We’ve been looking at some casino stocks lately. Certainly, it’s been a better move to buy the casino stocks than to invest (if that’s what you wish to call it) in their gaming machines and card tables. It’s like the banks—why buy underperforming bank-sold mutual funds and brokerage-sold wrap accounts, when you can buy the stock of the bank who is trying to sell you these products? Historically, it’s been a better strategy to buy casino and bank stocks than their products.
Let’s look at a few of the more popular casino stocks:
WYNN Resorts has maintained its up trend line (no lower lows), despite a right angled triangular consolidation pattern. A breakout would be ideal, but the stock still looks relatively healthy at this point.
Los Vegas Sands has broken its trendline, although there is no new downtrend in place (no lower lows). Again, wait for a breakout through the descending triangle before buying.
MGM Resorts is supported by an uptrend line, and is consolidating—although not quite as tidily as the triangles seen on WYNN and LVS. Again, watch for a breakout.
The Great Canadian Gaming Corp (take off to the Great White North, hoser!) has been advancing in a series of sideways consolidations. Support at $15, so long as it’s held, might be a good entry point.
Keith on BNN tomorrow night
I’ll be on BNN’s MarketCall tomorrow, Thursday July 17th, 2014 at 6:00pm. Phone in with your questions on technical analysis for Keith during the show. CALL TOLL-FREE 1-855-326-6266 and mention you read my blog!