What's going on moon gang, i hope that you're having a good one, i'm here, to give you the skinny on what in the world is going on with both amc and gamestop. Now in this video we do have quite a bit to cover. I want to shed some light on some new developments with prime brokerages. Remember those are the people that facilitate the loaning and borrowing of shares.

Basically, for hedge funds, we have to dive into some recent amc fund and basically, by the end of this, i want you to potentially understand that this might have been a big brain 4d chess move on adam aaron's part and, of course, we'll be diving into the Data and the trend, so we understand how the shorts are currently positioning themselves and really what's going on, but before we hop into that amc closed out the day today, thursday june 3rd at 51, 34 and jimmy closes out the day at 2, 58. 18. alrighty. Let's get into it so right here, jeffries, which is a prime brokerage blocks, short sales in gamestop, amc and microvision.

This was reported by bloomberg. Jeffries told clients wednesday, as in yesterday, its prime brokerage arm will no longer allow the execution of short sales in gamestop amc and mbis until further notice. Jeffrey's prime brokerage will no longer offer custody on naked options in gme, amc and mbis. I want you to know that i actually saw similar reports with other brokerages as well.

This isn't specific just to jeffries, but overall matt. Why in the world, are you bringing this up to us? Why is this important? Well, you kind of have to understand a little bit of the mechanics of how this goes on in the background. But basically, when someone is short, let's say stock like jimmy or, let's say a stock like amc. If it goes haywire, that's in a certain situation where, if it goes bad like, then the brokerage can be at risk because someone's going to have to pay that money and that's why we see certain things like margin calls we're like hey you're.

Presenting too much risk is to us, we need more money, just in case it really goes haywire. So this it's kind of interesting, but it's telling me that these prime brokerages, the people who facilitate the loaning and borrowing of shares for short for hedge funds - they don't even want to take on that risk. They don't even want to be in the scenario where hedge fund could get so blown out of the water that they they have to take on the risk if they can't cover the margin call. This is telling me that someone at jeffries and other prime brokerages are doing the same thing, are so worried about gme and amc going sky high that they're it's just literally, not worth the risk for them to facilitate and collect some of that loan money.

They just don't want to be involved with it so right there. I i feel like there's, maybe i'm reading tea leaves or whatever is going on, but it seems like the writing is on the wall, that even these guys are recognizing the danger of how high amc and gme can go very, very interesting. All right more specific to amc so early this morning, amc kind of had a rough morning, because there was more talk of shared illusion, and on top of that, the the common response to it was like hang on. This is fud.

This already happened in april, and it actually did not happen in april. The thing people were citing in april was a prospectus that got built on today. I know that because here's the form ak that was followed by amc itself and then they filed it with the sec right here - here's the date june 3rd. So here's actually what was going on on june 3rd 2021 amc entered into an equity distribution agreement with b riley and citigroup global markets and to sell to 11.55 million shares of stock through an at the market offering program.

So you've probably heard this before, because in the end of april mid-may they were talking about the at the market, offering for amc for 43 million shares to raise money to improve the fundamental basis of amc. This was a whole new shared delusion. There are now more shares in existence for amc and they were raising money. This didn't happen tonight april.

It happened today, so that was a hot topic and it probably had a lot to do with the gap down in amc and the whole time. I was sitting there throughout the livestream today. The one thing i was trying to hammer home is at the end of april. Gme did a similar thing and when they announced that it was done, the stock shot up.

When amc did it in mid-may same thing, when they announced that the at the market offering was over the stock shot up - and i was trying to hammer that point home today that hey this is happening, don't just call it fud. The fud in this scenario was the fact of some of the headline saying how negative this is and once again referring to us as dumb money and not knowing what's going on. It was more of the connotation behind it because at the end of like, let me explain where we're going with it, but i really do think that this was a positive thing. Yes, there was dilution today and guess what at 1 pm eastern they announced that was over and look at that we had a breakout from 50 all the way up to 68.80, like this is we saw it in gamestop amc previously and then again today.

This is how these things go when they announce that they're going to do an offering there's some bearishness and then when they announce that it's over it, basically just rips right back up to where it was originally. So that's what was going on and right here. We have this was around one amc, enter amc. Entertainment completes 11.5 million share at the market equity, offering raising 587 million in additional equity capital.

So right here, i just wanted to bring this up, so this is from adam aaron himself, bringing an additional 587 million of new equity on top of the 658 million already raised in this quarter. Results in a total equity raise in the second quarter of 1.25 billion. Substantially, strengthening and improving amc's balance sheet, providing valuable flexibility to respond to potential challenges and capitalize on attractive opportunities in the future. So right there there's a couple of things going on with amc.

We need to talk first about just the chart as we're about to see amc start has been going sky high, that's putting a lot of pressure on the shorts. The fact that they're still high short interest means as we continue to go higher, there's more and more of a likelihood of a short squeeze and the final piece like one of the main things people arguing against amc, is its fundamental value like what's going on. Obviously, it took a very big hit in 2020, just as a business so right here. This is them improving the fundamental nature of the company, which is attractive to not only your long-term investors but considerably well-funded long-term investors.

