panic.

Thus, initiating shorts to cover their positions in AMC and further driving up the share price.

As more of them close their positions, retail investors would have triggered AMC to squeeze.

Not the SEC, not a regulation, but retail investors.

A lot of you continue to buy the stock. A short squeeze will require more than just a lot of us though, it’s going to require buying en masse.

Give More Than You Take

We cannot blatantly sit around and wait for others to take us where we want to go.

You need to be accountable for your own actions and your own wants and desires.

I get asked quite frequently, “when’s the next runup”, “when’s the next runup?”

My question to you is when did you last buy AMC stock?

Those of you on my Patreon have a history of my personal AMC transactions throughout the year.

I’ve been buying the stock since February, even when I was facing $9,000 in losses. Now I’m up because I took action.

And if you’re profitable too it’s because you took action even when you were down.

So what’s the pattern here? Why are people profitable? Because they took action and didn’t depend on anyone to come save them.

What will trigger AMC to squeeze? You will.

Is this financial advice? Hell no. It’s real talk.

AMC’s Volume Shows Community Sentiment

AMC’s volume has been below it’s average volume. The average volume has been plunging since both runups this year.

The volume tells a story, and this current volume shows moping.

Some may argue volume doesn’t matter because of dark pool trading or because of unlimited supply of lendable shares to short the stock.

However, the volume history during the previous runups has said otherwise.

Volume matters.

How Long Will It Take Until AMC Squeezes?

In short, as long as it takes for momentum and buying pressure to occur again.

Retail investors have the chance to trigger a short squeeze through momentum and serious buying pressure.

AMC Volume Trigger

We can tell from looking at past volume patterns how important volume played a role in AMC’s previous upswing.

This momentum may be instant and short term and may happen at any moment.

Otherwise, some sort of FOMO catalyst may drive that momentum back in several months from now.

How long it takes for AMC to squeeze will depend on retail sentiment and drive.

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Also, be sure to check out the YouTube video of me briefly discussing this topic and don’t forget to subscribe.

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Is AMC A Pump And Dump? [Details]

September 29, 2021 /
Is AMC A Pump And Dump?
Is AMC A Pump And Dump?

I’ve recently come across some speculation that AMC is some sort of pump and dump that’s being promoted for a select few to benefit from.

And although mainstream media has been saying this for quite some time, have you ever really given it any thought?

I have to cover this because I want to protect you. Somebody has to ask the hard questions right? Is AMC a pump and dump?

franknez.com amc stock

Welcome to Franknez.com – information landed on my lap last night that led me to some deep digging and serious thought. Let’s identify what a pump and dump actually means.

Let’s get started!

How Did The AMC Movement Start?

The GameStop fiasco was going on for quite some time before it became mainstream. GME stock didn’t begin to move up until some time in late October and began to squeeze in late January.

It wasn’t until Redditors noticed AMC was also being heavily shorted early this year. A few of these retail investors were able to buy AMC stock before it gamma squeezed to $20+ per share.

One of the retail investors who was able to get in just days before the runup was Trey Collins from Trey’s Trades. I got in as the stock was coming down, I had not seen Trey’s content at this point.

It was during this time that Robinhood halted buying GameStop, AMC, Blackberry, and other heavily shorted stocks, and the scandal began.

Trey saw that AMC stock still had high short interest and a high utilization rate. These two data figures is what allowed us to build a strong conviction towards a higher share price.

High short interest meant shorts could potentially get squeezed out of their positions with enough momentum and buying pressure.

The data spread like wildfire.

People were excited about the data. Retail investors heard of what happened with GameStop and experienced FOMO to some degree knowing AMC could potentially have a similar runup.

Retail investors at this point are getting in for a short squeeze play.

AMC Retail Investors Get Ridiculed

The media was quick to ridicule average people buying stock. See, opportunity in the stock market in general is not meant to get passed down to the general public.

It’s a game that’s been hidden from ‘average people’ so to speak, to keep classes in line.

