Wynn Resorts ( NASDAQ:WYNN ) reported earnings after the bell, they are up sharply, up about 4 percent. So what are we going to do? A couple things: First of all, you look at McDonald’s ( NYSE:MCD ), they reported earnings, look what happened to the stock. The stock gapped up about 3 percent and kept on going. Caterpillar ( NYSE:CAT ) reported earnings, gapped up 6 percent and kept on going. So this is no longer, at least in my view, this is no longer a sell strength anymore, it is kind of buy strength.
So I look at Wynn ( NASDAQ:WYNN ) here, very tight volatility squeeze. Long base, I mean like a year long base. If we are going to look, really kind of start back here. This is a really, really solid base, you could say it is a high base because we start here at 50.00 and the next thing you know we are up at $100.00. Long sideways consolidation, a little breakout here. Nobody knows what to do and then, Boom! Now we are off to the races. Lets look at the weekly chart. This has a lot of headroom; Wynn ( NASDAQ:WYNN ) has a LOT of headroom. Almost 20 percent of the float is short, so there are a lot of folks betting against Steve Wynn here.
If you are looking for an investment, I am not talking about a trade to sell when it gets to 125.00. But if you want a stock that has had this big pullback, sideways consolidation for over a year, and is just starting the next leg up, I feel pretty comfortable in saying Wynn ( NASDAQ:WYNN ) can hit 150.00 within the next 6 months. I’m just spit balling here, I have no basis for saying that or concluding that; other than just looking at the way this stock trades, the way it has traded for so long. And so yes, I think it can do that pretty easily. Anyway, that is my trade on Wynn ( NASDAQ:WYNN ).