EU finance ministers approved a $173 billion package for the struggling nation. GLD closed up 2.18% to $171.02 while SLV closed up 3.47% to $33.40. Oil also spiked higher due to the news on Greece. Spot crude closed up 2.20% to $105.50. The 2x long oil fund UCO broke through a key $45 resistance level and closed at $46.17. Like I said earlier last week, MGM Resorts (MGM) was to be put on watch for a breakdown. Stock broke its steep trend line at $14.60 and traded down sharply after. Boyd Gaming (BYD) reported earnings in pre-market today and reported poor results. BYD is a smaller casino operator than MGM, LVS or WYNN but it has holdings in Las Vegas. MGM reports earnings tomorrow and is expected to report a loss of $0.19 per share on revenues of $2.17 billion. MGM closed down 3.38% to $14.17. With earnings tomorrow, swinging this name makes it difficult because there is no real edge. MGM closed right on its 20-dma but $12.40 would be my first downside target. This could easily be reached with an earnings catalyst. The street will focus more on MGM’s business operations in China, specifically Macau. Casinos in Macau have been the main revenue drivers for MGM, WYNN and LVS. Sears Holding Corp. (SHLD) is starting to display signs of weakness again. Stock fell 6.58% to $50.94. Dell reported earnings after the bell and is down over 4% in after hours trading despite its strong results. Almost Family (AFM), DryShips (DRYS), Qihoo 360 Technology (QIHU) and Yandex (YNDX) all report earnings tomorrow. DRYS has seen quite a meteoric rise and has made a short-term top at $3.82. Pay attention to this one tomorrow. The stock is up over 50% in 12 trading days and the breakdown could be epic.
Written by Cameron Patrick