06Oct3:24 pmEST

I Give This Chart a 4.2 Out of 10

Penn National Gaming (NASDAQ:PENN), which purchased a 36% stake in Dave Portnoy's Barstool Sports in early-2020, is suspiciously weak today despite the broad market upside reversal.

On the first daily chart, below, PENN is not nearly as weak as other IWM holdings today due to the energy complex shakeout. However, you can see how dodgy the technicals are, with price threatening a fresh breakdown well below a declining 200-day moving average (yellow line, up near $90). 

PENN was, easily, one of the biggest winners off the March 2020 pandemic bottom, as Portnoy and Barstool has aggressively monetized their brand and appeal, among other PENN ventures. But at the moment the market seems more keen on unwinding some of these eye-popping gains. I would steer clear or, perhaps, look at puts here, especially if today's upside reversal in stocks fizzles out. 

Speaking of fizz, check out the LaCroix owner's chart, second below, as a long idea. It still has a low float, a great chart, and a heavy short position to squeeze if it wants to, not unlike SDC crushing shorts right now, or even APRN. 

Overall, the market seems hopeful that Congress is close to a magic bullet type of deal. Let's see if the hope lasts the rest of the week. 

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