A lot of new retail investors have bought AMC stock and are wondering what will trigger AMC to short squeeze.
What started from small data between a subcommunity turned into a mainstream phenomenon.
And along the way, the community managed to resurrect a century old movie theater chain.
Yet, mainstream media will tell you poor fundamentals are the reason why we should bankrupt the theater chain instead.
But we love the movies and we especially love the stock.
A short squeeze play doesn’t depend on a companies fundamentals, but rather on how much stock is being borrowed to short it.
Welcome to Franknez.com – the blog that fights against FUD and gives our community a media platform.
Let’s get started!
Chemtrail Of News
There’s been a chemtrail of AMC news all year that have been part of this incredible journey.
From the community fighting regulators for a fair market, to leaked transcripts between Citadel and Robinhood during the January halts.
All this documentation will serve its purpose for a greater change.
But what will ultimately trigger AMC to squeeze?
Is there a specific catalyst that will cause the share price to skyrocket past the moon?
Or is everything tied to the tiresome battles against nefarious hedge fund tactics?
What Pushed AMC To $20 Per Share In January?
I missed the momentum that lead AMC to reach $20 per share back in late January.
But let me tell you, I sure didn’t miss the runup to $70.
And to be quite frank with you, I won’t miss the one going past $100 per share either.
So, what allowed AMC to experience these drastic upswings anyway?
Most people heard AMC was going to go up and they bought the stock. Before they knew it, it kept surging!
The stock has set a new bottom since it’s runup to $70, and is now cruising around $40 per share.
What will trigger AMC’s next runup?
It’s volume.
Volume propelled AMC to $20 per share, it propelled it to $70 per share, and volume is what’s going to propel AMC to $100 and beyond.
The sentiment is all in the volume.
Volume tells us how many retail investors are excited and frantic about a specific security.
If the volume goes down, expect a security to consolidate.
“We’re Going To Hold Until Shorts Cover”
If only it worked that way. You see, new short sellers can enter AMC at $40 per share and profit $5-$10 as the stock hits $30-$35 again.
The community is the only reason why AMC has a strong resistance.
We keep holding.
But it’s going to take a lot more than just holding the stock.
What drove AMC to $20 the first time, and $70 the second was not simply holding, but buying the stock too.
I’ve taken notice that the community has grown tired of ‘hodling till MOASS’.
There is no free ride here.
You don’t just buy one share of AMC stock and expect it to hit $100,000 because someone said it was hitting $100,000.
You cannot participate in a momentum play, and not put in momentum.
The retail investors that participated in the runup to $20 and $70 all put in momentum.
Holding without applying buying pressure is going to result in exhausting your conviction towards this short squeeze play.
You’re The Catalyst, Stop Looking
“It’s their fault”, “this has to happen” – we need to stop trying to cut corners.
I’ve been guilty of this myself.
But it all comes back down to, what triggered AMC to move up?
Action did. Massive action caused massive change in AMC’s share price.
With enough pressure, retail investors will be able to surge AMC’s share price high enough to create short seller panic.
Thus, initiating shorts to cover their positions in AMC and further driving up the share price.
As more of them close their positions, retail investors would have triggered AMC to squeeze.
Not the SEC, not a regulation, but retail investors.
A lot of you continue to buy the stock. A short squeeze will require more than just a lot of us though, it’s going to require buying en masse.
Give More Than You Take
We cannot blatantly sit around and wait for others to take us where we want to go.
You need to be accountable for your own actions and your own wants and desires.
I get asked quite frequently, “when’s the next runup”, “when’s the next runup?”
My question to you is when did you last buy AMC stock?
Those of you on my Patreon have a history of my personal AMC transactions throughout the year.
I’ve been buying the stock since February, even when I was facing $9,000 in losses. Now I’m up because I took action.
And if you’re profitable too it’s because you took action even when you were down.
So what’s the pattern here? Why are people profitable? Because they took action and didn’t depend on anyone to come save them.
What will trigger AMC to squeeze? You will.
Is this financial advice? Hell no. It’s real talk.
AMC’s Volume Shows Community Sentiment
AMC’s volume has been below it’s average volume. The average volume has been plunging since both runups this year.
The volume tells a story, and this current volume shows moping.
Some may argue volume doesn’t matter because of dark pool trading or because of unlimited supply of lendable shares to short the stock.
However, the volume history during the previous runups has said otherwise.
Volume matters.
How Long Will It Take Until AMC Squeezes?
In short, as long as it takes for momentum and buying pressure to occur again.
Retail investors have the chance to trigger a short squeeze through momentum and serious buying pressure.
We can tell from looking at past volume patterns how important volume played a role in AMC’s previous upswing.
This momentum may be instant and short term and may happen at any moment.
Otherwise, some sort of FOMO catalyst may drive that momentum back in several months from now.
How long it takes for AMC to squeeze will depend on retail sentiment and drive.
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Does the volume need to go up quickly to trigger it? Or can this happen by people buying whenever we can? Seems like it happened before because the volume went up a lot on those particular days.
If everyone could go ahead and hold off a couple of weeks until I get back to work so I can get back to buying that would be great. Thanks.