The #AMCSqueeze Effect In Full Force On MVIS and Bitcoin Stocks - RIOT, MARA, SPRT

 This is a follow up to yesterday's post. #AMCSqueeze is trending on Twitter as retail buyers are trying to push up the stock. But the next squeeze candidates according to Wallstreetbets chatter are UWMC and MVIS, as well as the bitcoin mining stocks MARA and RIOT. We are going to throw in SPRT into the mix because it's overlooked and actually has the highest short interest of all the squeeze stocks. 

First off MVIS. We said over the last several days that it's been hovering just under its 50-day MA, which acted as a resistance. We expected a break through and that level to become support as MVIS squeezed back up to $20. That happened yesterday and it has continued today, with a beautiful looking chart breakout:

We can see how important the 50 day MA is. In March it touched this level of support at $10 then ran to $18 over the next several days. At the end of March it broke through this resistance at $14 to once again pop to $18, but this time around support was weak. The third time it broke through this resistance in late April it ran to the 52-week high of $28. This fourth time around the resistance has been the strongest with MVIS hovering just under the 52-week MA since it pulled back from its late April spike. The early signs show a pretty forceful breakout and this one could be the most pronounced one of them all. Options expiry is coming up this Friday which means a possibility of a gamma squeeze if it can hit over $20 by then. 

Here is a chart of the WSB short squeeze favorites right now, plus SPRT, with data grabbed from Yahoo Finance:

GME, AMC and MVIS actually have very similar short interest percentages of around 21-22%. UWMC has a short interest percentage of just 14%. What makes MVIS the most interesting case is that it has by far the smallest market cap of these four of $2.5 billion. It has a similar price to AMC but three times less the shares outstanding. Buying MVIS now would be like the equivalent of buying AMC under $10 two weeks ago. It is primed and ready for its breakout squeeze. AMC is moving up 10% or so a day on 200 million or greater volume. The last time MVIS had that type of volume on April 26, it moved from $18 to $26. MVIS has an ability to move faster and higher on less volume. If AMC buyers put their efforts into MVIS, they would see $20 much faster than under AMC.

The Bitcoin mining stocks have taken a hit along with Bitcoin after Elon Musk pulled Tesla's support for Bitcoin due to mining operations putting pressure on the environment. Ignoring the hypocrisy as Tesla's thirst for battery metals puts a similar strain on the environment, Bitcoin miners have reacted aggressively by stating their operations are already using or heading towards renewable energy sources. We believe MARA and RIOT represent strong candidates to move back up as Bitcoin recovers in price. Their short interest are 13% and 18% respectively, which puts them in a similar category for a short squeeze as UWMC. 

Out of all the stocks on this list, SPRT has by far the best chance of a squeeze. There is only 3 million in short shares outstanding but the float is only 4 million so short interest is actually a very high 74%. Short interest exploded from almost nothing in mid-March. This was likely to do with a NY state initiative trying to pass a bill to stop bitcoin miners from being polluters during their energy-intense operations. SPRT is combining with Greenidge, a Bitcoin miner in the state. So SPRT tanked not only on Bitcoin weakness, but the threat of unfavorable politics as well. However, this situation was rectified a few days ago when Greenidge announced that its mining operations will be carbon neutral by June. So SPRT could be like a KOSS situation where it ran because of very small float putting pressure on a relatively small amount of shorts.