When Franknez.com went live on January 1st of 2020, my goal was to spread financial literacy, teach people how to begin investing in stocks, and to help people create a plan to build wealth.

My platform has always been a place for self-education.

When The Fool, MarketWatch, Benzinga, InvestorPlace, and other financial platforms began attacking the community, I couldn’t bear to see people get pushed around.

If you’ve heard my story before, I didn’t want to write about AMC on my blog. But something told me that this platform was created for the purpose of harnessing information that could change the lives of people.

So, I took it upon myself to stand up for the community and publicly share the information that Trey and other TA analysts were discovering. Before I knew it, we were fighting corruption and our goal has been to make real change in the markets happen.

Only then will we see proper price action in AMC and GME stock.

What Is A Pump And Dump?

A pump and dump is where a group of investors promote a specific stock to pump its price up through buying pressure and then selling off during high runups. Pump and dumps are usually orchestrated from the get-go and die off rather quickly.

Here’s the definition from Investopedia:

“Pump-and-dump is a manipulative scheme that attempts to boost the price of a stock or security through fake recommendations. These recommendations are based on false, misleading, or greatly exaggerated statements. The perpetrators of a pump-and-dump scheme already have an established position in the company’s stock and will sell their positions after the hype has led to a higher share price.” – Investopedia

How Do We Compare This To AMC?

How can we use this information to separate what’s occurring with AMC and what an actual pump and dump means?

  1. Retail investors have been spreading knowledge, not recommendations. Real apes, people – not bots.
  2. The information provided has not been false or misleading. High short interest, high utilization rate, naked shorting, dark pool trading, it’s all real. These are all facts provided by software that tracks this data in the markets. No one is making this up and mainstream media has finally shed light on this real problem.
  3. The AMC community has not sold their stock, even during the highs. Selloffs from institutions combined with short laddering explains why AMC’s stock price has been going down after spikes. That is something our community ultimately has no control over.

See, the media portraying AMC to be a pump and dump fails to touch topic on the high short interest rate. They fail to present the manipulation suppressing the stock’s price.

It’s for this reason why I’m breaking this down today. When people looking for opportunity ‘Google’ whether AMC is a pump and dump, I don’t want The Fool to mislead people or scare them from their money.

How about let’s put everything on the table and let the public decide based on the information provided. Maybe they don’t want to put an effort or join a cause fighting for a fair market. Perhaps it’s too much for them.

But at least fair information and facts would have been provided. Community leaders are not trying to convince people to buy the stock. Anyone who bought AMC months back when we published the data is up more than 1000% in gains.

That is a choice retail investors made based on the information that was provided. That same information is why we continue to hold the stock. What’s limiting the data at hand is the increased manipulation in the market.

The AMC Community Demands A Fair Market

The reality is very few retail investors are facing losses in AMC and seasoned investors in the community continue to hold the stock.

Why are we holding the stock? Because it’s being suppressed by hedge funds and market makers who get to mold the rules to their benefit.

We’re seeking regulations from the SEC that will prevent short sellers from creating counterfeit shares and stop dark pool trading once and for all.

Once these unethical strategies are eliminated, retail investors will begin to experience the bigger fruit of their trade. AMC should runup as transactions are no longer masked through dark pools.

This is a serious matter that financial platforms nor hedge funds have addressed. However, the community has made enough noise to get CNBC’s Melissa Lee and FOX Business’s Charles Payne to publicly touch base on this very real matter.

Scandals of Ken Griffin lying under oath have awoken Citadel on Twitter after 9 months of complete silence. Boston and Dallas Fed Presidents, Kaplan and Rosengren have been fired after buying securities while creating monetary policies. AMC now stands for more than just money.

The AMC community has been a beacon for change in the markets. Financial institutions are going to realize very soon just how much they have underestimated each and every one of us.

So, Is AMC A Pump And Dump?

