The wave of hype that drove parabolic price increases for meme “stonks” like AMC Entertainment (AMC) has died down…but investor chatter suggests it still may be unsafe to short. Since the initial squeeze in late January 2021, AMC’s Cashtag Mentions have remained significantly elevated. A pattern has emerged: High volume dates, proceeded by multiple days with Mentions above the 7-day moving average, indicate rising bullish momentum for this meme-stock. For example, AMC chatter held above the 7d MA every single day last week, culminating in a massive spike in Mention volume on Thursday. Shares have rocketed higher since then, burning a fresh wave of would-be short sellers.
In situations where fundamentals have been flung far out the window, it helps to have some insight into what the crowd is planning.