The news is that some casino executives think that Las Vegas may not break ground on a new development for as long as ten years because of over capacity in Vegas hotels. So logically the casino stocks are down, right? Wrong.
LVS is up about 4% and MGM is up about 5.5% just after the opening. Why? I don't know, but being long these two stocks is the way to go right now.
Other casino stocks (WYNN and ISLE) are not up as much as LVS and MGM today. Is this divergence cause for alarm? Possibly. I never like divergences like this, but does this mean that WYNN and ISLE need to catch up to LVS and MGM? Or does it mean that LVS and MGM will drop to "catch up" with WYNN and ISLE?
One thing is for sure, these stocks are strong for the moment, but they are volatile and you must watch them carefully if you trade them.
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