Tag: Wall Street

SVB Distributed Bonuses Hours Before Bank Collapsed

Banking News: SVB gave company-wide bonuses hours before it collapsed.
Banking News: SVB gave company-wide bonuses hours before it collapsed.

Silicon Valley Bank employees received their annual bonuses on Friday just hours before the government took control of the company, according to Fox Business.

The Santa Clara, California-based band collapsed last week and is now under the control of federal regulators.

SVB had been the 16th-largest bank in the U.S. prior to the bank run that led to its downfall.

The bank held a reputation as a go-to for a number of Silicon Valley industries and startups.

Y Combinator, an incubator startup that launched Airbnb, DoorDash and DropBox, regularly referred entrepreneurs to them.

SVB’s collapse was so quick that, hours before its closure, some industry analysts were hopeful that the bank was still a good investment.

The bank’s shares had fallen by 60% on Friday morning after a similar drop the day before. 

Anxious depositors rushed to withdraw their money over concern for the bank’s health, causing its collapse, which may serve as “an extinction-level event for startups,” according to Y Combinator CEO Garry Tan.

Entrepreneur and Dallas Mavericks owner Mark Cuban called for federal regulators to buy out the bank earlier on Friday.

“The Fed should IMMEDIATELY buy all the securities/debt the bank owns at near par, which should be enough to cover most deposits,” Cuban wrote as part of a lengthy Twitter chain last week. “Any losses paid for in equity and new debt from the new bank or whoever buys it. The Fed knew this was a risk. They should own it.” 

SVB traditionally processes annual bonuses on the second Friday of March, unnamed sources associated with the bank told CNBC.

The bonuses were reportedly for work completed in 2022.

Banking News: Wall Street Banks Face Distress

Silicon Valley Bank (SVB) isn’t the only bank experiencing serious distress.

Wall Street banks lost $55 billion in just one day last week.

Four of America’s biggest banks lost a combined $55 billion of market value in a single day as financial stocks plunged.

US bank shares took a beating Thursday amid fears of contagion effects from the turmoil at Silicon Valley Bank and Silvergate.

JPMorgan saw the biggest tumble in market value among US lenders, losing $22 billion. 

(Markets Insider) JPMorgan Chase, Bank of AmericaWells Fargo and Morgan Stanley – the four most valued US lenders – saw $55 billion wiped off their combined market capitalization on Thursday, Refinitiv data show.

JPMorgan, the biggest US bank, alone saw a $22 billion tumble in its market value as its stock slid 5.41% to $130.34.

Wall Street’s Bank of America lost $16.16 billion as its share price fell 6.20% to $30.54.

Wells Fargo and Morgan Stanley saw their market capitalization drop by $10.3 billion and $6.2 billion, respectively.

Credit Suisse Bank Sees Billions in Withdraws

Credit Suisse (NYSE:CS) clients have withdrawn billions of dollars in the past several months.

In November, the bank warned investors in a 6-K filing of potential losses due to naked short covering, which as scared investors from losing most if not all of their money.

Credit Suisse also took a massive hit of $4.09 billion in Q3 and hinted at occurring losses in an upturn in markets.

This has fueled widespread withdraws from the bank leading it to borrow money.

The bank hired 20 banks for a $4 billion injection in effort to pivot from Q3’s disaster.

Credit Suisse has postponed publication of its annual report after a last-minute call from the United States Securities and Exchange Commission (SEC), which raised questions about its earlier financial statements.

The unusual intervention by the U.S regulator is the latest blow to Credit Suisse as it attempts to rebuild investor confidence after a series of scandals and setbacks that have sent its shares plunging and led clients to withdraw billions.

Market News Published Daily

Banking News: SVB gave company-wide bonuses hours before it collapsed.
Banking News: SVB gave company-wide bonuses hours before it collapsed | SVB News.

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Adam Aron Says AMC Critics Are Fundamentally Wrong

Market News: AMC CEO Adam Aron pushes back.
Market News: AMC CEO Adam Aron pushes back.

