Gambling Stocks Too Hot to Handle

Wynn Resorts (WYNN) -- Daily eSignal

Wynn Resorts(WYNN Quote) sold off from $176 to $14.50 and bottomed out in March. The long selloff cascaded lower in three primary waves, with two periods of relatively sideways action. This is a classic Elliott Wave pattern that predicts a bounce retracing 38% to 50% of the prior decline. In turn, this points to a rally that eventually reaches $75 to $95.

The stock has completed a bullish 100% retracement of the last selloff wave and reversed at 200-day moving average resistance. It's likely to trade lower from here in the short term and carve out a higher low before resuming its upward trajectory and fulfilling the Elliot target. This building process could take another six to 12 months.

Boyd Gaming (BYD) -- Daily eSignal

We can head off the Strip and find a more bullish chart in Boyd Gaming(BYD Quote). The stock suffered through a horrendous downtrend in 2008, dropping to a 10-year low at $3 in November. It tested that level in March, punched out a well-organized double-bottom reversal and started to move higher.

Buying interest has escalated since that time. The stock pushed over the November swing high at $7.55 in mid April and has rallied well above the 200-day moving average. The uptick stalled in the low teens, with a pullback below $9 that has found willing buyers. Bullish volume supports an uptrend that carries above the rally high and into the upper teens.

Las Vegas Sands (LVS) -- Daily eSignal

Las Vegas Sands(LVS Quote) has casino properties all over the world but is best known for its Venetian Resort. It shows a five-wave decline pattern, just like Wynn Resorts, but weaker relative performance because it has failed to test the 200-day moving average. However, it's tough to complain about the sevenfold price gain since the March low at $1.38.