Tag: Short Squeeze (Page 1 of 2)

How High Can AMC Stock Price Skyrocket Up To?

How High Can AMC Stock Price Skyrocket Up To?
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How high can AMC stock price skyrocket up to?

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It looks as if AMC has now entered bullish territory. And yet again sources such as The Fool and other hedge fund partners are trying to steer the public from investing in this specific stock. Shame on you shills. Well, just how high can AMC stock price skyrocket up to?

AMC stock price closed at $40.74 on October 15th. The share volume rose and remains healthy as AMC prepares to take off. We have broken the $30 and $40 levels of consolidation. How soon will AMC rip?

AMC Entertainment has had an amazing runup this year. The crazy thing is shorts haven’t even begun to close their positions. Ladies and gentlemen, the short squeeze hasn’t even started.

Most of the market has been on sale and AMC has been no exception to that until now. AMC wants to keep climbing. The stock continues to consolidate as short sellers find loopholes to short the stock.

franknez.com

Welcome to Franknez.com – the blog where you can digest posts on personal finance, side hustle ideas, entrepreneurship, and trending investing topics.

Lets get started.

As some of you know, I update this article frequently. I update it with the intraday price action as well as any information pertaining to the stocks performance. A lot of the information on here will be left untouched as it is a means to archive a lot of the information from throughout the year.

What do we know about AMC stock price?

AMC’s stock price continues to be volatile although we’ve seen the stock is scared of single digit share price numbers.

No matter how many times this stock is attacked by short sellers, it keeps correcting itself upwards.

AMC stock price bull market

Key highlights

  1. We’re seeing AMC stock price enter bullish territory due to an increase of retail investors buying the stock.
  2. ‘W’ shape formations in the performance of the stock also indicate bullish territory.
  3. Retail investors and large institutions alike, like the stock. Buyers include Vanguard, Charles Schwab, Wells Fargo, and BlackRock.
  4. What causes AMC stock price to rise during ‘power hour’ is how many more shares are being purchased before trading hours close. As retail investors continue to buy the dip and hold, we’re going to continue to see this trend of perpetual gains.
  5. The stock price is still relatively low enough for majority of people to buy, but hurry before it’s too late.
  6. The short borrow fee continues to increase, this means shorts will have to close their positions soon

For more on FTDs read: A message to the SEC on fails to deliver (AMC)

Adam Aron, CEO of AMC Entertainment Interview

Adam Aron AMC interview
Franknez.com
Adam Aron, CEO & President of AMC Entertainment

Adam Aron has done an outstanding job with the media in the past months and continues to show a positive and bullish sentiment towards AMC.

He is now praised among the retail investors community holding AMC. And for good reason too.

See what CEO and President of AMC entertainment has to say to CNBC news about AMC Entertainment reopening and the Reddit movement.

As of today, all AMC movie theaters are now open 4/14
  • AMC Entertainment has raised more than 2.2 billion dollars in cash
  • 90% of AMC theaters in the United States are now open with New York and Los Angeles finally reopening
  • Vaccinations and policies are making movie theaters safe
  • New movie titles are guaranteed to increase sales revenues
  • CEO and President Adam Aron expresses an optimistic future for AMC Entertainment

In a more recent interview we get an exclusive behind the scenes moment with Trey’s Trades and Adam Aron.

If you haven’t watched the video you’re not gonna want to miss out.

In this personal interview from the CEOs home, Adam Aron talks about the 500 million share dilution, which by the way as of today has been taken off the table, as well as his experience and perspective behind the the Reddit phenomenon.

I wrote a small piece on Adam Aron being rightfully named the king ape here.

AMC’s Short Borrow Fee

AMC short borrow fee interest

AMC’s short borrow fee as of 10/15 is: 0.70% via. Stonk-O-Tracker.

The longer shorts-sellers hold their positions means the higher the borrow fee may increase. This is great news for retail investors.

Shorts eventually have to cover their positions and when they do, AMC’s stock price action will continue to rise, inevitably creating a short squeeze.

Why AMC’s short borrow fee matters

While it costs the retail investor nothing to hold their position in AMC, it costs shorts interest.

Shorts are more willing to hold their positions if the short borrow fee is low so they’re losing money every day they hold.

Remember, shorts still think they can bankrupt a company that is no longer going bankrupt.. I know right?

As hedge funds like Melvin Capital lose money, the short borrow fee will go up to make up for some loses. As the interest goes up, shorts will naturally cover. If they don’t, they will bleed bad. With the short borrow fee being so high at the moment, it has retail investors speculating a short squeeze will start soon.

Melvin Capital suffered 49% loss 1st quarter

Melvin Capital AMC stock
Hedge Fund Melvin Capital – AMC Entertainment

Melvin Capital is a hedge fund that has been shorting both AMC and GameStop. Well it turns out holding has paid off one way. The company was down almost half percent their first quarter of 2021!

These are people who want to put your favorite businesses out of business. Ladies and gentlemen, the good guys always win.

If retail investors keep holding, institutions are going to raise the short borrow fee. Unless hedge funds don’t start closing their short positions, they will cease to exist. Or at least cease to run operations until they open a new firm from scratch. But who will trust them? Their clients are losing money.

Read: Citadel loses billions: hedge funds are getting dragged down

Hedge funds are a sinking ship

Hedge funds are losing money shorting AMC stock

Cramer said, anyone shorting AMC and GameStop are going to lose. And he’s right. Retail investors are holding until shorts are squeezed out of their positions.

Shorts can either:

  1. Take the loses and close their positions right now where the stock price is around $40.
  2. Or, get squeezed out of their positions at a high interest rate above $40, resulting in even bigger losses.

Ladies and gentlemen, shorts could have closed at $5. With that being said, short sellers have lost more than a billion dollars this second quarter according to Ortex data.

Things are not looking so good for them. And it’s about to get a whole lot worse as AMC stock continues to surge.

How will this affect AMC stock price?

I can imagine shorts and hedge funds alike must be furious. The little guy causing a disruption, what!?!

My personal take is retail investors are going to continue to see foul play. You’re going to experience this from bogus headlines. They’ll usually try to steer the public from buying AMC stock to keep the volume and hype down.

Not sure if hedge funds know this yet but you do know documentaries of what’s taking place are in the works right?

Independent filmmakers such as the Mulligan Brothers will be covering this story from the retail investors perspective and rumor has it Netflix will be writing as well.

Expect AMC stock price to rise and continue to be shorted. We will see volatility with shorts attacking the price action. They do this by trading synthetic shares at low bids.

Read: How do hedge funds manipulate the stock market.

AMC Gamma squeeze before short squeeze

AMC Entertainment is currently the most shorted stock in the market (via. MarketWatch).

AMC Gamma Squeeze Before Short Squeeze
AMC Most Shorted Stock

Unfortunately, MarketWatch has completely eliminated AMC from their list. Retail investors are suspecting foul play from the hedge fund affiliates.

Because AMC is an extremely high shorted stock, analysts continue to demonstrate their conviction towards an AMC short squeeze.

The key here is for retail investors to hold their positions as they see some momentum beginning to build. #diamondhands

Key: If investors want to see AMC squeeze, they’ll have to refrain from selling at the sight of early profits.

