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WYNN

No Time for Comfort As Brakes Screech On the Oversold BounceAT40 = 35.5% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 34.8% of stocks are trading above their respective 200DMAs VIX = 17.4 Short-term Trading Call: bullish Commentary Hold up. Pump the brakes. The bounce from oversold conditions just got more difficult as sellers forced buyers to come to a screeching halt. The S&P 500 (SPY) fell 0.9% in what looks like a “close enough” failure at downtrending 50-day moving average (DMA) resistance. In a bit of good news, the index also bounced picture-perfect style off its 200DMA support. I will call it a stalemate. {The S&P 500 (SPY) looks like it is caught in a trading range as buyers fail to punch through the previous peak or 50DMA resistance. The bounce from 200DMA support was a bit of good news.} The tech-laden NASDAQ and the Invesco QQQ Trust (QQQ) were not as fortunate as the S&P 500. Both lost 200DMA support with the NASDAQ gapping down for a 1.7% loss and QQQ slicing through support for its own 1.7% loss. Adding insult to injury, at their intraday lows, both indices reversed their post-election gains. {Momentum for the NASDAQ came to a screeching halt after gapping below 200DMA support. The Invesco QQQ Trust (QQQ) bounced from its low of the day, but the buying was not enough to recover 200DMA support.} The selling was not enough to rattle the volatility index, the VIX. The VIX only gained 3.8% and even fell sharply from its high of the day. The VIX still looks ready to continue its post oversold implosion. Accordingly, I bought a fresh tranche of put options on ProShares Ultra VIX Short-Term Futures (UVXY) with a 2-week expiration. {The volatility index, the VIX, gained for the second straight day but could not even manage a close above Wednesday's intraday high.} The currency markets showed some signs of stress in-line with a risk-off day. The Australian dollar (FXA) weakened and the Japanese yen (FXY). As a result, AUD/JPY suffered a notable pullback. I will not get concerned until/unless 200DMA support gives way. I used the pullback to build a slightly larger long position on AUD/JPY. {AUD/JPY pulled back on a risk-off day across financial markets. The pair is still holding onto a bullish 200DMA breakout.} A reversal like Friday’s makes bulls doubt their rationale for excitement just two days ago and gives bears reason for fresh skepticism. AT40 (T2108), the percentage of stocks trading above their respective 40DMAs, tells me to be cautious, but not to downgrade my short-term trading call of bullish. AT40 dropped back to 35.5% and is still in the early stages of a rebound from oversold conditions. AT200 (T2107), the percentage of stocks trading above their respective 40DMAs, only dropped to 34.8% from Wednesday’s peak of 37.4%. I am more inclined to think that the market will churn and digest gains from the rebound. I will reconsider the bearish case if the S&P 500 closes below its 200DMA support. I stuck to my post oversold strategy of buying the dips and bought SPY call options. I plan to sell these into the next bounce. However, my core position in iShares Russell 2000 ETF (IWM) call options experienced a big setback. With just a week to go before expiration, Friday’s 1.8% pullback was enough to wipe out most of the profits in those call options. I will now need to sell into the next bounce rather than wait for what I still think is an imminent retest of 50DMA resistance. {The iShares Russell 2000 ETF (IWM) lost 1.9% but bounced off its 20DMA support. }
SP:SPXLong
by drduru
MGM, a giant meeting expectations Hunting the dips in decent companies after hysteric sell-offs. That's what I'm doing in US stock markets. The other strategy that gave profits was buying into undervalued sectors with great perspective, which I don't do now, as the last sector I believed in was the IT-related (FB, AMZN, GOOG, BABA) and it was all fun and games until this year where it just doesn't show enough optimism to be considered attractive for significant annual returns. Therefore, the second strategy that rakes in profits is buying into illogical reactions of investors after the stock publishes positive news...sounds crazy, but this happens everyday. Today, we have MGM resorts. Results came out, all in-line with expectations to the cent, and I quote: "Q1 EPS of $0.29 in-line. Revenue of $2.82B (+3.7% Y/Y) in-line." Mind you, they have resorts in China now: "MGM China kicked in with a 25% jump in revenue to $596M as the MGM Cotai contributed. Adjusted property EBITDA was $152M vs. $145M a year ago." Great news right? -8% down in single day. So, I'll hunt for cheap stocks once the resistance holds, it has few of them in this region (red lines on the chart) so the one that slows the fall and keeps it there for 2 days should be good enough for me to enter and wait for the exit at 34 level. To be continued...
NYSE:MGM
by Repuzel
1
Wynn Resorts (WYNN) Trade Idea 4.25.2017With Wynn Resorts (WYNN) continuing a relatively strong uptrend its bullish reversal move on 2/27/2017, the ticker pulled back almost to a closeout point at its middle offset moving average. But opportunity struck today with the only open risk remaining on earnings.  The stock pulled a large momentum move as we scanned following our loss on Netflix (NFLX).  We liked the less than $4 risk for the stock and were willing to take the gap risk on earnings giving us an overall proprietary rating of MODERATE based upon price to stop-loss, institutional sentiment, and the projections for the quarter.  The main risk that has caused WYNN to be quite the volatile stock in the past couple of years is its Macau operation and the controversy that has since simmered. We actually like Wynn for a long term investment due to the healthy dividend it pays and the constant purchases of stock by Steve Wynn himself since the company went public.   See more from our link on our Profile page
NASDAQ:WYNNLong
by EdgeAnalytics
1