When I tweeted about AMC squeezing a few days ago, a lot of AMC fans disagreed (some of you disagreed it was the subject of naked shorting too).
1 month ago AMC was trading at $10, and it's now over $60. IMO any trading professional would call that a textbook short squeeze.
1 month ago AMC was trading at $10, and it's now over $60. IMO any trading professional would call that a textbook short squeeze.
https://twitter.com/TheStalwart/status/1400140548367962112
It had extremely high short interest, and likely a significant amount of naked shorting. There was no fundamental data that came out that would result in a 6x increase in market cap / valuation. I have no idea if this is just the beginning or if it's the end.
Another important point - this squeeze has taken place over the course of a week. Closing prices: from May 24:
$13.68, $16.41, $19.56, $26.52, $26.12, $32.04... where will it end today?
$13.68, $16.41, $19.56, $26.52, $26.12, $32.04... where will it end today?
A lot of you point to increasing short interest. But given the level of trading activity, it's very possible that these are new shorts, and that existing ones are being closed. Steady or increasing short interest is no indicator of what's going on here, as far as I can see.
AMC is trading a multiple of its float every day now. That level of trading activity means you can have shorts covering, while have new shorts open positions.
It's ok if you disagree with me. I'm just expressing an opinion, I'm not advocating for anyone to take any action on it. Just explaining how one trader sees the action. And like I said, I have no idea if this is A squeeze, THE squeeze or maybe just the beginning. Who knows?
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