Let me get this straight, Obama hosted an unscripted Q&A and the market still went up triple digits? That’s Gangsta. This will take some getting used to as our prior President wasn’t that good at the whole off-the-cuff thing.
The mark-to-market standards easing, while already telegraphed in advance, was like an anabolic steroid shot directly into the market’s tush, adding even more juice to the rally that was already carrying over from Europe and Asia.
So take a guess where the most money was made today…techs? Nope. Banks? Nope, they were actually surprisingly subdued.
No, the real money was made in Resorts & Casinos with that sector up 16.44% today, a face-ripping rally for the ultimate discretionary stocks. This came against the backdrop of a plus 3% day for the S&P 500. The casino sector killed it.
Boyd Gaming (BYD) and Wynn Resorts (WYNN), two stocks that couldn’t catch a bid if their lives depended on it since the start of the year, were truly explosive with gains of around 25% each on the day. MGM Mirage (MGM) and Las Vegas Sands (LVS) both popped around 18%.
Do people without jobs plan to gamble this summer? Is the market extrapolating too much good news out of Macau’s recent numbers? Do traders now believe that these gaming companies will be able to roll their debt or get new financing? Or were these stocks just over-shorted and oversold?
Whatever the reason, Luck was surely a Lady today for the gaming stocks.
Read Also: MGM – Degenerate Gambler
Full Disclosure: I have no positions, long or short, in any of the stocks mentioned.