Welcome back to the channel everyone today, i want to talk about how he just broke this amc downtrend and whether this is the start of squeeze. I want to talk about what caused this downtrend break and whether amc is likely to continue squeezing stay tuned and let's make some money, and now i want to dive straight in with the information. So, as you can see, today, amc broke this massive massive downtrend that amc has been in since around september time of last year. Right now, amc is still in the channel from 2019, but that channel will be broken when we run over 21.22 per share.

But obviously the good news from today is that we've broken this massive massive downtrend from september of last year and in the after hours. We've continued to push up as well. Today, amc ran all the way from 15 and 75 cents and closed at 18.26, but in the after hours ran over 20 almost hitting 21 per share. Now again, this could potentially continue into the pre-market tomorrow and we may see a further run over that 21 22 region.

If we do see that continuation in the pre-market tomorrow, we may be tracking late may to early june for amc, and we may be on the cusp of the next run-up. This is that channel. I was speaking about earlier. We are still in this channel from early 2021 and back in 2019, but we have broken out of this recent downtrend.

I think our next challenge is really going to be this 22-23 break and whether we continue upwards towards 30 per share. Obviously, for my video the other day, i did say that if we break this channel with conviction and amc runs over 22, it could potentially cause the squeeze as melvin capital are likely to be liquidated. Now i personally think that both amc and gamestop are very much setting up for a continuation of this move over dollars per share and potentially the next run up over that 72 region and our all-time highs. Yesterday, on the 21st of march 2022 monkey business tweeted, seeing the average borrow rate jumps to 17.29 percent and the maximum borrow rate the gamestop jumped to 25.55 percent.

He then updated that position from today, where the max borrow rate spiked to 47.36 on ortex. Now this is a massive massive borrowing rate last year before the squeeze, the amc, borrowing fee barely exceeded 25, and yet the gamestop borrowing fee is now exceeding 47 percent. Now you may say tom: how does this compare to january 2021 before the first gamestop run-up? You can see here from this screenshot from roaring kitty's stream. The borrowing fee for gamestop was around 30.8, which did increase for a short period of time up to 54.1 percent.

Now, obviously, you can see that after the june run up, the amc borrowing fee has been at rock bottom ever since and has not increased over five or six percent and therefore for both amc and gamestop's borrowing fees to be on the rise. This is a very good sign and it's not just the boring field or text. That's increasing, but also many brokers are requesting additional margin, requirements for short positions. Gm economics tweeted saying that quest trade currently have a 12.17 borrowing rate and a short margin requirement of 500 of the original underlying position.

Therefore, if somebody wants to take a one thousand dollar short position on gamestop, they must have five thousand dollars of available margin in their account. This is absolutely crazy margin requirements, as over the last year, most brokers have only requested a 100 150 or even a 200 margin requirement, nowhere close to a 500 margin requirement. This obviously goes to show that right now many brokers are currently preparing for another amc in gamestop, run up and potentially the mother of all short squeezes as monkey business. Also tweeted.

You can see from this grey line just here that the number of shares currently on loan has been increasing massively and now the cost to borrow is playing catch up again. The same thing can very much be seen in amc as well. Currently, the number of shares on loan for amc is at all-time highs, as is the short interest percentage. Now i think, overall, what caused this breakout is.

The hedges are starting to lose control of amc because it's becoming too expensive for them to continue pushing down amc and rolling all of their failed delivers and they're married in divorced, puts the amc in gamestop utilization has been a hundred percent for well over three weeks. Now the cost to borrow is starting to rise and the hedges don't have the cash required to borrow these shares and to continue pushing amc and gamestop down, because they don't have the available margin. I think, as a last-ditch resort, they've tried to frantically push up the s p 500 over the last week to generate additional margin and additional liquidity to continue pushing amc down. But i think it's a case of too little too late.

