I wanted to look into $AMC and it’s dark pool activity for our followers. Below you’ll find some analysis, which I want to remind everyone is just data and opinion. NOT finanical advise. I make an extra effort to say this here, as I know that a lot of folks who are trading or investing $AMC are newcomers, and that’s totally fine. I just don’t want anyone getting carried away with the emotions on this one, because it is very important you stay grounded while participating in the markets.
Now, onto the good stuff.
Here is a quick glimpse of the data showing up on the scanner. Generally, I watch for large dark pool activity when I am trading, and use the levels as support and resistance. I do this because computers react when large dark pool orders are reported, and I want to ideally want to align my trade with the machines rather than against them. That will sometimes keep me out of a long trade that goes up. However, in the case of $AMC there is an interesting situation because there are so many retail traders crowded into the stock. Some say 80%+ of the float may be held my retail. Is this good or bad? That depends on your entry, your experience, and your opinion. If you want to download the google sheet to the data, grab the amc dark pool data here.
$AMC Dark Pool Chart
Now lets take a look at the $AMC dark pool activity chart below. This chart shows the dark pool print levels as well the HFT (high frequency trading) computers activity. Looking at the HFT algo activity Friday we have an inverse head and shoulders ( a bullish reversal signal on the indicator) at the bottom of the channel, This is a good reversal pattern to find at resistance in the indicator channel. Many of the day trading programs that run furiously intraday have left their mark in creating this chart. Unfortunately, the signal is showing profit taking into highs intraday, or no bullish divergence from a swing perspective, with overall declining HFT momentum.
HFTs cant control the momentum all the time. Sometimes they lose control of the price action, or are forced to change their mind (buy vs sell) There is so much retail in this stock that there is a lot of retail power to control. But HFT algos will push as many buttons as possible. This is what they do.
Looking Deeper At $AMC
The total in dark pool activity on $AMC shows large size prints from January 28th on is totaled at 2.33 billion dollars. That doesn’t account for smaller size orders being processed under 100k share blocks. The fact that we held at a major dark pool print zone of 44.11 on 6/10 is very bullish in my opinion. The stock also held highs into close, with the algos running into the close with it. See my darkpoolcharts tweet for details. The daily chart held some interesting levels on Friday and chose to bounce hard at a very significant spot. This dark pool level is interestingly right near the 50% retracement from the pullback the week of 5/20 to the high of June.
I would really like to see 44 hold. Otherwise I believe we will fade to 37. $AMC is still ranked very high by Fintel.io for a ” Short Squeeze Score ” potential with 35% of its float being held short.
I have no idea what will happen now or in the future. Sorry but no one does. That doesn’t mean we can’t have conviction, and a great trading plan. Remember, trading is more reacting to what is happening than trying to predict what will happen. Be safe out there everyone!
@DarkPoolAlgo – Did a video for us discussing the differences between $AMC and $GME you can watch it here!