What's up everybody, it's your boy from trace trades. I think they call me trey coming back again for another youtube video. What is up? Everybody welcome to trace trades. We have technical analysis on different stocks in the stock market, as well as potential buy, hold or sell opinions on these.

Given stocks like reference by saying that i'm not a financial advisor nor experts, don't take it and say the grain of salt, let's get into the video, so today we're gon na be talking about why amc stock uh, not not, why amc stock, but how long the Squeeze for amc stock is going to last guys have a little bit of a brain fart, but i want to go over some some different trends, some different data and then kind of the science behind. Why squeezes last as long as they do so, i've got a couple different examples pulled up we're going to try and keep this short just a couple of minutes, and i want to walk through all the different squeezes that we've seen in the last four months right. So i've got amc, pulled up, costs, pulled up, game, stop pulled up, nokia pulled up and blackberry pulled up. All three of these squeezes happened in tandem.

They all moved at the exact same time, and i think it's a great example as to what you can expect. A for how long squeezes, last and b, what it looks like to sell on the way down right, because we can look at previous trends, historical trends and take a good, stab and guess at what we can expect for when amc stock does its thing. So first thing i want to say is this: i think that you're going to see some pretty major heavy moves in the pre-market and the extended hours when amc ends up making its nice dirty filthy move. So, let's just show you why i think that right, let's look at the six-month chart, so if you're looking at this on the six-month chart and look at amc stock, the last time that it had it's freaking, the stupid disgusting squeeze up right.

It made its move. After hours right, it made its move from five dollars and 20 cents all the way up to 15.75 and then the next day in the pre-market moved all up to and 80 cents now don't get me wrong. I made some nice major moves in the regular market hours. However, they've got halting for volatility now i don't want this to be mistaken right.

Halting for volatility is normal. That has happened across the board. So basically, what happens if a stock moves up um more than 10 in five minutes, they will halt the stock they'll halt trading so that people can take a step back and think about what's going on before they, you know, make any bad decisions or something right. That's normal, but if you see a halt on buying right a shift in supply and demand, that's not normal! That's when that's when i'd start to get a little bit nervous, but that doesn't we'll address that when the situation comes right, so i'm expecting nonetheless for a lot of the squeeze to happen in the pre-market and the after hours, and we can see this has happened With both amc and gamestop right, so let's look at this major move of the 25 dollars pre-market after hours.

Basically consolidated had some crazy moves down crazy moves up, crazy, moved down and then had another crazy move up. During the after hours, free market sold off, sold off regular market hours right and then pre-market after hours again made its most major move, moved back all the way up to 15 consolidated regular market hours moved up again in the pre-market and after hours, and then after That is when the squeeze ended now, if you're, to look at this right. How long did this last? I would say that this is the beginning of the squeeze right here. Think about it, if you had, if you had a dollar cost of two dollars and and uh 90 cents right, you would have a 10 extra money.

10 extra money to three dollar cost average. So one two three four five six seven days this lasted about a week about one regular trade week plus two days right. So that's one example: let's look at gamestop gamestop. You see very, very similar moves.

It has moved correct in the regular market hours, but a lot of their major gains were made during the after hours and the pre-market nice move in the pre-market after hours. Uh consolidation pre-market after hours, dirty move, dirty move pre-market after hours sold after the regular market hours. Nice volatility right here made some crazy moves and then back here right sold off and recovered in the after hours in pre-market again. This is something that i'm expecting out of amc when we make our nice squeeze.

How long did this last one two three four five six days right same sort of trend - let's look at cost cost would have made it to move. How long did this last one? Two three: four: five: i would call this five days until it finally sold off right and you see that it made its most major moves during the pre-market and after hours, nice move here. Nice move here. Nice move here right most of the actual hours trading, but outside of this outlier day, right here were consolidation or slight sell-offs.

So that's something that we can expect moving forward nokia. This was a shorter squeeze, but it was a nice long, one nonetheless right this is, i would say, a four day move one two, three four all the way up until it made his move to eight dollars and 84 cents and then sold off made a slight Small rally up to about 520 and then sold out from there right five day, move right here. Blackberry blackberry was actually a really nice long squeeze, and this is a this is probably the longest squeeze out of any that we've seen so far right. One two three, four: five: six, seven, eight nine days, nine days until it finally reached its top sold off, and that was the end of the freaking road right.

So where am i going with this there's this idea that squeezes are violent, they're fast and then it's done they're different from pump and dumps, though right so so that's something that we don't need to really think about. Squeezes are a long, a drastic drawn out event in which you see shorts, covering positions sporadically at different points right. This is going to look like a couple different things so think about a squeeze in and of itself. Think.

Actually, let's just think about this. Think about a position in and of itself that you own the smartest way to exit any position is not all at once. It's incrementally over time so think about what that would look like right. So let's say that you you're holding a short position.

