Check out Caesar’s Entertainment and MGM Resorts ($MGM). (September 15, 2020)
MGM CZR MGM
Let’s look at a couple casino stocks here. First of all, MGM ( NYSE: MGM ). This is working pretty well. I typically like to see the 50-day moving average above the 200-day, that is just kind of a general scan. But this really is kind of close enough; I actually found this stock because I was looking at the next stock that I am going to show you. Whenever I find a stock that interests me I always like to go look at the other stocks in the sector just to kind of see what they are doing.
I like MGM ( NYSE: MGM ); the way that I would trade this is to figure out what the high has been, the recent high, like the last 10-day high, it was 24.42. Today the stock was up 24.24 so it’s almost through this 24.42 level. That is where I would put a buy stop; I am going to do this on our website for 24.40; where if the stock hits 24.40 we are going to get an alert and people can buy that. I like waiting for this type of a breakout because it makes it a much higher probability trade.
Then the other stock, which is actually a little further along here, is Caesars ( NASDAQ: CZR ). We can really see a nice move on this above $50.00. Again, it’s a little mature and frankly, you are kind of chasing now if you are buying this stock. But sometimes you have got to chase momentum. On this weekly chart, you can see that the stock is working pretty well.
This looks like a real sloppy pattern because it is. But if you kind of zoom in a little bit over the last 6 months or so you can really see a tightening pattern and the stock actually breaking out just this week. So if you are a short-term trader or a long-term trader you can be in this stock. The only difference would be where you put your stop. Certainly, short-term traders are going to want a tighter stop. Longer-term traders, a looser one.
So between Caesars ( NASDAQ: CZR ) and MGM ( NYSE: MGM ), there’s a couple of trades that I think can work over the next couple of days or a week or so.
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