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December 13, 2011
Share ThisAll of the leading casino stocks have really struggled since July 2011. This weakness in the casino stocks is likely due to a slowdown in the Chinese market. Last night, the Shanghai Index (China) ended the trading session lower by 1.87 percent. This was a new 52 week low for this important emerging market economy. The large casino stocks have been doing very well in Macao, China. If the Macao market begins to slow down this could hurt the casino stocks further.
Wynn Resorts Ltd (NYSE:WYNN) is one of the leading casino stocks in the world. This stock is trading below the daily chart 50, and 200 moving averages which put the stock in a very weak technical position. The stock is trading higher this morning by just 0.03 cents to $109.07 a share, meanwhile, the major stock indexes are trading higher by 1.00 percent. This tells us that WYNN stock is really following the Shanghai Index and not following the U.S. markets. Traders can watch for short term intra-day support around the $107.90, and $107.00 levels.
Las Vegas Sands Corp (NYSE:LVS), and MGM Resorts International (NYSE:MGM) are also in the same boat as WYNN. These stocks remain weak on the daily charts and are being adversely affected by a possible China slowdown. Traders must be cautious owning the casino stocks for anything more than a trade until the Shanghai Index can signal that a near term bottom is in place.
Nicholas Santiago
InTheMoneyStocks.com
