Many in the investing and trading world love to go to Las Vegas. It strikes me as completely insane that people who spend their day managing risk like to gamble when they know the odds are stacked against them. Maybe it's just for the rush or entertainment.
What interests me about the casinos are their stock price charts. While many have been trading and following Wynn Resorts (NASDAQ:WYNN) over the past few weeks i've been watching another Vegas play that has been doing well. Boyd Gaming (NYSE:BYD) has been rising fast since making a low in February. In fact, it's on the verge of making a new 8-year high.
It may be counterintuitive, but stocks making new highs are the best place to look for trade and investment ideas. If you can't wrap you head around that look at Boyd's short-term chart. It shows a pullback from an early November high followed by a rebound that started February 12. This has seen a near straight ride higher and the price is now back at that November high. Thursday’s price action looks to be breaking a short consolidation to the upside.
One could look at this as a cup-and-handle pattern triggering with a target to 28 -- or a as bullish flag break on the most conservative measure to 22.25 or more loosely to 25. The point is that the price action is rising and looks to continue. Momentum has been running hot, so one might see a pullback or further consolidation along the way.
But when price is moving, that's what matters.