When AMC and GameStop surged in share price back in January of 2021, retail investors on Reddit weren’t worried about dark pools or market manipulation.
They knew that in numbers they could increase the market capitalization, and in turn, increase the share price and collect big profits.
My favorite part of Reddit was seeing all the incredible gain porn.
If you’ve been part of the ape community since the beginning, you know exactly what I’m talking about.
Seeing investor’s gains on Reddit was both desirable and exciting, I mean who wouldn’t want a piece of the action?
So, did market makers and hedge funds all of a sudden decide to start manipulating the stocks after January?
I don’t think so – here’s what’s stopping AMC from squeezing today.
Welcome to Franknez.com – if you haven’t joined the newsletter, be sure to do that below. I’m publishing market news and updates daily.
Let’s dive right into it!
Join the newsletter to become part of an activist group fighting for market transparency!
Receive weekly market news and articles like this to stay up to date.
Dark pools and off exchange trading?
See, dark pools and off exchange trading have unfortunately been unfair suppression retail investors have no control over.
These loopholes did not magically appear after January’s runups; they’ve always been there.
While majority of retail investor’s orders are not processed through the lit exchange, high volume has always had a positive effect for investors going long.
As a collective, the small percentage that is processed through the lit exchange accumulates to create the momentum necessary to drive prices upward.
And Redditors on r/wallstreetbets knew this.
All they needed to know was that these stocks were heavily shorted in order to create a short squeeze from fueled buying momentum.
AMC gained attention in January when it surged from $2 per share to $22 per share.
But we noticed many short sellers were still hanging around, so we advised to the public of the possibility at hand.
Months later AMC surged to $72 per share and it was all due to the massive crowd of retail investors who purchased the stock.
AMC was having 500,000,000 to 900,000,000 volume days.
Volume = Accountability
Speaking of volume, AMC’s current average volume today is 45.2 million.
On Wednesday, volume traded at only 26 million.
Today’s economic downturn has made it difficult for retail investors across the entire market to fork out money to buy stock.
The lack of liquidity then triggers financial institutions to further sell assets for capital – which in turn drives stocks lower.
Whether we have the means to buy stock or not is one thing, but we must take accountability and understand why, how, and what triggered AMC to surge previously.
Is there market manipulation occurring that leaves retail at a disadvantage?
Should retail investors raise awareness of market injustices through activism?
Without a doubt.
But should we fail to take accountability due to the setback our economy is facing?
Due to the setback we’re facing?
Respectfully, I don’t think so.
What’s stopping AMC from squeezing today is the lack of volume from retail investors as a unit.
From $2-$22, From $14-$72, From $9 to What?
Retail investors took AMC from $2 to $22 together.
As a unit, we also took the stock price from $14 to $72 per share.
So, what’s next?
Will retail investors decide to take AMC from $9 per share to the next level?
Or will retail give up, fail to take accountability, and blame our regulators who had nothing to do with the success of the first two runs in the first place?
But Frank, I’m tapped out.
I understand that, just know why the stock isn’t performing at the moment.
If you’re here to make money, learn what’s going to make you money.
If you’re here to fight corruption, get loud.
But don’t ever stop taking accountability.
There are many faceless Twitter wanabes who are misleading real people.
Be careful of who you connect or associate with.
Latest AMC stock updates
I’ve been tracking AMC’s momentum on the weekly timeframe on my channel to give you a perspective of what we can expect in the coming weeks.
The stock has finally established its first green candle on the weekly charts.
However, if retail investors are not successful in keeping up the pressure, we can expect AMC to begin down-trending again further prolonging any major price action.
On a personal note: I want to see retail investors outsmart ‘smart money’ again.
I want to see you win.
You can watch the latest AMC update on my channel below.