All right moon gang, we got ta talk about some interesting, i guess data or tex developments uh before we get into that. I want to talk about amc, gme utilization, their numbers and what this all means. So first amc right here: uh we are seeing a higher low kind of similar to the russell 2000. Looking for that breakout above 1660 1670, as i'm filming this in pre-market, that's exactly where we're at.

I want to see the breakout of the low 18s from there that opens up the opportunity to 20.. That's what i'm watching to the north side in the short term. In terms of gme similar scenario, we are seeing a new higher low, as in the bulls, are stepping in earlier this time around than they did previously. Looking for that breakout, we actually kind of got an important one yesterday, 105, and then it actually got above 112, which i was impressed with looking for the breakout of 120 and then from there i'm watching 130 in the short term right now, aimc gme.

If you look at the charts, the higher low that we've had recently is showing the aggression of buyers and it's showing the weakness of sellers. That's what a higher low gives you. It shows that buyers are just being straight up more aggressive. So, in the short term, i like what i'm seeing, and i also like its confluence, with what we're seeing in the russell overall.

We also know that the equities market in mid-february is bullish, and we also know, particularly for the remainder of this week, there's an abnormal bullish bias seasonally. So all of that is kind of the higher level picture, and we also have some interesting developments. We know amc. It's buying more arc like pacific theaters or it's acquiring them.

They have the the batman, nfts gamestop, some rumors flying this morning that they're in talks with microsoft for nft development - and we know the recent things with loopering and immutablex. So overall market has some developments. The macro fundamental situation related to amc, gme positive stuff coming out. Well, on top of it, we now have a new situation, amc coming in at a short interest of 21 and, as you can see, this has been slowly but surely trending up ever since thanksgiving.

We kind of bottomed out around 15.6 percent and right now we're cruising at 21 and recently we made an all-time high of 21.8 and in terms of gamestop similar situation, estimated short interest of 22 recently right around thanksgiving, we bottomed out at eight and ever since then, The shorts have been loading up and right now we're hitting a recent relative high, but we do know previously that gme has been in excess of a hundred percent short interest. So right there, that's already pretty kind of crazy in itself of saying yeah. No, the shorts are loading up as we're actually seeing some strength in the charts. The thing i really want to dive into is this right here: utilization.

100 utilization 100. This is very fair to be talking about because it's kind of a crazy statistic and i want to really dive into what it means and the common thing is have shorts maxed out. That's the golden question right. There have mac short out right.

Well, okay! Well, have they yes, but also kind of no, and let me explain what it is, but first to be able to explain what this idea, this concept of, like mac short level hit. We have to get into utilization utilization is a ratio. It has values of zero. All the way up to one hundred percent and when you're looking at that, how do you get that calculation, it's just x, divided by y? It's one number divided by another number.

Well, that top number x is the shares on loan. It's shares on loan divided by total loanable shares, so shares on loan. That top value x is the amount that people have been taking off of someone else. They're like someone else is like offering theirs up and they're like yes, i will take that.

I want the opportunity to go short. Thank you for letting me, like borrow your shares off of you. Shares on loan is basically someone who owns the share, loaning it to someone else for the opportunity to go short. That's the x value, the bottom value.

Why is total loanable shares? Well, it's all the people who are willing to loan it out like like it's just because you're willing to loan it out doesn't mean that someone's actually going to take this short and that's why you're getting this ratio so right now. The fact that we're getting 100 is saying that everyone who's willing to loan theirs out. Well, someone actually took that loan. That's what a hundred percent means um the little bit of confusion, and why i'm diving into this like breakdown, is because some, i i see a little bit of confusion of people are trying to connect utilization to not being able to buy stock utilization has nothing to Do with buying stock it just does buying stock if you're buying stock someone's selling you stock.

If you're selling stock someone's buying it off of you, the definition and the utility of utilization doesn't really cross into this world utilization is simply the amount of shares on loan. Divided by the total loanable shares so before, when i was saying well, it's kind of true that max shorts have been hit, but also not really at this exact moment in time. Yes, the maximum legal legitimate shorts have been hit, but remember, x, divided by y. Both of those numbers are dynamic from hour to hour from minute to minute, from second to.

Second, people can choose to like return their shares on loan and more people who are currently owners can choose to loan theirs out or could choose to not loan theirs out, so both of them can expand and contract these values of x divided by y. Neither of those numbers are constant uh they change throughout the day they change like literally every single second, at least. Potentially they can change every single second, so i just want to clarify what this is, but i also want to talk about some of the other implications of when you see these numbers getting this jacked up, typically and very commonly. If you see these values of 97 98 99 100 utilization - and there is still a demand for shares to go on loan - well think about that.

If there's just a demand to go short still, but no one's really loaning it out. That's exactly when you see the cost to borrow also known as ctb go through the roof, because the supply is constrained, but the demand is high. So obviously, if supply is constrained and demand is high, the equilibrium of the crossover of those two is price and in this case we're talking about the price, to borrow these shares off of a legal, legitimate owner. So i would in no way as if we see this number kind of go up.

What's that's telling me is that the pool of people who are willing to loans increasing and we're also probably going to see a spike in cost. To borrow, i don't know the exact number it's going to go to previously. We've seen some in excess of 500 percent. We've actually seen some that are even more so it can definitely get absurdly bloated.

I'm not here to call out the number um i just want to say that, like one implication of utilization going so high is the cost to borrow going higher, which means the people who are holding a short position. It becomes more and more costly for them to hold it. Remember. If you're invested in a stock, it costs you nothing to hold you hold you hold, you hold, you pay no extra fee.

The same cannot be said about going short. Actually, you don't even have to go short. You just have to take a share out on loan once and that's a little caveat right there, because you have a share on loan. That doesn't mean you went short.

It means you now have the opportunity to go short. Just so, you know a nuance uh there that i just want to explain, but anyway, this cost to borrow just because it's out on loan 117 million shares are paying. This are paying 1.2 right now on average uh and remember, that's not the daily fee. This is what you would pay if you held it all year, so you're going to divide that by roughly 253.

That's the rough amount of trading days within a year. So if you wanted to know the daily fee, you would take the amount - and you divide it by like how many trading days there are and that's the one day fee. So this is an annual rate, but overall remember utilization's jacked up commonly you see the costs of borrow, get jacked up, and that means they're going to pay more and more money. Um - and this is kind of tying back to this concept of shorts - cannot hold forever.

They can't like they're it. They don't have an infinite amount of money if you were to extrapolate outward in time to whatever point they're gon na be paying this fee. So these are the situations where um recently it's been kind of an easy go for them, because the stock's been down trending so, like obviously, that's a net profitable movement for them. Well, now that the stock is showing some strength, utilization's jacked up costs to borrow is getting more expensive.

Well, the position's moving against them because the stock's being elevated, but on top of that, it's kind of a double whammy, because they're paying more in fees. So that's kind of the breakdown of the intersection between short interest shares on loan utilization cost, to borrow, and all that i just wanted to share it with you just because right now it is interesting that both amc, gme and i actually know some other equities right Now are maxed out, so i just wanted to share a couple tidbits on how to properly interpret what all this stuff means.