What's going on moon gang, i hope you're having an enjoyable weekend and easter holiday. This video will be your weekend update on both amc and gamestop i'll, specifically be focusing on ftds aka failure. 2 delivers make sure you stick around into the end, though, because i'll also be giving you the most up-to-date short interest numbers on both of those stocks and then i'll be laying out the key technical levels. So we are better prepared for the upcoming trading week before we get into all that, though, don't forget to join up with the moon gang by hitting the subscribe button and also as a quick reminder.

If you want to use this trading software, it's weibo there's a sign up link in the description of this video. If you do that and also deposit a hundred dollars, you'll get two free stocks, all right, let's hop into it. So what is an ftd in the stock market? Failure to deliver is more of a high level term. That basically means you can't make good on your obligation.

It applies to stocks, options, futures and a lot of other things in the market, and it also applies to being long or short. For example, if you buy something aka you're long, but then you don't have the money for it. That means you can't take delivery and then, if you're short, as in you're selling, something into the market that you don't initially own, that means you can't make delivery. Both of these are failures to deliver.

In the first case, you don't have the cash and in the second case you don't have the goods. So, if you're watching this video - and you are curious about - what's going on with amc and gamestop, there's a good chance that you've heard of naked short selling, which isn't a legal practice and that would actually be under the umbrella of ftds for the short selling side. So basically, um, it's like under the umbrella of ftds, is naked short selling to get a little bit more into that. It's kind of that same concept of you're selling, something into the market that you don't own.

Basically, if you're trying to sell something, you actually have to borrow from somewhere and it it can happen if you're a retail trader most likely if you're watching this just like me, you won't have the ability to do it, but if you're working as like a hedge Fund or a prop trader uh, they can do it, but as a reminder, it is definitely illegal and um so naked short selling, you're selling, something in the market that you don't own. This is bad for the stock for two main reasons: number one. You are basically, since you didn't borrow it, it's almost like fraudulent selling pressure because, like you, you should to short sell. Typically, you borrow from someone.

Then you sell those shares to the market and then, when you're done with the position, you buy it back this time you didn't borrow from anyone, but you still sold something to market, so it's fraudulent selling downward pressure and second because it's you didn't borrow it originally In a way, you're almost diluting it, whether you want to call them synthetic shares, phantom shares ghost shares. I don't really care what you're calling them, but basically you're selling some to the something to the market that only exists on paper. It's not a true like share of that stock, so this has been discussed a lot in the community about gamestop amc um, it's an ftd naked short selling is illegal, it's very, very bad for the song. So i feel like the next logical question is well.

How prevalent is this like? What are the numbers um? This data is a bit delayed. I will make sure to post this website this sec website in the description, this video, if you want to check it out um. So just so you know, the values of totals failed to deliver shares represent the aggregate net balance of shares that failed to be delivered as a particular settlement date. I just wanted to point that out because i see people adding the totals for the month and that's not really how it goes like it's the aggregate net balance, so it's most useful to look at the most recent day, but as soon as this date is posted, It's actually already kind of old, so like right here, the most recent is the first half of march and if you look into it um the most recent i think we have is of march 12th.

I looked up the values and feel free to double check me on this. I highly recommend you do your own due diligence. Remember i'm not a financial advisor, i'm just sharing like the type of research that i find so for amc. The ftds were 31 000.

On march 12th - and that's once again the most up the most recent data we really had and for gamestop it was 155 000.. Also on that day, so amc was at 31 000 and on that day, just to give you uh the size of the ratio of what we're dealing with on that day, amc traded 111 million shares and gamestop, which had a ftd of 155 000 on that day. Traded 26 million. So obviously it's a very, very small ratio now to be fair with that being said, to the best of my understanding, there is a potential way for hedge funds and other players to actually hide their ftds.

It involves a kind of complex positions in the options market and i can make that as a standalone video if you're curious in the mechanics behind it. But as of thursday april 1st this most recent april fool's day, the dtc did submit a new proposal. A new rule which wouldn't make that much much more difficult as in they're trying to stop people from hiding their ftds um. So right now, if hey matt, do you think 31 and 155 000 for amc and gme respectively are accurate? I would assume that some are being hidden.

I can't really comment on the magnitude of how many there are are out there. I would assume that there are more, but i also just don't have the data or evidence to prove it. I know that there are ways to hide ftds and i know that the dtc is now fighting it um. I don't really want to speculate too much.

I just want to share like things that i can prove through data and evidence with you, but that's the current state, so overall ftd's failure to deliver. You can't deliver on your obligation. It happens all across the market, specifically with short positions. That's when naked short selling comes in, it is illegal, we're starting to see some of these ftd numbers.

You can check it out yourself on these websites. The numbers we're seeing right now are relatively low, but i wouldn't be surprised if they're, um, intentionally hidden and pushed down and the numbers are actually larger for both amc and gamestop and most likely other stocks throughout the stock market. So now, with all of that, out of the way i do want to give you um some information on the current short interest and utilization, all that stuff, with both amc and gamestop and then we'll roll right into the technical levels to be watching this upcoming week. So, as a quick reminder, amc has an outstanding shares, as in the total shares in the world, without kidney counting any of these, like synthetic ghost phantom shares, whatever you want to call them a 450 million and the free float as in the shares that you and I can trade is at 404 million, so with that in mind right now, the shares on loan is 116 million um, and then that means that the utilization rate is around 85 percent out of the entire pie that people are willing to lend out to be shorted.