AMC is the reason why a new era will be replacing its current leaders. AMC is not a pump and dump, it’s a beacon for change and a fair market.

I’m going to be the first to say you don’t have to own any AMC stock to fight against corruption within our community.

Owning AMC stock is a bonus. We have the knowledge and data to stick to our convictions and make a life-changing play for ourselves and our families, if we want. We don’t need anyone’s validation anymore.

Buying AMC stock is a ticket to the moon, there’s no doubt about that. However, fighting for a fair market will be the community’s legacy.

A chance at a fair market will increase our probability of squeezing shorts from their positions. The weight of the wait would have been worth it.

Whether you decide to buy, hold, or sell your stock, don’t stop fighting for the community. But remember, diamonds are created under pressure. Your voice is a weapon, use it.

franknez.com is amc a pump and dump

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Yellen: “America Could Default For The First Time In History”

September 28, 2021 /
Yellen "America Could Default For The First Time In History"
Yellen “Economic Catastrophe”

News arose today regarding congress raising America’s debt limit to keep the U.S government on. Treasury Secretary Janet Yellen expresses her deepest concerns regarding our economy.

Yellen is currently blowing up on Twitter feeds as she’s stated, “there are issues relating to hedge funds and the possibility of leverage, they can trigger financial runs”..

A financial run is a consecutive run in the markets, whether bullish or bearish. In the case of a hedge fund, it’s usually bearish due to short selling or short-laddering.

Franknez.com Yellen

Welcome to Franknez.com – today’s finance news will uncover some rather jarring information in regards to our economy. Yellen has warned House Speaker Nancy Pelosi on the matters.

Let’s get started!

Failing To Act Could Spark An Economic Catastrophe

Yet again our government is forced raise America’s debt ceiling or face devastating consequences.

Raising the debt ceiling essentially provides America with a larger line of credit. Yellen’s solution is for America to continue mounting debt, as the treasuries extraordinary measures to print more money could have very well been exhausted.

Although, if congress does not raise the debt ceiling, the treasury would have to step in to keep the federal government running.

Inflation continues to skyrocket with the printing of money. And the only two solutions America has is to either keep digging a debt hole, or exhaust the worth of our dollar.

The lack of financial literacy in our own government is what will ruin our financial system.

How Did We Get Here?

If you ask Robert Kiyosaki, he will say the lack of financial education got America here. And I agree. Robert Kiyosaki, author of Rich Dad, Poor Dad is a strong advocate for financial literacy.

In this incredible interview with Patrick Bet-David, Robert talks to us about his thoughts on the U.S national debt.

Robert Kiyosaki on The U.S national debt

If you follow Robert on Twitter, you know his tweets are very strong when it comes to the Feds, our government, and the destruction of our financial systems.

The U.S Will Run Out of Cash By October 18th

Congress has up until Monday, October 18th to raise the national debt before they run out of cash.

“It is imperative that Congress swiftly addresses the debt limit,” Yellen said yesterday in testimony before the U.S. Senate Banking Committee. “If it does not, America would default for the first time in history. The full faith and credit of the United States would be impaired, and our country would likely face a financial crisis and economic recession.”

What Would Happen If America Goes On Default?

If America goes on default, it would trigger a broad market sell-off and put a hold on everything from government payments to the ability to borrow.

Unemployment, child tax, and social security would all stop flowing to the American people. Not to mention, our troops would stop getting paid.

And although social security is a self-funded program, the money is drawn from various trust funds to pay benefits.

Stocks and crypto would tank which would present a buying opportunity for investors. Investors usually profit from these market crashes as they begin to correct themselves. As for hedge funds, closing short positions could result in the MOASS retail investors have been waiting for.

A default would only be temporary, but could hurt Americans who depend on assistance from the government.

The interest rates on credit cards, car loans, and mortgages would also skyrocket, making it almost nearly impossible for struggling families to keep up with occurring debt.

Let’s Talk Solutions For An Economic Downturn

How can we prepare ourselves for an economic downturn? This is not financial advice, but advice from a friend.