AMC stock predictions (analyst)

AMC prediction from Fidelity TRADER PRO

Trey’s Trades walks us through the positive moves AMC has been making from an analysts perspective. Trey presents his audience with transparent information and has been a key player in the analytics world for ticker symbol AMC.

Although this video is an earlier video, Trey’s videos are packed with relevant information that still apply to where the stock is today.

r/wallstreet bets and Discord

Members over at r/wallstreetbets and Discord anticipate AMC stock price can skyrocket as high as $1,000-$10,000 mainly due to the stock’s popularity and trends in analytics. Yup, that’s crypto numbers.

The number of phantom shares hedge funds have to cover is astronomical which is why the community is calling this the mother of all short squeezes (MOASS).

AMC stock price wallstreetbets

By holding shares in AMC, retail investors are setting up a supply and demand scenario where short-sellers will eventually need to buy from them.

This in turn can drive the stock up as high as the retail investor chooses, theoretically speaking.

Large institutions such as Vanguard, Wells Fargo, BMO Harris, BlackRock, Fidelity and many more are buying AMC stock while it’s still low (via. CNN Business).

Take that for what it is.

Whether that number comes to fruition or not, retail investors will have to continue to hold and to add to their positions in order to skyrocket AMC’s share price.

We’re seeing more and more retail investors join the fight against short-sellers. Short-sellers are the investors betting on AMC Entertainment to lose.

Read: When do shorts have to cover their position? (AMC)

Can AMC reach $100K or $500K per share?

There’s been a lot of speculation that due to the possible number of outstanding synthetics could be in the billions, AMC may potentially squeeze past 6-figures.

Personally, I’m open to this concept. Shouldn’t we all be? I just recently found ReviewDork on YouTube. Gabe talks about this possibility and walks us through some math. Check him out.

Is it too late to get in on AMC stock?

If you’re looking to take on a position in AMC you might want to get on the train before it takes off for good. If you’re looking to get in for the short squeeze play, AMC stock is currently on bargain. This stock is still heavily shorted!

Retail investors are teaming up together to see their visions come to fruition. And they’re not waiting on anyone.

What we do know is that the current share price is still affordable for most people.

Why hasn’t AMC squeezed yet?

AMC stock consolidation

AMC hasn’t squeezed for two primary reasons.

  1. The volume isn’t all there yet. The volume needs to be quite high. Trey’s Trades referenced 500+ million being an outstanding number.
  2. Shorts are holding – they need to close their positions if retail investors are to squeeze them.

It’s not illegal for shorts to hold long on their positions; however, they lose money every day they hold.

Fortunately for retail investors it’s free to hold.

Read: When do shorts have to cover their positions ? (AMC)

What will AMC’s stock price be when it squeezes?

AMC

AMC’s stock price can really be anywhere. It really depends on when shorts close their positions.

Short could have covered when they drove the price back down to $8. It would have been wise considering the stock continues to correct itself in an upward trend and has now set itself up for the perfect squeeze.

If shorts continue to play the long game, AMC’s stock price could potentially be higher when it squeezes. In this case, shorts would have lost a lot more money due to accumulating and rising short borrow fees.

Can AMC squeeze after hours?

A question some people might have is whether or not AMC could potentially squeeze after hours.

AMC can certainly squeeze after hours when the market closes. In fact, it wouldn’t be surprising if it did this. AMC’s stock price would continue to surge as retail investors watch immobile.

For one, shorts could decide to cover before the market closes in attempts to throw one final blow to retail investors. This would give the price action to potentially come back down after hours.

Should you worry?

I wouldn’t worry if this was the case. Although squeezes can last anywhere between minutes to hours, they can certainly last days too.

Volkswagen’s squeeze back in 2008 lasted approximately four days. GameStop’s lasted even longer.

Here’s how you can prepare for a short squeeze

A squeeze can technically happen at any time. The short interest doesn’t necessarily have to be high. Shorts could choose to close their positions with little loss opposed to massive losses.

  1. If you’re in a position to keep an open tab on your browser that is updated AMC’s stock price in real-time then I would suggest doing so.
  2. Own an Apple watch? Keep the stock in your background. This is a very convenient way to keeping tabs on the stocks performance.
  3. Join discords where you can be notified when something massive is going on.

When a squeeze happens you’ll know. Just don’t get a short squeeze confused with gamma squeezes.

Gamma squeezes are usually small spikes resulting from extremely bullish actions coming together at once. Otherwise known as relatively healthy gains of built momentum.

A short squeeze will be something more sudden and disruptive. You’ll know when this goes to the moon. AMC’s stock price will break through the charts and leave earths atmosphere.

What should I do when AMC squeezes?

AMC stock price short squeeze

This is completely up to you! Congrats for holding and seeing this through.

You can choose to sell your entire position and collect your profits or you can continue to hold and find out whether the squeeze continues to go up.

Unfortunately, we can’t time the spike. For all we know, the initial squeeze might not be the potential price action. This makes it difficult to calculate the best time to sell.

You could sell a portion of position and wait to see how AMC’s stock price moves.

We created a thread for you to share how you will use the money when AMC squeezes as a means to spread positivity and share with the community. You can check it out here.

What is a circuit breaker halt?

A circuit breaker is usually a rule in the market that essentially pauses or halts trading for 5-15 minutes.

A common circuit breaker type is the Volatility Pause. This helps smooth volatility in the market and prevent flash crashes. It forces traders to take a 5 minute timeout, research the stock, news, etc. Often times if a stock is spiking up and is halted, it will reopen higher.

Inversely, a stock selling off will often open lower.

Why this is worth mentioning

This is worth mentioning because it’s important for our readers and the ape community to be aware of possible halts as AMC’s stock price becomes more volatile. If you happen to experience a circuit breaker halt do not panic. It’s a policy to make sure trading goes as smooth as possible.

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.

Note: Before roaring kitty blew up as the analyst for GME, only a handful of people followed him through and reaped the rewards.

We’re seeing another analyst obtain a similar following with AMC. Take that for what it is.

Where can I invest in AMC? What’s a good platform?

Vanguard

If you have not opened a brokerage account to begin investing, read this post on how to invest in the stock market (step by step) to get started. In this post you will see a number of linked platforms that you can check out!

AMC stock price: quick overview

AMC sat around $5 for quite some time before moving back up to the $14 range. We’re currently seeing AMC trade at $40.74. AMC’s stock price has been trending upwards with consolidation and has been less volatile. This is very good price movement. AMC stock has never had a healthier setup.

Are you holding AMC stock?

Let me know what a short squeeze would mean for you in the comments section below.

A quick message from Frank Nez

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.

So, I published this video to tell you just that. Thank you.

And lastly…

Join the AMC with Franknez.com Discord here or join Frank’s Forum!

If you found this post to be helpful or of value share it with an ape. The community needs positivity and truthful DD.

If you have not subscribed to the blog be sure to do so as we’re going to continue to update our readers on this historic event taking place.

Trending: How Soon Will We See An AMC Short Squeeze?

AMC with Franknez.com Discord

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Read: Hedge Funds Face Short Sale Disclosure From The SEC


How Soon Will We See An AMC Short Squeeze?

How soon will we see an AMC short squeeze?
Franknez.com
AMC Short Squeeze – #AMCtothemoon #AMC

Are you a new retail investor? Bookmark these investing tips from Frank Nez

What a storm. What a battle right? AMC keeps on keeping on, and although AMC has been on discount recently, the stock has finally broken its $30 level of resistance.

