Welcome back to the channel everyone today, i want to talk about when the squeeze has started for amc and more specifically, why the moas hasn't even yet begun so stay tuned and let's make some money, but before i dive into the video, i just want to say Guys, if you were at all panicking yesterday, if you were confused, if you didn't know whether to buy more shares, hold them or sell them, and you are overall, very flustered and looking forward to my video to help calm you down, then i'd really consider joining the Private discord linked in the description below. Obviously, i only make two videos a day on youtube, but i am active for pretty much 18 hours a day in that discord. So you can ask me pretty much any question you like in that discord. Whenever you want - and now i want to dive straight in with the key information, so firstly, i want to touch on just how much short sellers lost yesterday.

Based on that previous move, with amc up around 20 yesterday, it's estimated that shorts would have lost nearly 910 million dollars. Now, some of you might say well: amc has fallen from 72 dollars now to around 44 or 45 shouldn't those shorts be in massive profits, but don't forget a lot of these shorts have actually been shorting amc since the four to six dollar mark and therefore they're Still very, very heavily loss making and in a very deep hole. This is why the shorts haven't covered yet, and this is why the shorts potentially can't even cover without bankrupting their business. So what i want to talk about today is is the amc stock starting to squeeze? Well, this poster on reddit reckons that it isn't the squeeze.

It's just cool options. Malarkey, the hedges are trying to pump us all up to make us all, buy tons and tons of call options ready to drop the price towards that friday. Close so that we all lose lots of money and that's definitely one potential outcome. They want us to waste money on call options that we should spend, buying shares, nothing's changed, buy shares and hold, and therefore i wouldn't really recommend diving all in on call options just yet and if not at all.

Yes, we have broken positively out of this wedge or out of this triangle that i've been talking about for about two months now. Yes, it's a good thing that we have broken out positively and could be now on our way to new all-time highs, but the hedges could potentially just try and dip us back into this wedge again. Therefore, it's probably worth waiting until we've got a little bit more confirmation before you start buying call options. Maybe it's really best to just stick with shares that you can hold because shares don't expire.

This poster on reddit reckons we're still just stuck in the mandatory cycles. Top is the current cycle. Bottom is the previous run-up cycle. This should take us to around 300 before the gamma squeeze the fomo squeeze and, finally, the mother of all short squeezes, don't hold for what you think is a lot hold for the hedge funds thinkers a lot to the moon, as you can see here, the bottom Chart here is the 25th of may onwards, just as we started breaking out around that 1450 level, and the top chart is where we are now just breaking through that 37, 38 and 40 level.

In yesterday's video, i spoke about how we're now just entering the third cycle. The first cycle was back in january, which lasted around 105 days second cycle may and june another 105 days, and therefore we're now just starting another 105 day cycle. I think what we're going to see is a run-up that could potentially cause the mother of all short squeezes. I don't think the squeeze has even yet started just yet at the moment.

I think this is just the normal t, plus 21 and t plus 35 cycle leading us into the third overall major amc cycle. Yes over the next week or two i expect to run up and then the stock to drop. Could that run up cause the squeeze? Absolutely, but it's just one potential catalyst and never a guaranteed thing. Here's another post that goes a bit more in depth about what i just said.

Interesting squeeze loop due diligence by you, slash, create, might explain the situation. It could piece together all of the puzzle pieces. If we see a price surge august 26 to september 9th, then that pretty much confirms that they are stuck in a squeeze loop until the squeezes blow across all meme stocks number one. For a long time, they've been using total return swap or trses with the banks to short the meme stock basket into oblivion, and that's how effectively they hid the short interest and that's based on a video that i made yesterday about the married and divorced puts melvin And other super high frequencies got overexposed by shorting directly, not through the trses bringing reported short interest to 226 percent.

