Casino Stocks Are Still Trading Like Chinese ADR's
This afternoon, all of the leading casino stocks are trading lower with the major stock market indexes. The leading casino stocks are still generating good revenue from the Macao market. Many traders are waiting to see if the casino stocks will start trading like a U.S. stock instead of trading like a Chinese ADR. A fair case can be made that the daily chart of Wynn Resorts Ltd (NASDAQ:WYNN) looks very similar to the chart of Baidu Inc (NASDAQ:BIDU). Both stock made a short term high around late March 2012 and have been pulling back since that time. Recently, Chinese economic data has pointed to a modest slowdown. Obviously, at some point in the future the Chinese central bank (People's Bank of China) will try and stimulate the economy again. Until that time, traders should trade the casino stocks just the same way you would trade the Chinese ADR's.
Some leading casino stocks that are pulling back today include Las Vegas Sands Corp (NYSE:LVS), MGM Resorts International (NYSE:MGM), and Monarch Casino & Resort Inc (NASDAQ:MCRI). All of these stocks will generally follow WYNN stock which still remains the leading stock in the casino sector.