Retail investors are very excited about the data that’s been collected for months now. Will we see an AMC short squeeze while we continue to ride this bull? And if so, how soon?

franknez.com

Welcome to Franknez.com – the blog where you can digest posts on personal finance, side hustle ideas, entrepreneurship, and trending investing topics.

Lets get started!

How soon will we see an AMC short squeeze? Retail investors all want to know. Is it this week? Will it be next week? Or, are we looking at a longer game here? Here’s what we know.

Key Highlights

  • AMC closed at $40.74 on October 15th. The stock has surged since early this year due to volume despite short sellers attacking it. AMC Entertainment is set up for a short squeeze.
  • The perfect time to buy AMC stock is when the market is red, or what we refer to as on ‘discount’. AMC is looking bullish though, red days might just be over.
  • AMC entertainment continues to be the most heavily shorted stock in the market.
  • AMC’s short borrow fee continues to increase.

Some of you reading this article might have been holding since February now. Kuddos to you for holding the line. If you’re a new retail investor getting in on AMC be sure to thank the seasoned apes when you get a chance.

Below is a series of documented facts and positive news that all influence AMC’s potential towards a short squeeze. One thing is certain, it’s inevitable.

AMC stock news and highlights

FOX Business reported AMC to have a strong chance of a short squeeze. Coming from a big news platform it certainly brings the stock sentiment up for most retail investors.

This is the type of news retail investors need to keep an eye out for.

AMC Short Squeeze News Fox Business
Strong chance of a short squeeze – Fox Business AMC

AMC is still currently the most shorted stock in the market.

Unfortunately, MarketWatch has completely obliterated AMC from their list. Being a hedge fund affiliate, retail investors suspect foul play.

President and CEO of AMC Entertainment Adam Aron, announced AMC will reopen all 13 AMC theaters in New York City as of March 5th. As of today, all AMC movie theaters are now open across the United States with many selling out.

Check out what Adam Aron had to say (via. Investor Relations AMC)

“Since reopening our first theatres with AMC Safe & Clean in August, AMC has welcomed back nearly 10 million moviegoers nationwide without a single reported case of COVID-19 transmission among moviegoers at our theatres. We look forward to welcoming back our New York City guests to the big seats, big sounds and big screens that are only possible at a movie theatre.”

Adam aron, President and CEO of AMC Entertainment

For those who thought AMC was a dead company, think again. The company is now generating big revenue since it’s reopening.

Melvin Capital suffered 49% loss 1st quarter

Melvin Capital AMC Stock
Melvin Capital Hedge Fund – AMC

This is huge! Melvin Capital is a hedge fund that has been shorting both AMC and GME stock.

Melvin Capital suffered a 49% loss it’s 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
  • 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
  4. Keep a close eye on the stock to not miss the squeeze

I’m going to discuss a little more on the short borrow fee that continues to increase for these hedge funds shorting the stock. This is going to be a massive component to a short squeeze.

Positive news for AMC Entertainment

Adam Aron gives positive news on AMC Entertainment
  • AMC Entertainment has raised more than 2.2 billion dollars in cash
  • 90% of AMC theaters in the United States are now open with New York and Los Angeles finally reopening
  • Vaccinations and policies are making movie theaters safe
  • New movie titles are guaranteed to increase sales revenues
  • CEO and President Adam Aron expresses an optimistic future for AMC Entertainment
  • AMC Entertainment has implemented a Safe & Clean program under the advisement from Harvard University’s prestigious School of Public health as well as well as the No. 1 U.S. cleaning brand, The Clorox Company. This means movie goers can now return at ease knowing a proper sanitation program has been put in place.

Hedge fund affiliate partners such as MarketWatch, The Fool, and other finance website have been trying to redirect the public from investing in this stock. That’s primarily because hedge funds are losing millions by the day.

A short squeeze could even put them out of business. This is why it’s important for me to spread the positive news surrounding AMC. I don’t believe in the manipulation of the media and I will continue to update these articles as more great news unfolds.

There will not be a 500 million AMC share dilution!

In recent news, Adam Aron has announced that AMC Entertainment no longer plans on proceeding with the plans of adding 500 million more AMC shares to the arsenal in a tweet on Tuesday, April 27th.

Adam Aron AMC Entertainment CEO Twitter
Adam Aron – President & CEO of AMC Entertainment

You can read AMC Entertainment’s official announcement on their press release page here.

Is AMC Shorted?

AMC’s current short interest is close to 18%. As of 10/15, we’re seeing 450,000 short shares have been made available to borrow, via Stonk-O-Tracker. AMC continues to be heavily shorted despite what mainstream media claims.

AMC’s short shares available will be updated here so be sure to bookmark this page.

While shorts might have the capability to short AMC stock, this is only temporary. They will run out of borrowed shares and eventually have to cover. There are finally investigations going around regarding naked shorting.

Yeah.. I sense a grand mother of all short squeezes. #GMOASS

What does this mean for the AMC shareholder?

Expect to see gains after shorts have run out of borrowed shares to use. Hedge funds and short sellers alike have dug a deeper hole for themselves. What this means for the AMC shareholder is a squeeze bigger than anything the market has ever seen before. I am personally doubling down.

Not only is bankruptcy off the table (via. Los Angeles Times), but AMC movie theaters are now about to begin reopening in larger parts of the United States. Which of course now introduces revenue.

AMC Q1 earnings for 2021

AMC announced their Q1 earnings for 2021 on Thursday, May 6th. Things are looking particularly bullish and optimistic to say the very least.

For the retail investor this means the upper hand is yours. AMC Entertainment has raised over $2 billion dollars to hold them off until the year 2022. And we still have to go through Q2, Q3, and Q4!

Unfortunately for hedge funds shorting the stock, it’s over. If you missed the conference call you can view it here for your viewing pleasure.

AMC Q1 2021 highlights

  • The AMC community is recognized
  • Q1 earnings are higher than last years 4th quarter
  • Expectations for Q2 – Q4 are much higher
  • Food and beverage sales are up by 45%
  • Sales revenue will continue to rise as new titles are being released

AMC Q2 earnings for 2021

Quarter 2 earnings for AMC were absolutely amazing! I published an entire article on this information you can read all about here.

AMC Q2 2021 highlights

  • Record breaking $2 billion in liquidity
  • Increased revenue / tickets & concession
  • AMC to accept Bitcoin by the end of the year
  • GameStop partnership
  • Enhancing the cinema experience with sports and music performance

When will an AMC short squeeze happen?

When will an AMC short squeeze happen?

It’s really hard to tell. Even experts can’t identify an exact date and time. However, the possibility of an AMC short squeeze is certainly possible given that it is still the most shorted stock in the market and the stocks volume continues to rise. We also now have more data then ever before that indicate a massive short squeeze is almost certain to happen. Especially now that the SEC has announced some crackdown on shorting.

With Melvin Capital and other hedge funds losing money, it’s only a matter of time before the short borrow fee continues to skyrocket and shorts have to close their positions.

It’s tendie time!

Analyst AMC predictions

With that being said, Trey’s Trades predicts a short squeeze is now certainly guaranteed. Trey has been a leader in the AMC community and deserves a spot on this page.

