What's going on moon gang, so it was another interesting day in ape nation, and we do have quite a bit to go over in this particular episode of dumb money. So, let's hop right into it, as if today's stock market closed on monday june 21st, amc was at 55.69 and gme was just above 200. before we get into the charts and the short interest numbers and all that good stuff. Let's talk about the new sec rules and you know what margin calls this is kind of building upon what i was talking in yesterday's update video and it relates to the rule nscc02 and, as you can see, the sec has a new document as of today and If you go all the way to the bottom here, you can see that the rule was approved on an accelerated basis.

Just so you know i will post this in the description below. If you want to read it yourself, but just to give you a quick reminder of here's what's going on so we know it's approved and what it relates to is amend the supplemental liquidity deposit requirements. This rule is kind of piggybacking. On the other, nscc rule, uh known as 801, and these two together i mean here we could read it automates the margin call process when daily reports indicate a member is over leveraged.

So basically, prior to this on a monthly basis. These members, aka hedge funds, were checked on a monthly basis, not a daily basis, so between 801 and 002 they can now be checked daily intraday and whenever a particular member is too much risk to the system. When they're in too precarious of a situation, they can get margin called as in pony up the cash or close your position. Those are their two options and, in my opinion, yes, this does directly benefit amc and gme, but, more importantly, it directly impacts the overall stock market, in my opinion, in a pretty positive way.

This, i would argue, is a healthy, responsible way in which the stock market should run. I don't believe any members should be able to present so much risk that there could be like, i guess, secondary highly negative impacts, so here we're able to check on them on a daily basis to make sure that things don't get too far out of hand. So, to me, 002, 801, very, very good thing that they've been approved, but the next logical question is: when is it going to go into effect? So this picture right here has been making its rounds on pretty much everything. Twitter youtube, reddit, discord, everything, facebook groups and i just want you to know this is not my picture.

I did not write this email, but i i would like to trust, but we also need to verify. The assumption is that this question was asked to jacqueline here from the dtcc in reference to 0.02. Basically when's it going to go into effect and a response was right. Here.

The sec has approved the proposal. It will be effective at the start of the day wednesday. I would very much like to believe that this is true and as of now, i am operating under the assumption that this is a factual piece of information that we have it's truthful and, unless proven. Otherwise.

I'm currently running under the assumption that 002 801 will be in full effect as of wednesday june 23rd. So very, very good thing once again. Just to reiterate, i think this is a very healthy responsible way that the overall stock market should be running. I like this idea of daily intraday checks, so not one member can present too much of a risk to the overall system.

But as a reminder, i do want to mention the fact that come wednesday i don't think, there's going to be like a massive slew of margin, calls remember as much as we're talking about this right now and are very aware that this is going through. So are hedge funds - i bet they had spent last week today tomorrow, getting everything ready because they don't want to be embarrassed. They don't want to be made an example of by the sec, so i don't think something weird's going to happen on wednesday. We're just seeing all these headlines margin called margin call margin call because they know it's also coming so i bet they're using their time accordingly to get things set up.

Yes, who we're going against is potentially um nefarious illicit all those good synonymous words, but i would also say that they're not dumb, they might be doing illicit things, but no one's accusing them of being dumb. So i don't think that they're going to get tripped up by this, i think they're doing what's necessary to get things in position. So they're not basically embarrassed because i think a big aspect of what's going on right now relates to ego and pride and to them. I don't think they want to fall into this particular pitfall.

This pit trap, so that's kind of what's going on with nscco2 like again. Just to reiterate, i think it's a very, very good thing. So now, let's start talking about what's going on with the stocks, so amc just a quick reminder: we're at 55.69 over the past month we're up 350 from the start of the year until now up 2 500 percent. This is the daily chart here, and the main thing i want to bring to your attention is the fact that we have this wedge structure going on.

Basically, we are seeing higher lows and kind of the same high in this low 60 region, but the low is consistently getting higher and higher. I mean really. If you go back far enough to the start of the may. We went from 850 to 12 to roughly around 35 and then we saw 40 and now we're kind of seeing this region the low 50s to the mid 50s.

Why am i bringing this to your attention? Well think about what it means psychologically. It means that the bears the sellers are holding the line at the exact same level, but every time we get knocked back from there, the bulls are becoming more apish they're buying earlier and earlier and earlier, which is why we're seeing higher lows. So it's become, the buying is becoming more aggressive. So if you happen to be long on amc, that is very, very, very good for you and more of a detailed view.