AMC Entertainment Holdings Inc., (NYSE:AMC) CEO Adam Aron said so-called ‘experts’ thinking streaming dooms movie theatres are so fundamentally incorrect.

“So WRONG. Our problem is major studios released a lot fewer movies in 2021 & 2022 than in pre-pandemic years,” said the CEO.

Wall Street continues to push the short thesis on AMC, failing to acknowledge the fundamental growth of the company over the past two years.

Retail investors say overleveraged short sellers won’t give in even after the company begins to generate positive cash flow.

AMC Entertainment currently has -$218.88 million in ‘free cash flow’ with at least $2 billion in debt.

The company has been able to reduce its debt with the sale of APE and raise cash through the equity too.

Recently, the company launched its online merchandise store and plans to launch its first credit card and branded popcorn retail business this quarter.

These are just a few of the efforts the company is making to increase its revenue.

Developments Pushing the Movie Industry Forward

Market News Today: Developments in the movie theatre industry.
Market News Today: Developments in the movie theatre industry.

Amazon is planning to invest more than $1 billion per year into theatrical distribution releases per Bloomberg news.

Amazon.com Inc. will be investing billions of dollars to produce movies that will release in theatres, according to people familiar with the company’s plans.

This is the largest commitment to the movie theatre industry by an internet company, says Bloomberg.

The world’s largest online retailer aims to make between 12 and 15 movies annually that will get a theatrical release.

Amazon is still sorting out this strategy said people who asked not to be identified.

That number of releases puts Amazon on par with major studios such as Paramount Pictures.

CNBC says this is a positive sign for the movie theatre industry.

“While a $1 billion annual investment for film development is on the lower end of what major Hollywood studios spend each year, it’s a positive sign for the movie theater business, which has struggled in the wake of the pandemic.”

Also Read: Goldman Says Bigger Short Squeezes Coming Since Meme Stock Frenzy

Streaming Didn’t Kill Movie Theatres

On the contrary, streaming platforms are beginning to figure out that they need movie theatres even as popularity in streaming has grown.

As “Avatar: The Way of Water” gets closer to the $2 billion mark at the worldwide box office, James Cameron says it’s a reminder that moviegoers still value the theatrical experience in an era of streaming dominance.

“I’m thinking of it in the terms of we’re going back to theaters around the world. They’re even going back to theaters in China where they’re having this big COVID surge. We’re saying as a society, ‘We need this! We need to go to theaters.’ Enough with the streaming already! I’m tired of sitting on my ass. Source: Variety.

Netflix’s showing of Glass Onion in movie theaters cost the streaming service $200 million for taking it out too early.

The film earned $15 million at the box office but CNBC says the showing could have made $200 million if it had been kept in theatres longer.

Disney’s Bob Igor on Streaming and Movie Theatre Industry

“The streaming business, which I believe is the future and has been growing, is not delivering basically the kind of profitability or bottom line results that the linear business delivered for us over a few decades,” Iger said.

In the interim, Disney hopes to cushion that short fall by continuing to rely on traditional forms of distribution, releasing movies on the big screen, where it recently scored blockbuster successes with “Avatar: The Way of Water” and “Black Panther: Wakanda Forever”.

Related: Naked Shorting: Roger Hamilton Reaches Out to AMC CEO

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Short Sellers Are Down $81 Billion This Year

short sellers are down $81 billion this year
Market News: Short seller losses amount to $81 billion this year as stock market rallies.

Short sellers feel the pain in the stock market’s 2023 rally, says the Wall Street Journal.

The market’s comeback in 2023 has been difficult news for one group of investors: short sellers.

Short sellers profit from the declines in the market, which we saw much of in 2022.

However, the stock market has been performing surprisingly well this year despite talks of a looming recession.

The Wall Street Journal reports that short sellers are down $81 billion this year alone as the markets begin to bounce back.