If you have money in stocks and crypto, know that with a stock market crash the value of your assets will go down. However, if you take this opportunity to increase your position then you will come out profiting during its correction.

Negative beta stocks such as AMC and GME are more resilient and less volatile when it comes to crashes.

Be sure to have an emergency fund set aside in case you see yourself needing cash short-term. While most of our holdings are in assets, it would be wise to keep cash at hand to prevent from liquidating certain stocks or crypto.

If you have a safe stream(s) of income, make sure you’re stacking. That way when turmoil hits, you’ll be ready to take advantage of the investing opportunities presented to you.

franknez.com

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Read More: Stock & Crypto News / Finance News

Massive Disruption: Prepare For The MOASS

September 14, 2021 /
Massive Disruption: Prepare For The MOASS
MOASS Incoming

MOASS incoming. The feds are printing trillions of dollars, hedge funds have lost billions of dollars due to retail. People also seem to be worried about a possible recession.

And, the feds are now requiring major banks to hold roughly $1 trillion in high quality capital – enough to survive a severe recession and still be able to lend to households and businesses.

They crazy thing is only a few out of the 34 major banks hold more than $1 trillion in assets. How will this affect investors, and the common people?

franknez.com MOASS

Welcome to Franknez.com – today’s topic is rather grand. How prepared are you for a MOASS?

Lets get started!

There’s a lot going on here. I’m going to break major key points and give my overall thoughts and opinions on how everything ties together.

With so much money being lent out this means it’s all eventually going to have to be paid back sooner or later. Lets dive into the distribution of all this leverage and debt first with repos and how they work.

The Feds & Repos

The feds have been printing out a large sum of money to lend to banks, who also lend to financial institutions such as hedge funds. Well the feds have also been collecting billions in reverse repos from money going back into the repo market.

A repo market is essentially where a transaction between treasure securities and cash meet. In other words, they are short-term collateralized loans.

Money is continuously being printed and transacted back and forth through both repos and reverse repos. This loop is the reason why our dollar is becoming worthless every day.

Who Uses Repos?

Financial institutions such as banks and hedge funds both have access to this unlimited supply of leverage, or cash from the feds.

Repos are used as leverage to trade securities with the intention of profiting from the leveraged cash, and eventually paying the loan back.

While repos are primarily supposed to be used as a short term ‘collateral loan’, institutions take advantage of the loan to further leverage other positions in the market.

Hedge funds can use repo to increase their leverage, which magnifies both their potential gains and their potential losses. We know hedge funds have lost billions of dollars from shorting AMC and GME stock this year alone.

What Can Be Done About Excessive Repos?

The feds might be looking at ways to facilitate the amount to be borrowed by establishing a particular ceiling. However, I personally don’t think this is enough.

Some fundamental questions are yet to be resolved, including the rate at which firms (besides banks and primary dealers) would be eligible to participate.

How Much Leverage Do Hedge Funds Have From Repos?

In the figure below, we can see that 29% of asset managers (hedge funds) have direct access to repos from the feds. However, dealer who hold 41% and banks who hold another 20% can easily lend money to hedge funds with interest.

how much leverage do hedge funds have from repos

The problem here is that hedge funds are overleveraged and have too much power as a single entity. Hedge funds have been the root to economic downturns such as the Great Recession of 2008 and the Stock Market Crash of 1929.

In fact, it’s because of the Stock Market Crash of 1929 that the SEC (Securities Exchange Commission) was born. It was meant to protect retail investors from fraud and illicit activity from hedge funds.

Unfortunately, the SEC has only proved to be a lobbied pawn from hedge funds; slapping them with fines that have no effect or real consequence to the injustice in the markets.

Hedge Funds Face Major Scrutiny

Market manipulation has been exposed by a growing community of retail investors originating from the sub Reddit known as r/wallstreetbets.

