Stock Market Analysis – 07-07-2010
The strong market bounce should add some hesitation in opening new short positions, but shouldn’t be forcing an automatic sell. Holiday weeks make it tough to read volume, so take the action with a grain of salt. Most of the good shorts are either still below their breakdown points, e.g. MGM, or still priming for a breakdown, e.g. LULU. That makes this a perfect spot to be with the jobless claims report coming out.
MGM Resorts (MGM) – 06-30-2010
Is anyone going to Vegas nowadays? Actually, I think I am soon, but that’s beside the point. I’m bearish on this whole group right now, but MGM is my current favorite. It’s a bit overextended now, but you could look into WYNN, LVS, etc. too and pick the best looking one whenever you’re actually opening your position. I am hoping for another weak attempt at a rally to give some better short points, but I have doubts that the bulls can muster any more strength.