“Short sellers who have incurred hefty losses are actively trimming their positions”, said Ihor Dusaniwsky, managing director of predictive analytics at S3 Partners.

“Investors betting against stocks have racked up $81 billion of mark-to-market losses on short positions this month through Thursday after accumulating $300 billion in gains in 2022”, Mr. Dusaniwsky said.

Experts are expecting heavily shorted stocks to squeeze as more short sellers begin to close their positions.

Is short squeeze season here?

is short squeeze season here?
Are stocks about to squeeze? Short seller losses in 2023.

Investors and analysts say the rally appears to be driven by a few things.

Signs that inflation is cooling have stoked bets among investors that the Federal Reserve will pivot from raising interest rates to cutting them as soon as the second half of the year.

That has helped risky assets across the board rise.

Especially risky corners of the market, such as stocks with high short interest, have rallied even more.

Analysts say that has likely forced short sellers to close out bearish positions to cut their losses — resulting in what is known on Wall Street as a short squeeze.

Retail favorites such as AMC stock, MULN, and others seem to have bottomed out earlier this year.

It’s very possible heavily shorted stocks such as AMC entertainment squeeze short sellers again this year.

“We’re seeing a mirror image of the performance within the equity market. The worst performers last year have been leading this year,” said David Lefkowitz, head of Americas equities at UBS Global Wealth Management. “It does look like some re-risking and short covering.”

“A lot of these stocks rallying were highly shorted, long duration names with earnings way out in the future. With a significant decline in the discount rate, those earnings are now worth more,” said Sameer Bhasin, principal at Value Point Capital, a New York-based family office.

Source(s): BlackBullMarket

Market News Published Daily

Market News Today: Short sellers feel the pain in stock market's 2023 rally.
Market News Today: Short sellers feel the pain in stock market’s 2023 rally.

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The Fed is Currently Investigating Goldman Sachs

Market News: The Fed launches an investigation into Goldman Sachs.
The Fed launches an investigation into Goldman Sachs | Goldman Sachs under investigation.

The U.S. Federal Reserve is probing whether Goldman Sachs Group Inc’s consumer business had appropriate safeguards in place as the bank ramped up lending, the Wall Street Journal reported on Friday, citing people familiar with the matter.

Shares of the investment bank were down nearly 3% at $341.08 in afternoon trade.

The central bank is concerned the Wall Street giant did not have proper monitoring and control systems inside Marcus, its consumer unit, as it grew larger, the report said.

The probe, which grew out of a standard Fed review of the business in 2021 and intensified into an investigation last year, is also examining instances of customer harm and whether they were properly resolved, the report added.

“The Federal Reserve is our primary federal bank regulator and we do not comment on the accuracy or inaccuracy of matters relating to discussions with them,” a Goldman spokesperson told Reuters.

Bloomberg News reported in September that the bank’s Marcus unit was facing a Fed review.

The probe would add to troubles for Goldman, which is executing a strategic pivot that includes refocusing on its core trading and investment banking business after losing money in its consumer banking venture.

“Another investigation into the consumer business makes Goldman’s foray into consumer look even worse, and can reduce management credibility, particularly given so many statements about GS’ ability to manage risk and build best-in-class platforms,” said Mike Mayo, banking analyst at Wells Fargo, in a note.

“The investigation, along with poor disclosure and other regulatory investigations, will increase the risk associated with owning GS and its cost of capital.”

Goldman’s credit card business is also being investigated by the Consumer Financial Protection Bureau (CFPB), the bank disclosed last year.

Source(s): Reuters.

Hedge Fund Investigations: Citadel Securities

Fed investigates Goldman Sachs, Citadel, and others in 2022 sweep.
Fed investigates Goldman Sachs, Citadel, and others in 2022 sweep.

Bloomberg confirmed in 2022 that Citadel Securities was one of the hedge funds under investigation by the Department of Justice.

Regulators took Morgan Stanely and several other hedge funds to court after several subpoenas were sent out earlier in the year.

