LVS made it official, Madrid is the site of its next multibillion dollar casino and hotel complex, according to CEO Sheldon Adelson. LVS is very much “buying low” in Spain For most of Europe is in a deep financial crisis. According to CNN, 50% of Spanish youths are unemployed, but LVS said that the proposed casino complex may generate up to 250,000 jobs.
Away from the fundamentals, the chart displays an interesting pattern. LVS has been in a rage since September, stuck in-between $47.5 and $40.00. The 200 DMA was literally flat from September to October, but since November expiration the line has started to slope down and hence Friday’s price action. This is about the fourth time LVS has came to this level and every time before it has been promptly rejected. It is also interesting to note that LVS was in a similar range for almost a year and a half. See the charts below for the visual, perhaps LVS needs horizontal consolidation before the market properly prices in their new Spain operation.
The long-term chart could possibly be a massive head and shoulders, if the right shoulder gets built out a little more. At the start of 2011, the 50-day average volume was about 40 million shares; the 50-day average volume now is only about 7 million shares…a massive decline. Other interesting tidbits include where the majority of option open interest sits. The largest line of put open interest is at the December 2012 $37.25 strike, with over 8,000 contracts, this is the largest open interest amount in December, January, or March puts.
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