The community has since grown outside Reddit and established a variety of subcommunities on Discord, Twitter, YouTube, Facebook Groups, and other forums across the internet.

This community of retail investors known as ‘apes’ have sparked a movement worldwide to expose the corrupt tactics hedge funds use to short stock in the market and bankrupt companies.

Some of which include naked shorting and dark pool trading, which CNBC’s Melissa Lee publicly speaks out on.

The attention is now on hedge funds. Both Republicans and Democrats agree strict laws should be imposed on Citadel Securities after the Archegos incident earlier this year.

And it looks like their lifeline is about to be cut off.

Large Banks To Hold $1 Trillion In Capital

Effective October 1st, thirty-four of the largest banks will be required to hold roughly $1 trillion in high-quality capital.

The banks are:

  1. Ally Financial Inc.
  2. American Express Corporation
  3. Bank of America
  4. The Bank of New York
  5. Barclays
  6. BMO Financial Group
  7. BNP Paribas USA
  8. Capital One
  9. CitiGroup
  10. Citizens Financial Group
  11. Credit Suisse
  12. DB USA Corporations
  13. Discover
  14. DWS USA Corporations
  15. Fifth Third Bancorp
  16. Goldman Sachs
  17. HSBC
  18. Huntington Bancshares
  19. JP Morgan Chase & Co
  20. KeyCorp
  21. M&T Bank
  22. Morgan Stanley
  23. MUFG Americas
  24. Northern Trust Corporation
  25. The PNC Financial Services
  26. RBC US Group Holdings
  27. Regions Financial Corporation
  28. Santander Holdings
  29. State Street Corporation
  30. TD Group US Holdings
  31. Truist Financial Corporation
  32. UBS Americas
  33. U.S Bancorp
  34. Wells Fargo & Company

Out of these 34 companies, only JP Morgan, Bank of America, Wells Fargo, and CitiGroup hold more than $1 trillion in assets.

In this list of the top 15 banks by assets, you can see just how far from $1 trillion a lot of these banks are. And this is just half of them from the feds list!

top 15 largest banks by assets
Top 15 largest banks by assets

With so many banks far off from reaching $1 trillion in assets, they’ll have to find the collateral from other means.

In my personal opinion, liquidation in the markets.

What Causes A Stock Market Crash?

A stock market crash is caused by those who bought stock on margin, lost value in their investments, and owe money to the entities that granted them those loans, according to Britannica.

A stock market crash is usually the cause of ‘panic selling’ or heavy liquidation in the stock market. With so many institutions owing other institutions money back, we’re going to see massive liquidation occur during the biggest margin call in history.

Hedge funds and short sellers now have higher margin requirements, and it looks like the feds just applied their own requirements to the biggest banks in the world.

Ladies and gentlemen, this is going to be the biggest opportunity of your life if you’re holding shorted stock, especially if they have a negative beta. Heavily shorted stocks with negative beta include both AMC and GME stock.

How Does A Stock Market Crash Affect The Average Person?

Unfortunately, the average person could lose their pension during a stock market crash and also find it difficult to obtain loans and mortgages. And if you own stock, your portfolio will suffer significant losses.

What Happens To AMC And GME If The Stock Market Crashes?

Stocks with negative beta tend to act the complete opposite during a stock market crash. AMC and GME holders will experience the MOASS as short sellers and institutions begin to cover their overleveraged positions.

But if you hold other common stock, keep in mind its value will drop. If you’re long, this could be seen as a great buying opportunity to add to your stock portfolio.

Other heavily shorted stocks with high short interest should also see a major increase in share price as hedge funds begin to pay their dues.

If the stock market crashes, it will be one of the biggest blessings for both AMC and GME shareholders as institutions will have to pay back every share they borrowed to short both these stocks.

Community, our time is coming. Banks have until October 1st to come up with the capital to fund their requirements. Expect liquidations left and right. Both the stock and crypto markets will be tanking.

And although AMC and GME are currently making upward moves, don’t be surprised if they fall back down one last time before shorts are inevitably squeezed from their short positions.

