AMC - The most crowded trade in history

General Discussion
#1

From an article in Barron’s:
A trading position is said to become “crowded” when it is held by a vast preponderance of investors. Such positions develop when investors become so convinced of the logic of the position and its likely success that they become complacent. Crowded trades are dangerous because if anything occurs to shake the faith of these investors, efforts to bail out can be highly disruptive; few others are left willing to take the other side.

I’d like to hear people’s take on AMC in the context of a crowded trade. I am hopeful for a squeeze but skeptical in the crowded aspect of it.

#3

you sound like a shill

#4

Uh… who deleted my post and why?

#5

It shows that it was deleted by you. Perhaps accidentally. Does not appear to have been deleted by mods.

#6

I definitely didn’t delete it, so not sure what happened.

#7

see if you can edit your post and re-add it.

#8

Looks like I can’t edit once deleted but it shows the history. I’ll repost and see what happens.

I think that fits conventional wisdom but AMC, GME, and the like are more of a collective movement than the stocks that have experienced those lapses in the past. This is unprecedented and the longer it takes, the more time people have had to research, share knowledge, and grow their positions.

If anything, the number of investors seems to have grown. I personally know multiple investors that have joined throughout the year and none of them can be shaken off this without a major move. They each have their own PTs in mind and will just hold until it gets there. They are smart enough to realize time is on their side (AMC recovery, borrowing costs, increasing regulations, tax advantages if it goes 12 months+). Hedgies screwed up in January and again in June. Had it run to 150-200 I think it would have culled the herd more than it did. Now there is a significant contingent looking for 500, 1000, 10000, and up. If “they” did what many suspect them of doing, the prices can be astronomical.

For me, I started with a few thousand in January on an alert for a day trade. I have now put around 150K toward it. I will add another big chunk this week and I’m not going anywhere until I see more zeroes in my account.

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#9

I agree. Until there is a major move I will not be phased by this price action. Doesn’t matter, I’ve been holding and will continue to hold. You said it well, I’m not going anywhere until I see more zeros in my account.

#10

Thanks for the feedback. No I am not a shill, I think it is good to challenge the echo chamber sometimes and get people to think outside the box sometimes.

2 Likes
#11

Respectful disagreement and debate are healthy.

2 Likes

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