What's going on moon gang, i'm matt, and this is dumb money, so you could say it was a quiet day in ape nation. I mean not really much happened. Gme dropped a dollar which isn't much on a 200 plus stock amc gained three cents. So pretty much neutral, i guess you could say things were all quiet and calm on the battlefront, so in this video i want to take this this moment of calmness, to really hone in on one particular training strategy.

One particular training technique that i think could help a lot of you, of course, i'll be going over the short interest, the technical breakdown and all that stuff. So you can be apprised of what to look for tomorrow, but here i want to just take this brief moment to maybe dive into some other interesting things that could help some of you apes out there. So, let's hop right into it. First, i do want to address this piece of fud.

This was posted on seeking alpha from this guy gary gordon um, once again like whenever you post something like this, an intentional piece of fud. You just know you're gon na go through the social media. Gauntlet aim scene, open letter to the apes, the stock market and reality earnings drive stock prices over the long run, even for amc so right here it did not take many words into this overall article to for us. We've heard this before amc is fundamentally overvalued.

I'm betting, this guy is a fundamental investor, a fundamental trader and that's what he's looking for, but we're not arguing that ape nation is not arguing that we're arguing that this is a short-term swing trade and it's a short squeeze play. This is getting the shorts to cover which causes the stock to go sky high. It's basically the apes versus the snakes. That's what's going on here.

None of us are really arguing that this is what amc should be at. Fundamentally, this is once again it's a short squeeze play. That's what we are looking for, we're not. We all are very well aware, no matter what amc comes up to it's going to come back down to reality, you can't trade out of fundamentals for like an extended period of time, like that's, not where you're going to rest.

This is, this is a blip on the radar and we're trying to make a mass money, while that happens and also send a message to wall street. That's what's going on, you can look through this. I mean as soon as you see something like this. I don't think you should automatically write it off read through it see if there's some validity in the argument for me not much, because it was a fundamental analysis and for me this isn't a fundamental trade.

So any fundamental analysis. It's really not worth much in my own opinion, the way i'm handling this situation, and also it is worthwhile to point out at the bottom here, he's basically arguing for his own position. I am slash. We are short amc so, of course, he's going to argue that it should go down because he has money on the line that it's going to go down.

It's the same way that i argue amc should go up because of a short squeeze. That's my reasoning, but yeah. It's because i'm long on amc, i want it to go up, so i can make more money so um. I wouldn't.

I really wouldn't pay this too much attention because the guy is short amc. Of course he wants it to collapse. So i'll go through this very very quickly, just so you have the ortex update. So today i thought this was a bit interesting borrowed shares on amc, 12.32 million and there was a return of 12 million, so the net was 300 000..

The net wasn't much, the short interest did go up slightly, which most likely means tomorrow the utilization will go up slightly, but the pure magnitude of these two numbers i find to be interesting. So, first of all, if you look at the price action for the return, shares of 12 million remember return shares two return shares they had to be covered at minimum two days ago because of the t2 settlement. You cover your position. You cover your short by buying back into the market and then two days later you can return them.

So if we were to look right here two days ago, there was not really any buying back into amc, in fact, amc dropped. On that day we went from 63 all the way down to 53, and then we closed roughly around 55 um in that ballpark. But my point is, there was definitely not covering of 12 million shares two days ago, um. So for me, the way i would interpret this is that these shares just weren't short.

I think they were shares out on loan that weren't short and then they got returned today and whether it was the exact same player or players that just borrowed them again or maybe it was a whole new player, but the magnitude of these two numbers. I do think is noteworthy once again. I don't think that 12 million we're actually covering i and i'm basing that off the fact that two days ago we did not see bullish action, which is what you see when shorts cover. So i don't think these shares were short and then today we saw that 12.32 million were borrowed against amc and if you look at that, i mean, if you zoom in on some of these hour, charts right around midday bam right there.

You can see the volume on the top of my screen. 13.5 million shares. I think, right there. It was just a garden variety short attack.

