What's going on moon gang, i sure hope that you had a better weekend than i did welcome back to another episode of dumb money, and we have some exciting things to go over amc as a business. Hinton is expanding beyond that. We'll be talking about the overall market, some margin call stuff, we'll be doing some data stuff and also a technical breakdown at the end. So with all that being said, let's hop right into it.

Amc had a pretty funky day. At one point: it was down 11. Then we had an 11 rally and in fact it went. It was a beautiful red to green move and right at the end we were green and it dipped right under so pretty close.

It ended the day down, not even one percent closed out at 34.62. Looking at the overall market, i would count that as a win, because the overall market not looking too hot over the past four days, the s p 500, an etf which stands for exchange, traded fun. It's a basket of stocks. This particular basket tracks 500 of the biggest companies in the us, which is exactly why it could be thought as a barometer for the overall market but anyway, over the past four training days, it's down 2.84.

At one point it was down 3.5 and it did bounce off the bottom edge of this trend line here, what's been going on in terms of the overall stock market. Dow tumbles 700 points for its worst drop since october, as investors fear a coveted resurgence. So, basically, i'm not here to tell you anything about covet. That's not me, that's not my expertise.

If i had any expertise, this is just i'm here to explain that the stock market just does not like risk. This is perceived as an unknown, potentially unmitigated risk and the market right now, it's being a little bit cautious and trying to price that in so that's kind of what's going on with the market being read and that actually also led to some margin calls. Today there was a tweet that i retweeted margin calls go out at 2 pm eastern. So before this one out, i just want to clarify a couple things: uh.

First of all, margin calls are not for a specific stock. A margin call is basically commentary on the relationship between a trader, an investor and it's broker. Basically, if you're presenting too much risk to your broker and you're loaning out a bit too much money, they can margin, call you and in environments like this, when the overall market's getting a bit too volatile, they increase margin requirements they, as in less leeway, so accounts That were close to being margin called when this happens when they increase margin. Well, that means that they're more in danger because, like there's less of a lease in this situation, but i'm just trying to clarify that it doesn't relate to an individual stock, it's your portfolio and your portfolio's relationship with your broker and the perceived risk.

So that's! What's going on here and now, let's turn it up to a little bit more exciting news with amc, amc reaches agreement to reopen the growth theater and the americana at brand theater in the los angeles area. This came out on business wire and they kind of went into some fancy explanation, but then, luckily adam aaron tweeted out about it just now. It is a great pleasure to announce two long-term leases on the grove and the americana gorgeous theaters at our newest amc's. No ordinary theaters in 2018, the second and fifth highest grossing movie theaters in greater los angeles, hoping to add several more theaters as well so right there.

I like it. It's good news: they're expanding their market share, um, they're, being a very competitive player, they're, taking advantage of a certain situation and they're strengthening the business. I think this is very, very good news, so i just want to let you know what was going on with that. Another piece of news today that a lot of people i noticed were talking about related to this parabolic arc pattern, so this is more of a technical discussion, but just so you know, if i'm being very honest, this is the first time i've heard about it and It kind of makes sense, because right here, parabolic arc patterns are very rare, but incur in mega bull trends.

These patterns form in bull markets, where irrational buying in the public generates a strong rally as the price rise, almost vertically eg the internet boom in 2000 and the metals boom in 2005 2006, and who knows, we might be adding amc to that list pretty soon. So what is this all about? Parabolic arc is a reversal pattern and has a very predictable outcome. Although they are predictable, they are relatively difficult to trade, since the market sentiment is bullish and may be relatively tough to point out reversals to the trade most parabolic arc patterns have a significant correction of 62 percent from the top. So i'm not really here to go into like, like, i guess, the exact uh details of this trade.

But what i want to bring out is what this interesting fibonacci retracement and the bounce off of it, because if you do apply it to amc, you're gon na kind of find something interesting. So particularly for this trade. After a parabolic base, price moves up vertically and eventually the acceleration comes to a stop and then reverses price starts, showing lower lows and may attempt to regain the top again. This is the very i guess specific thing i want to dive in and may attempt to regain the top again.

This is important because well, first of all before we get into it and what i want to show you basically what it's saying for amc. Please understand any trading pattern. Nothing is guaranteed. Nothing in the stock market is ever guaranteed.