The MOASS we’ve all been waiting for is on the horizon. Get excited.

Gorillanaires

Franknez.com

Before you leave, I want to say that I appreciate every single one of you who’s read FrankNez since the inception of this amazing community. It’s been a long and powerful journey to say the least.

I’m excited to see what the next chapters hold with you. Keep paying the knowledge forward 🤝.

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AMC Stock August Prediction: Short Squeeze Update

August 9, 2021 /
AMC stock prediction
Could AMC squeeze in August? AMC stock prediction

AMC stock has found a new floor in the $30 price range. AMC’s previous floor was $5 before multiplying 14 times up to $70. Will AMC repeat this pattern? This would put AMC Entertainment stock roughly around $420 per share. And that’s without a short squeeze.

A lot of regulation is also being put into place. While the community might be taking this information with a grain of salt, we must ensure government bodies do their job. August 23rd is an important date.

franknez.com amc prediction

Welcome to Franknez.com – today I want to discuss AMC stock and August predictions based on the data at hand.

Lets get started!

If you’re not following me on Twitter yet go do that right now so you can be updated when I share a new article with the community. I also want to give a special thanks to apes sharing FrankNez content on Discords, Reddit, Twitter, and other social media platforms and forums. You know who you are.

AMC Community Fights For Justice

The AMC community has been fighting for justice since the beginning of this year when short sellers began to manipulate AMC’s stock price. The use of naked shorting has been exposed publicly thanks to the community.

Personalities such as Charles V. Payne (FOX) and Melissa Lee (CNBC) have been strong voices outside the community regarding the use of synthetic shares to drive the stock price down.

Melissa Lee recently came out about the SEC finally looking into dark pools. She shared an interview with SEC Chairman, Gary Gensler, regarding this manipulation.

While it might sometimes feel like we’re going around in circles, take the time to zoom out and realize change is actually happening right now. There was a point where no one was listening to us. So, if you’re new to the community, consider yourselves fortunate! We already paved the wave.

New Apes, Are You Negative In AMC?

If you’re a new ape who got in this movement as the stock was climbing, you’ve collected unrealized losses. However, this is just on paper.

You haven’t lost anything unless you cashed in your losses. Seasoned apes in the community faced the same reality many months ago so you’re not alone.

When AMC jumped to $20 back in January, majority of us got in as the stock was coming back down thinking it would go up. I purchased my first shares at $14 only for the stock price to plunge down to $5. I was negative $9k! So, you’re not alone, we’ve all been there.

Yeah some people sold, but those who held are now up thousands to tens of thousands of dollars. But we still hold. And you already know why. Shorts have not covered their positions which means you will be profiting very soon as well.

AMC stock seems to have reached a new bottom which is great for any retail investor looking to increase their position before we begin seeing higher highs and higher lows again.

When the stock originally came back down to $5, the community to advantage of the stock’s price. It was the perfect opportunity to increase our number of shares. The same scenario is taking place at the moment.

It’s The Number Of Shares That Counts, Not The Price

I’ve taken note that some apes in the community are waiting for AMC’s stock price to go lower so they can add to their positions. While adding to your position at a low share price plays heavily in your favor, it’s the number of shares that ultimately matters.

I had purchased 16 additional shares of AMC stock last week and one of my brothers had commented saying ‘too bad it’s only 16 shares’. To which my response was, those 16 shares at $1,000 per piece is already $16k. A $500 investment may easily convert to $16k during a squeeze (example).

If you’re a Patron or Discord member you saw I purchased an additional 29 shares today. By the way, if you’re interested in what other plays I’m buying, I update my portfolio on Patreon every month.

So, if you’re waiting for AMC to go lower so you can buy more shares, you’re going to miss this discount. AMC is demonstrating strong levels of support in the $33 range.

