What's going on moon gang welcome back to another dumb money update for today, thursday august 26th? My main message in this video is: do not panic. Remember as an ape. We are calm, cool and collected throughout this video. I will be doing my best to explain what happened to amc and gamestop today i'll be going through their technicals, their short interest and i'll be spending a lot of time, diving into the narrative of really what impacted the stock market today.

But the highlight of it all is me personally still very, very happy to be long on. Both amc and gme are two moon stocks. So with all that being said, let's hop right into it. Amc closed out the day at 40 31 and it's currently trading at 40 55, as i film this and jamie closed out the day at 205 22, which is exactly where it's at right now before we talk about amy and jimmy here.

Let's talk about the overall market, this is a look at the daily chart for the s p 500, which is tracked by the etf spy, the spy. So today it did have a red day. It dropped point five, nine percent and i could already see it, there's going to be a lot of people calling for doomsday market crash and that's just an emotional appeal, but please keep in mind. Yesterday wednesday august 25th.

We did make a new all-time high, just just zoom out a little bit one red day. That's no reason to panic. Unfortunately, the reason we did have a red day today, it's for two main reasons and one of them it is. It is pretty sad.

So this was reported by the pentagon. Earlier 12 u.s service members were killed, 15 wounded in attack near kabul airport. Obviously, this is not a good situation and to all the families impacted by this. You should know that you are definitely in my thoughts, but obviously we have to talk about these types of things because clearly, when it involves global geopolitical situations that is going to have an impact on the overall stock market.

So i just wanted everyone to be aware of what is going on and the second thing less sad how the financial markets may react to powell's big speech on friday. Just so, you know, powell is slated to speak at 10 a.m. Eastern as part of the kansas city, fed's annual jackson, hole symposium, so throughout the twitter sphere. Today, in a news media, there were some people confirming that.

Yes, the fed is looking to follow through with their tapering as in stopping the buying of the assets, the bonds that is backstopping the economy and individual companies right now and really that's what's been pushing the market higher and higher and higher ever since march of 2020. So with that, if they are kind of easing their quantitative easing their qe um, the markets are having a little bit of a reaction to that so, depending on what he we kind of know. What he's going to say, but it very much depends on the tone of how he says it and the severity of how they plan on unwinding their tapering. That could have an impact on the market so with this kind of not really leaking today.

But people discussing because we know the tapering is going to end - that also did have a negative impact on the market so between the tragedy in kabul and what's going on with the fed right now, that is really those two. It's the one, two punch of why the s p 500 was red and also the russell 2000.. The russell 2000 yesterday had a nice technical breakout, looked like it wanted to test 224 break out, maybe get a run to 225, but today, with both of those things, we are back in the wedge and the reason i'm talking to you about iwm, which tracks the Russell 2000 is because this is the indicee it's the index for 2000 small cap companies, and it just so happens that amc is the largest one within the russell 2000, so iwm very much provides headwinds and tailwinds to the stock. It's very common for them to not really in any way being lockstep together, but they kind of rhyme like they'll, both drift up they'll, both drift down so with the market being hit today.

I do believe that that had an impact on amc previously gme was in the russell 2000, but at the end of june it was moved to the s p. 400 mid cap. So it's not in the sp y or iwm at this moment in time as i'm filming this video, but anyway here is a look at amc. So over the really.

If we rewind two days, we had a double top rejection, 4820, 4820 and then today after we broke the low of yesterday, which was 4317, it kind of fell to the next level of support. We do have some nice nice support between really 39 and 42, which is what i'm about to show you, but i just wanted to show you the daily. Please remember i get it. Whatever amc closes at i'm right there with you.

I want it to be a dollar higher. I want it to be five dollars higher, but please keep in mind where we've come from. I mean, if you rewind far enough. It wasn't that long ago that we were trading at 13 and really it wasn't.

That long ago, that we were trading at 32, if we never even got up to 48, and today we were just slowly getting up and we broke 40. We would all be ecstatic right now, it's more so that we have that hindsight bias of knowing we slightly came down and i think a lot of people are getting burned on options that happen to expire tomorrow. So that's a reminder if you are engaging in options that is very high risk for high reward, and if you choose to do it, give yourself a little bit more of a chance by buying farther dated ones, don't get burned by these like weekly lottos. I just do what you want.

Obviously i'm not a financial advisor. I just see too many people getting burned by it right now, but please keep in mind that amc over the past week over the past week is still up 19.19. That's a very good one-week gain. There's no reason to be bummed out at all.

If anything we shot up and if you look at a smaller timeframe, we shot up here. The rsi was way way too hot. The engines in this rocket ship were way way too overheated, and i personally wish it just bounced right off of 42. That would have been nicest, but now it looks like we're bouncing off of 40..

