What's going on moonging, i hope that you're having an amazing day and a phenomenal weekend, this episode of dumb money is all about what in the world is going on with amc i'll, be giving you a quick recap of what happened in the first week of june 4 amc and then we'll be doing a more of a look forward. We'll be talking about some of the fundamentals we'll be discussing some of the data related to the shorts and their position and how that's running and, at the end i'll be doing a quick technical breakdown. So we know the important price levels as it relates to support and resistance for this upcoming week, because i'm expecting a pretty crazy high volatility week. So, let's hop into it to close out the first week of june.

Amc was at 47.91 and whoa whoa. Stop me. If you heard this story before td ameritrade limits trading on amc, entertainment td, ameritrade, put in place trading limitations on amc on friday june 4th, this is exactly what we saw with similar names, such as amc, gme costs, all those highly shorted ones. In late january, early february, that's what a lot of brokerages did trading in the stock will be limited to clients with own capital on hand and not borrowed funds, said td, adding that there might be some additional requirements on trading options that expire on june 11th.

So this is a little bit different than what we saw back at the start of the year right here. What this is telling me is. This brokerage is really trying to mitigate its risk. It's telling me that there's going to be a lot of volatility this upcoming week and they're doing what they can to not be involved with that risk, because they don't want to be on the hook.

In case people get blown out with margin requirements or anything like that, so they're trying to mitigate things to the best of their ability. But i'm i'm going to be personally watching the storyline to see how it continues and i want to know if other brokerages are going to follow suit, so a little thing to pay attention to, but more from a fundamental perspective. Remember when it comes to amc. It's very important to talk about fundamentals, it's important to talk about the data and the trends related to the shorts and finally, just what's going on in the chart, i like to refer to it as the scoreboard.

So in the first week of june there was more amc dilution. They did two different at the market offerings. One was related to mudric that started on june 1st. They bought 8.5 million shares and they their cost was at 30.

They they're bought at 27 and then the very next day on june, 2nd they sold around 32 and obviously right now, the stock's trading higher. So i bet they wish they held on to it following that, though they did an additional at the market offering of 11.5 million shares. There was a big question of where did this? 20 million shares come from? Finally, we got that answer from adam aaron himself when he was doing an interview with trey trades. I highly recommend you check out that video, but basically that 20 million block it was slated to go to the leadership team, the board, the chairman, all that stuff and instead of doing that, they instead offered it to the public.

So they could raise more money and once again, fundamentally improve what is going on with amc as a company. This is a quote from him right here and just so, you know that did raise over this one. Just the 11.5 million shares the second one raised over half a billion dollars, bringing in an additional 587 million of new equity. On top of the 658 million already raised.

This quarter results in a total equity raised in the second quarter of 1.25 billion, substantially strengthening improving amc's balance sheet, providing valuable flexibility to respond to potential challenges and capitalize on attractive opportunities in the future. In my opinion, to wrap all this up, basically they're better to battle kind of their debt, that comes to um due date in 2025 and 2026 they're able to get better deals on their current debt on leases and all that and on top of it, if you've Been reading adam aaron's twitter, we also know that they're, potentially targeting some distressed other movie, theaters and movie chains, so they can improve their own market share so they're using this money, the money that they're raising overall they're using it to fundamentally improve amc as a business. They're expanding its runway and they're, giving it they're really really strengthening it. In 2020, it was as a company, it was on the ropes, but from 2020.

Until now, all the craziness that's taken place. It's permanently change the trajectory of it as a business. In a very, very positive and noteworthy manner, let's talk about what's going on with the shorts, so to start friday off the shares on loan. Remember you have to borrow shares to take a short position.

So all these shares there's not a perfect one to one correlation. It's not like all shares on loan are bet against the company, but it's pretty close, so the shares on loan was 138 million, but then there was a net return of 30 million. So right now there's still 110 million and i think that's noteworthy and i'll explain why there was such a big return, but we didn't see the price go up, but just so you know uh right now, according to or text the current short interest is 70 million Shares which puts the estimated short interest of the base on the free flow of 13.66 and the utilization is almost the max value of 99. Just so, you know if you're confused about short interest shares on loan utilization and days to cover, which is currently 0.25.

I have posted a video going in depth explaining all those on this channel. It's called know these terms so check that video, but the one thing i want to do right here. First of all, this is still a big big magnitude. We're talking about 110 million shares on loan and for me you know, i'm getting out of my position when, basically all the shorts cover i'm not looking for a date, i'm not looking for a price, i'm keeping it that simple when the shorts cover.

