AMC Stock Has Hedge Funds Shaking In Their Boots

I’ve been following AMC Entertainment Holdings Inc (NYSE: AMC) for some time now, and I have to admit, if you were to ask me a year ago if manipulation happened in the stock market, I would have said, “of course it does,” but until very recently, I had no idea of the extent of the manipulation that happens. 

Most of us retail investors believe that regulatory bodies like FINRA and the SEC are here to help and that the market has been designed to be a fair and equitable place for all. Well, the Big Short Squeeze has helped to prove otherwise.  

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The Manipulation On AMC Stock Is Unreal

Shortly after writing my first article on AMC earlier this year, I was inundated with emails thanking me for publishing an honest opinion. I didn’t get what all the hype was. Sure, most articles online about AMC were bearish, but contrarian views are rarely met with positivity. 

How was it that when I wrote about a company that the EXPERTS said was going to fail in a positive way, I was being treated as though I was a Martyr. Don’t get me wrong, I enjoyed reading the emails, but it didn’t make sense that writing such positive information about a stock that was expected to fall would lead to such a reaction. 

That is, until I dove deeper. 

Amidst all of “thank you” and “great article” emails were several emails with links, research, and proof of the manipulation. Moreover, several emails were screenshots of messages from hedge funds to social board creators, offering payment in Bitcoin to sway opinions about AMC… WHAT?

That’s totally illegal, but it seems to be happening quite a bit when it comes to the stock. 

That got me thinking. What if I was right? What if all the experts with contrarian opinions were being paid tens, or even hundreds, of thousands of dollars or more by hedge funds in an effort to sway opinions. 

Then, more proof came flooding into my inbox. I soon found that not only are these funds paying experts to float negative crap around the internet in an attempt to sway investor opinions, they also seem to be using dark pools to reshape reality in the numbers. 

For those of you who aren’t aware, hedge funds often act as market makers, with orders placed through brokers being rerouted to these funds to be filled. While the sell orders have been counted religiously, buy orders don’t seem to match up, and that’s because a huge percentage of them are flowing through dark pools. 

With the stock market being a system of supply and demand, not counting buy orders makes it look like demand is nowhere near what it actually is. As a result, in the market, supply is far overblown and demand is undercounted, leading to pressure on the stock. 

Ouch… I know, it hurts, but it’s reality!

Retailers Are Beginning To Take The Lead

There’s a silver lining surrounding this otherwise dark cloud. While hedge fund manipulation is a very real threat, it seems as though the fact that retailers are banding together and refuse to accept what they’re being told by the big dogs is making it very difficult for the hedgies. 

Earlier this year, hedge funds were handed billions of dollars in losses as retail investors bought up all the shares they could of meme stocks, leading to massive short squeezes. This week alone, short selling hedge funds have lost more than $300 million as a result of their efforts to manipulate. 

And we’re only in the first inning. 

The fact is that as retailers begin to take the upper hand, hedge funds are getting nervous, which means there’s a good chance that the big squeeze on AMC is around the corner. 

Furthermore, the funds, and their managers seem to be grabbing straws, trying to find a way to get the retail community behind them. Why? Because they know that while they’re big money players, if enough little money gets behind a cause, they can hand big money to their rear ends. 

This is why hedge fund managers have been reaching out to the social community, offering to pay to help sway opinions as pointed out in the article here.

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The Bottom Line

The bottom line here is that for now, the manipulation continues. But that’s not going to last forever, it simply can’t. Now, the hedgies are finding themselves stuck between a rock and a hard place and continue to plead with the retail crowd as they lose hundreds of millions of dollars in no time flat. 

Don’t bend APES. Don’t break, and don’t accept payments in bitcoin. You’re on the cusp of a revolutionary change in the stock market, and your willingness to continue fighting the good fight isn’t just likely to pay off in terms of return on investment, but also in terms of changing the mechanics of the market to take the upper hand away from the big guys that believe their droppings on the porcelain throne smell like roses! 

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