A wider Market Crash could be great for the AMC stock, if the market crashes it will mean many stocks fall, this will mean that leveraged hedge funds end up upside down in their trades, with little cash, unable to meet margin obligations.
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Links;
https://www.reddit.com/r/amcstock/comments/p8rmc4/market_crash_stonks_go_down_hf_asset_decrease/
https://www.reddit.com/r/amcstock/comments/p957lu/market_correction_trigger_moass/
https://www.multpl.com/shiller-pe
If a hedge fund cannot meet their margin obligations they'll have to sell off long positions and cover short positions in order to meet margin requirements.
The DTCC also does not want funds selling off long positions and will therefore likely lend them money to cover their shorts with.
In addition to this, AMC and GME have negative Beta's, stocks with a negative beta tend to move inversely to the market.
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gamestop, gamestop stock, gme, gamestop short squeeze, gamestop stock explained, gamestop explained, amc, amc stock, amc stock prediction, amc live, amc stock live, amc short squeeze, amc squeeze, amc price prediction, gme stock live, gme stock prediction, gme stock analysis, gme stock explained, gme stock short squeeze, gme stock news, matt kohrs, matt kors, stocks, stock market, investing, trey trades, jim cramer, amc ortex, amc dark pool, amc recap, amc news, amc update, finance news, themaskedinvestor, roensch capital, amc stock news, amc stock update, amc stock analysis, amc stock livestream, amc stock short squeeze, amc stock prediction 2021, amc stock news today, amc stock jim cramer, will amc go up, short squeeze, will amc short squeeze, buy amc, hold amc, amc will explode, this will cause amc to explode, amc dark pool update, amc citadel, amc citadel in trouble, Citadel, citadel fraud, citadel fraud amc, amc margin restriction, amc restriction, what is a margin restriction, amc threshold list, threshold list, what is amc threshold list, amc citadel, ken griffin, AMC convertible notes, AMC convertible loan notes, deregistration of loan notes, AMC S3 filing, iceberg research, even more fud, the suits are losing, amc analyst rating, amc analyst, amc media, fail to deliver, AMC fail to delivers, fail to deliver data, AMC FTD, amc threshold list, amc threshold, amc ftd cycle, amc suspend dark pools, amc share count, amc stock market crash, stock market crash, market crash, will the stock market crash, 2021 stock market crash
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#AMC #ShortSqueeze #AMCStock
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ππΊπΈ Get 4 FREE Stocks worth up to $3,350 - https://j.moomoo.com/006XiL
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Links;
https://www.reddit.com/r/amcstock/comments/p8rmc4/market_crash_stonks_go_down_hf_asset_decrease/
https://www.reddit.com/r/amcstock/comments/p957lu/market_correction_trigger_moass/
https://www.multpl.com/shiller-pe
If a hedge fund cannot meet their margin obligations they'll have to sell off long positions and cover short positions in order to meet margin requirements.
The DTCC also does not want funds selling off long positions and will therefore likely lend them money to cover their shorts with.
In addition to this, AMC and GME have negative Beta's, stocks with a negative beta tend to move inversely to the market.
Social media:
π· Follow me on Instagram - https://instagram.com/thomasjamesyt
π€ Follow me on Twitter - https://twitter.com/Thomas_james_1
π Please be sure to LIKE, SUBSCRIBE, and turn on them NOTIFICATIONS.
The information in these videos shall not be construed as tax, legal, insurance, construction, engineering, health and safety, electrical or financial advice. IF stocks or companies are mentioned, Thomas MAY have an ownership interest in them -- DO NOT make buying or selling decisions based on Thomas' videos. If you need such advice, please contact a qualified accountant, solicitor, insurance agent, contractor/electrician/engineer/etc. or financial advisor. This is not investment advice to purchase any stock mentioned in this video or any other videos and shall not be construed as anything other than an opinion for entertainment purposes only.
Links included in this description might be affiliate links. If you purchase a product or service with the links that I provide I may receive a small commission. There is no additional charge to you! Thank you for supporting my channel so I can continue to provide you with free content each week!
