First off I wanna say i dont hold any positions in either stock. And wanna Thank you for reading this post. I hope it encourages and helps you in your future $ making decisions.
No matter how much good news comes out.
Why does price keep coming down?
Slow Burn/Price Suppression Theory
Under this theory you will see the old saying holds true “Buy the rumor sell the news”
This is a completely unbiased thought of what I keep speaking about and would like to use this opportunity as an education to show the similarities and correlations between the two stocks.
Anyone that follows me on Tradingview knows I have spoke of the slow burn theory/price suppression theory pertaining to GME and AMC . And wanted to share how looking at the SOS chart even though it is more shorted more than GME at 235% currently. The price still falls.
Why you ask. In reality its pretty simple.
Seasoned investors already price in the rumors
To sell when they become reality.
“Buy the rumors sell the news”
Buying mining rigs became true price down
Buying majority stake in 3 US power plants became true. Price came down
Great witching event end of March became true price came down
Cohen becoming CEO and is becoming true price came down
Paying off debt became true price spiked. The news was bought most positive news last 1 week before price drops we will see how this holds up.
Reasons: Slow Burn/Price Suppression/Fear & Greed
The same people that short is also the same ones that long.
But you don’t hear that you only hear the hedges or shorts u never hear the flipside. Where those same people are longing the stock and right when the investors think price is gonna increase. Look what happens. Price drops
Some will say manipulation and your correct.
Because why we retail buyers buy 1000 shares the institutions are buying 10000 shares and can operate on wayyyy smaller margins.
They let price stabilize to get crowd involvement/excitement of lightning striking again before dropping price again.
You say they won’t escape the MOASS and your CORRECT.. They won’t. But until that ultimate short comes.
This is how they do it:
They continually burn the premiums while bringing price down only to buy/long at support levels (u know imaginary Astrology lines 😂😂)to rinse and repeat process before they drag price down and flush everyone out.
Whoever they dont flush out that MOASS ends up becoming so small in the end is generally the case.
That even the believers are left wandering how they pulled it off . They’ll ask “What didn’t I see?”
This seems to be the case with GME and SOS and AMC .
Now saying all that. Personally I feel SOS is the better bet.
Pros for SOS
They have wonderful news coming out. With electricity agreements in US.
Will have up to 16000 mining rigs mining bitcoin and while we are in the 4 year log scale of bitcoin . The short-mid term for SOS screams growth to me.
Small Marketcap especially compared to GME .
Easy to see a Gamma Squeeze can happen and propel this price once again. Again 235% short interest compared to 186% GME .
Price currently at less than 5.00
Remember what happened when GME was at this price? You got it. The parabolic squeeze.
This is a perfect setup for it.
But on top of that BTC will be on the to also help SOS bottom line
Whereas GME will most likely at least take 1-2 years before becoming profitable
So I see SOS as a better play and if the crowd truly gets behind it. The squeeze will happen.
Pending litigation/lawsuit issues supporting investors .
But good news about that is same blanket law firm also came after Sorrento Theraupetics ( SRNE ) and for most part it was frivolous.
I speculate and out of court settlement for SOS and biz as usual after that.
I could continue on but wanted to show you how they are driving SOS price into the ground to protect themselves from that ultimate squeeze when it does happen in the same way they are doing GME currently.
I hope what I wrote here helps anyone that reads it and gives you a better understanding of what is going on that we retail crowd cant control. Yes it sucks. But as you see with where Price is with SOS I can speculate and guess that this current runup on GME will perform just as SOS did and give hope to people who bought in at higher prices only for it to drop.
Sorry for such long post I hope this help clarify or just better or understanding to make good smart,sound financial decisions now and into the future.
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