More data points towards the stock reaching $1000+ per share.

See what stock analyst Trey has to say.

AMC short squeeze

The real questions is how can retail investors make this AMC short squeeze happen?

We know that short-sellers eventually have to cover their spots. This means that they will eventually have to buy AMC stock at the current share price.

  1. If retail investors continue to drive the share price up by buying the dip and holding their positions, short-sellers will have no other option than to buy from the retail investor at a higher share price.

NOTE: Retail investors do have to sell a bit as the price goes up in order to keep that momentum. Look at it as giving rats crumbs. Not only will they want more but they’ll need more.

2. Retail investors will also need to buy the climbs in order to show a demand for the stock. This doesn’t have to be huge buys, rather incremental to validate the current share price.

This play essentially creates a supply and demand scenario between retail investors and short-sellers. The results? A short squeeze.

Hedge funds are doing everything they can to prevent a short squeeze

How are they doing this?

  • By promoting false information online (we’re certain you’ve seen it)
  • Through strategies such as short-ladder attacks in the market
  • And, by restricting certain brokerage accounts from allowing its retail investors to purchase or buy shorted stocks (Robing hood)
AMC Gorilla

This is what retail investors can do to fight corruption

  • Share content that presents facts (blog posts, analysis videos, etc.)
  • Continue to educate yourself and make investment decisions based on your personal analysis
  • Protect the community and one another
  • Follow your instincts

Read: How Hedge Funds Manipulate The Stock Market

What will a short squeeze look like?

We’ll begin to see a trend similar to that of GME (Gamestop). AMC will enter a bullish territory before hitting an ‘abnormal’ peak in which AMC would have ‘squoze’.

What will an AMC short squeeze look like?

According to Trey’s Trades we’ve already hit the bottom. AMC continues to be heavily shorted through dark pools. This price level can be seen as a buying opportunity for retail investors looking to squeeze shorts out of their positions. We’ve seen resistant levels around $14-$16 recently which is a great push from $5. We’re now sitting at 40.74 per share.

Recent performance and news is leaving retail investors with positive speculations. An AMC short squeeze will certainly make headlines. Expect to see various gains prior to any sort of major peak as well as volatility.

Retail investors will have to hold their positions through upcoming gains if they want to see AMC short squeeze.

But most importantly, they’ll have to refrain from selling at the first sight of gains if they are to see bigger and more massive gains.

Gamma squeeze vs Short squeeze

Don’t confuse gains and momentum with a short squeeze.

Here’s the difference between a gamma squeeze and a short squeeze:

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

A 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.

AMC Short Squeeze Stock Prediction

New retail investors are wondering whether $1k, $10k, or even $100k per share is even possible.

Gabe from ReviewDork does some math that’s going to leave you with an open mind.

AMC stock price predictions range from $1,000 to $100k+.

Will AMC reach peaks like GME?

AMC has been fortunate enough to receive more publicity and hype than GME did, at least recently. The volume will speak for itself and retail investors will just have to wait to find out.

We’ve seen that abnormal gains are naturally part of a short squeeze. Volkswagen rose up to nearly $1,000 when it squeezed back in 2008 due to a similar strategy produced by car manufacturer Porsche.

Analysts are predicting AMC can even go above the $1K mark if retail investors and institutions alike continue to buy and hold their positions. Wouldn’t this be something. If you’re holding 1,000 shares and AMC spikes to $1K per share, you my friend have made 1 million dollars!

Is it too late to get in on AMC stock?

Absolutely not, at least not yet. AMC Entertainment is still heavily shorted. You will have to decide whether its current share price is worth it if trades at $100, $500, or even $1,000+. AMC Entertainment stock has not even started squeezing yet.

Redditors have touched base on this topic and advise anything below $100 is a buy. I’ve been personally buying the stock when it dips. This allows me to pick up more shares at a discount.

If you’re a beginner, I recommend buying 5-10 shares of AMC stock. This amount will give you a feel of the market. Not only is it affordable, but if the market is red you won’t see much loss on paper.

Where was AMC trading at before the pandemic?

AMC was actually trading between $30-$35 back in the booming party economy of 16′! AMC stock started to decline as their debt increased and hedge funds began to heavily short it.

Short sellers could have covered back in August when AMC’s stock price was trading at $30 levels. However, it doesn’t AMC is going back down to these levels. We broke past $50 but are hovering close to $40 again due to massive shorting in the market.

Read: AMC stock is primed to bounce back up: MOASS

What if a short squeeze doesn’t happen?

If an AMC short squeeze doesn’t occur, AMC stock price will still go up allowing shareholders to make at least some sort of profit.

With AMC theaters now open, it’s inevitable that the company will begin to see bigger sales revenue every time a new title is released. I update this post when new titles make the headlines regarding earnings.

Keep in mind that AMC’s share price during the booming party economy of 16′ was roughly around $30 per share. If a short squeeze doesn’t happen, fundamentals will continue to bring the stock up as more investors are buying the stock.

However, a short squeeze not happening is very unlikely as AMC is currently the most shorted stock in the market and most held stock, beating both Apple (AAPL) and Tesla (TSLA), via. NASDAQ. Majority of the float is also held by retail investors and short sellers are going to be forced to close their positions very soon, more on that coming up.

As Mark Cuban bluntly put it, keep holding.

Why hasn’t AMC squeezed yet?

AMC hasn’t squeezed yet primarily to two main reasons.

  1. We need more volume to drive the stock price action up
  2. Shorts need to close their positions

Volume really just comes to more and more retail investors as well as institutions getting in on AMC stock.

Regarding shorts covering, retail investors need to squeeze them out of their positions by holding their positions and helping increase AMC’s short borrow fee. You can keep tabs on AMC’s short borrow fee as it changes every day via. Ortex, or Fintel.

AMC short borrow fee

As of 10/15 AMC’s short borrow fee rate is 0.70%.

Read: When do shorts have to cover their position? (AMC)

Aside from this, Wanda Group had caused a little bit of disruption for retail investors by profiting on the first sight of gains.

This turmoil was only short-term but is a reason why we’ve seen some selloff in the market a few weeks ago.

However, Adam Aron has recently brought awareness in an interview with Trey’s Trades that this selloff from Wanda is simply policy from China. Retail investors should not be concerned.

Is AMC Ever Going To Squeeze?

All the numbers point towards the right direction for a massive short squeeze. Shorts and hedge funds continue to lose money every day. The interest is growing at an alarming rate and AMC’s current utilization is around 88%.

The lives of these retail investors are about to completely change. Say goodbye to your old world.

Related: AMC margin call: the squeeze is inevitable

And lastly…

A quick message from Frank Nez

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. So, I published this video to tell you just that. Thank you.

Franknez.com

If you haven’t subscribed to our newsletter be sure to do so to stay informed when a new blog post is published. Blog posts will range from personal finance to business and even investing posts like this one.

Also, don’t forget to connect with me on Twitter, Instagram, and Facebook.

AMC with Franknez.com Discord

Join the AMC with Franknez.com Discord here or join Frank’s Forum!

What will an AMC short squeeze mean for you?

Let us know in the comments section below what an AMC short squeeze would mean for you! If you’re an AMC shareholder let us know in the comment section below.

