Home > Lessons from the trading floor, Market Set Up > Trading a Sector $LVS $MGM $WYNN $$

Trading a Sector $LVS $MGM $WYNN $$

Over the past few months the market has been basically directionless.  This lack of direction from the markets has made trading with conviction a little difficult.  Trading day in day out has been more of a stocks pickers market and has forced us as traders to focus on a bigger list of stocks.  The reason for this is because of news, and or volume, specific sectors may be in play on a certain day.  When these specific sectors are in play you can’t miss out on the opportunity because opportunities to make big money in this market have been limited. 

Yesterday we had a perfect example of a sector that was in play for the day, it happened to be the gaming sector.  Las Vegas Sands (LVS) has been on my list for a while now.  It is a readable stock that generally has good volume.  It has been on my list as a long because it has been holding the previous breakout above 32.70 and doesn’t have any resistance till around 39.  My plan going into the day was to watch for strength on the open and get involved above 35.90. 

This plan changed a bit on the open because of the relative strength on the open from the gaming sector.  I got involved on the first pause around 35.70 so that I could build a position above the breakout level.  Because of the relative strength compared to the market my probabilities for the trade went up so it was my responsibility to allocate more capital  to the trade. 

I ended up holding this trade for most of the move and captured most of the move with full position size.  These have been the types of opportunities that this market has been providing.  Find where the money is flowing into or out of each day.  Good luck today in your trading. 

Kyle

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