$AMC Entertainment(AMC)$turned green yesterday in the midst of the heavy shorting. This proves some facts:
1) The real apes and smart retail investors aren't selling no matter how massive the short attack is. AMC is a unique stock that has great support from people from all over the world, including small country like Singapore. The community is huge and thus strong against FUDs and short attacks. They can force some investors with lower faith to panic sell but the price can only drop to a certain level as the majority of the investors are holding. The short sellers should face their fate and start cutting their loss (cover the short) as soon as possible.
2) The shorts have to cover. The short sellers borrow shares in order to short the stock and they have to buy the shares back in order to return. When they buy, the price will be pushed up. On the other hand, they have to continue to pay the short interest if they were to delay it. We all believe in the short squeeze because of the various facts, such as high interest rate and majority of the shares are already owned by retail investors.
3) On the very bad red days, as long as you haven't sold your shares, you haven't made any loss. Paper loss isn't damaging. On green days, the price goes up and your PnL will be green again. Don't panic sell.
4) Nobody can predict when exactly the price will go up or down. I have concerned friends who have advised me to sell and cut loss at the beginning of the latest wave of short attack. The advice was that I could always use my fund to enter again. But what if the price starts rebounding soon after selling? Why would anyone want to join the enemy to further damage his own stock?
There will be more green and red days ahead.
If you want to make quick buck, you can sell your shares off once you've made some profit; that's if you think the amount is big enough to make any difference in your life. As long as you're happy.
Most apes have entered the position for the short squeeze that will certainly bring in much more profit than most other stocks can do.
No stock faces no risk. Instead of making wrong investment in other stocks, I would rather put my extra cash into AMC because I know the price will eventually go up.
Eventually, it's up to individuals to make their own decisions.
I was talking to an Instagram friend who was panicking. Luckily, her husband is a real ape who has great faith in AMC. Eventually, instead of panic sell her positions, she bought more shares. This increases my faith in AMC more.
After the latest wave of short attack as the short sellers exhaust themselves furthermore with fewer shares available to borrow, they have dug their graves deeper. With the high short interest, they are burning their wallets if they wish to resume the fight. As the price continues to increase, they will find themselves in a worse situation each day.
Nobody knows when the MOASS (mother of all short squeezes) will start, but I can feel it's getting closer after this latest wave of failed attack.
Comments
Thank you. A very localized POV from a fellow singaporean :)
options supposed to make tons of money but didnt sell them and resulted in plenty of loss though. ??
patience, this will make history