Predatorial short selling strategies were exposed by the AMC and GME stock communities after the ‘meme stock’ frenzy fiasco in 2021.

Both these stocks’ share prices have been suppressed by dark pool trading, naked short selling, spoofing, and through OTC trading.

The hedge fund was being investigated after subpoenas were sent to numerous hedge funds and banks who might be connected.

Morgan Stanley and Goldman Sachs are two of the banks that were also ordered to court.

Among Citadel is a hedge fund by the name of Element according to the Bloomberg report.

Also Read: Citadel’s Ken Griffin Sues IRS for Leaking Financial Data

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Market News, Business News – Franknez.com.

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Wall Street Has Decimated APE Stock

APE Stock News
Market News: Here’s the latest on AMC’s Preferred Equity, APE.

Retail investors are angry at regulators for allowing Wall Street to decimate APE stock.

While AMC’s Preferred Equity (APE) was intended for the company to capitalize on, banks, institutions, and short sellers have abused shares to the ground.

The equity was meant to provide AMC Entertainment with liquidity in order to pay down their debt.

While AMC was able to reduce their debt by $106 million due to APE, shares have been shorted from $7 all the way down to $0.81.

APE momentarily made Yahoo Finance’s Top List of Most Shorted Stock.

Shareholders questioned how shorting APE was possible in the first place, failing to recognize that APE is a tradable security just like any other stock.

Faceless influencers within the AMC community led many retail investors to believe that shorting AMC’s Preferred Equity was impossible.

And unfortunately, this perception clouded many people from creating a proper investment strategy or embracing for what was to come.

Let’s discuss it.

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Retail Investors Seek to CEO for Answers

AMC and APE shareholders all have one common goal in mind, an AMC short squeeze and an APE short squeeze.

And although many shareholders have been transformed into paying customers, others are looking at AMC CEO Adam Aron for answers.

Loyalists don’t question the CEO and will condemn you for doing so, but if shareholders are still invested in the company, they have every right to yearn for answers.

Adam Aron has successfully maneuvered AMC out of bankruptcy, primarily thanks to its shareholders of course.

He’s utilized Twitter magnificently in a way that no other CEO has ever done so before.

And you can’t help but to admire the business personality in him that can raise cash out of thin air.

Even if it’s from his most loyal followers.

But the CEO has failed to address shareholder concerns on the decimation of APE, or the distribution of APE from Citigroup, who’s been short on the company.

Addressing shareholder concerns is important, whether you agree or not.

Does It Even Matter?

Some of you care about your money, your finances, your investments, and some of you simply don’t.

To some, being part of an embracing community, being known in a community, and embracing the movie theatre industry, but more specifically AMC Entertainment, is more important than monetary gains or financial abundance at this point.

And is that even a bad thing?

You just want to be heard; you want to fight evil in the markets without a care about money.

Or maybe you’re simply in the middle.

Let us know who you are – leave your story down in the comment section below.

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Ken Griffin’s Ties to News Corp Is a Big Problem

Ken Griffin News Corp
Market News: Ken Griffin’s Ties with News Corp leads to conflicts of interest.

Ken Griffin is a well-known billionaire hedge fund manager and the founder of Citadel LLC, one of the largest and most successful hedge funds in the world.

In recent years, Griffin has been involved in a conflict of interest with media conglomerate News Corp, specifically with regard to his relationship with the company’s CEO, Rupert Murdoch.

The conflict began in 2017, when Griffin became a member of the board of directors for News Corp, despite having a significant financial stake in the company through his hedge fund.

This raised concerns among some that Griffin’s position on the board could be used to further his own financial interests, rather than those of the company and its shareholders.

Here’s the latest market news.

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What is News Corp?

News Corp Wall Street Journal

News Corp is a global media and entertainment company that is known for its diverse portfolio of news and information services.

The company was founded by media mogul Rupert Murdoch in 1979 and has since grown to become a major player in the media industry.

