Oh brother, moon gang, we are back in business baby. Everything was ripping today, the stock market, the crypto market, the futures market, it was rip city and there were massive gains which led to massive attendees. But in this video i want to talk about two of our favorites a little bit of an old school video. What in the world is going on with amc and gme aka gamestop, because their gains were jaw-droppingly, bea beautiful so in this video i'll be breaking down a little bit of the price action we'll be looking at important levels of support and resistance, and i also want To spend a bit of time diving into what we're seeing on the data side of things as it relates to these two equities, because i think it'll make us a little bit better prepared for what might potentially play out over the next couple days.

Now. Remember, i'm not a financial advisor, i'm not clairvoyant. I can't tell the future so you got to take all this with a grain of salt and what i really mean by that is use this as a launchpad really dive into the dd. For yourself, because remember this isn't just my trade, it's also your trade, so you have to have your own comfort level in it and even though i don't know what's going to play out in the future, it really does seem like we're.

Gon na have quite a bit of volatility in the coming trading day, so i'm very very excited so with all that being said, let's hop right into it. Well, isn't this a beautiful sight? Amc is currently trading in 1840 and gained over 15 percent on the day and then jamie basically said hold my beer currently trading at 122 and posted almost a 31 gain on the day. This is just so amazingly awesome, i'm sure. If you're an ape, you have a big old smile on your face.

You know: let's kick this one off with gamestop aka gme, just because hey it had a bigger gain on this particular day and if we look at the daily chart, i just want to break this down for a couple reasons so before we get into the technicals Here check this out remember last week, on thursday, after the market closed, they had their earnings report. They missed on their earnings per share. They actually had a surprise loss, but the revenue beat. The really interesting thing that came out of this particular meeting was the fact that they said by june 30th of 2022.

They believe that the nft marketplace will go live and me a massive crypto enthusiast, i'm just so incredibly excited for this. I truly truly am even today we see crypto, absolutely ripping but gamestop. The leadership team of gamestop used the craziness of last year to raise more money through an at the market offering and now they're applying that money to permanently improve the trajectory of the company. The nft market, in terms of revenue, total volume last year, was billions of dollars.

I think nfts will get even bigger, particularly in the world of play, to earn gains, which is perfect for gamestop. They already have a massively passionate following base supporter based customers. To me, this is a match made in heaven and i'm so excited to see the launch of this nft marketplace and where it takes the company truly truly jacked up about that now in more of the shirts term, because remember that is actually for the date they Gave us was june 30th, but in the short term, look at what's going on. It finally broke out of this descending price action, so i was looking at this trend line from january 3rd connected to february 16th, and we saw this drought downtrend.

Well, today, we exploded above that and for those of you who are wondering both gme and amc. They didn't really have much news, no really fundamental development. Today, if anything, it's just the overall market started to rock, and i think that the shorts on both of these plays started to feel some serious pressure. So anyway, we broke above this trendline.

We broke above this resistance which turned into support, and now it was resistance at 116.. We closed above that. The next thing i'm watching is 129.50 and then, after that, i'll be watching 140 and if things start to get really really crazy i'll, then be watching this level of resistance that we saw between december and january at 160 dollars in terms of support in case in The short term, it doesn't play out the way we wanted to i'll, be watching the test of 116, this trend line, and we have a nice region of support between 96 and 105.. There is one important thing i want to point out to you here as gme has been trading lower in price action, especially between let's mark this out january 24th, and let's call it j or excuse me march 14th lower lower lower, but the rsi actually went higher.

That's referred to as bullish divergence as in there's a mismatch between price action and momentum as in even though the price went lower, the bullish momentum was more and boom. Look what happened. We came in, we built up some momentum and then there was an explosion. The golden question is: can this hold and this isn't going to be guaranteed, but i think we can actually see some interesting thing in the data behind it.

So this is the or text for gme short interest as the market closed 23.76. Obviously there was a net increase today and that's to the tune of 1.23 million shares the cost to borrow just under 10, with the max being 47 on the day. Utilization 100 shares on loan 20 mil there's a couple things i want to do here. First of all, look at how long gme has been riding a utilization of 100 ever since february, 9th actually february 8th.

Excuse me. I should be a little bit more accurate with that february 8th until now. The amount of shares on loan is theoretically the max being offered at that exact moment in time now remember these are dynamic throughout the day, more and more people can offer less and less people can offer, but at the end of every single day, ever since february, 8Th up until now march 22nd, the maximum amount of shares that could go out on loan are out on loan. That is crazy.

That's the first thing i wanted to bring to your attention. The second thing i wanted to bring to your attention is right here days to cover also known as dtc, just because it was a common question of all right are there? Is there a way that people can miss this? Do you have to be uh agile? In a certain sense of watching every single minute bar, i think the answer is no, because right here, the days to cover is 5.88 days. So what this is saying is in a theoretical sense. If all the training volume in one day is just the shorts covering how long would it take them to get out, based on the current average volume over the past two weeks, we're looking at 5.88 days, you're, not gon na miss this in the sense of like? Oh, i missed that one five minute mark it's going to take them quite a bit now is this number going to play out in reality most likely, not just because when things start to get crazy, the average volume increases.

