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?
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
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.