What's going on moon gang well another day and another win the stock market just closed today on monday june, 7th and amc stock came out of the gates swinging, or i guess, if you want me to put that another way. It was another b-e-a beautiful day in ape nation. This is dumb money, i'm your host, matt kors and let's dive into what in the world, is going on with amc and do a little bit of prep work. So we have a better idea of what might play out tomorrow.

So just so, you know, amc closed out the day at 55 flat, which is a nice gain of almost 15, and to give you a bit more perspective ever since this nice move up starting on really the may 21st until now we're up 356, absolutely incredible, and Over the past week, until this moment we're up 110, these are phenomenal. Phenomenal gains, i'm right there with you. I obviously wish it was higher than where we're at, but don't don't lose sight of the fact that look how things are trending amc is doing exceedingly well. If you ever have a little moment of doubt or anything like that, when in doubt zoom out, look how far we've come, it wasn't that long ago that we were honestly trading below ten dollars.

Think about how impressive that is, that we're training above 55, as i'm filming this, absolutely incredible all right. So, let's start this off a little bit of story right here. This was posted on bloomberg. Amc shares jump as new memestock favorite returns to form.

I thought this was kind of interesting. It's noteworthy to all of us in a statement on monday today, the u.s sec said it's monitoring, markets for manipulation and other forms of misconduct among the frenzies surge in so-called meme stocks. We will act to protect retails investors if violations of federal securities laws are found. The agency said right there.

I know it seems small, like what's this four lines of text right here, but i think this is actually a big win for us think about this. We have been making such amount of noise such an amount of ruckus that we're getting the sec to finally look into something now. I have no idea if anything will actually come from this, but look at we are making actual verifiable change, we're fighting for market transparency and fairness and we're finally getting somewhere. Like i said, i don't know if this is gon na really produce anything, but at least we're heading in the right direction.

On an unrelated note, i know a lot of people were talking about amc and jimmy potentially getting moved up to the russell 1000. I just have a couple comments on that. A forthcoming reshuffle of the russell indexes could pose a problem for the likes of amc and gamestop, which started the meme stock craze back in january. Their enlarged market caps of 24.6 billion and 18.4 billion on friday, respectively, put them in line for a move from the russell 2000 small cap stock index to the russell 1000 index of the biggest american companies.

This was a comment from a wells. Fargo analyst, the graduation of these high flyers could be the beginning of the end of their epic run. So i actually don't agree with this. Why getting upgraded to the next level of an index could be a good thing? Well, there's a lot of portfolio managers out there who run funds that specifically track all the different indices, an s p 500, one a nasdaq, 100, the russell 1000, 2000.

3000. All those! So, basically, there's a whole host of fund managers out there that are currently running funds that track the russell 1000, for example, where amc and gme might be going to and right now, if they don't own any amc or gme, when it's finally added to that, if They want to be properly tracking these indices they're going to be forced to buying it. So in my book this is actually a good thing and i'm not just throwing this out as an opinion. We saw this exactly pay out with tesla at the end of 2020.

For quite a while, people were wondering, why is tesla not in the s p 500, but on the announcement that it would be included until actually being included? The stock ran up because we knew a lot of fund managers were gon na have to buy if they were properly tracking that industry. I don't see this being any different, and on top of this, this wells, fargo analyst right here, didn't really give a reason. He just said: oh, i think it could be the end. So for me, what i've seen historically is when you get upgraded to that next indices.

It's typically a good thing, because it just means that more fund managers who are using portfolios that track a certain indices are going to have to buy it, especially if they're having a portfolio that tracks the russell 1000. But with that being said, we will find out the results. I believe it's june 25th when we'll get the results of this. This hasn't been decided it's kind of being discussed right now mold over, but we will have more of the results on june 25th.

So i just wanted to share my thoughts on this. Some people are saying it's not the best thing. I just don't see how just like. Historically, i think, there's a precedent for stocks doing better when they get put into the next level of an indicee.

Let's hop over to ortex, so after today there was a net return of 16.5 million shares, uh return, shares 19.82 and borrowed shares 3.31 million, and today, to start the day off, we had a usualization of 88.93 with a net return. I bet that's going to drop a bit tomorrow, shares on loan. Of course that's going to drop, and after today ortex is estimating a short interest of 11.86 percent and just to quickly touch on the days to cover we're at 0.2. So there's a couple i think important clarifications i want to make right now.

First of all, vortex is not getting their information from any hedge funds, they source it from prime brokers. The way you and i use something like weeble, they use another broker and instead of us using brokers, hedge funds use prime brokers. They are the people that facilitate the loaning and borrowing of shares. That's an aspect of their business model.

They increase their own revenue by selling this data. That is who ortex is getting it from, in fact, they're sourcing data from about 85 of all prime brokers and out of that 85 percent. It includes all the main ones, so their coverage is actually greater than that and that's for these top numbers, these bottom numbers these live updates. Not all prime brokers give live, updates they.

