Las Vegas Sands, MGM and Wynn gapped up on the opening today, just as they have done so often recently. Buy today they failed to hold their gains.
The stocks made their high of the day just after the opening and then corrected. Around 10:45 they tried to go to a new high, but failed to do so. The failed rally came on much lighter volume than the stocks had earlier in the day. The lighter volume was warning sign number one.
About 1:20 LVS made a low for the day on accelerating volume. Given that the stock has had such a huge run up, we felt that this was a clear sign to get out! All in all, these trades worked very well for us.
We have now closed all of our positions in the casino stocks. We will look to buy them back if they make an orderly correction and then begin basing.
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