85 is being used and the estimated short interest is currently 18 for gamestop. The outstanding shares are 70 million. The free flow is 45 million. As of now, the shares on loan are 12 million, which means the utilization rate is around 58, and the estimated short interest is just under 23.

So if you were to compare these to other stocks across the market that are considered to be heavily shorted, these numbers are blowing them out of the water. Yes, amc and gamestop are still heavily shorted. We are at the magnitude we need for a short squeeze to become a reality and in fact, like they're kind of well amc is actually trending upward and then gamestop is consistently holding the numbers. Are that's the big question i get all the time.

Are these numbers big enough to see a short squeeze? Yes? Does it mean that a short squeeze will happen? There's no guarantee of that uh, i'm in the game. I have my positions in amc and gamestop. I definitely want it to happen. I want these hedge funds to basically pay a big price, but um the numbers are there.

Basically, the part of the puzzle that we're missing right now is just the bullish sentiment, the bullish buying the we just need a nice follow-through in price action to kind of turn up the pain on the hedge funds, who are currently shorting both of these stocks. All right now, let's hop into a technical breakdown of both of them. Just so we know what price levels are of of interest to the market when the it reopens tomorrow, before we hop into that just so. You know the s p.

500, an etf that tracks 500 of the biggest companies in the us. Basically, it's a really good barometer of the overall stock market just hit a new all-time high uh just above 400. So if your other portfolio, your blue chip stock investments, they're most likely doing pretty well right now, the one thing i wanted to point out to you about this, though, is on the bottom. Here we have the rsi, which stands for relative strength index.

It's basically a technical indicator that maps out bullish against bearish momentum. It has values of zero to 100 when it gets very high, especially above 70. That's considered to be very bullish. Aka overbought, when it's very low, specifically below 30, that's considered to be very bearish.

Aka oversold, a lot of people use this tool as a reversion thing. So, basically, if it gets low, they look for the stock to bounce and if it gets really high, they look forward to a sell-off. Basically, they look forward as an oscillator just to like return to more of like that neutral in the middle thing. As you can see, i'm bringing this to your attention right now, the overall market, even though it's looking great, very, very strong, it's theoretically right now considered to be overbought, as in i wouldn't be surprised if it's running into resistance right now, and it needs to take A bit of a breather, but remember no technical indicator on this planet is ever ever going to be perfect all right.

So with all that, out of the way, let's talk about amc, just the price levels i'm interested in watching just so, you know when i say technical support and resistance. All i mean are price levels that in the past the stock has bounced off of or been rejected by. These are important because in the stock market, important price levels in the past tend to stay important price levels in the future, and we also see many circumstances where support turns into resistance and resistance turns into support. So, to put this another way, pretty much like once an important price level, it tends to be important in the future.

As of now gamestop is trading at 9.36. Over the past week it dropped 14.4 percent over the past month. It's up nine percent and over the past three months, it's up three hundred and thirty three percent. As of now, the closest support that i have identified is nine dollars.

The closest resistance is 9.74 and then that's followed by 10, and we also have this trend line that i would like a breakout above that just to signal an official change of trend, but also remember we were talking about with the rsi. It's very, very close. In fact, at one point on thursday, it actually tapped the oversold territory, so i think, just from the rsi alone, there's a better statistical chance of it moving upward than downward, but remember no technical indicator is perfect. All right.

Let's talk about gamestop gamestop, currently trading at 191 dollars over the past week. It actually gained four percent over the past month, it's up 54 and over the past three months, it's up an incredible 894 gamestop. The closest support which i've talked about a ton is 185. I'm definitely looking for that to continue to hold and the closest resistance will be.

The region of 200 to 212.. 200 is a key psychological level and 212 is the site of a previous gap down in early february. So i'm looking for a breakout of that or breakdown of 185 past that we also have support at 158 in terms of the rsi it's pretty much in that neutral territory. It's not really giving us too much of an indication, but the other step technical structure that i'm currently watching is actually this wedge right here.

So in the world of technical analysis, this triangle is actually referred to as a bullish pendant. What is a bullish pendant? Basically, the stock is trading upward and then it goes into a triangle where we see lower highs and higher lows. It's a period of consolidation. If you crack open any technical analysis book it'll tell you that this is a bullish, technical structure, they commonly break upwards, but remember, there's always counter examples to pretty much every technical, like development out there.

But if you were to look at a book it would say this is bullish. It's referred to as a bullish pennant, so i am looking for a breakout and a test of 212. past that i'll be looking to see how gamestop reacts to 250.. So i hope you enjoyed this weekend update.

We went over failures to deliver naked short selling, the current short interest rate for both amc and gamestop, and then the important price levels i'll personally be watching this upcoming week. Don't forget to join up with the moon gang by hitting the subscribe button, make sure you're going over that bell icon clicking on it and switching it to always. Just so you don't miss any of the monday to friday live streams or the technical, fundamental or portfolio update videos such as this one and, as a final reminder, don't forget to check out that link to weeble. You can get this trading platform for free, and, on top of that, if you sign up you'll get one free stock and if you deposit a hundred dollars you'll get a second free stock.

In my opinion, it's definitely worthwhile to check out until i catch you next time from me, duck shirt and chair best of luck in the markets. You.