#AMCtothemoon #Diamondhands #AMC1000 #SaveAMC

Read: AMC is trending in the right direction


The SEC Is Looking Into Citadel Securities’ Business Model

The SEC is looking into Citadel Securities Business Model
SEC has launched inquiry into Citadel that targets part of its business model

Ladies and gentlemen, we’re seeing more of these headlines on mainstream media. The SEC and other powerful leaders are looking into Citadel Securities, calling their business model “politically motivated“.

The crackdown is real. I read what both Gary Gensler’s colleagues and people of opposite views have had to say about the SEC’s chairman.

And they both said the same thing… He’s unpredictable, and someone not to underestimate.

I guess retail investors will have to find out for ourselves won’t we?

franknez.com

Welcome to Franknez.com – massive bullish news coming to you today. Apes, we’re moving in the right direction. Will this crackdown be the catalyst to a short squeeze?

Let’s get started!

Fox Business Live Citadel Video

GOP insiders are saying Biden, the SEC, and Warren have all launched a political vendetta against Citadel Securities.

Dems have been working towards implementing serious consequences for Citadel Securities after the Archegos incident.

It comes as no surprise that the party is pressing on.

It’s also important that we see beyond the political parties. Retail investors are fighting for a fair market.

Our community is so diverse that it in the end it doesn’t matter whether the party fighting against market manipulation is republican or democratic.

We need regulators and people with power to impose serious consequences on the market maker.

After several months of voicing your thoughts about the injustice in the markets, Citadel Securities is finally getting the smackdown.

“There’s A Movement Afoot, To Take Down His Empire”

Charlie Gasparino has always been quick to defend hedge funds betting against ‘meme stocks’.

You might know Gasparino for trolling the AMC community on Twitter.

He argues that PFOF (payment for order flow) works and traders get to trade at no commission for it but fails to understand why retail investors want to remove this practice.

Retail investors don’t want Citadel Securities – who’s a hedge fund, market maker, and dark pool, to process their orders.

Watch the short video below.

Fox Business Live Citadel Video

Retail investors want to eliminate the market manipulation that’s been occurring due to the overleveraged power Citadel Securities has over the retail investor.

In short retail investors want to:

  • Eliminating dark pool trading
  • Get rid of PFOF
  • Have regulators look into insider trading
  • Expose and hold those accountable for the restrictions of buying meme stocks earlier this year
  • Liquidate overleveraged hedge funds

Eliminating these threats from the market would allow both AMC and GameStop to naturally skyrocket based on the laws of supply and demand.

The end game? A massive short squeeze.

Here’s How Citadel Securities Has Abused Their Power In The Market

Citadel Securities is one of the top financial institutions shorting both AMC and GameStop.

And while shorting a stock may not be illegal, trading patterns from several technical analysts shows naked shorting has made itself present again after being deemed illegal due to the Great Recession of 2008.

Intraday trading does not align with the actual sentiment of retail investors.

Unprecedented short-ladder attacks from overleveraged borrowed shares have been a way to cheat in the game too.

Retail investors have every right to buy as much stock as they want.

Suppressing the stock’s price action through leverage from banks and other financial institutions to profit on the downside is the biggest manipulation to have been uncovered in the markets.

Dark Pool Trading Must Be Eliminated

AMC dark pool trading has been as high as 60% in the past few months and has traded higher other days.

This advantage allows hedge funds shorting the stock to drive the price down despite the massive buying pressure from retail investors.

These dark pools can mask the buying pressure from retail, allowing hedge funds to manipulate how the trade is recognized through its share price.

Gasparino fails to recognize that investors are fighting against this type of manipulation in the markets.

He fails to recognize that Citadel is able to process orders through their dark pool without having the incredible retail buying pressure move against them.

Betting against a fair market, and especially against these heavily shorted meme stocks is a sign of weakness.

Rather than covering their short positions, hedge funds, market makers, and the banks have all exposed themselves.

A few months ago I said that this wouldn’t get out of hand unless hedge funds allowed it to by not closing their short positions in AMC and GameStop.

I said it would only escalate and here we are! Everyone is looking at Citadel Securities’ Ken Griffin.

“Washington Is Aiming At Ken Griffin”

During the congressional hearing earlier this year, Citadel Securities CEO Ken Griffin was under intense scrutiny.

According to Gasparino, GOP sources are stating there’s a lot of insider talk about Biden, Elizabeth Warren, and Gary Gensler going after Ken Griffin.

Citadel Securities processes almost half of all retail orders in the market.

The government is finally waking up to the excessive amount of power this market maker has.

If you’ve been reading FrankNez for quite some time now then you know how much I’ve preached the significance and power of your voice to make change happen.

Everything we’ve endured as a community is beginning to payoff.

Hedge Funds Face Short Sale Disclosure From The SEC

SEC looking into Citadel

The SEC poses a threat to hedge funds through a rule that would enable them to receive short sale disclosure periodically.

The rule may go into effect as early as November. You can read more about it here.

Needless to say, there’s massive change happening in the markets whether we realize it or not.

This change has been happening over a period of 10 months now.

Market regulation that allows retail investors to participate in a fair market could very well be the catalyst for a short squeeze.

By eliminating suppressing forces in the market, we give AMC and GME stock an open runway to move up in a supply and demand play.

Massive buying pressure from retail could force short sellers to close their positions as the price begins to experience larger upswings again.

Apes will have to continue to fight for a fair market and hold the stock if we are to squeeze hedge funds from their positions.

What Other Regulation Do You Want To See In The Markets?

Leave a comment below. What are your thoughts on what’s occurring with Citadel Securities, and what other problems do you think regulators should address?

Have your thoughts changed about the competence of the SEC and Gary Gensler?

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Here’s Why An AMC Rebound Is Right Around The Corner

Will AMC Rebound
AMC has massive potential to rebound

AMC Entertainment stock is respecting that $35-$38 level of resistance very well. Retail investors are wondering when AMC will rebound.

Some of you are HODLing gains, some of you losses.

However, something extraordinary has been happening while AMC stock has been slowly creeping down to its current price range.

The short interest has hit an all-time high. And although new shorts might be profiting on paper from AMC’s $70 decline, hedge funds who have been shorting AMC since January face apocalyptical conditions.

I mean, have you seen Kenny recently?

franknez.com AMC rebound

Welcome to Franknez.com – the blog that provides you with unfiltered information about your favorite stocks. Today we’re talking AMC and why I personally think we’re heading towards a rebound.

Let’s get started!

Last time AMC’s short interest was at 20% it jumped past $70 per share back in June. The current short interest is hovering extremely close to 21% now.

If this doesn’t have you excited it should. If history repeats itself, which usually does, this could be big.

Here’s what we can learn from the past.

Patterns Often Times Repeat Themselves

Before we moved past $50 again last month, patterns suggested that breaking specific levels of resistance would lead us there.

Breaking $32, $38, $40, etc, proved to be right.

Well now AMC has been doing incredible at respecting the mid to high $30s again like it did last month.

Community, don’t be fooled – this shows strength in the stock. Not just the stock; but in the community as well.

See, no one is getting left behind. We’ve come too far to let off the gas pedal.

The fact that we have been seeing a strong resistant level in the $30s again signals that apes continue to hold. It will be a rare instance if AMC’s share price goes below this price range.