They use deep in the money calls to pull the short interest position from melvin and other super high frequencies to avoid those super high frequencies. From going under these in the money calls were purchased and then exercised immediately. This sends a synthetic long over to melvin and other super high frequencies. Citadel doesn't actually own the shares for these in the money calls, so they open up shorts and create synthetics.

Remember how ehort of s3 partners said most shorts are not covering and that they were now, including synthetic longs in their calculations of short interest back in january, citadel opens d-o-o-m-p's, which i think is deep out of the money, put options or just deep out of the Money puts to hedge the short position that they took on from the in the money calls like how they also used trs to hedge against the shores. Now they have both trs hedging, their original short position and the doom ps or deep other money puts hedging. The short position they sucked up from the super high frequencies buyer in the money calls in order to hedge the risk of the swaps. They open up futures, which expire every quarter march june september and december.

They settle these futures before the first notice day of each expiration february may, august and november. Basically, what i've been getting at with this video is that here's cycle one we ran up and then traded sideways for a few months. Here's cycle two: we ran up traded sideways again for a few months and now we're starting cycle three, and if we look at the gain between cycle one and cycle, two, the gain from cycle 2 to cycle 3 should take us between somewhere between 200 and 300 Per share and therefore, at the moment, we're just stuck in the regular amc cycle and the squeeze has not yet begun. However, obviously, on this run up to 200 to 300, that could potentially cause the shorts to be liquidated.

Obviously, we don't know the short liquidation position for citadel and melvin and all of those other funds they might get liquidated at 78.00 at 100. 150. 200. 500.

We could never really be exactly certain, but what we do know is that at some point they aren't going to have the cash on hand to meet those margin requirements and they will get liquidated and the shorts will be forced to cover when those shorts are forced To cover that is obviously when the squeeze is going to happen, but for the moment we are still just stuck in this cycle. Yes, we have broken positively out of this triangle or out of this wedge, as you can see just here, but this is effectively the same break that we saw back here on the 25th of may, as we break through 14.50 and 15. Therefore, over the next week or two, i would expect this kind of action where we ran from 1550 all the way up to 72 dollars, but on a much larger scale. However, although i have just said that, as i said earlier at the start of this video, the hedges could try and push us back into this wedge and therefore it's not guaranteed.

Therefore, i urge you as much as possible to stay calm and compose. Please don't panic, please don't paper hand, your shares just continue to hold and enjoy the amc movement and also, as i said at the start of this video, if you are panicking, i'd really urge you to join the patreon and the private discord linked in the description Below and become part of the team, and ask me questions whenever you like, in order to keep yourself calm. As you can see, yesterday's movement was very positive for the macd, bringing us more into that positive green position. But, however, if i zoom out, you will also see that the macd hasn't even yet returned positive.

Yes, the macd is currently green, but, as you can see, these moving averages are still well below the breakeven point. Therefore, we are still nowhere near being exhausted on this current run-up, as you can see. As i said, we haven't even broken past that break-even point when the macd and the moving averages start moving up to this point. That's when you could potentially consider amc being in that overbought territory having a look at the reverse repos again, we saw another consecutive day of over one trillion dollars of reverse repos and even over 1.1 trillion dollars.

So i think, that's now 10 consecutive days or maybe 11 consecutive days of reverse repos. I did just count it. It's 10 days of reverse repose. In terms of the daily treasury, we saw a small cash return, increasing their closing balance to around 317 billion dollars.

But again it was a very small positive move upwards and i wouldn't be surprised if we see some more large outflows over the next few days. Guys, if you haven't already signed up for a training platform, be sure to check out the links in the description below to moomoo, if you're in the us or in singapore and free trade. If you're in the uk to get some free shares. Also with moomoo be sure to deposit at least a hundred dollars to get the most out of those free shares.

And if you can deposit at least two thousand dollars to get the biggest rewards and as always guys. If you enjoyed this video be sure to check out some of my others, alternatively subscribe to the channel and in that notification bell, because that way, you'll be alerted. When i upload a new video cheers.