Your losses are infinite, you're, hoping that it's just going to be a pump and dump you're, hoping that the stock is going to go up and then it'll come back down and you can still cover your short either net neutral or actually for a small profit. But the longer the squeeze draws out, the more likely you are to see more shorts covered positions. That's the psychology of charts right. They want to maximize their gains and minimize their losses.

So they're going to wait it out they're going to wait and see if retail investors the apes, which, by the way, we're freaking out leaving they're waiting to see if we're gon na leave they're gon na wait and see if we're just gon na. Take our small attendees and hit the freaking road, so the squeeze can last a very long time. In fact, i think that amc squeeze is not gon na last three days. Five days.

I think it's gon na be drawn out over one or two or three weeks. I think it's gon na be a long freaking process and don't get me wrong. It's gon na be volatile. You're gon na have some nasty swings, but nonetheless that's the psychology of what they're hoping for right, they're, hoping to slowly over time exit their position for either a small profit or at least net neutral, because right now, they're down they're, hoping that we leave.

So i am expecting two things with this: squeeze: i'm expecting a lot of the major moves to be made in the pre-market or after hours right. So what i would tell you is, if you hold stock and your brokerage allows you to trade any of the pre-marketer after hours, that you at least watch during the pre-market or after hours. Second thing that i'm going to say is: i think the squeeze is not going to last an hour. I don't think it's going to last a day.

I think it's going to be drawn out over the period of about a week right and that's good news, because it gives us a lot of opportunities to a pay attention to how high the stock can go, pay attention to price action and b. If you are locked up with a job, you're locked up with other responsibilities, other obligations right, you're, not tied to watch the computer screen 24 7. right. What i would do this is what i'm gon na do right.

I work a nine-to-five job. My game plan is to set price alerts on my specific stock right, so amc, i'm gon na have price alerts set up for 20 bucks. 30, bucks 50 bucks, 100 bucks, 150 bucks, 200 bucks right, i'm just gon na keep stare stepping those up and every time it makes a check mark up to my my price point right, it'll alert me and i can pay attention to the stock and be like. Okay, this is where we're sitting right now.

On the flip side, i'm going to have price alerts that i'll set up after it hits that price. Let's say it hits 150 bucks i'll, have a price alert set for a hundred dollars right. So if it makes a major move down - and it's something i need to be concerned about - i can pay attention to that right. But rest assured, i feel very confident in saying that if history repeats itself short squeezes are violent and they last a long time.

A good short squeeze will - and this is a drawn out disgusting short squeeze. You've - got an insane amount of actual real short interest, based on actual shares that should be circulating in the market. You've got naked shorting, which i think is circulating, probably two or three times the actual float that should exist. That is creating this synthetic selling pressure.

This fake selling pressure that's going to drive the stock way higher after that gets cracked down on by by the sec. The dtcc all these different entities that control the stock market and the price itself right. This is gon na, be a long drawn out disgusting filthy, stupid move, so you can rest easy, knowing that this is not gon na, be like a one hour period of time, where i need to be there for that one hour, or else i'm screwed true, i I do stand by this, not everybody's gon na get the maximum level of gains out of amc stock. Nor should you expect that right, very, very, very, very, very few people, it's a like one percent, maybe even less than a percent, are going to time.

The absolute top on amc, the people - let's, let's look at this quick - the people who caught this absolute top at 25 and 80 cents were maybe a handful of people, maybe five, maybe 10, maybe 20, maybe 100. You know everybody else has to find somewhere in the middle here on this candle right if you bought it at three bucks and you sold at 20.. That's that's freaking solid this first time around right, very few people are gon na get that top. So don't look for the tippy top of the stock right.

This is something that jordan belford said. That, i think is very very factual. Very important to know is catch the beginning of the end right, so when this is starting to make its move down, this is what i'm anticipating is that right? It's making its move down. We we see this nasty squeeze up to wherever this is going to go right.

I think that the upside for this is infinite. When it is on its way down, you will see a slow, stair stepping action down right. You see it right here up down up down slowly stair stepping those lower highs, lower lows that is going to be the beginning of the end that you should watch for right and that's what you're watching for once. You see this once you see the beginning of the end, that is when you're looking for your exit point right.

Maybe you watch for two train continuations and you're like yep. That looks like that's about it and you take your attendees and you you move on to something else. Of course, that is just what i'm going to do. I i do plan on making an exit strategy video here down the road.

I don't think we're near the squeeze yet so i don't want to talk about it until we get closer um, but nonetheless this is what you're looking for, like i said two things i i'm expecting the squeeze to last for a pretty prolonged period of time anywhere Between five days, so i think a couple of weeks and i think the majority of the price action is gon na be in the pre-market in the after hours, but that is what i've got for you guys today. So if you enjoyed the video, please drop a like blah blah blah consider subscribing, you know, hope you feel catch you guys on the next one. Thank you for watching my friends, my family, my fellow gorilla gang, much love peace out.