And although we might have seen it drop a little below (maybe once or twice) last month, AMC has proven to be extremely uncomfortable below the $30 range.

This leads me to believe that we indeed have a new bottom. And compared to where it was at $5, I’d say it’s a pretty great bottom.

What Does AMC’s Short Interest Data Tell Us?

The short interest is the number or percentage of a stocks float that has yet to be covered by shorts.

This is what I like to refer as the rocket fuel. 10% short interest is considered to be high where 20% is considered to be ‘extremely high‘.

For perspective, Apple stock has less than 1% short interest.

Here’s Why This Matters

AMC topped almost 9% back in January during its first runup to $20. Then, it peaked at 20% in June when the stock price surged past $70+.

AMC’s short interest fell as low (or I should still say as high) as 14.76% in July before beginning to move up again in August and September.

October could be the month we get another massive rebound. AMC actually hit 21% short interest a few days ago and is extremely close to reaching this percentage again.

The increase in short interest percentage tells us that more short sellers have gotten in on the stock since the runup back in June.

And as long as retail investors continue to buy and hold the stock, the community can set new bottoms and run the price up again, squeezing new short sellers from their current positions.

This extremely high short interest can ignite an AMC rebound specifically because the ‘market‘ is there. The short sellers are there and the demand for AMC stock continues to increase.

So what happened is that instead of all short sellers closing their positions back in June, the few that did were replaced by new ones. This short squeeze play is nowhere close to being over and I’m excited!

Here’s What The Trading Volume Tells Us

AMC’s trading volume reached 1.2B the day it rose to $20 per share. It’s previous trading day volume was around 456M.

In June, when AMC’s share price hit $70+ dollars the volume peaked at 766M. AMC opened at $37.52 that same day on Wednesday June 2nd. Incredible right?

The trading volume before the runup ranged between 400M-700M its previous trading days.

Ladies and gentlemen, volume matters. An AMC rebound is just around the corner; however, retail would need to play more offense than defense.

AMC has the perfect setup for another massive upswing. And if you sold, sorry to break it to you but this ain’t done running up.

Theoretically speaking, retail would have to refrain from selling in order to hold new levels of resistance to further runup AMC’s share price.

Upcoming AMC Price Prediction (October-November)

AMC has peaked at $20, and it’s peaked at $70; that’s 3.5X from it’s first run. If this pattern continues, we could very well see AMC peak closer to $250 per share with some serious volume from retail.

If you’re part of the Patreon, you’ve seen me adding AMC throughout the months and know I’m making another purchase very soon. The stock is currently at a bargain for momentum traders and my conviction has only gotten stronger.

This is why buying and holding has been all the DD the community every truly needed. The volume from retail is the sleeping giant. It’s what hedge funds didn’t want you to know.

As always, thank you for reading the article. Be sure to share it with another ape.

How Long Have You Been HODLing AMC For?

Leave a comment below. How long have you been holding AMC stock for? Were you in the battle of $8.01? Or are you a new ape? Share your story with the community below πŸ‘Š.

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Share with someone: How To Invest In The Stock Market


Here’s Why People Are Buying AMC Stock: Investors Guide

Here's why people are buying AMC stock
Why are people buying AMC stock?

By now you’ve probably heard all the hype surrounding AMC Entertainment. If you’ve been following me for a while then you know I’ve been covering AMC since the beginning of February.

It is absolutely amazing to see more and more people begin to invest in the stock market. You can bookmark this step by step guide on how to invest in the stock market in case you haven’t opened your brokerage account yet.

My goal is to help guide you in your journey to becoming financially free.

franknez.com why are people buying amc

Welcome to Franknez.com – the blog where you can digest content on personal finance, side hustle ideas, entrepreneurship, and trending investing topics.

Lets get started!

Why are people investing in AMC stock?

Why are people buy AMC

People have the chance of a lifetime.

AMC was forced to close its doors to the world when the pandemic hit. AMC Entertainment suffered huge losses and hedge funds began doubling up on their short positions in attempts to bankrupt the company. Their goal was to get rid of the most respected movie theater franchise of all time, profit, and wash their hands clean.

Retail investors gathered on subreddit communities and decided to buy the stock and drive the price up; like they did with GameStop. This teamwork caused a gamma squeeze driving the price action from $2 up to $20. This allowed AMC Entertainment to raise enough capital for bankruptcy to no longer be on the table.

Since then, AMC Entertainment has been able to raise more than $2 billion dollars from life long partners. These partners have supported AMC since the inception of the company 100 years ago.

Retail investors saved AMC and are now looking to squeeze short sellers out of their positions.

AMC is currently the heaviest shorted stock in the market

Analysts discovered that AMC has a massive short squeeze potential. A short squeeze is a massive move up in price action. Short squeezes are violent and may produce 100%, 1,000%, and 10,000%+ gains.

What we discovered is that hedge funds shorting AMC Entertainment were overleveraging their positions. Meaning they were borrowing shares from brokers at an interest to drive the price down.

Short selling is the process of borrowing a share, selling it much lower, and profiting the difference when they pay back their lender. Short sellers usually bet on the price of a stock to tumble.

Here’s an example of short selling

AMC’s stock price was around $30 back in the booming party economy of 2016. Say short sellers borrowed 10 shares of AMC for $300 betting it would drop. Shorts would then sell the stock at the market value of $300 (you and I purchase it at $30) and wait for it to drop in due time. If the stock price fell to $25 per share then the short seller could buy back those 10 shares, profit the difference ($50) and give back the 10 shares they borrowed back to the lender.

AMC stock is going up, what happens then?

AMC stock is going up

Here is what’s attracted millions of retail investors and huge institutions such as Wells Fargo, Vanguard, Morgan Stanley and many more to AMC Entertainment.

AMC stock is no longer on the brink of bankruptcy and it is having an extremely healthy bullish run. The reason we’ve seen consolidation and red days is due to the massive amount of short ladder attacks conducted from short sellers and hedge funds.

A short ladder attack is a method used by short sellers where they transact synthetic shares amongst one another to drive the price of a stock down. This is only one of many ways we’ve seen foul play in the stock market.

Hedge funds shorting AMC are losing millions of dollars every day they don’t close their positions

Now here’s where it gets interesting. What happens to short sellers when a stock they’re shorting is going up instead of down?

The fee to borrow the share from their lender goes up and they’re pressured with two options.

  1. Pay the short borrow fee and continue to hold your short position in hopes the stock price will go back down, or
  2. Close your position, take your profit or loss, and possibly go long instead

Now, hedge funds such as Citadel and Melvin Capital have been quite stubborn. They’ve continued to overleverage their short position in AMC Entertainment to drive the price action down.

However, the AMC community isn’t leaving. It’s personal now and they’re willing to buy and hold the stock until shorts are squeezed out of their positions. Analysts have figured out that retail investors can continue to drive the price action up with enough volume in the stock.

Recently, there’s been a surge of new retail investors buying AMC stock. Short sellers keep tackling the upticks every time AMC soars. However, retail investors continue to buy the dips causing consolidation. AMC stock is currently trading around $40.78. The stock has been on discount recently but it continues to go up.

The data shows a MOASS

AMC Moass

MOASS, mother of all short squeezes.

