Is It Possible Stock Market Crashes Wont Happen Again
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AMC continues to be one of retail investors favorite stocks.
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.
Well, just how high can AMC stock price skyrocket up to?
AMC stock price closed at $11.58 on May 23rd. The share volume remains healthy as AMC is primed to take off.
We have broken the $30 and $40 levels of consolidation but have now come down. How soon will AMC rip?
Most of the market has been on sale and AMC has been no exception to that until now.
But AMC wants to keep climbing.
The stock continues to consolidate as short sellers find loopholes to short the stock.
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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.
Key highlights
- We're seeing AMC stock price enter bearish territory due to an array of market abnormalities right now.
- 'W' shape formations in the past have indicated bullish territory.
- Retail investors and large institutions alike, like the stock. Buyers include Vanguard, Charles Schwab, Wells Fargo, and BlackRock.
- 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 into the new year.
- The stock price is still relatively low enough for majority of people to buy, but hurry before it's too late.
Related: Are You Holding Significant Losses in AMC Stock?
Adam Aron, CEO of AMC Entertainment Interview
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.
- 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.
Related: Are Institutions Preparing to Close Short Positions in AMC?
AMC's Short Borrow Fee
AMC's short borrow fee as of 5/23 is: 2.10% via. Stonk-O-Tracker, this is different from the short interest of 22%.
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 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.
Breaking: Hedge Fund Melvin Capital Is Shutting Down in June
Hedge funds are a sinking ship
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:
- Take the loses and close their positions right now where the stock price is around $11.
- Or, get squeezed out of their positions at a high interest rate above $11, 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.
Read: Citadel loses billions: hedge funds are getting dragged down
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 continues to be one of the most shorted stocks in the market.
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.
Related: Will AMC Squeeze in 2022? [ Short interest data]
AMC stock predictions (analyst)
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 with enough momentum.
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).
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)
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 hasn't squeezed for two primary reasons.
- The volume isn't all there yet. The volume needs to be quite high. Trey's Trades referenced 500+ million being an outstanding number.
- 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'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.
- 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.
- Own an Apple watch? Keep the stock in your background. This is a very convenient way to keeping tabs on the stocks performance.
- 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?
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?
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 $11.58.
Although AMC's stock chart has been relatively healthy in the past, the price has been influenced by covid news.
Are you holding AMC stock?
Let me know what a short squeeze would mean for you in the comments section below.
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Trending: Will AMC squeeze in 2022? [Short interest data]
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Read: Anchorage Capital closes after betting against AMC stock
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