It's the same thing. I've been showing you. We have this region of resistance in the low 60s. We have a major region of support in the mid 30s, but between that right here today we were knocked down to this support that we saw previously around 55.

We have support between 50 and 52 and some at 45., so moving forward. I'm looking for this to hold. I want to bounce early if it doesn't, i'm looking for a bounce off of 50 to 52 and we're still coming down. The name of the game is breaking out above 60 62 and holding that breakout from there.

We would then be looking for a test of the high 60s and also the low 70s, specifically the current intraday all-time high for amc 7262.. So that's my particular game plan. Moving forward, not only for tomorrow, but for the remainder of the week on amc in terms of its data, some interesting things going on here. So there was a borrow change of 4.3 million against amc.

Hence the short interest went up, and now we have an estimated shortage of 14. percent, a couple of things to go over here. First of all, with that borrow change, it's kind of noteworthy that i bet we see a utilization up around 97. 98.

99. Don't forget utilization is the amount of borrowed shares divided by total lendable shares at that moment in time, so naturally, the max value is a hundred percent, as you get closer and closer to that value, it's very common to see the cost, to borrow start to skyrocket, Higher and higher just because it becomes the definition of hard to borrow, the supply is low, but the demand is high, so that's kind of the setup. The shares on loan, probably around 95 96 million, and the thing i want to bring to your attention here - is two separate aspects. First of all, from june 8th, the shares on loan and the estimated short interest keeps going up up and up, even though so does the stock, which just tells me that the shorts are in worse and worse, of a position.

But another thing i want to bring up today: the borrowed shares were over 10 million or to put that another way, they borrowed 10 million shares to knock the stock down 6, or let me put that another way they spent about half a billion dollars and yes, I know this isn't perfectly mathematically accurate, but give me a little bit of leeway just to illustrate this point. They spent half a billion dollars b billion to knock the stock down only six percent. You know i get it, i'm right there with you. I don't want any red day if i had it my way, this stock would just keep ripping higher higher higher.

I want green and even more green is even better, but naturally that's not how the stock market works. It ebbs and flows and the fact that they knocked it down six percent and that cost them half a billion dollars 500 million dollars to knock it down. Not even that far i mean geez. We are still up 361 percent ever since we really started this rally from late may till now and they're spending that kind of money to just barely get the needle to move to me.

That makes me even more confident in the bullish thesis going on with amc. So i hope that offers you a little bit of solace on today's particular price action. Now, let's talk about gamestop today, the bar change was pretty much net neutral. The current short interest is 14.3 percent utilization 51 and, as you can see, the shares on loan estimated short interest kind of just been flatlining now for a couple months.

What i want to talk to you is more on the chart here, so we had a breakdown of this trend line, but it caught itself at this very important, key technical support and key psychological level right at 200. So i'm looking for that to hold, and i want an immediate bounce, i want to recapture this trend line and then once again that would set up a test of 241. if it can't capture itself. Here we have another support between 180 and 185.

as a friendly reminder. Don't forget that gme gamestop is currently going through an at the market, offering of 5 million shares. We've seen this before at the end of april, with gme, and also more previously, with amc when it's going through the at the market offering the stock is typically trending downward and it's getting beat up a little bit. But as soon as it's announced that the at the market, offering is done, it's almost almost seemingly always met with bullish action.

Of course, i can't guarantee this. Of course, i'm not a financial advisor and you should be doing your own dd and fact checking me on everything i say, but this is just historically what we have seen on gme and amc as soon as they complete their at the market, offering it's met with Very nice bullish price action, so overall, that's what's going on with amc, gme and probably, most importantly, at least for this video, the 002 rule and also how it relates to 801, but to just to reiterate that daily intraday checks on members who are representing too much Of a risk to this to the overall system and if that's deemed to be true they're, going to get margin called either pony up the cash or cut your position, i think it's a very uh, reasonable, healthy responsible way to run the stock market. So i'm definitely a big fan of it with all that being said, i would love to get your thoughts on the new rule, amc and gme in a comment below. If you enjoyed this video and you want to get in front of other people, all you have to do is drop a like, and if you want to be a member of the moon gang, don't forget to hit that subscribe button, and until i catch you next Time from me and chair best of luck in the markets, you.