It's more of saying: okay, the deck is stacked in your fake river, but it's not going to say that this has to specifically happen. So if i give you a quick rundown, basically, you see a massive price moving upwards and then it comes down to the 62 retracement and bounces off of that, that's a high level rundown of what this parabolic arc pattern is here's some like examples of when it's Happened before a huge run-up, acceleration comes down 62 and bounces off of that. So the reason people specifically in the amc community have been talking about it. Well, if you go to the daily chart, right here, come to the indicator.

Excuse me the drawing fibonacci retracement. Let's go back out to where this started and if we look at this, look at that right here: 61.8, that is the 62 retracement ding ding ding ding ding ding ding winner winner chicken bingo dinner. Whatever you want to call it yahtzee, we have a double bounce, triple bounce right off of this level, followed by a pretty parabolic run up, i mean look at this. It runs up it does a bit of consolidation comes down, runs up bit of consolidation sells off.

We have a huge run-up, a bit of consolidation, a sell-off and now we're at that 62. Once again, i want to be very, very clear here. This does not guarantee anything. No one in the stock market can guarantee anything.

This is just saying: hey. Some people have noticed this pattern before and what it leads to is specifically a bounce off of the 62, and the golden question is: how high will this bounce actually be, and it's one of those things that time will tell. I just want to give you the quick rundown, because there's a good chance if you've been paying attention to amc, you've been hearing about this today. It was definitely garnering some interest overall, that's what's going on, and i do also want to show you one thing right here: another one.

So a little shout out to my boy, trey trades talking about the george w. We almost have a perfect double bottom aka george w set up right here we come down 31. We make a new relative high come down double bottom and we're looking to make like today might have been the start of it. But we're trying to finish that extra.

The the fourth part of a w so between two different patterns going on both the intraday and more of the daily, potentially some bullish setups. I also really really like just some of the bullish divergence we're seeing in the rsi the stock's gone a bit lower, but the rsi is not matching. We see that mismatch. I've talked about this before, and it basically just means that there's less bearish momentum now than there was previously and it's commonly indicative of a period of consolidation or even a potentially bounce.

So we have some bullish divergence in the rsi. We have a george w and we have this parabolic arc setup, so it will be interesting to see how they all play out. But i i for one - am i'm i'm being cautiously optimistic about the scenario for sure. The final thing i want to go through right here: amc just a quick or text update so to start today off the shares on loan 96 million utilization 87.

After today there was a return of 2 million i'll be diving into that. But just so you know, the short interest is 14.53. The shares return. 3.36 million.

The borrowed share is 1.25 million. One of the most common questions i get is how could there be a net return, but then the price didn't go up, because no, we know returning requires the buying of stock and buying should push the stock up. Don't forget about the t2 settlement. T2 settlement only impacts return shares.

Nothing else going on here. Just return shares and you have to ask yourself what happened two days ago. Does that make sense? Could three million shares been have covered two days ago? Well, let's check it out really quick. Let's go to the 30 minute.

This was today two trading days ago. To me that makes sense. I mean we had a run from 31, all the way up to almost 40.. You know if a 10 run is prompted by just 3 million.

Covering i mean we have 96 million to go and that's not counting the gamma squeeze, that's not counting fomo buying, i mean i i would take that so to me it does make sense. If we just look at the action from two days ago, i could see a very minute amount of covering there. I just want to clarify this t2 thing and how it relates and why we didn't see um the most immense, like today's numbers and return shares. Don't really relate to the price action that we actually saw today and then the other thing just a couple questions, so the shares on loan still trending upward ever since june 10th.

We are slowly rising and then the same thing ever since june 24th. Until now, the average duration of shares on loan how long shorts have been holding were around 38ish days so a month and a third roughly and don't forget these costs to borrow fees, do add up. That's definitely hurting them hey if you're long on the stock time is on our side, not the people, betting against it. So, overall, that's what i have for you.

The s p 500, a little bit scared about. What's going on with rona a little bit of uncertainty in the stock market doesn't like that amc gathering, more market share, it's expanding buying theaters, and it's even in talks for more than the two that i just announced. That's according to adam aaron and then overall we just went around the technical patterns that people are really talking about and a quick or text breakdown. So for me, i'm pretty excited for the upcoming week, but i would love to get your thoughts on amc.

In a comment below and until i catch you next time for me and chair best of luck in the markets.