Breaking Level of Resistance

Trey’s Trades has predicted AMC would either drop down to a level of resistance in the $25 range, or take on a more bullish approach. We didn’t see this drop which means the technical data now points towards sustained levels of consolidation.

AMC Stock prediction – breaking level of resistance

What some apes in the community do not understand is that barcoding, or consolidation, is actually healthier than continuous declines. We could very well see AMC stock break new levels of resistance and consolidate in an upwards trend all month leading to the short squeeze.

This goes back to when we barcoded at $5. The stock eventually pushed all the way to $70. Could we see this type of multiplier in August? Absolutely.

AMC has the community to see this type of price action come to fruition. We’ve uncovered that although fundamentals may have influenced a stock price before, it’s truly based on the narrative of the shareholder and its community behind the company that drives the price.

NSCC-2021-010 Filing Confirmed, August 23rd

Proposal NSCC-2021-010 essentially prohibits the use of naked shorting and FTDs in the market. In this letter, FINRA confirms to rule this filing on August 23rd, page 3.

This leaves AMC with 6 trading days for the month of August with runway to follow its natural course up, without manipulation from short sellers.

Shorts have the option to cover their positions before another momentum upswing, or face bigger losses than AMC’s first runup. Hedge funds lost billions of dollars during the climb to $70.

AMC stock will continue to reach higher highs and higher lows, raising new bottoms as long as retail investors continue to buy and hold the stock.

Short sellers had the opportunity to close their positions at $5 and missed it. They now have the opportunity to close at $33 which means we could very well see AMC squeeze in August.

If they prolong the inevitable, AMC’s new bottom could very well be in the $200 range, given that chart patterns repeat themselves. I got to this number by multiplying AMC’s new bottom of $33 by 6. The common denominator from the stock’s previous floor.

What If Hedge Funds Don’t Close Their Positions In August?

If hedge funds don’t close their positions in August then regulations will get tighter on their practices. Margin requirements will continue to increase for short sellers shorting both AMC and GME stock.

Charles Schwab is a massive AMC shareholder and is in the ‘Top 10 Owners of AMC Entertainment Hodlings Inc’. They’ve been increasing their position in AMC all year. They are reported to hold a whopping 3.5 million shares in AMC stock.

Top 10 owners of AMC stock
AMC stock prediction – Institutional buyers will keep buying more at this price

Charles Schwab, like retail investors, wants to make money from this play. We could very well see the broker raise margin requirements or even liquidate positions without notice.

Big institutions such as Vanguard and BlackRock also continue to increase their positions. AMC entertainment stock is not a dead freaking cat. Institutions have noticed this once in a lifetime opportunity too.

They’re buying and holding the stock; waiting.

House Democrats Demand Tougher Rules

If you have not seen this yet, there’s a push by Democrats to broaden consequences for hedge funds.

“Lawmakers are considering imposing federal oversight on large family offices like Archegos and banning the controversial practice of market makers such as Citadel Securities paying Robinhood Market and other brokerages to execute investors’ trades, a confidential note recently sent to Democratic members of the panel shows”.

So even if short sellers don’t close their positions in AMC stock, outside forces are working together to prevent hedge funds from having too much power. This will play in the retail investors favor and give the stock runway to continue going up.

AMC Prediction For August

AMC stock will break the $33 level of resistance and channel an upwards trend leading to September if it does not squeeze this month. August could very well be the month when AMC squeezes.

My brothers and I have been adding to our portfolios just to play it safe. If this is the last time we will see AMC at these levels then we’re certainly going to take advantage of the price.

And while shorts keep increasing their short positions, it’s only a matter of time before they get halted from doing so, and are restricted the power to continue overleveraging their positions.

What I can tell you though is hedge funds are about to face the biggest margin call in history. Whether it’s in August or not.

What does your intuition tell you?

Franknez.com

Let me know in the comment section below what your intuition tells you. You have the data at hand, you’ve researched just about everything there is to know about AMC stock. Do you think AMC will squeeze this month? What’s your AMC stock prediction?

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