I will then get out of the position, but i'm now here to explain why was there such a giant return of shares? Well, i shouldn't say: giant: that's really not that fair, because, proportionately we still have 110 million to go. Only 30 million were returned, but anyway, why were 30 million returned without a notable spike in price? This comes down to stock market plumbing and how it works in the back end and it's about the t2 settlement. So basically they were returned on friday june 4th, but because of two-day settlement that actually means that we had some shorts that covered two days prior so right here on the june 2nd when we open up the day at 37 and closed out the day at 62.. I believe it was a gain around 95 percent that was right there you, you can see that that was when they covered some of them covered more of a smaller percentage covered.

They waited the two days for the trade to actually settle, and then they returned it. So, basically, what i'm expecting is, if you look at the action on thursday and friday, i don't think that many shares actually were covered in terms of short positions on these two days, so on monday and tuesday, this upcoming week i'll find out if i'm right, but I really don't think many shorts were covering on these two days. I think some of the shorts covered on wednesday, hence part of the reason why we saw a 95 run-up, but i think that was more due to a gamma squeeze and some fomo buying. But overall, no matter how you slice it, here's the important thing there is still 140 minus 30 110 million shares that have to be covered and think about it.

This way, just in terms of the short position alone, 110 million still need to be covered. Look what 30 million did 30 million gave us a 95 run think about what 110 million can do and that's just for shorts. That's not accounting for more gamma, squeezing which we can definitely account, like that's gon na happen, and then there's no way to account for all the fomo buying that we're gon na see. So, overall, you could have the shorts.

We have 110 million. You could do some math to know where that would get you to less of a degree. You can see what kind of gamma hedging there's going to be in terms of the options market. Remember that's! When going from out of the money to in the money, the market makers have to buy shares to protect themselves yeah, you can kind of account for that, but the one that there's no way to account for is all the fomo buying all three of those.

A short squeeze of gamma squeeze and fomo buying are all different forms of buying that are gon na push the stock up. But, as i just explained, it's a multivariate equation that it to me it's too difficult to like peg an actual price on it. But overall, at a bare bare minimum, just looking at the 110 million of shares on loan that are gon na have to be returned, as this stock continues to go up, that's extraordinary itself, and then you add in what's going on in the options market and fomo Buying for everyone all the new apes, seeing how much it's going to run man, this thing has such an incredible amount of potential. It's absolutely amazing.

Now with that being said, though, i know the final two days emotionally, it was a bit of a blow because wednesday we're all excited, it gains 95, practically 100. We wanted a continuation of that and i get it every single day. I want it to go up too. I mean from my peak to there that would that i saw my own p.

L drop hundreds of thousands of dollars. It was sickening. I get there i'm right there with you, but when in doubt zoom out trust me, like, i said fundamentally we're still looking amazing actually from the past two weeks. Until now, amc is a much stronger business data wise, there's, still a lot a lot of shorts.

That could cause this to go sky high and then, in terms of the chart. Look it over the past week we're up 80 percent over the past two weeks. We are up 300 percent to me in my book. It is a-okay after running 300 to take a 23 just healthy correction when in doubt, zoom out the chart is still very much in our favor.

Look at the last three days: lower highs, higher lows, classic consolidation. In fact, i could even show you a little bit better here, so we run like a madman. Then we have lower highs higher lows. If you crack open any technical analysis book, they will refer to that as a bullish pennant, it's called a bullish pennant because it forms this triangle structure and, typically you see a positive follow-through now in terms of the exact technicals right here in post-market training.

We're actually in a strong region of support, we've just seen amc battle it out here before between 41 and 45, we've seen rejection and support, support, support, more support and more support. I'm looking for that to happen once again, just for it to bounce off of this region and we're also seeing that the rsi, the relative strength index, is starting to show a lot of bearish momentum. In fact, when it gets to be this much of an oversold thing, usually that's when day traders and swing traders start to step in just because they're looking for a nice reversion play so in terms of technicals we're in a nice region of support and the momentum Is about to bend back in our favor at least that's how we personally read this shark. Remember no matter what i say check me fact check me: do your own dd, i'm, not a financial advisor, i'm just a person posting videos to youtube so make sure to do your own research on the current situation, because at the end of the day, it's your Profits and your losses and honestly, i hope that it's your discussing massive profits when amc continues to rip higher on the way up.

I am looking at this resistance of 57.50, that's where we were rejected on friday and then, when we get above that i'll be watching this region between 68 and 72 and honestly after that, that would be a new all-time high, and at that point i would personally Believe, where you really see the kick-in of some more fomo buying on the new all-time high and from there, i don't think a gamma squeeze in a short squeeze would be too far away. But once again, these are my own opinions and i would love to get your thoughts on amc in a comment below. Overall, i get it thursday and friday weren't the best, but take a look at the bigger picture. We are still winning this war, i'm still as bullish as i've ever been.

But let me know if you enjoyed this video, don't forget to drop a like. If you want to become a member of the moon gang. All you have to do is hit the subscribe button and until i catch you next time from me and chair best of luck in the markets, you.