Stock Sellers Hit Wynn Resorts (Nasdaq: WYNN) and MGM Resorts International (Nyse: MGM) Today – Mike Swanson (08/01/2018)

Heavy selling is hitting shares of Wynn Resorts (NASDAQ: WYNN) and MGM Resorts International (NYSE: MGM) today.  In fact the selling is so intense that WYNN and MGM are among the top losing stocks in terms of percentages today in the entire S&P 500.

Several things are happening to cause this.  First of all Ceasars Entertainment Corporation (NASDAQ: CZR) reported earnings today and the shares got sold on the news.  Secondly, more trade tensions hit the news wires between the United States and China as President Donald Trump threatened to double his proposed tariff taxes on Chinese goods being imported into the United States.

Emerging markets fell on this news and Asian markets got hit hard in particular.  Since Wynn Resorts is expanding in Macau that is spooking people.  But in reality these companies all have huge debt loads and are vulnerable at the top of a stock market bull cycle.

Take a look at the chart of Wynn Resorts.

WYNN shares are down 4.51% percent so far today and are below their $160.00 support level.  Their next support level is at $150, but the stock is trading below it 150 and 200-day moving averages and these moving averages are now price resistance.

MGM is down 6.92% today and so is dropping harder than WYNN.  It is already very close to its July lows.  These are stocks that did well in 2017, but this year are performing very poorly when compared to the S&P 500 and the broad market

This trend is likely to continue, but this is a time in which many stocks have been breaking uptrends.  Last week saw a sudden and surprising drop in Facebook (NASDAQ: FB), a day after it made a new high for the year as it completed a “teardrop” stock drop pattern.  Big drops are simply happening in individual stocks now in the market more frequently than they had been a few weeks ago.

 

 



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