So last week I bought into AMC at about $30.00 — we’re up at $55 a share and I am reading literally everywhere that a short squeeze is coming in the next few days. I note as well that a major broker has now stopped allowing shorts on stocks such as AMC, Gamestop etc.

A short squeeze is where buyers come in en-masse and basically stop out shorts. That means that short sellers cut their losses and quit their trades, this then causing a massive rally in the stock — for $GME the stock went up to a stellar $400.00.

Of course, no one can predict the future but that kind of rally would be incredible. I have a target of $400 in mind for my own shares. But this time it’s very different from $GME because we KNOW that the Reddit retail traders CAN pull this off.

Pre-market is slightly lower and I expect don’t expect much from today. I think we need a lot more buyers to pull off a short squeeze on this and the battle is now on.

Sadly, of course, this stock is nothing to do with the actual value of AMC in terms of a company. Pre-panemic the highest this stock managed is around the $35.60 back in November 2016. This makes me think that is about fair-value for this stock.

We wait and see if this is another Gamestop. But I wonder if the short-sellers have had enough of this kind of fight and there may be more regulatory action by the SEC in terms of market manipulation. However, I’m not really sure who they would prosecute!

Writing about Trading, Currencies and shares