So right here, i'm watching this current wedge setup. We have lower highs higher lows. This is pretty much the definition of a bullish, pendant look for the bounce off of this line right where we're at and look for the follow through and a breakout of this top trendline. Now, if you've been watching any of my technical analysis, videos pretty much from 38 39 up to 42., this has previously been read because i was saying hey.

This region will be in resistance, but, alas, on tuesday we ripped through it like it was butter. It did not stop us at all and now we're in the situation where it was overbought and we're retesting this region, which is why i have it as green when we were below it. This region was acting as resistance, and now i think this entire region could act as support. That's my theory going into tomorrow and really the start of next week, depending on when you're watching this.

So i'm looking for support to be found very very soon, because if you go to any time frame the 30, the 15 minute, we we're we're oversold folks, i mean right here: we're bouncing off the 30, like the rsi is very, very low, so people outside of This community, not even apes. I just think day traders swing traders who are looking for a good technical reversion buy and they know the insanity that amc can bring. I think they might be stepping in saying all right. This is a bit oversold and we're looking to track back upwards.

So for me, a telltale sign of like hang on everything is still mucho. Bueno is really breaking today's high of 44.78, so i'll be watching that followed by 46, and then i want to see this test and break out of 4820 and from there obviously i'll map out the next levels in terms of support, we're at support right now and Then we do have support uh, the high 38s. We could also just call it 39, so those are the major levels of support and resistance, but this, i do not think was a natural movement for amc. A lot of people are like hang on.

Is it being shorted a lot and yeah? I mean there was quite a bit: almost 3.2 million shares borrowed against amc showing interest of 17, but please keep in mind that we also traded 109 million shares today. So that's not even 3. So i don't think this was an absurd short attack. I think it really did relate to the s p.

500 iwm, as that relates to the kabul situation and what's going on with the federal reserve, but one interesting thing: i need to bring to your attention, which is, i think, honestly, one of the most exciting things about amc. So one two days ago we had this crazy run. It went from 36. What is this 36 all the way at one point up to 48, which was a quick run of 32 that was two days ago and remember.

We run on a two day settlement. So some people are saying hang on, i think shorts. A lot of shorts covered in here well check this out, 2.9 million were returned today if shorts covered. This would be the t2 settlement, not many covered.

In fact, there was a net borrow against amc. The short interest went up higher, so this movement that we're seeing. I think it's pretty much confirmed that no, this was not short covering. This was a technical breakout and a nice momentum fall through, but i think the the same shorts that have been in there there's more shorts in there now.

So i think that's actually one of the most interesting things if we get this bounce and the follow through that still gives us a lot more. I guess gun powder to for the explosion, upward um, not really any shorts, no noteworthy shorts actually covered in this move. Now, let's switch it over to gamestop gamestop, there was a net return of 227 today, uh 227 000 shares excuse me and that the borrow itself was 226. The short interest sitting at 13 utilization is 38 shares on loan 7.22 million.

Now, let's take a look at its daily chart, different situation, so we have this wedge breakout it ripped up and now we're just kind of dancing in the same area, and it's still bouncing off of that 200 level. Very, very much like that and more of a smaller time frame you can kind of see here how it's really really respecting the 200 and what i would personally watch right here. What i want to see is if we were to draw this tomorrow and for the start of next week. I want to see the breakout of wherever this is obviously it's dynamic depending on the time i want to see the follow through and then i want to see the test and breakout of 225 after that i'll be watching 240.

So clearly the major support is 200 and below that we do have 188 overall. This is holding very very nicely. Gme is holding incredibly nicely, so i'm i'm excited about both of these things. I really like the technical setup on gme and, if we get to follow through on amc, i'm also really really gon na, like that.

I just wanted to acknowledge the 40 break that out so both of these amy jimmy both of them have the ability to break through these trend lines and we're not really seeing any shorts covering yet, which means we're still that ceiling of where we could theoretically go To man, oh man, i mean the the sky truly, is the limit for both of these and any of the negative. I mean gme actually gained on the day, so i can't even talk about that, but for amc i truly believe that this was people were concerned about what's going on in the small cap sector and i think amc being the largest one in the russell 2000 kind Of took the most of that blow and i don't think that this is in any way people like panicking out or shorts attack, or anything like that. I do believe that it's related to more so of the market at large, and i think maybe people panicked in the sense of they see everything else selling and they didn't know what to do, and maybe they aren't the diamond-handed apes that they thought they were or Who knows, maybe people don't know about the community and what's really going on in the stock period, but overall it's oversold the shorts are still there we're in a region of support. I like it and the same, can pretty much be said about gme.

So to really sum it all up, i am more than happy to still belong on both of these moon stocks. Now, with all that being said, i would love to get your thoughts on amc, gme and, what's going on with the fed tomorrow, he's going to be talking in the morning love to get your thoughts on all three of those in a comment below and until i Catch you next time from me and share best of luck in the markets. You.