The Sky is Falling on Macau

I wrote about domestic casino operater RRR the other day. So, I wanted to follow-up on the abrupt sell-off today in the Macau-related players, namely LVS MPEL WYNN, even MGM, all getting clocked about an hour ago on news that Beijing was pushing back against Macau by slashing ATM withdraw limits. 

LVS MGM MPEL WYNN all suffered immediate and substantial selling on the news, and are not bouncing back much as I write this, with WYNN down 10%, for example. 

When abrupt selling like this occurs on news, if there no immediate recovery from the sizable red daily chart candlesticks now being printed it is usually correct to back off the long thesis and allow the charts to set back up for a few days. The temptation to try to be a hero and/or save face (if you were heavily long or bullish on the space) is the part of human nature you usually have to fight as a trader. And I suspect this is one of these times as the sky seems as though it is falling on Macau gaming. 

Simply put, right now there are more actionable long setups and individual stocks and sectors beyond Macau-related casinos. RRR, however, is barely down on the day and is still a prospective non-Macau long idea. 

More in my recap after the bell.