Competing Forces

Sluggish action from the major indices appears to stand in stark contrast to some exciting action in select names throughout the tape, such as PFPT or UCTT, among others. This may indeed be the top before the drop. But bears, as usual, must force the issue since the overarching trend is still higher in this uniquely resilient market. 

On the MGM front, as we see new articles again today updating the timeline of the shooting and the response from Mandalay Bay, I expect even more lawsuits (possible class action among the victims and victims' families) seeking punitive damages in the foreseeable future. Thus, MGM is firmly in the hands-off pile for me on the long side. And I am certainly considering a short play at some point. 

As for the MoviePass bonanza via HMNY (they own a sizable stake), momentum players are getting, shall we say, the full moviegoing experience today with a cool 30%-plus selloff. Simply put, momentum cuts both ways in markets, but HMNY was also bought up over the last month or so on enormous buy volume.

Hence, we want to stalk this pullback for a lower risk, quality long entry. 

On the 30-minute chart, below, $22.50 appears to be near-term battle. If that holds, perhaps we see a bit of a snapback. Otherwise, I am willing to wait until next week for better potential entry.