This is about a 60 coverage. So that's why the morning updates from ortex are a bit more important, but before i get too deep into that, i do want to clarify one thing shares on loan to take a short position. You have to borrow shares from someone you're loaning them, and then, if you choose, you can then take it short. So right here shares on loan when we see a return.

This is two possible things. First, it could have been someone a hedge fund, a retail, whoever that took the shares out on loan did not like what they're seeing as in hey. Maybe amc looked a bit too strong and they decided to not short at all, so they just returned the shares. That is part of this number.

The other part of this number, our shares that went on loan were actually shorted. Then they bought back into the market and then because of t2 settlement. We wait two training days and then their return. We don't know the proportion.

These return shares right here, the 19.82 million we do not know if these shares were just on loan, never shorted and returned, or they actually went shorted recovered two trading days ago and are finally returned. I want to clarify this because, yes, obviously there's a correlation between shares on loan and short interest, but it's not one in the same and that difference it's it's a huge discrepancy, and at that point we don't know out of these 20 million return shares. We don't know what amount was just on loan, never shorted and which ones were actually counting towards the short interest with that. I also want to remind you that all this data is from legal, legitimate shorts.

This in no way is accounting for naked shorts. So, if anything, you could think of this as a conservative estimate a floor value, if anything, any naked short out there would increase these values. Don't forget that this number right here about 60 coverage, so we'll have a more accurate depiction of the current short interest when this updates in the morning before market open. I also want to quickly bring your attention to this right here.

It's still one stat that i think is absolutely insane. This is on average out of all the shares on loan. How long have they actually been low down right now? We are approaching 54 days as in almost two weeks. How do i know that the shorts are severely underwater they've been in this for two months, no, no matter where they took that in the past like two months ago.

Clearly they are underwater. I understand that some shorts hopped in today that's a very small, a proportionate amount. That's three million out of over a hundred million most shorts right now are seriously seriously underwater they've been in this play for 54 days they're, clearly under, and on top of the fact that they're down by a certain percentage amount, don't forget that they're also paying a Cost to borrow fee every single day, just to borrow those shares right now, no matter who's, pitching it to me. The date is clearly in our favor.

It is absolutely clearly in our favor they're, just hemorrhaging money at this point. Don't forget that, no matter what it is, confirmation bias or not, it's just know your data understand. What's going on fundamentally amc with its all the at the market. Offerings has fundamentally improved as a business as we're about to see with the chart.

Like i mean it's been on an absolute tear ever since may 21st, and in terms of the data there are still shorts, there are still shorts that have been in for a while and they're in a lot of trouble. Do not forget that all right, let's talk a little bit about the chart, so we went over this crazy run ever since right here may 21st the stock has been going higher and higher, and what i want to point out is actually how we have an interesting Technical breakout, so we have two different wedge structures here. If you look at a technical analysis book or anything like that, they would refer to this as a bullish pennant. Basically, the stock is trending upward and then it consolidates and forms a triangle where we see lower highs and higher lows so upward and then a triangle.

We have two different ones going on here. So if we have more of this steep line or these two white lines, you see that we actually had a breakout, it came down and tested. It went back up rejected at 60 and then once again bounced off of this trend line. So at first, what was acting as resistance now appears to be acting as support.

That's great for us tomorrow. One of the main things i'm looking for is kind of this double breakout scenario. It looks like we have resistance at 60, so we saw a rejection, a rejection and then back here some consolidation and even acted as support on june 2nd. So whatever is going on at the 60 price point, a lot of people are reacting to it.

A lot of volume is being traded at that level, but what makes it interesting this time around? Is it's actually a second breakout of the other wedge we have going if you were to make kind of a less steep line so right here tomorrow. The first thing i'm looking for is for amc to clear this resistance, and then that would open up a very, very nice and what i would assume to be simple test of 68 and then past that i'm watching for this test of 72 and a half just To break out and run to a new all-time high if we happen to get rejected there, i'm looking for support to stay informed between 50 and 52. On the downside, that's just a major support, which i would personally view as to essentially be a good dip buying opportunity. So, overall, those are the price levels.

I'm watching support resistance really looking for this breakout at 60.. I think it's interesting in terms of the news that the sec has made a public statement. I think that just kind of shows the amount of waves we're actually making in terms of the russell 1000 upgrade. I don't know in the past whenever i see those type of upgrades, it's good for the stock and don't forget just fundamentally every single day that passes amc is becoming a stronger and stronger fundamental basis.

I'm here to keep everyone calm, cool, calm, cool heads will prevail in this scenario. Don't forget in terms of fundamentals, the data and the chart. I think it's kind of hard at this point. The trends in our favor.

It's hard to see a scenario like i just don't buy into it. I'm in this for momentum play a swing trade i'm here until this short squeeze narrative really plays out, and in my personal non-financial advice, opinion. I think that things are still continuing to trend in our favor, but with all that being said, i would love to get your thoughts and a comment below if you enjoyed this video i'd appreciate, if you could help me out with all that youtube algorithm stuff, a Like a comment, a sub, if you want to be a member of the moon gang, if not that's cool, i'm happy - you just enjoyed this video from me and chair best of luck in the markets. You.