I don't think I have to tell too many people with any investment experience that no stock this worthless can have a price this elevated for too long. I've compared this rally in AMC to Dogecoin and on the 29th day, after doge's first peek we saw the start of its 70% correction. I predict just like Doge, this is the beginning of the end for AMC. CCI pointing down and crossing the 0 line. Volume is non-existent, with only 57M shares traded today which is 1/13th the number of shares at the June 2nd peak of 766M shares traded. You need a lot of new money to prop up one of these pyramid schemes and with 3-7% down days, it's hard to attract a lot of new interest. We might rally tomorrow briefly but by next week we'll be testing the $40-45 range and then by the end of July $20-25 if not lower. Final target by August would be in the $10-20 range. There is a scenario where we fall quick enough, triggering a lot of margin calls from bulls that got overextended and we see a blitz to $15 right away but I find this scenario less likely. A break below $50 would confirm my hypothesis.
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That didn't take long. I wonder how all the bulls drawing these triangle graphs are going to explain this sell-off day. I'm sure they'll find any excuse to tell people to buy the stock. There is always denialists in these Ponzi schemes, and those are the people who get the most hurt.
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I'm sure many of the bulls are now in the denial phase of grief but I thought I would just warn them now before things get really ugly. You’re going to hear a lot of excuses and allegations of fraud and other conspiracy theories as why the stock is going to tank over the next couple of days and weeks but the right answer is usually the simplest. People aren't long-term investors in AMC and their confidence in a squeeze has been shaken. When you don't have buyers of a stock that is probably worth $1-5 per share then the floor falls out because the true value of the company is way lower. It's that simple but I'm looking forward to all the conspiracy theories over the next couple days. You have been warned, a 500M market cap company can't stay worth 26B for too long. If you love the stock so much and are so confident is the squeeze to 100K, buy back at $100 and get out until then. Good luck Apes, the memes were fun.
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I tried to warn you bulls.