Las Vegas Sands (LVS) Constructive Technical Pattern

Las Vegas Sands Corp. (LVS) is a stock that we had a lot of fun with a year or so back, as it ran from $19 to almost $40. The stock peaked around $55 in early November. Since then, the stock has been basing and creating a 9 month channel. There have been lots of false micro moves along the way with some sloppy action. This usually occurs as a stock absorbs a big move.

The casinos acted very well during this market pull in with Wynn Resorts Limited (WYNN) by far the best in breed. I know it sold off on earnings but it was extended in price. Technically, LVS just held in the upper end of the channel and is now above most it’s moving averages.

You can trade this two ways. If you see a high volume move and close above $46 it could ignite to the upside. You could buy tier one now, and add through that level but you might need to sit through earnings in late July. Or you can buy some August $46 calls for about $2 dollars and eliminate the noise and quantify your risk. If this goes, we probably see a move above $50 so it will more than cover the premium paid.

(click to enlarge)

Disclosure: Long LVS

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About Scott Redler 367 Articles

Scott Redler is the Chief Strategic Officer of T3 Live. He develops all trading strategies for the service and acts as the face of T3 Live. Mr. Redler focuses on thorough preparation and discipline as a trader.

Mr. Redler has been trading equities for more than 10 years and has more recently received widespread recognition from the financial community for his insightful, pragmatic approach. He began his career as a broker and venture capitalist where he was able to facilitate relationships that led him into trading. Beginning his trading career at Broadway Trading in 1999, Mr. Redler moved on with Marc Sperling to Sperling Enterprises, LLC after establishing himself as one of the best young traders in the firm. As a manager at Sperling Enterprises, continued to trade actively while working closely with all traders in the firm to dramatically increase performance.

Mr. Redler has participated in more than 30 triathlons and one IronMan, exhibiting a work ethic that also defines his trading. His vast knowledge and meticulous attention to detail has led to regular appearances on CNBC, Fox Business, Bloomberg, and he is a regular contributor to Minyanville and Forbes’ Intelligent Investing blog. He has been quoted in the Wall Street Journal and Investor's Business Daily, among other publications.

Scott received a B.B.A. in Marketing/Finance from the State University of New York at Albany, graduating Magna Cum Laude from Albany's School of Business.

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