Video topics:
gamestop, gamestop stock, gme, gamestop short squeeze, gamestop stock explained, gamestop explained, amc, amc stock, amc stock prediction, amc live, amc stock live, amc short squeeze, amc squeeze, amc price prediction, gme stock live, gme stock prediction, gme stock analysis, gme stock explained, gme stock short squeeze, gme stock news, matt kohrs, matt kors, stocks, stock market, investing, trey trades, jim cramer, amc ortex, amc dark pool, amc recap, amc news, amc update, finance news, themaskedinvestor, roensch capital, amc stock news, amc stock update, amc stock analysis, amc stock livestream, amc stock short squeeze, amc stock prediction 2021, amc stock news today, amc stock jim cramer, will amc go up, short squeeze, will amc short squeeze, buy amc, hold amc, amc will explode, this will cause amc to explode, amc dark pool update, amc citadel, amc citadel in trouble, Citadel, citadel fraud, citadel fraud amc, amc margin restriction, amc restriction, what is a margin restriction, amc threshold list, threshold list, what is amc threshold list, amc citadel, ken griffin, AMC convertible notes, AMC convertible loan notes, deregistration of loan notes, AMC S3 filing, iceberg research, even more fud, the suits are losing, amc analyst rating, amc analyst, amc media, fail to deliver, AMC fail to delivers, fail to deliver data, AMC FTD, amc threshold list, amc threshold, amc ftd cycle, amc suspend dark pools, amc share count, amc stock market crash, stock market crash, market crash, will the stock market crash, 2021 stock market crash
Inspired by Graham Stephan, Meet Kevin, Andrei Jikh, Stock Moe, My Financial Friend, MCash, Kenan Grace, Trey Trades, Matt Kohrs, the Masked Investor and more.
#AMC #ShortSqueeze #AMCStock
Welcome back to the channel everyone today, i want to talk about why a market crash is good for amc and also talk about some of the indicators that we can use to tell how the overall market is faring, so stay tuned and let's make some money, but Guys before i dive into the video, i just want to give a massive shout out to the 4 100 of you that have currently ding that notification bell, because you guys are always the first to watch a new video as soon as it's released. So guys be sure to drop a like down below subscribe to the channel and ding that notification bell, if you haven't already so that you don't miss another video. Just like this one, and just a quick one before i dive in with the key information, if you haven't already checked out, my line of amc related merch be sure to check it out linked in the description below my personal favorite is the to the moon, t-shirt Or maybe even the space a t-shirt, and now i want to dive straight in with the key information, so i want to explain all of this bit by bit. The first part market crash equals stocks go down now.
That part is fairly obvious. If the overall market crashes pretty much, all stocks are going to fall by between 10 to 30 percent, maybe some will fall by even 50 percent. If those stocks fall, it means hedge funds in general, are going to lose a large portion of their assets under management. Don't forget, even though citadel is very heavily shorting amc they're, not 100, all in on amc.
They do hold a lot of other long positions and if the market crashes, those positions are going to fall drastically if those assets fall or the value of their assets under management falls, it means they're going to have less dollars available, they're, not only going to have Less physical cash on hand to continue adding to their amc, sure position, but they're also going to have less cash and less margin in their trades. For example, we know that citadel makes highly leveraged investments. They trade using lots of leverage or using lots of margin, meaning they've borrowed lots of money from other institutions and other firms. If some of citadel's long positions move downwards and move against them, that means they're going to be left owing money to other institutions and not having the same amount of money that they borrowed, because, obviously the value of their trades, the value of their assets, has gone Downwards and if they have less dollars available, it means they can't maintain their short malarkey.
Obviously, if they've got less cash or even potentially negative cash, because they owe money to other banks, they can't continue adding to their short positions in amc and continue beating the price down if they can't continue adding to their amc, short positions and they can't continue beating The price down it means the price suppression is going to stop. There's going to be nothing left. Holding amc down on top of this as a lot of hedge funds are also going to have less dollars available. Remember this part here they might not meet those margin requirements and therefore they may have to sell off some of their long positions or even cover some of their short positions, so they have enough cash to meet those collateral requirements. What i'm saying is that some of these smaller hedge funds are going to be covering their amc shorts just so they can get the cash out to meet those cash margin requirements, so they can continue trading their longer, maybe more leveraged positions, both the price suppression, stopping And the smaller hedge funds, covering their short positions to meet those margin requirements is gon na cause the price of amc and gamestop to shoot up. If the price shoots up, it means their payments are gon na shoot up. Firstly, you've got their interest payments which are gon na go upwards because they have to pay money to borrow the amc shares. Obviously, if the amc shares are more expensive, therefore, the interest payments are going to be more expensive as well.
Not only that, but they've also got their margin interest to pay as well, if they're borrowing, money from other banks say jpmorgan or some of the other large institutions, they're also going to have to pay money on that borrowed money as well and then also when they Execute those married put transactions or those transactions that reset the clock on fail to delivers that cost them a transaction cost as they have to pay off another party to pass the fed the delivers onto and the party. Obviously the other party don't want additional risk. So citadel and other hedge funds basically have to pay money to another institution for them to take. The filter delivers as all of those interest payments and transaction costs, shoot up, it'll mean more shorts, can't maintain their malarkey.
