So yesterday we saw a close breakout on the Technical Analysis. Unfortunately did not play to plan.
What I do believe though is that we could see a bounce off of the 41.98 resistance line OR the Neckline to the M pattern seen on Monday (Blue Dotted line). With the direction going lower, let's remember that we are more than likely re tracing to a previous resistance forming a new higher low and to continue. Not entirely DOWN trending to new lower numbers. I believe we haven't changed directions and are still retracing. But, based off the T.A., does anyone else think we are near the bottom of the retracement, or Consolidating in a range (If we were to I'd say consolidation in the range of 48.12 and 41.98)
Retracements are very important and if seen and understood properly, They can be a great buy signal at the bottom of the retrace as-well. Wheres the bottom? MACD
My Thoughts are a bottom near the 41.98 and a green week next week.
Happy Trading everyone and remember... don't sell w/ Hedge funds!! The shares you sell ARE the shares they use to short. The less shares they have the better it is for us!
Side Note: I don't want to hype anyone up, but I truly think we could see the squeeze starting this new beautiful month of September.
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Another thought for selling shares When selling shares you put selling pressure on the stock Thats 1 Then, The hedge funds use your shares too short the stock. Thats 2 2x the selling pressure on AMC EXCLUDING the put options that imply and impose selling pressure as-well. Could almost be 3x the selling pressure w/ the sell. But! Don't take it from me. I just like the stock.
I think you are correct. A position here is a great hedge due to the circumstance that are about to roll in. On September 9th inb the first time in US history, we will miss paying on the National debt. The first missed payment is said to hit Japan, the owners of most of our debt, pretty hard. This generally can trigger a plummet in the market. It's all down hill from there. What I am failing to grasp is why there is QE going on in this market to begin with and why we are not stopping this to repay the debt?
GreenDayTrade
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@ssyxworld, To start, How do you see AMC as a good hedge? I understand the dynamics of the squeeze but were going against big money, wouldn't you say the risk is too high to use it as a hedge? As far as hedging the risk of outcomes caused by debt not being paid for, I feel like a better hedge would be crypto, no?
And before I answer your question, What are you abbreviating QE for, Quarterly Earnings?
Edit: Either crypto or Natural Metals (Silver/ Gold) would be great hedges because they have nothing to do w/ the dollar per say
ssyxworld
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@Gino_P1, sorry for the late response, QU quantitative easing, yes this is still happening. As far as a AMC being a good hedge, well it is, as the value of other equities fail, these guys will have to cover to avoid exposure to the fact that there are naked shorts out there. They aren't going to let the market tank without having to cover their short side and especially allow. Heavily shorted stocks go up, the rest go down. i mean if there were a market crash, the VIX would continue to rise. Due to its position on the S&P, they aren't going to let it tank, because by nature it is an inverse short on the SPY
GreenDayTrade
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@ssyxworld, So SPY goes down S&P goes up and vice-versa? And You do have a point ab it being a good hedge considering the shorts that have to be covered. As bullish as I am on AMC for them to cover I never saw the hedge in it, but then again i didn't even know that we weren't going to be making a payment for the debt on sep 9th. So with that effecting the markets I can definitely see it be a great one. More hodlers for us too lol. And so with quantitative easing, I don't even know tbh w/ you. The printing of the money is already a problem within it self and now you have the government saying spend more and Increase the debt. Its just a biiig screwed up situation were in right now
ssyxworld
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@Gino_P1, another fact about this being a hedge against the market. As the value of the portfolios decrease in a market correction, those with with shorts will be margin called. Why, they won't have the equity to cover their short positions.
I dont really see the value in shorting actual stocks as a retail investor. The loss is unlimited, the gains are limited. The only way really tto profit is by pushing it to zero. This then can be written off as a loss. The IRS doesn't recognize long or short positions. All you have to show is that the the stock went to zero and you had invested interest in the equity.
GreenDayTrade
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@ssyxworld, All that makes sense, and absolutely. Going short on stocks as a retail investor is very risky. But you can also use leverage which limits your loss to the equity you had in the position. so unlike margin your loss is limited where as your profits are un-limited. Highly suggest looking into it becuase it is muuuuch easier shorting stocks/ crypto than it is going long. As far is the IRS and your losses go, your only limited to writing off 3,000 worth of losses otherwise after the Third Thousand, you have to pay the taxes on the losses.