I have a love-hate relationship with Las Vegas Sands Corp (NYSE:LVS), but it certainly is a stock that provides great opportunity for active traders. The stock was on our radar at the beginning of the year below $20, and by the time it double to $40 we had written it off as extended and no longer compelling. As it turns out, we folded our hand a little early.
In early November, Las Vegas Sands went parabolic and became very extended. Given the strength of LVS it was a tough area to short, but we targeted the $52-55 area for a quick short trade. We finally we saw a topping tail on November 5 above $55. I pressed hard for a short trade in LVS several times near the top, but actually lost money trying to be early and decided to abandon the trade. The stock eventually got hit and fell back down to the $45 area. The earnings gap held, though, and LVS has rebounded to the middle of the recent range.
The stock is working on a wedge-type pattern as it absorbs the massive gains of the year. Sometimes strong stocks get marked up into year end, and LVS seems like a candidate for another run higher as long as it holds above $48.50-49.50. The area to watch/potentially get involved is the $50.70-51.25 area.
*Disclosure: Long LVS
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