Therefore, that'll also mean more price suppression, stopping more price shooting up and more moas. So therefore, we can see that while a market crash isn't necessarily a good thing in general for most americans and most people around the world, it is good for the amt squeeze book. As effectively as stocks are falling, it means hedge funds are going to have to sell off some of their positions and also cover their short positions. So they can meet margin requirements, meaning they are going to have to cover their amc shorts.
There's another poster on reddit who speculated something similar market correction could trigger a moass. I think the fed meeting in september could be a catalyst if they decide to raise the interest rates and begin tapering bond purchases. Then the market is going to head straight for a correction which i also feel could trigger the mother of all short squeezes with amc and gamestop, but why we are headed for a market correction. I know i know stocks only go up right, but the market in the economy was doing very well before the pandemic, and now the s p 500 is way way above pre-pandemic levels, a lot of that on speculation of a reopening and the money printer going bruh. It's like dropping a rubber ball from two foot and having it bounce up as high as six foot. That's just not natural, the vix and other inverse etfs are at their absolute lowest in history, with every mention of tapering or interest rates. That has happened over the past year. They jump up higher and higher in volume.
Each time, then they settle back down a bit but as a whole, they're slowly leveling out from their slide watch the spikes in the fear and greed index and you'll see what i'm talking about. Look at the three year on the vix super high frequencies are betting on this. They want it to happen. They're shorting a hell of a lot more than meme stocks, and if the market corrects a la 2008 to 2010, then they're gon na make a ton of money on those other stocks that fall.
I think the gains from the shorts on other securities and other stocks that aren't being diamond handed will be used to cover the shorts on meme stocks. Super high frequencies won't go bankrupt, they'll break even or come close. They're kicking the can down the road as long as possible waiting for this to happen because they need this to happen, so they can cover their amc shorts without getting liquidated or without going bankrupt. Now i wanted to be a little bit more specific and talk about exactly why the market crashing will cause amc and gamestop to go upwards.
Why wouldn't amc and gamestop crash as well, if the overall market crashes, and for that i think you've got to look a little bit towards a negative beta when researching stocks for investment. Take a glance at the beta number. This value measures the volatility of a stock compared with the volatility of the market as a whole. A high beta means the stock price is more sensitive to news and information and will move faster than a stock with a low beta, as in a stock with a high beta will crash faster when the overall market collapses and will crash more violently as well.
Not just 10 to 30 percent, but 50 to 75 in general. High beta means high risk, but also offers the possibility of high returns if the stock turns out to be a good investment. A negative beta coefficient, on the other hand, means the investment moves opposite of market direction. If we look to amc, we can see that amc has a beta of negative 4.17 and therefore quite high in the negative, beaters or quite low in the negative betas, not sure which way around.
That is, but you know it's more than negative 1 or negative 0.5, for example, and if we look to gamestop, we can see the gamestop has a beta of negative 6.97 and is therefore even higher or even lower than the amc negative beta. So therefore, as amc and gamestop have negative beaters, it's likely that they'll move inversely to the market as in when the market starts, crashing, amc and gamestop will go up, and i also wanted to quickly come back to the schiller p e ratio that i mentioned in A video the other week, the schiller p e ratio calculates the average p e ratio, which is price to earnings of all companies in the s p 500.. This basically compares the stock price to the company's profit. Therefore, a higher the p ratio is. That means they have a much higher stock price than they are generating profit. If you look at this chart here, we can see the current shiller. Pe ratio is 38.58, which is obviously very high, and the only time this was ever eclipsed was in 1999 to 2000. During the dot-com boom or the dot-com bubble, we currently have a higher schiller pe ratio than we had in 2020 in 2008, in black tuesday, 1930 1970's recession, black monday 1937 recession, pretty much every single recession we're currently higher than and if we have a look at That schiller p ratio on a monthly basis.
As far back as march 2020 that schiller p e ratio has been increasing at quite a substantial speed, even only looking back in june, when amc last ran up that schiller, p e ratio is 36.86 and it's already now 38.58. Nearly up a whole two points. Therefore, i personally think the s p 500 is currently very, very overvalued and is heading for a market correction, that market correction could impact and cause amc and gamestop to rock it to the moon. Guys be sure to.
Let me know down in the comments below what you think about a market crash and whether a market crash would be good for amc 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.
I just want to give a quick shoutout and say thanks for all the information that you've been bringing to the AMC Ape community. Always great content as always
My life has totally changed since I started with $7,000 and now I make $ 29,450 every 11 days.
