A slew of economic releases indicated that the economy and housing are gaining strength. This resulted in the US Dollar rising, bonds falling in price and rising in yield and stocks getting sold for fear of the FOMC increasing interest rates.
It was classic good news being interpreted as bad news session. It was also, in my opinion, a one-day blunder for which I do not expect any significant follow through to the downside. In fact, it is likely that the markets will rise today.
Last Friday, there was an earthquake that hit the Las Vegas area at around noon. There were no major or even minor damages to the area, except on one major highway. This all occurred right before the three day weekend was going to welcome visitors to the Las Vegas Strip and one hour before the market closed. As a result of what I expected was going to be reluctance on some holiday travelers to come to Las Vegas, we shorted Wynn Resorts (WYNN). The stock was down yesterday, more than the overall market. We are going to stay short as the stock is exhibiting technical weakness.
I am flying east in the afternoon to begin our annual migration to Lake George and will be back with more commentary on Friday.
Disclosure: At the time of this commentary Scott Rothbort, his family and/or clients of LakeView AssetManagement, LLC was short WYNN — although positions can change at any time.
Scott Rothbort is the President & Founder of LakeView Asset Management, LLC, a registered investment advisor specializing in high net worth private wealth management. For more information on investing with LakeView Asset Management, LLC call us at 888-9LAKEVIEW or request more information by clicking on the contact button on the top right hand corner of the website.
LakeView Management, LLC is a Nevada LLC, with its principal office located in Henderson, NV and branch office located in Millburn, NJ
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