Many in the investing and trading world love to go to Las Vegas. It strikes me as completely insane that people that spend their day managing risk like to gamble, where they know the odds are stacked against them. Maybe it is just for the rush or entertainment.
What interests me about the casinos are their stock price charts. Many have been trading and following Wynn ($WYNN) over the past few weeks. But I have been watching another casino that has been doing well. Boyd Gaming ($BYD) has also been rising fast since making a low in February. In fact it is on the verge of making a new 8 year high.
It may be counter-intuitive, but stocks making new highs are the best place to look for trade and investment ideas. If you cannot wrap you head around that look at the short term chart for Boyd. It shows a pullback from a early November high and then a rebound starting February 12th. 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 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 if price is moving that is what matters.
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