Stay strong people The MOASS is like Visine gonna make all that red go away!
Make them pay. Make them bleed. Now is our time. The old ways are over. The new age of the individual is upon us. Make them bleed. Make them pay.
All the big money is going to have to come to AMC and GME just to stay afloat because the market is going to be stripped bare just to pay us off. You can thank the SEC for purposely allowing these criminals to ruin the entire economy. This was their plan all along as part of the great reset. They are all exposed now. Doesn't matter in the long run because all the big names will be in jail for life if their lucky and all assets will be seized.
Do you see amc doing a fake squeeze to 300-400 to try to shake us out ? Whatβs your though on this ? Your info is always on point love your stuff my guy.
Personally I feel, AMC, Game Stop, Nokia, Blackberry, Bed Bath Beyond, Workhorse, Clove, β¦etc is going to go up
Thanks for explaining why AMC should go up during a crash. No one explained that clearly before that I saw.
Ive been trading since october, but i havent really made a lot of money , feel like i dont really now a lot havent touched options yet neither. Mind traching some market noobies?
Yes indeed once market starts to go down AMC, GME and other heavily shorted stocks will go up, however you have to keep buying pressure during market crash in order for this to happen. Remember last week when S&P and NASDAQ started to go down, AMC and others started to get shorted aggressively, to keep up with the falling indexes. Hedge funds didnβt want to run out of collateral. So once again, they will throw everything they can to short this stocks, so donβt think Beta is automatic. The key is to let index funds fall faster than AMC.
i hear there are other hedge funds with bigger short positions than citadel why have they not covered yet are they bigger than citadel?
Are naked positions and synthetic shares exposed to leverage obligations?
I'd rather wait for the MOASS rather than watch the rest of my and everyone else's retirement get hit by 30% or more. Cause let's face it 10 to 20% is a correction in the market aka retraction. 25% and up is a what the fu{Β£ is going on moment that has the media saying that the market is crashing. ππ like a MuKer since $12 and I would rather everything going up as the Apes blast into orbit. Keep up the good "quality" content.
Edit crypto is been killing it for me even though I know a market crash will send money flooding into crypto, but will also cause a huge sell-off in crypto once the market is oversold and has money flowing back in as fast as it moves out.
Lol question edit: Wouldn't it go down when funds like the Russell 2000 sell-off? They're connected when determining price.
A market crash and a short squeeze simultaneously would be fantastic!! I can then put a chunk of gains back into the market @ discounted prices!
Great DD again Bro! You pal are our Rock! Keep up the Great Work.
Market crash or NFT,'S, what ever work to crush the hedgies, I can wait, can you? It'll happen in the next 2 months, buy, hold, see you on the moon boys
NYSE and US gov didn't learn their lesson from 2008. It deserves to crash until shitadel and their friends are banned from participating in the stock market. China banned them from their market for a reason
I need AMC to fly as the market crashes so I can pick up all my favorite dividend growth stocks dirt cheap and retire
All those fees——-why got through this much hell. Poor things. They ass is grass. 100k let's get it.
But is the crash liable to start sooner than or next year say
In your opinion
Really good info mate
Great video. Better understanding of how a market crash will effect AMC..
I would love to see a market crash and a short squeeze simultaneously so I can put a chunk of gains back into the market on discounted prices! Win win
I think a market crash is exactly what the $GME $ AMC investors need. As you pointed out, the beta is negative which has an inverse relationship to the market and downturn in market increases probability of SHF being margin called.
Buy and HODL
I'm just sick and tired of losing so much of my life savings to the Dark Pools, HFs, Shortings and Naked Shortings. If the market crashes, AMC & GME stocks will go up and I may see my money recovered and more.
I would like to see a market crash.
What sucks the most is happened to wait all weekend for the market to open on Monday. But I always look forward to your DD on AMC keep up the good work.
Not leaving, holding for all the Apes, hope ya holding for me. Letss get this Mula & go to the promise land,; PLUTO.
Sir Thomas! Thx so much–You are my very short list…got tired of the channels with no real news. being involved in the Patriot movement in the US, there were times that I would run across 10 worthless vids a day between the Arizona auditz and AMC Huge Updates…Much of this is very related in my opinion, but we have only so much time in the day. So thank you for having substance in your videos. I started off with 7..turned into 70…now a hair under 500…I buy-hold-and buy more. We the people of the world outnumber the clowns that think they own us–a story for another day–Cheers!
Very sad to see people hoping for a market crash.
These market crashes are devastating for a countries economy.
Millions of americans are going to suffer greatly.