Don't Ignore This Chart!

Gambling Index Prints Reversing Shooting Star Candle

 | 

Over the past six months, the Dow Jones U.S. Gambling Index ($DJUSCA) has gained 27.35% to lead all consumer discretionary groups.  In fact, renewable energy ($DWCREE) is the only industry group among all sectors to outperform gambling stocks.  But the short-term outlook for gamble stocks changed on Thursday with a potential reversing candle printing.  Take a look:

Momentum has been very strong so I'm not looking for a significant long-term top.  However, any time a stock or index makes a new high intraday on increasing volume, and fails to hold it into the close, I'd look for at least a short-term pullback.  The rising 20 day EMA, currently at 851, would be a key support level to watch.  As a short-term trader, I'd consider taking profits on gambling stocks in the near-term and look to re-enter on weakness over the next couple weeks.

Happy trading!

Tom

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
Subscribe to Don't Ignore This Chart! to be notified whenever a new post is added to this blog!
comments powered by Disqus