What's going on moon gang, i hope that you're having a good one, this will be a quick wrap up for both amc and gamestop. For today, wednesday may 19th amc closed out the day at 12 64, which was a drop of 9.91 and jimmy closed out the day at 168, which was a drop of 6.55 now, obviously, if you're in a this is not what you want to hear. Clearly, all of us want this stock to go up up and away, but sometimes that's not what the stock market gives us. So my entire goal with this video is to ease some of your minds.

I want to remind you that not only have we not lost this battle, but it is far from over. I will be diving into some of the data and some of the technicals, so let's hop right into it. One thing i do want to clarify right off the bat this was from yesterday. Um remember, the utilization rate for both amc and gamestop was very very low.

Yesterday ortex has made a public statement when calculating the average utilization numbers. Yesterday, data from some of the security lenders was missing and therefore not included in that calculation. This was an unprecedented issue and affected daily utilization rates across all 50 plus thousand stocks. We cover so right there first of all shout out to ortex for making a public statement kind of explaining to all of us what was going on, but more important than that.

That's pretty suspect, missing and therefore not included in that calculation. I'm personally pretty interested in. Why were these security lenders not sending over all the data, but that's what was going on with why the utilizations were so low on apparently 50 plus thousand stocks yesterday and before we get into the rest of the ortex data? Just so you know this is a look at the overall market, the s p 500 early. Today there was a massive gap down it kind of related to what was going on in crypto.

Crypto was having a very very rough morning, but from there it started climbing all the way back and we closed out the day at this previous support, which has now turned into resistance just around 4 10 50. uh. If we hold this look for it to go back up, but if it is rejected there i would then be looking for a test of 404. So let's switch it over to gamestop gamestop right here it was on a nice nice six day.

Movement got rejected at this previous high from april 27th right at 188 from there we got rejected and we are now sitting at the bottom of this trend line. Look for support immediately at this area. If we don't hold tomorrow, i'll then be looking for support at 150 key psychological level past that 136., if hopefully we bounce from here, we're then looking for that breakout of 188 and then a test of 220. on a bigger time frame yeah.

Obviously, it's not cool that gamestop dropped 6.5 today, but when in doubt zoom out, we are on a nice six day, movement over the past week we're up 16.6 and from the start of the year until this very moment we're up almost 800 percent yeah. I get sometimes that intraday action it can really bum all of us out, but don't forget how far we have come now. Let's talk about some of the data, so today there was return shares a million borrowed shared 627 000, which means there was a net return of 407 000 shares and that puts the estimated short interest at 22.11. The utilization as of this morning was 65.

The shares on loan was around 15 million, but now that we have that net return, we're probably around 14.5 million, and then just so, you know, based on the daily average over the past two weeks in terms of on the days to cover, is now at 2.58 Days, which means it will take about three full training days for all the gamestop shorts to get out of their position now, let's switch it up to amc amc. So once again, let's take a look at the bigger picture. We dropped 9.91, not cool, but remember this past week, up 22.5 from the start of the year until now up 500. Look how right here where we're at this is so much better than where we've been for almost all of this whole year.

If you're discounting this spike at the end of january early february, and this little period right here in march, amc is way better off than it's been. I mean just the price level is higher. That's a win. We're coming off an eight day, win streak eight day, win streaks, that's a very, very rare thing: it's okay to take a breather from that stocks.

They can't sustain that type of momentum better than that from a technical level. Look at this this previous resistance at 12. 22 has now clearly turned into support, that's exactly where we bounce off to today. So what i'm looking for moving forward is: okay, this resistance turned into support.

I'm looking for that to hold now that the rsi has finally had a chance to take a breather. We have more room to run so look at this. This is opening up our opportunity to not only test 1450 for the third time, but hopefully an official breakout. I know a lot of people were comparing this current chart action to what we saw previously and i get it.

It looks similar, especially from just a pure charting perspective, but don't forget some things have fundamentally shifted for the better in amc, namely the fact that we no longer have to worry about any form of shared illusion. We are not carrying that monkey on our back anymore. The dilution is over so this scenario. Yes, it looks very similar in terms of a chart, but fundamentally amc is a different and, namely a better more fundamentally sound company, dilution's, not a thing it's over.

We don't have to worry about it. There's a lot of suspicion that right here this came down because wanda was selling most likely they're out of the position or they don't have much more to sell. There are many things that we no longer have to fight about, so i would strongly argue that we are better off here than we were here, even though it looks similar. One thing i do want to clarify for you right here um.

I was getting this question on amc, so today there was a return. Shares of 14.6 million borrowed shares 4.84, so there was a net return of almost 10 million shares that puts the current estimated short interest at basically 15 to start today, off the utilization was 96. The shares on loan was 133 million, so if you take this into account, we're probably around 125 ish uh we'll find that out when ortex updates in the morning and the days to cover based on the two-week average is around one full trading day. I got this question a lot and i just want to clarify so every single morning or tex updates this top row.