News Corp operates a number of well-known brands, including the Wall Street Journal, the New York Post, the Times of London, Dow Jones Newswire, MarketWatch, and Barron’s.

In addition to its news and information services, the company also owns a number of entertainment properties, such as Fox News, Fox Sports, and the 20th Century Fox film studio.

Despite its success, News Corp has faced a number of challenges in recent years.

The company has been criticized for its political leanings and its coverage of certain events and has faced allegations of unethical behavior and corporate misconduct.

However, News Corp has continued to invest in its brands and expand its operations, positioning itself as a major player in the global media industry.

Conflicts of Interest with The Media

In addition to his wife serving on the board, Ken Griffin has also been a vocal supporter of Murdoch and his leadership of News Corp.

In 2018, he publicly praised Murdoch’s “exceptional leadership” and defended the company against criticism from other investors.

This support has led some to question whether Griffin’s actions on the board are influenced by his personal relationship with Murdoch, rather than a genuine desire to act in the best interests of the company.

Furthermore, there have been reports that Griffin has used his position on the board to push for changes at News Corp that would benefit his own financial interests.

The conflict of interest between Griffin’s now ex-wife and News Corp has raised concerns among some investors and corporate governance experts.

They argue that Griffin’s (dual role) as a board member (ex-wife) and significant shareholder creates a clear conflict of interest, and that actions on the board may not be in the best interests of the company and its shareholders.

One potential solution to this problem would be for Griffin to divest his stake in News Corp and for his now ex-wife to resign from the board.

This would eliminate the potential for conflicts of interest and ensure that Griffin’s actions are aligned with the interests of the company and its shareholders.

The conflict of interest between Ken Griffin and News Corp is a serious concern that raises questions about the integrity of the company’s leadership and governance.

The Latest on News Corp.

Charles Gasparino Fox News
Charles Gasparino Fox News.

News Corp is a global media conglomerate that owns a wide range of news and entertainment companies, including Fox News, the Wall Street Journal, and the New York Post.

Despite its vast reach, News Corp has faced criticism for conflicts of interest that arise from its ownership of both news outlets and the companies and individuals they report on.

An example of a News Corp conflict of interest is its ownership of the Wall Street Journal, which has been criticized for its close ties to the financial industry.

This has led to accusations that the Journal’s coverage of the financial sector is biased in favor of Wall Street interests.

Furthermore, News Corp’s ownership of the New York Post has also been criticized for its lack of journalistic integrity.

The Post has been known to publish sensational headlines and stories that are often lacking in factual accuracy.

Overall, News Corp’s conflicts of interest have raised concerns about the company’s ability to provide objective and unbiased news coverage.

This is particularly important in today’s media landscape, where trust in the media is already low and the line between news and entertainment is increasingly blurred.

Related: Biotech Company Suing Citadel Over Market Manipulation

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Retail Investors are Rising Against Wall Street Corruption

Retail investors are rising against Wall Street
Market News: Retail investors are raising awareness of market injustices.

I’ve been fortunate enough to have seen the rise of retail investors for the better part of 2+ years against Wall Street.

Conflicts of interest amongst Wall Street, banks, and mainstream media were uncovered during the ‘meme stock’ frenzy in January of 2021.

But it didn’t stop there.

Throughout 2021 and 2022, the retail community has raised awareness of market injustices, claiming the SEC’s chairman Gary Gensler has only been complicit to the illicit activities that occur on Wall Street.

The disadvantage retail investors have over hedge funds has never been clearer.

Between naked shorting, FTDs, OTC trading, Dark Pool trading, PFOF, and short and distort campaigns, the cat has been out of the bag.

The question now is what is being done to tackle the problems retail investors are facing?

Wall Street has been able to take advantage of the little guy through the predatorial practices mentioned above with no repercussions from regulators.

Will retail investors continue to rise against Wall Street in 2023?

There are no doubt activists will continue to push reform until there is real change that levels the playing field for retail.

