One of the reasons that the gambling in Macau slowed down was the entire gambling crowd had become traders and they were participating in the euphoria of the stock market. Retail accounts for trading were opening at an astronomical rate like a million/ week or something in that stratosphere. Macau was also going quiet as the Chinese government frowned on the gambling industry.
So the question is whether or not the gamblers return to Macau. I have a few charts related to the gambling industry and I have assembled them in a chartlist called Gambling. These industry specific lists can be helpful when you are looking for trend. You can also work through the Sector Summary tool on the home page.
Lets start with the most vocal stock in the group, Wynn Resorts. Wynn has no new breakouts here in price, but the SPURS shown in purple recently broke an 8 month downtrend. The $110-$120 are will be important with the gap at $120. But the soaring volume recently suggests some buyers are showing up for work. The MACD looks ready to run. The thick blue line represents previous resistance in momentum. Watch closely. The SCTR is very very weak.
Chart 1
Las Vegas Sands (LVS) soared on the big market reversal yesterday. It gave it all back on the morning action today, but its trying to move higher. I am very impressed by the action on the SCTR which shows it is doing very well compared to the other stocks. The SPURS is breaking out. Price broke out of the down trend on the largest volume on the chart!
Chart 2
Caesars Entertainment (CZR) has had a rough go. The news surrounding the stock is terrible, but the chart already tells us that.
Chart 3
MGM Resorts (MGM) doesn't look like anyone is showing up either.
Chart 4
So, any hope that things are already rolling back into Macau looks premature. However, you will be able to come and click on these charts at any time to watch the group.
Good trading,
Greg Schnell, CMT
