What's going on moon gang, it's another phenomenal day in ape nation, and we have a lot to talk about in today's episode of dumb money, we'll be going over. The new sec rules we'll be going over. The failure to delivers the short interest for both amc and gme and, of course, we'll be doing a technical breakdown of our two favorite socks. So we have a better idea of what levels of support and resistance to pay attention to when the market opens up.

Once again tomorrow, so let's get right into it. Amc closed out the day at 59.04, which was a nice gain of 3.58. A clear win any green day is a win for ape nation. Gme was down 3 on the day and closed out the day at 222 and 50 cents.

So let's kick this off with all the new sec rules, this one's specific to the dtcc right here i will make sure to link this below. So you can do your own dd on the like the documents i'm referring to here. So there's the new rule: 005, the dtc 2021. You could check this out uh.

The main thing i want to bring out here, there's multiple times in here that they actually say. If you look up effective, the proposed rule, change would become effective upon filing and you're going to see that, and then they even had some emails to the same effect. It would be effective immediately all right, so i just want to bring forth that like now that this has been filed. It is in effect, so with that.

The next logical question is what is 05 all about right here, i'll make sure to link this. This is awesome regulations edition it gives you like a quick little cheat sheet of what all these rules are so right here, 005 asset tagging and share lending revisions prevents loan slash borrowed shares from being loaned borrowed more than once. Another way to put that is, if you listen to that interview, i had with mr wes christian. Basically, these prime brokers have been taking the same exact set of shares that they could lend out and they've been taking that pile and lending it out to multiple people.

That's his example of xeroxing, so basically there's more loans going out than there should and then that prompts more of these failure to delivers another way to do. It is like this particular rule. It's making it more difficult to hide. Failure to deliver is creating synthetic.

So, overall, this one does directly relate to this concept of naked shorting and things that shouldn't be going on between hedge funds and prime brokers. So this is a good direction. Not only does this impact us with amc and gme in the sense of less naked shorting, but it helps the market as a whole, because this this is a practice that shouldn't be happening. I got a great question today: can you please explain why shorting and naked shorting, like obviously they're, doing the same thing, but why is naked shorting worse? This is a phenomenal question.

The reason why it's an illegal illicit practice is because you never borrow the shares or you think, you're borrowing shares that were actually just like copied and that's what this rule 005 is trying to like prevent, but you're increasing the supply and when you increase the supply Of anything in that second, when the demand is remaining constant, you drive the price down, it's a malicious way to attack it. So not only are you doing this normal shorting of selling to the market, but it's doubly bad, because you're increasing the supply, you're bloating, the supply, hence driving the price down, but what's even more interesting here is 005 - is an excellent, excellent step in the right direction. But i want to bring your attention to here. The nscc 002 amend the supplemental liquidity deposit requirements.

Basically, this is important for two different reasons. Once this actually gets filed and becomes effective. That means that a different rule, the 801 rule, will also go into effect and with these two that increases the collateral that can be required and from there people who are deeply underwater, that we can see a whole new slew of margin calls and i'm bringing this To your attention, because we're going to get more information about it on monday june 21st, so pay attention to 002, and then that also means 805. So both of these rules actually all three 805 o2 and then this first one 05 they're all excellent steps in the right direction.

So i'm telling you check this out. It's a great great cheat sheet. I will link that below, so you can kind of see. What's going on there so now, let's talk a little bit more about failure to delivers, but first, let's go over kind of like this quick rundown of what's going on with amc today there was a net borrow against amc.

You heard me right: a net borrowed 1.44 million shares so once again the short interest is higher. I i'm pulling my hair out because, like i just don't get the insanity of this move, what in this chart? What in this situation is telling people? Yes, i want to bet against it. I would be deathly deathly afraid to bet against amc right now, but yet they are and at the end, we're increasing the short interest which just increases the proverbial ceiling of where we're going to go. When this thing really really explodes so the shares on loan roughly going to be around 90 million utilization around 83 percent, and this will update today, ortex finally got the new numbers from the sec and finra the newest batch of ftds.

But i wanted to point out that they end on may 28th. We don't have the information on this run-up in june right here. That's going to come at the end of june, we'll get we're going to like it's kind of retroactive. You get the information from the start of june.