People Are Waking Up to Mainstream Media

Elon Musk has been calling out mainstream media on Twitter for misleading information or ridiculous hit pieces.

The impact Elon is having on Twitter is something that has not been seen.

He’s been able to raise awareness by simply ratioing mainstream media accounts, often times putting them in their place.

People have always voiced their opinions and concerns with mainstream media, but now the people have the biggest influencer in the world backing them up.

Citizen journalism has already been exponentially rising as blogs and independent media websites begin to report what mainstream media is failing to report.

The people are now following more sites such as Franknez.com and Nezmediacompany.com for market news and retail updates.

Mainstream media has been used by big financial institutions to push agendas that cater to their financial interests.

In a CNBC exclusive, Elon Musk says “hedge funds have used short selling and complex derivatives to take advantage of retail investors.”

This is something retail investors who purchased so called ‘meme stocks’ last year found out very easily.

The complex derivatives Elon is referring to could be an array of things such as options trading, HFT, swaps, borrowed stock, and even naked shares.

The Tesla CEO says hedge funds will short a company, conduct negative publicity campaigns to drive the stock price down, then cash out and do it multiple times over.

This tactic is what’s known as “short and distort”.

Hedge funds impose their influence on corporate media such as The Fool, Wall Street Journal, and MarketWatch to scare people out of their money.

How Can Retail Investors Make a Dent?

Wall Street and Mainstream Media | Wall Street corruption.
Wall Street and Mainstream Media | Wall Street corruption.

Retail investors will have to continue to raise awareness when activists and citizen journalism demands it.

But even retail investors have had their better days, with some even refusing to give their viewership to independent hosts and journalists simply due to capitalization involvement.

Retail investors have more power than they know, but it only combats mainstream media when they support citizen journalism or independent hosts working on spreading the truth.

The people will rise against Wall Street corruption, with or without independent journalists and platforms.

Though more can be done with the latter.

Related: Elon Musk: Hedge Funds Tank Stocks Using ‘Short and Distort’

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Citadel to Launch Crypto Exchange After FTX Collapse

Crypto News: Citadel and Partners to launch EDXM Crypto Exchange.
Crypto News: Citadel and Partners to launch EDXM Crypto Exchange.

Citadel is partnering up with Charles Schwab, Fidelity, Sequoia, Paradigm, and Virtu to launch EDXM, a cryptocurrency exchange.

The fall of FTX was primarily due to centralized players so what’s to say EDXM won’t be subject to such errors?

EDXM’s custody and wallet technology is being provided by crypto custody and infrastructure company Paxos, the companies announced in October.

Paxos, which is a custodian regulated by New York state, holds customer accounts in fully segregated accounts and has signed up large consumer-facing clients to enable crypto trading.

Its customers include PayPal, broker dealers such as Interactive Brokers, and others such as Nubank and Mastercard.

Crypto is still a taboo area for most of Wall Street, but with companies such as Citadel and its partners, it could attract big institutional money.

Here’s the latest crypto news.

Related: How to Invest in Cryptocurrency for Beginners

What is EDXM?

Citadel to launch crypto exchange EDXM
Citadel to launch crypto exchange EDXM.

EDXM is a new crypto exchange being developed by Wall Street giants such as Citadel, Virtu, and Fidelity for digital assets such as cryptocurrencies.

EDXM plans to offer delivery settlement versus payment settlement, a settlement method that’s used in traditional securities trading.

Other promises include extremely low transaction fees due to tight spreads enabled by greater liquidity.

The crypto exchange is also supposed to be different from some other crypto providers that are the market maker, exchange, and custodian all in one, which can be a conflict of interest and is typically not done in traditional markets.

Sort of like how Citadel is a market maker, hedge fund, and dark pool.

The head of strategy at Paxos says EDXM will provide transparency for the crypto market.

Some investors might argue that Citadel and its partners should provide more transparency in the stock market first before making such claims for the cryptocurrency market.

While some on Wall Street might think EDXM could lift the crypto industry, others look at the partnership as a means for Wall Street to take advantage of investors elsewhere.