Brokers have never seen this much shorting occur in a single stock in the existence of the stock market. The data predicts a short squeeze unprecedented like anything we’ve ever seen historically.

This is primarily due to the amount of synthetic shares and overleveraged positions that must be covered during a margin call. A margin call could force shorts out of their position resulting in a short squeeze.

How high can AMC’s stock price go up to? There’s no ceiling. However, more data will be released as the stock begins to squeeze.

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

Markets are being liquidated

Massive institutions have begun to liquidate assets in both the stock market and crypto market. Retail investors cannot cause the extreme price drop we’re seeing in both markets.

I speculate institutions are building capital to prepare for margin calls or raised margin requirements.

Proposal ICC-007 APPROVED

This proposal provides brokers with the flexibility to raise margin requirements on investors holding risky investments, such as a short position in AMC.

Brokers need collateral. If short sellers cannot meet the margin requirement then they will be forced to liquidate their entire positions, resulting in several gamma squeezes and inevitably a short squeeze.

If margin requirements are raised then shorts will have to either deleverage their positions (gamma squeezes), or fund their accounts with capital. Is this massive selloff in both the stock market and crypto market related to potential AMC margin calls and regulations? I think so.

Read: How soon will hedge funds get margin called? (AMC)

An abundant opportunity

amc money

The reason why retail investors are buying AMC stock is for the opportunity of a lifetime. Not only is the public starting to invest but big institutions on retail investors’ side known as ‘whales’ are bulking up on the stock.

“Beware of the stock” (paid) articles

Platforms such as the Fool, MarketWatch and InvestorPlace are hedge fund affiliates. Retail investors encourage newcomers to do their own due diligence oppose to reading FUD articles (fear, uncertainty, and doubt).

Is it too late to buy AMC stock?

That depends. Look at AMC’s current share price. If it squeezes to $100, $1,000, or even $10,000+ would the trade have been worth it if you bought today at it’s current share price? You decide.

More info on AMC stock

Here’s where you can find more helpful information regarding AMC stocks’ data & predictions, technical analysis.

franknez.com amc

On the very top right part of my blog you can see my top 6 articles at the moment are on various AMC posts. These posts go further into detail with DD (due diligence) surrounding AMC stock and the short squeeze data.

Related: Charles Schwab raises margin requirements for AMC and GME stock

Best YouTubers covering AMC Entertainment stock

Trey’s Trades

Credit will be given where it’s due. Trey’s Trades is the man, the leader of this AMC movement. Nothing but tremendous respect for this brother. Take the time to watch his videos, I promise you you will not regret it.

Roensch Capital

For less entertaining but otherwise very valuable information on AMC stock, watch Roensch Capital. RC provides commentary on chart analysis.

ReviewDork

I was quick to connect with Gabe from ReviewDork. His videos are honest, genuine, and entertaining to watch. This channel is currently one of my favorites covering AMC and I know you’ll enjoy Gabe’s videos as well.


Questions regarding AMC stock?

Join my Discord group. Members here share new videos, posts, and conversations relating to AMC. Members here get the links to new articles first πŸ˜‰ If you join the newsletter you will receive weekly emails from me when I post a new article. You can always connect with me on social platforms to see them as well.

AMC with franknez.com discord

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Bank of America Has Been Illegally Shorting AMC Stock

Bank of America has been shorting AMC Stock

If you bank with Bank of America chances are they’ve been using your hard earned money to short AMC stock. Financial institutions have been shorting AMC stock all year, resulting in billions of dollars in losses.

Bank of America also has a 75% probability of going bankrupt according to sources. The shorting of meme stocks could explain why the bank is currently facing liquidity issues.

Franknez.com Bank of America bankruptcy

Welcome to Franknez.com – so much information is coming to fruition. I’m piecing bits of information that have been revealed in the last few weeks and days.

Let’s get started!

Information from one of my articles has been circulating the entire community recently. In this article, I go over how AMC continues to be the most shorted stock in the market. This is going to be a very important piece of info.

Bank of America Is Shorting AMC Stock

Bank of America is on the list of the top 10 institutions shorting AMC stock. BofA is known for being an untrustworthy bank for the people so it comes as no surprise.

They’ve been cheating the system by demanding printed money from the feds to lend to short sellers. The insane part of this scheme is that everyone is a part of it.

I’ll touch topic on that below.

Bank of America shorting AMC Stock
SOURCE

A lot of the puzzle pieces seem to be connecting now. Boston and Dallas Fed presidents Kaplan and Rosengren were fired due to investing in securities while playing a major role in creating monetary policy.

Repos have been at record high this year. The feds have been pumping so much money into the financial systems for banks and hedge funds to maintain margin requirements from.

Hedge funds have been overleveraging their positions due to betting against retail investors who aren’t giving up the fight for a fair market, and a short squeeze play in their favorite ‘meme stocks’.

Now, 34 of the largest banks are being required to hold $1 trillion in capital, enough to be able to loan mortgages and business loans during an economic downturn such as a recession.

Will banks margin call hedge funds to meet the new capital requirements as of October 1st? Or will they default?

Hedge Funds Just Got Smaller

We’re beginning to see financial institutions throw other institutions under the bus. Citadel began pointing fingers towards Robinhood during a rant on Twitter.

I think very soon we’re going to see banks do the same towards hedge funds. Will hedge funds be able to pay back banks? Someone has to pay back the overleveraged debt they owe.

What started from a Robinhood and Citadel scandal just climbed the hierarchy and is now involving both the banks and feds.

This could be the biggest financial scandal in history.

Is America Headed Towards Financial Collapse?

Janet Yellen Hedge Funds

Janet Yellen just recently said, “there are issues relating to hedge funds and the possibility of leverage, they can trigger financial runs.” So, we know that any chance of financial ruin in the markets is tied to overleveraged hedge funds and financial institutions.

Hedge funds have been borrowing money from both the banks and the feds. The feds weren’t stopping overleveraged institutions from borrowing money, but rather contributing to their needs and gaining from them, as seen with Kaplan and Rosengren.

It seems leaders are washing their hands before these scandals continue to escalate.

A substantial portion of Citadel’s assets are held by Bank of America’s clearing house “BAML“. Powerful leaders are fleeing the crime scene. Who are the first to flee a sinking ship? Leave a comment below if you know the answer to this one.

Will Bank of America Go Bankrupt?

Bank of America has a ‘more than 75%’ probability score for bankruptcy, via MacroAxis. The fact is there is no path that can save overleveraged institutions or short sellers betting against retail investors right now. The future of the short seller is grim.

Bank of America bankruptcy

To make matter worse for the bank, retail investors are pulling their money out from the bank before things get a little more severe. In fact, one of my personal family members just moved 98% of their money from BofA into a brokerage account.

Overleveraged hedge funds and banks will be the cause of the next financial collapse.

Something massive is coming very soon and I know the community can feel it. I speculate paper-hand sellers will soon re-enter the markets as the first wave of short sellers begin to close out their positions.

This momentum will only further complicate the state of emergency these financial institutions are currently in.

What Happens If A Bank Goes Bankrupt?

If a bank goes bankrupt, the FDIC must collect and sell the assets of the bank and settle its debt.

For AMC and GME shareholders, this means that all the shares that were borrowed will finally get bought back. Heavily shorted stocks would skyrocket as overleveraged debt is finally closed out.