I am most interested in seeing if there's any ftd spikes the way we saw back here on january 27th. I want to see how things played out on right here, june, 2nd and june 3rd - i'm kind of expecting there to be like a massive spike in this. But, alas, we're going to have to wait till the end of june to actually get that information and why. I care about the ftds.

Ftds is an umbrella term and remember a naked short is a type of ftd, so there are other types of ftds. So all naked shorts are ftds. Failure to delivers, but not all failure to delivers are naked shorts. So, that's why this isn't a perfect metric, but it tells us more information of like when we see spikes like this you're gon na see some like craziness and in fact let me show you game stops, look at what was going on back here in january.

Look at this massive massive spike in failure to delivers um. I wouldn't be surprised if that's about how like amc's shark could be looking pretty soon, but like the fact that this wasn't a massive massive red flag for the sec, saying whoa. Why are there so many and why is it continuing to go higher and higher to me? That's like some smoking gun evidence, but once again i don't work out the sec, i'm not a lawyer, i'm not a financial advisor. I'm just trying to present some data for for all of you and then you can like.

I guess, make your own assumptions from this, but like absolutely gigantic in terms of gamestop. Today, gme there was a net return of 391 000, which means that the short interest dropped a little bit. The shares on loan - probably just above 12 million right now, utilization, which don't forget, is the ratio of borrowed shares divided by total lendable shares x, divided by y. Both of those numbers are dynamic.

That's around 52. It might drop down to 51, given the net return of shares today in terms of technical levels. I just wanted to bring this to your attention. I mean i love the look of amc like this.

This is beautiful. Look at this like i know we didn't get that breakout today and we had a bit of a hammer candle going on here, but this is beautiful. They beat it down for three days and then three days later, we just got it right back. So ever since we started this rally, i like to keep everyone updated we're up 388, and we are not that far away from the highest close we've ever had we're only down five percent from the highest close that amc has ever ever had in the past week.

We're up seven percent and from the start of the year until now up two thousand seven hundred percent, absolutely amazing. So what i want to bring to your attention on this is just kind of the technical levels right here. I've had this marked out on the chart. This red region, clear region of resistance and when we were trading considerably above it i'm not gon na lie, i got excited.

I thought that was gon na lead to like an absolute gigantic move up to that 70 region break out from there and then a huge continuation, but for now they were able to smack it back down. So this is still my major test for tomorrow. I want to get above 60 62, this area break out and then test in the 70, the low 70 region. That's my goal for tomorrow in terms of resistance for support.

We've now established support between 55 and 56 and below that we have between 50 and 52 support resistance in terms of gamestop. Let me switch this back to the daily chart. We are still beautifully bouncing off of this trend line so right there. I i for me, i think that this is amazing.

I mean this trend line has been in play ever since february. Uh bounce bounce, bounce, a fake out breakdown we get back above it bounce bounce. So once again, i think this the risk reward of the current opportunity on gme. It's amazing uh.

The risk is very close by while the potential reward is considerably considerably higher. So i'm looking for this region between 200 and 210 to hold from there on the upside, i'm looking to see how it reacts around 275 300 and from there the next obvious test would be 350.. So, overall, we have very, very good information going on with the sec. The rules that are being implemented and the ones that are about to be implemented are not only wins for amc and jimmy, but the stock market at large it is before we've been referring to the playing field being a bit tilted.

It's helping even it out. It won't make it even, but we're getting closer and closer to what i would consider to be a fair market, amc and gme. Specifically, we have new information on the failure to delivers, but we still are waiting for the information of what's going on in june, because the way it's reported, we won't find that out until the end of june. That's when we get the information for the start of june, but overall, when i look at the charts when i look at the short interest of amc and jimmy i'm still as apish as i've ever been with.

That being said, i would love to get your thoughts on both of these stocks in a comment below. If you enjoyed this video and you want to get in front of other people, i'd appreciate it. If you could help me out with the algorithm, all you have to do is drop a like and if you enjoy this type of content hit that subscribe button until i catch you next time from me and chair best of luck in the markets.