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Will This Market Meltdown Trigger AMC to Squeeze?

will this market trigger AMC to squeeze?
Can today’s market conditions trigger AMC to squeeze?

AMC stock along with the entire mass market is melting.

Despite powerful Q1 results, the largest movie theatre chain in the world continues on a downtrend.

The Q1 earnings call was able to raise AMC’s share price after hours but majority of the market is on fire this Tuesday.

Will this market meltdown trigger AMC to squeeze?

Let’s discuss it below.


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Let’s dive right into it!

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The SPY continues to pull the market down

Spy Stock

The SPY (S&P 500), which tracks the top 500 companies in the United States continues to pull the market.

Today the SPY is down more than 16% (year-to-date).

On average, the S&P 500 is up 8%-10%.

This is an incredible time to also take advantage of the S&P 500 as it has always set higher levels in the long-term.

However, the SPY is a great indicator of where the markets are going, and we can see AMC is no exception to this market downtrend.

And as the markets tumble, it’s important to concentrate on the opportunities in these conditions.

If you’re part of my private community on the Patreon you’ve seen I’ve been earning 10%-20% gains trading options every week.

This is one way investors may hedge against these market conditions.

The market doesn’t go down forever, eventually it has to come back up so taking advantage of lower stock prices today could bear profits as soon as the market goes into a reversal.

Some of the largest CEOs in the U.S don’t believe this bear market will linger which means at some point short sellers will begin to either take profits, cut losses, or close their positions breaking even.

This is when the markets could see a big reversal.

Related: Are Institutions Preparing to Close Short Positions in AMC?

Analysts still believe AMC is overvalued

what will trigger AMC to squeeze?
What will Trigger AMC to squeeze?

Analysts are crediting AMC for being able to massively improve their fundamentals BUT, there is always a but.

AMC’s current share price is still believed to be ‘irrational’ by these ‘experts’.

What’s irrational is lowering prices when the demand for something skyrockets.

You do not lower the price of lemonade on a hot summer day when there’s a huge line wanting to buy it.

But these ‘experts’ say that’s how it works.

AMC’s massive demand for the stock has not reflected in the share price for months now.

And even when the high volume began to show, regulators halted it back in March.

The people running the markets don’t like how the game is playing out and they’re essentially cheating.

So, although they might be orchestrating a ‘correction’, is it possible this ends out playing in retail’s favor?

Shills give AMC a $5.76 price target

Wall Street analysts are giving AMC a price target of $5.76.

But why does their ‘expertise’ even matter?

What makes their price target significant or valuable?

They acknowledge AMC is innovating like no other company with the use of NFTs and cryptocurrency, so why go backwards instead of forward?

Like Adam Aron said, these analysts only look through the rear-view mirror oppose to the front windshield – ahead.

And it makes absolutely no sense.

These old ways of thinking are what’s keeping the economy from striving.

Are institutions preparing to close massive short positions?

Are market conditions about to trigger AMC to squeeze?

Given the current market circumstances, we can see the market is struggling to find a bottom, or at least trying to get comfortable in one.

This could give way for short sellers to plan an exit strategy at low share prices to profit from.

The current market conditions provide short sellers who have been holding long short positions on AMC an opportunity to close before the markets begin to move up again.

AMC currently has a high short interest of 19.77%.

This short interest shows there are many short positions still open today that have yet to be closed.

The market meltdown we are seeing at the moment is setting up the perfect conditions for short sellers to close their positions, initiating a short squeeze in heavily shorted stock such as AMC.

Now, is this guaranteed?

Very few things in the market are guaranteed.

When stocks go up, they must come down too – and when stocks go down, they’re bound to go up.

At some point, short sellers will want to cash in their profits before they’re erased by an inevitable market reversal.

I’d love to hear your thoughts on the topic.

Leave a comment down below.

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Related: Are Institutions Preparing to Close Short Positions in AMC?

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