The volatile stock markets are still in full swing. The market seems to be shifting bullish over the last few trading days but the data shows something else could be brewing.
In the chart above the Put volume is still very high as of the last trading day. According to Investopedia “An extremely high put-call ratio means the market is extremely bearish. To a contrarian, that can be a bullish signal that indicates the market is unduly bearish and is due for a turnaround. A high ratio can be a sign of a buying opportunity to a contrarian. An extremely low ratio means the market is extremely bullish.”
HEDGE FUND OUTFLOWS
Hedge fund outflows are also something that is bring up concerns across the board. According to Reuters “Investors putted an estimated $26 Billion from Hedge funds during the third quarter according to data provided by HFR.
In addition, the second quarter had a $27.5 billion outflow, marking the first time since the peak of the COVID epidemic which was in 2020 that hedge funds have seen consistent withdrawals from one quarter to the next. Conditions are as bad or even worse in some areas of the markets since what we have seen during the 2020 lockdowns.
This high number of outflows are higher than average and could indicate a more sustained bear market could be ahead for investors
3 POSSIBILITIES FOR AMC TO SHORT SQUEEZE
- Very recently AMC CEO Adam Aron announced that AMC ENT. TO OFFER – SELL UP TO 425 MILLION APE PREFERRED SHARES. This has the AMC and APE retail community with mixed feelings on whether they should offer more shares. Although some of the AMC and APE stock retail base is unsure of this offering there are some APES that are creating “theories” that CEO Adam Aron knows exactly what he’s doing and is playing chess not checkers.
- HYMC Hycroft mining has announced very promising results a few weeks back when they announced the drilling results. In the tweet down below CEO Adam Aron said “Eureka! In Hycroft’s early efforts, the biggest exploration program there in a decade, they found it! There’s MORE gold in them thar hills.“ and after looking deeper into this Hycroft mining report, the initial results look very promising and seem to show that there should be major profit in the future for $HYMC and AMC.
- AMC’s performance this year has been impressive to say the least. With revenue numbers coming in strong and year over year sales where they are, AMC looks to be recovering significantly post covid.