The Best Casino Stock Amid a Bad Losing Streak

The multi-quarter bull runs we saw in the major casino plays, LVS MGM WYNN, all seemed to vanish like a gambler's lucky streak this summer, with all three of the majors taking a relentless pounding from aggressive sellers. 

At the moment, all three are rather oversold on a near-term basis and could easily bounce, as could gaming technology plays like IGT and SGMS, which have similarly been pummeled. 

But we always want to note relative outperfomers in a given sector. And when we put in the work to ferret out the warriors who battled valiantly amid a slumping sector this summer, there can be no doubt that Eldorado Resorts, Inc. remains attractive for a variety of reasons. 

For starters, and as we have noted with Members for a while now, ERI (below, on the daily timeframe) is strategically placed with its properties to benefit from demographic shifts. ERI is based on Reno, Nevada, and the gaming properties there stand to benefit as that area grows economically. Similar comments apply to the Louisiana/Texas border area. 

Technically, the stock pulled back to trend support (light blue line) but is still above rising longer-term moving averages, a claim which the majors cannot make at all as they are mired in steep multi-month downtrends. 

Overall, if gaming stocks are to bounce we of course could play LVS MGM WYNN for quick flips. However, ERI represents a higher quality swing trading long setup and should be stalked carefully this autumn.