As amc is now starting to run and the hedges don't have the cash that they require to push it back down. I believe, with this very strong after hours move, the amc will likely continue this movement over the next few days over that 20 to 22 region. Could this be the actual short squeeze? I think right now, it's a little bit too early to tell. Obviously, i can't see the future, so i don't know exactly what's gon na happen over the next few days in the next few weeks, but today's 15.13 gain and the after hours 9.31 gain on top of that is a very promising sign.

Potentially adam aaron does believe the squeeze is right around the corner, as he seems to be getting very, very confident that he was right all along guys. If you didn't already know, mumu and futu have just officially announced that future does not accept payment for order flow, and therefore you don't have to worry about your trades, going through sketchy, dark, pulls or being given to citadel right now. If you sign up to moomoo, you can currently get up to five free shares valid three thousand five hundred dollars each and a guaranteed free share worth around twenty dollars. On top of that, all you have to do to get all of these free shares is sign up using the link in the description below and make your first deposit.

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He believes that there will be tons of crow eating ahead, but it won't be by adam. The definition of crow eating says tweet crow is to be humiliated and shamed after being shown to be wrong or to be forced to admit one's error and be publicly shamed. As a result, clearly, adam aaron believes the short sellers are going to be shown to be wrong and he believes the short sellers are going to be publicly shamed as a result, when amc squeezes and rockets to new all-time highs, those short sellers will absolutely be proved Wrong and will most definitely be publicly shamed when they end up being liquidated. Obviously, when all of these hedge funds get liquidated, there's going to be tons and tons of media and news articles written about these liquidated funds.

Therefore, it's going to be very much in the public eye when these funds end up being liquidated and exactly what caused their liquidation being. The aim seeing gamestop squeezes adam aaron tweeted, saying a really bad quote for posterity - is to let them eat cake, which is from mary antoinette and adam aaron, believes. A really good quote for posterity is to let them eat crow, said by adam aaron himself. He said i've been saying for some time now to the prophets of doom, on the strength and skill of us at amc, choke on that we can add now hashtag haha.

Therefore, right now, adam aaron clearly believes that he is winning and he believes that we are showing the shorts exactly what's up. This follows amc's brilliant brilliant day today and therefore adam aaron believes that this move is likely to continue, and on top of that, the wider market crash and the housing market crash may not be far behind unusual wales. Tweeted saying the housing market is in the early stages of a substantial downshift home sales may drop by 25 by the end of summer. According to market watch, their four home sales are going to be slowing down at an incredible rate and therefore a housing market crash.

Won't be far behind, potentially the stock market crash may end up, causing the housing market crash, or maybe this slow down in sales will end up, causing the housing market crash, which could then bounce across to the stock market. Every single market across the entire us, but not only across the entire us but across the entire world, seems to be teetering on a knife. Edge commodities are going through, the roofs bonds are going through the floors. The housing market is rocky, the stock market is rocky, and not only in the us, but in pretty much every single country around the world, if you haven't figured out by now after i've, been speaking about it for months now, we are on the brink of another Recession and this recession will definitely end up, causing the amc gamestop squeeze.

I think one person that's feeling very, very stupid. After today's massive price gains in both amc and gamestop is muddy waters muddy waters, tweeted saying when i see young guys, who've massively succeeded ones like ryan cohen, complain about short sellers. I have to wonder: is he really that good, or did he mainly get lucky muddy waters, believes that ryan cohen, complaining about short sellers shows to them. That ryan cohen knows nothing about investing and nothing about running a business.

Muddy waters believed that ryan cohen got incredibly lucky and muddy waters obviously believe that short sellers aren't the problem. Now, i'm sure muddy waters are feeling very, very stupid. After gamestop ran 30 today and therefore muddy waters, short position, just got 30 smaller in one singular day, guys be sure to. Let me know down in the comments below whether you think that amc squeeze is just starting.

Now that we've broken this down trend and as always guys if you enjoyed this video, be sure to check out some of my others. Alternatively, subscribe to the channel and ding that notification bell, because that way, you'll be alerted when i upload a new video cheers.