Cramer: 3 Stocks About to Play Catch-Up
Although the stock market appears to be roaring back broadly, not all stocks have recovered equally.
In the ongoing quest to make money, Jim Cramer says the question to ask now is, which stocks have yet to fully participate in the rally, but still could.
How about the casino names?
The Mad Money host said, "Wynn and Las Vegas Sands are well off their all-time highs, but the strengthening economy should bode well for both companies.
And if you believe in a Vegas turnaround, Cramer said Caesars, which IPO'd in 2012, could be the way to go. "It has the largest Las Vegas presence among public traded gaming companies."
Although the fundamentals would seem bullish Jim Cramer often likes to confirm the thesis by checking technicals. And in this case, the charts look constructive, according to Bob Lang, the founder and senior strategist at ExplosiveOptions.net.
Caesars
Looking at Caesars, Lang sees a lot of bullish signs in the daily chart. According to Lang, Caesars broke out on strong volume in early February and the stock has held above that breakout level – that should make the former level of resistance a level of support.
In the weekly chart Lang sees a so-called cup and handle formation – a bullish formation where the stock makes a cup shaped bottom and then trades sideways to make what looks like a handle. The pattern suggests to Lang that when the handle is done, the stock will shoot higher - as high as $20.
Las Vegas Sands
Looking at the daily chart of Las Vegas Sands, Lang believes the stock is in consolidation mode. And he sees two things in this chart that make him think LVS could soon be ready to roar higher once again. 1) the Moving Average Convergence/Divergence line or MACD, a momentum indicator that technicians use to detect shifts in a stock's trajectory, appears bullish 2) the Williams %R oscillator has been trending up, making higher lows and higher highs.
According to Lang, if LVS can break above $56, a level of resistance, then he believes the next stop could be $70.
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Wynn Resorts
Looking at the daily chart, Lang believes Wynn may have bottomed – making the floor about $115. And in the weekly chart Lang sees a bullish development.
Ever since the July lows, Wynn has worked its way higher via a series of cup and handle patterns. According to Lang, if the stock can break out above $125 it should have a lot more upside.
The Best of the Best
If you're looking to pare down the trade further, out of these 3 ideas, Lang said his favorite chart was Las Vegas Sands. "What a coincidence," said Cramer, "LVS is also my favorite as it has the best fundamentals."
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