So if anything, this is a little bit of an overstatement. So if you want to be a little bit more specific, you could use something like the one week days to cover and even right there that's coming in at 4.5 days, so it does lower it. A little bit, but not by a crazy amount, and the last thing i want to bring to your attention here, at least for gme - is the insanity i'm seeing in this number the on loan average duration. As in these shares that are on loan.

What is the average time that they've been out on loan, which is a little bit indicative? It's not the exact same thing, but it gives us an idea of how long have the shorts been short at in real time we're looking at 66 days. That means over the past two months in excess of two months, they've been paying a cost to borrow fee and some are underwater, other ones aren't in water because underwater we have some people who got in recently. We have other people who got in a long time ago, so some are underwater, other ones aren't in terms of the shorts, but on average they've been in the play for almost 67 days, paying this cost to borrow, and i'm telling you when they see this type Of action, it's scaring them, and now let's do the full on breakdown of amc. Once again like jimmy, there was no big fundamental announcement today we just saw a lot of ripping across many markets.

Jimmy excuse me amc gained 15, which is a beautiful, beautiful gain. I am looking for the support to hold now at 1660 1670 that was big resistance and, if, from there, i'm looking for the breakout right here of 2036., if we're fortunate to get that, ideally in the short term, the next region, i'm watching, is from 25 down To about 23 and some change 23.65 is what i have marked out because right there not only is this a clear region of support, some consolidation support, uh, a breakdown turning into resistance. This is a key key level, but now especially if this takes a couple days to get up there, it's perfectly aligning with this trend line that i have so. This is the big test region between 23 and some change and 25 on amc.

I want to see the test of it. I would be thoroughly surprised if it breaks through on attempt number one. I'm just being honest. Obviously it can happen, but big levels like that usually takes a couple of tries because you're soaking up more and more supply, but that's what i'm watching.

Obviously we have this downside support, which was recently serious resistance in the higher 16s and if that doesn't hold i'll watch 13. But i am not expecting that in the short term, but overall lots and lots of momentum and similar to gme. Let me show you amc's stats. As of end of the day, on march 22nd, short interest 21 cost to borrow 2.65 percent utilization 100 shares on loan 132.7 million.

Now the one thing gme's numbers they add up to me, especially when i'm comparing them to other things. Such as m-u-n-p-o-r-o-g i-n-d-o inpp, it adds up and the one outlier i'm seeing right here is actually in amc and it's something that really gets me to scratch. My head ever since same date, february 8th, the utilization is 100 and it's been stuck there, as in all the shares at the end of the day that could go on. Loan are on loan.

Well, okay, that makes sense. But then why is the cost? To borrow so low when we're looking at these elevated utilizations on gme on muln, on prog on indo and impp, all of them have a cost to borrow roughly around 10 or higher, and some of them have a higher cost to borrow and a lower utilization. So, for me, there's something funky going on in the data set right there with cost to borrow. Is it a little bit elevated compared to all equities yeah, because some of them are sub one percent, but to be at a utilization of a hundred percent? For quite a while, it just doesn't add up to me theoretically, could that be accurate? Yes, theoretically, it could.

If the exact demand to take shares on on loan is pretty much in line with the supply and there's no extra demand. Well, the cost to borrow is not going to get elevated. Theoretically, i get it, but in reality this is a big rarity to see. So i just wanted to point that out to everyone and also, let's take a look at the cost, to borrow just because we already looked at that.

Similarly, with gamestop, this thing has been cruising higher and higher and higher. So once again on the two-week trading volume average, it would take just over four days and if we look at a really small time frame, even on the one week, we're still looking at 3.88 days so similar to gme with amc. You don't have to be worried about somehow missing something it's going to take trading days for the shorts to cover on this current average. I just want to make that very, very clear and then finally, the other thing i just want to show you is the average age of all these shorts being in the play.

We're we're almost going for a new max 79 days, we're at two and two thirds of a month, we're almost at three months that the shorts have been in it and once again like jimmy, some are underwater. Some are above water currently, but right now, that's crazy. They've been battling against this for almost 80 days and if you zoom out, hang on, let me get to the one year here we're about to make a new high. So what's interesting is in both amc and gme.

We are seeing a trend in the data. That's actually even more horrifically bad for the shorts than what we're seeing in the price action in the underlying data set. Things are stacking up against the shorts even worse, we're seeing a rise in short interest as in there's more bears, and this is just putting more powder in the keg we're seeing. The costs of borrow go up.

So the powder and the keg is getting more expensive and then the price action's also going up man. Oh man, i don't know what the particular match will be, but i can tell you it looks like this powder keg is getting very, very full. There's still room to load up a little bit more explosive powder there, but this is absolutely bonkers uh. This is my breakdown.

These are my opinions of. What's going on, obviously not a financial advisor, you got ta do your own dd, but i would love to get your thoughts in a comment below. I am just jacked up what an incredible day, what an absolutely incredible day would love to hear your thoughts and your excitement in a comment below if you enjoy this video, and you want to help me out with the algorithm drop that like join up with the Moon gang by hitting the subscribe button - and i hope you have an absolutely be a beautiful day, i'll catch you in the next video.