The results? MOASS (mother of all short squeezes).

The momentum from billions of shares being bought back could push ‘meme stocks’ to unprecedented numbers.

Whether Bank of America goes bankrupt will depend on whether they file for bankruptcy protection or not.

A short squeeze play is imminent and there’s no doubt financial institutions are preparing for it.

The Stock Market Is Rigged

“The stock market is a rigged game for the wealthy as corporate execs can hide behind trading plans as they buy or sell stock, sometimes based on nonpublic information.” via ZeroHedge.

We’re seeing this happen right before our very own eyes. Fed presidents Kaplan and Rosengren were using their power to mold regulation in theirs and their partners favor.

Bank of America has been a liquidity refuge for Citadel, allowing them to overleverage their positions in heavily shorted stock without repercussions.

We saw that Robinhood executives sold AMC and GME stock right before halting trading back in January of this year. The Citadel scandal has been the talks all over Reddit and Twitter. Citadel and Robinhood had communication about which ticker symbols would be halted.

The stock market is a device that has been created for the wealthy to leverage their wealth to build more wealth. The SEC has proven to have little to no power.

Now, that doesn’t mean retail investors don’t have a chance at the market. Corporate executives simply have a much stronger edge.

Our voice and DD have been very powerful tools in fighting corruption in the markets. We’ve been able to inform the public of what’s been occurring all while setting ourselves up for an immense short squeeze play.

What a journey.

The Greatest Transfer Of Wealth Is Commencing

I believe this scheme revolving shorting meme stocks is finally coming to a close. Empires are crumbling and new ones will rise.

But before new ones rise, retail investors would have made history by beating the financial system at its own game first.

It seems more information is being revealed with each day that passes. I don’t think retail investors have had an upper hand like this before. And unfortunately for short sellers, they’re about to get burned again. This time for good.

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What Will An AMC Short Squeeze Look Like?

what will an AMC short squeeze look like?
AMC Short Squeeze

AMC Entertainment stock is up more than 1600% year-to-date, but it hasn’t squeezed despite what mainstream media is telling you. Momentum and an upwards recovery is why AMC stock is surging again.

So, what will a short squeeze look like?

franknez.com amc short squeeze

Welcome to Franknez.com – today I want to discuss what an AMC short squeeze will look like for those of you who are still new in this trade.

Lets get started!

We finally broke AMC’s level of support in the $30 range and start a new chapter towards breaking $50. The stock just recently tested $48 before getting pushed back down by short sellers shorting the stock.

And although shorts are merely suppressing AMC stock from running its course, they are only slowing down the inevitable.

This minor move up to the $40 range combined with propaganda of a short squeeze is meant to divert new retail investors from getting in on this trade. Hedge funds are desperate as they consequently suffer billions of dollars in losses from the ape community alone.

But don’t let them scare you away from your money. AMC has not squeezed as short sellers have not covered their short positions.

There Are More Than 105 Million Shares On Loan

Ladies and gentlemen, if shorts covered their positions and AMC just went through a short squeeze, the number of shares on loan would have dropped significantly.

But they haven’t changed. Shares on loan are the number of shares that have yet to be returned to the lender by short sellers. If this number is not going down, it means short sellers have not covered their positions yet.

And as we know, you cannot have a short squeeze if short sellers do not cover their positions.

We would have also seen AMC’s short interest ultimately get obliterated to 1%-2%. It’s currently deemed ‘extremely high’ at 20%. Short interest is the percentage of short shares in a stock’s outstanding float.

AMC Entertainment keeps getting shorted no matter what the mainstream financial media platforms relay to the public. If you want real news and data subscribe to the blog. No propaganda here.

A Lid Full of Pressure Is About To Pop Open

Short sellers are about to go down in history for having the biggest losses to ever be recording in finance archives.

Hedge funds continue to gamble a trade they have been losing for 8 months now. That’s 8 months of suppressing a stock’s share price through the unethical practices of naked shorting and dark pool trading.

When the lid pops open here’s what you can expect.

Intraday Gains Will Be Astronomical

The short squeeze ‘claims’ from the mainstream media were that of only 20% gains. As this lid pops open, we can expect gains to run between 100%+ during intraday trading.

This is how you will know the short squeeze has commenced. We would need to keep an eye out on the short interest and shares on loan. This is basically our ‘fuel’.

We will be able to predict how much room for growth is available as these numbers go down. For example, if AMC reaches $1,000 per share but the short interest and shares on loan are still relatively high, then we know that AMC has not peaked yet.

The ape community would need to continue to hold to see numbers beyond that amount.

Differentiating Gamma Squeeze VS Short Squeeze

The 20% gains we experienced could be seen as a gamma squeeze. While this could have been a combination of momentum caused by FOMO, it could have also been micro short sellers closing their positions.

However, these micro positions didn’t even affect the short interest or shares on loan. This goes to show just how massive AMC’s share price will surge once big short sellers begin to close their positions.

It’s when these big players start covering that we’ll begin to experience the beginning of a short squeeze.

How Long Will A Short Squeeze Last?

As we begin to see massive intraday gains, the short interest data should let us know how much more ‘squeeze’ we have left. This means that we won’t know just how many days or weeks this squeeze may last for until we have an understanding of how many shorts have indeed closed their positions.

And although we won’t know exactly 100%, the short interest data can be a great guide to let us know how much juice is available on this trade.

This information will be relayed to the community as this trade continues to unfold. For now, we HODL until it’s payday.

We fortunately have a beautiful thing going. Short sellers on the other hand have had a bad day every day for the past 8 months. Now that SUCKS.

That Other World Is Waiting For You

Franknez.com

That vision you keep seeing for you and your family is patiently waiting on you just as much as you’re waiting for it to come to fruition.

We are in a very unique position here. The data is out there and you have all the information you need to make this thing a reality for you.

Trey said in a recent video that only you are in charge of your financial situation. This play is meant for everyone to make money. And he’s absolutely right. We cannot tie the community down.

But one thing is certain on my part and that’s that I am not selling until shorts have covered their positions. That’s my promise to you.

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


Is AMC A Pump And Dump? [Details]

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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When Do Shorts Have to Cover Their Positions? (AMC)

When do shorts have to cover their position?

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 - when do shorts have to cover their positions AMC

Welcome to Franknez.com β€“ the blog where you can digest content on personal finance, side hustle ideas, entrepreneurship, and trending investing topics.

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 9/24 is: 0.80% 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. I can feel a short squeeze coming.

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 interest continues to rise for them, shorts aren’t going down without a fight.

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 and more shorts resulting an further perpetual gains.

Melvin Capital suffered 49% loss 1st quarter

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 it’s first quarter of 2021, via. Markets Insider. Unfortunately for them, this is only going to get worse.

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 possible 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 at $40.01 as of September 24th.

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.

Related: AMC Margin Call: The Squeeze is Inevitable

What percent does the short borrow fee have to be?

AMC’s short borrow fee is currently at 0.80%, via. Stonk-O-Tracker on 9/24. AMC stock is getting harder and harder to borrow. There seems to be some sort of manipulation here. The interest 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.

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…

A quick message from Frank Nez

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. So, I published this video to tell you just that. Thank you.

You can support the blog on Patreon.


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Massive Disruption: Prepare For The MOASS

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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