So right there we have it, they raise money. They improve their fundamental position, they can pay off debt, they can acquire other movie theaters to improve their market share right here. This money, the 11.5 million raised at an incredibly high stock price, got them a lot of money and it improves the business at its core. So right there that's why i think this is a big brain move on adam aaron's part.

So with all that being said now, let's hop into some of amc's actual data and the trends of what's going on. So today there was a net return of 2.2 million shares, which means that if you do the math here we're around 137 million shares on loan, which is still a considerable magnitude. The utilization is around 98 99 still almost at its max value of 99. The current estimated short interest based on the free float is 17.6 and finally, let's look at the days to cover based on the average daily trading volume over the past two weeks, we are around 0.29.

I was getting a couple questions on dtc today. Remember, that's just a theoretical number of. Basically they look at how many shorts there are. They look at some average volume and all the shorts wanted to cover that one which never really happens reality.

How quickly could they possibly get out? That is what dtc tells you. So that's what's going on with amc, so overall, yes, the short interest is still very high. There are still many many shares on loan a considerable amount and as soon as the stock continues upward, that's going to put more and more pressure on these people. So i know today was not the best day with amc, i'm not oblivious to that fact.

We closed out at 5134, which was a drop of almost 18, but when in doubt, zoom out look at this yesterday there was a gain of 96 percent. Do you think, after a gain of 96, it's acceptable to give back 18 or from last monday, until yesterday we were up 419 percent so to gain 419 to then just give up 18 in my book? That's okay! That's a healthy check! I mean even from last monday, till now we were still 325. That is absolutely incredible. Stocks, don't simply go up.

I know we want it to work that day, but this is. This is perfectly perfectly fine seriously. We have been on such an absolute rip that this is a healthy check, we're shaking out some of those weekends. And then we just continue our trip higher and now that they have fundamentally improved the business by raising more than half a billion dollars.

And we have some announcements coming out later today, this evening, on june 3rd uh from adam aaron himself to figure out kind of, what's going on, i'm expecting some bombshell announcements that truly get investors and traders excited. I'm i'm very excited to see how this gaps up in the morning and then, where we go from there, but insanely insanely bullish on how this is going to play out to close out the week tomorrow in terms of amc. Now, let's switch gears over to gme. First, while that's loading, let's talk a little bit about its own data.

So today the shares on loan was 14.26 million. There was a net borrowed pretty much net neutral. The estimated short interest just below 20 19.8 utilization 58 and it stays to cover, is actually over. One full trading day based on the same average volume over the past two weeks for gme another pretty strong day, so a lot of these highly shorted stocks, the way jamie when it was moving in late january.

A lot of these other highly sorted socks were moving in more of a sympathy manner. I think that's kind of what's going on with now amc kind of being the top dog leading the way. So with that we had that, i mean obviously, amc didn't have the most exciting day, but i think that that's why we saw a little bit of negativity in jme cos: uh bb, those related ones, but overall those in my book are all still very, very strong. We're hanging out right around this 260 breakout level, i'm looking for it to break out and hold above 283 and then from there 300.

320.. No matter what's going on, i still think gme gamestop is a seriously strong contender and if things play out the way i think they're going to with amc tomorrow, i'm expecting a lot a lot of bullishness in gme. In terms of support, i believe that 232 and 220 would be pretty solid. Dip buys and at least in my personal opinion - also don't forget that next week it does have an earnings announcement um.

This is saying june 8th. I thought it was june 9th, so i'll have to double check that, but it is coming out next week. Don't forget about that with gme, because you never know. What's going to be like announced or um, you don't know if expectations are going to be exceeded or not exceeded, so that is just a fundamental driver and i bet there's going to be a considerable stock price reaction to whatever is said at that earnings announcement.

Once again, that is next week so overall to wrap this up. Clearly, i understand it wasn't in terms of its percentage gain the best one day for either of these stocks. But if you zoom out on a bigger time frame, we are still looking phenomenally strong. I cannot stress that enough.

Look at how far we've come it's okay to rip from multiple days in a row and to take a one-day breather and specific to amc. I'm i'm pretty excited to find out what adam aaron is going to be saying later today, just because i think it could be a big big catalyst for the stock. With all of that being said, i would love to get your thoughts on both amc and gme. In a comment below, if you enjoyed this video - and you want to help with getting it in front of other people, don't forget to hit that like button.

And if you want to be a member of the moon game, where we talk about stocks options in crypto. All you have to do is hit that subscribe button. If you don't want to miss any of the new pieces of content, just hit the bell, icon click on it and switch it to always, and you should be notified whenever i put out any piece of new content, new video. Anything like that.

But until i catch you next time from me and share best of luck in the markets.