Every morning, you're gon na know the new utilization, the new shares on loan and the new short interest to start the day off. Then right here we have some live updates where you're, basically seeing the return shares the borrowed, chairs, you'll, get the net change and then they're using a model in the back end to estimate the current short interest based on the free flow. There were some assumptions going through the community that this information is two days old, because the two-day settlement that is just not accurate, it's a misinterpretation of. What's going on with ortex, like i said every single morning, this is the up-to-date information on the top and then right here these these are live updates.

I think what the confusion is. Is this whole t2 settlement thing that maybe i didn't do the best job explaining in a previous video and it only only impacts return shares return shares. This is where it gets a little bit weird so today, some of these return shares a high majority of this. 14.6 million was shorts that covered two days ago.

They cover as in they buy back into the market. They cover their short position. They wait for the trade to settle and then they return it so pretty much. This is all live information.

Nothing here is really delayed. Yes, uh, when the day gets going. I guess you could say the top level is a little bit delayed because it's just updating in the morning, but in terms of the live updates, that's actually how many shares were returned today. This is how many were borrowed today.

This is all fully accurate, but it's it's weird and i get the confusion. A lot of these shares returned today were because of shorts that were covered two days ago, and that comes back to that like t plus two settlement thing, but i just want to clarify this is all very much live and we're not really getting any um. I guess future prediction from these numbers: it's all live what's happening in real time, and this just comes back to the fact of, like you, return shares after the settlement period is over. If there's any questions, please feel free to hop in on a live stream.

I'm i would be more than happy to clarify, please feel free to leave a comment below, but uh there's a little bit of confusion about like what this means overall takeaway. This is all up-to-date information the day of so that's. What's going on right now, um, we are seeing a decline in amc's short interest in the end. That's because so many shares are being returned, and that makes sense, because the shorts are scared right now they don't like the situation.

They don't want to be involved with us, so they are hopping ship. But the big question is: is this number big enough for a squeeze? Is this number big enough or a squeeze? The answer is yes. We've seen tesla make amazing amazing moves that related to gamma squeezes and short squeezes with a short interest around six percent. We are more than double that right now.

Amc is sitting at 15. Of course, the higher the short interest. Mathematically really you're going to see a higher ceiling for where the squeeze could go, but in terms of a squeeze going in terms of amc's share price, just shooting up to the moon. Even if you were conservative and said that a hundred million out of the 132 million were short - and let me clarify that is just being conservative, that is a lot of shorts that would have to cover.

That is a lot of buying pressure, and even if we're looking just at the shorts, please understand that we're discounting the potential impact of just fomo buyers, good old-fashioned people that they see the stock going up. They want to hop on the rocket and that's more and more buying pressure, there's no way to mathematically account for that. So the short interest is of a magnitude that a short squeeze is still possible. We're talking about a hundred million shares that could potentially have to cover, and then there's no mathematical way to possibly really like in any formula count in how much fomo buying will benefit us.

We want any form of buying it, it doesn't matter just buying pressure is buying pressure, whether that's fomo buyers, whether that's naked shorts, getting out whether that's legitimate shorts getting out of their short position. It doesn't matter at the end of the day. It's all different forms of buying pressure that will benefit us one. Other thing: i want to point out that i just think is kind of interesting at the end here.

So on the bottom we have the rsi relative strength, index values of 0 to 100 and it maps out momentum. So, as you can see, amc recently went higher, but the rsi went lower. This is referred to as bearish divergence. It means that there was less bullish.

Momentum up here than down here and it's commonly indicative of a a decline or some sideways trading. Obviously, with this bearish divergence, we saw that decline and it's playing out as it was technically expected to so we came up to this resistance. We had the bearish divergence, it was successfully rejected after we soaked up some of that supply, and now we came back down to this support, which was previous resistance and now we're bouncing. This is good because look at how much space the rsi now has to run.

Look at how much space amc as a stock has to run on this third test. This is a picture perfect cup and handle here is the cup and then, as we come back up, we will form the handle and if you crack open any technical analysis book, they will tell you that a cup and handle is a bullish pattern. Obviously there will be a counter example to any technical pattern out. There is never ever guaranteed, but statistically it is a very bullish one, and now that the rsi has cooled off when we start to come back up, we'll have even more room to run.

So the main thing, what i'm looking for in the short term, is for us to hold this level between 12 and 12 25. I want to see how it reacts to 1350. We saw some support. We saw a little bit of resistance.

I want to see that test of 1350 and past that i am still watching 1450 as the major breakout level overall to wrap this up with amc and gme. I fully understand: what's going on apes, it is this was a painful day. Obviously, we want the stock to rip higher and higher, but if you zoom out the chart is looking good, the technicals are in our favor and beyond that, a lot of the data is still favoring our position. So sometimes i i think it's important for me to explain like i get it.

Sometimes the emotions get the best of us when in doubt, zoom out and check out the data with all that being said, i would love to get your thoughts on both amc and gamestop in a comment below. If you enjoyed this video i'd appreciate it. If you could drop a like and don't forget, to join up with the moon gang by hitting the subscribe button until i catch it next time. For me and chair best of luck in the markets, you.