Someone took out a short position and i think they dumped it onto the market today and to me, i think it's pretty interesting that that's sizable and we were still green on the day. Man like, i think, the shorts, the people, betting against amc, are pulling out. All stops, and it has to be so incredibly frustrating that they're getting nowhere with it. It has to be so so frustrating for them and that's why i think we're seeing articles such as this from mr gordon uh, just because of the frustration that it's not playing out the way they think it should well we're kind of sitting easy and if i Show you the daily chart we're just seeing a nice pattern of new higher lows: nice higher low, higher low higher low.

We keep battling it out at this and i i feel confident one day that we're going to get that breakout and rally. So i i think what we're seeing is really like a last ditch attempt to kind of end this play for them. If they're short, they're they're pulling out all the stops, and you could just almost feel that the frustration is absolutely mounting - i mean i can only imagine to be that frustrated. But for us i'm still very very proud to be an ape and i think things are still trending in our manner.

Um very happy, gamestop, pretty much net neutral on the day. Short interest - 14.16 percent uh. So not a big change there. But in terms of its chart we do have this uh kind of bouncing off here, so we bounce off of 200 two days ago and we're hanging out above that trend line in terms of amc.

We kind of went over this uh. It's the same thing higher lows: we keep knocking on this store. That's what we're waiting for the technical analysis really on either of these stocks has not changed much over the past two days. So now that you have a better kind of understanding that, like it, was just a premium burn day and kind of we went over fud, i do want to like, spend the rest of this video teaching you about one trading strategy.

So this could be applied to any chart any time frame any asset class, but what i want to bring to your attention here - just so you know i'm using amc's three-minute chart from today, and what i want to illustrate to you involves the rsi. The rsi is the relative strength index. This is one of the most common technical indicators that maps out bullish against bearish momentum. It has values of 0 to 100 and when it gets very high, especially above 70, that's considered to be a lot of bullish momentum when it gets very low, especially below 30.

That's considered to be a lot of bearish momentum. A lot of day traders swing traders use this for reversion play as in when it gets very high, such as over. Here they look for it to sell off and when it gets very low, they look for it to bounce i.e, a reversion play. So what i want to bring to your attention right here is: if we look at these two vertical lines, you'll see that amc actually went lower.

It went from roughly 58 down to 57.73, so not the biggest difference. I'm just trying to illustrate the point that if we really zoom in on this clearly amc went lower, but what didn't happen? The rsi didn't go lower the rsi actually went higher. That's a mismatch. The stock price went lower, the rsi went higher in this scenario.

It's referred to as bullish divergence and what it's telling you psychologically is that there's more buyers here, as in less bearish momentum than there was previously i.e buyers, are stepping in and that's commonly, indicative of an upcoming bounce and hey, hey ding ding. Look at that. We have a higher rrsi with a lower price point and then right from there, the stock did bounce and actually continued bouncing all the way up to almost 59. So right there.

Once again, this is referred to as bullish divergence in the rsi and, yes, the opposite. Also exists, you can have the stock go higher and the rsi go lower and then that's referred to as bearish divergence. So i just wanted to throw that out there um. Once again, you could apply this to any time frame that you want.

Whenever you see this mismatch in the action and the good buy signal would pretty much be right when it finally reverses trend. You see this setup, you get in right around here and then, whatever risk point you would want to use. Personally, if i were day trading and i'm in no way condoning the day trading of amc, i'm just trying to present one strategy that you could apply to whatever stock on whatever time frame, you could just risk the most recent low then and then for there, your Profit target would be you could look at technical resistance. You could have a percentage at that point, the exit's kind of your own decision and it might change based on the time frame that you're using.

I really just wanted to illustrate the potential impact of when you're. Actually, seeing bullish and or bearish divergence in the price action, and also through the rsi so moving forward, i hope that can help at least one of you out out there. I hope it helps you make some money, but overall kind of a quiet day. Amc gme, as things continue to progress, i would honestly prepare mentally prepare for more and more fud on a daily basis.

Overall, i would love to get your thoughts on amc and gme in a comment below. If you enjoyed this video i'd appreciate if you could drop a like, and if you want to be a member of the moon gang, don't forget to hit the subscribe button from me and chair best of luck in the markets.