Macau is the worst mistake Steve Wynn has made in an otherwise illustrious career. He went all-in there when Las Vegas pancaked after the 2007-08 U.S. financial crash. China, with some of the wealthiest high rollers in the world, looked like a great bet for a casino operator. Instead, for Wynn and other gambling moguls, it turned out to be an inescapable bog of Chinese corruption that involved money laundering and bribery. Wynn, a world-class risk-taker who is known for running a tight ship, may have been innocent of these crimes, but the crackdown that followed has taken a heavy toll on his revenues, and on WYNN shares. From a high of 248 in March 2014, the stock has fallen to a low in early October of 51. A few weeks later they tripped yet another sell signal that implies more downside in the coming months to at least 46.73. Worst case — better sit down for this if you own stock — is 16.21. Presumably, that would reflect not only the continuing effects of the crackdown, but the bursting of China’s economic bubble. It’s being referred to as a ‘slowdown’ at this point, but there is reason to think that a soft-landing for so pumped an economy will not be possible._______ UPDATE (December 10, 6:15 p.m. EST): The stock has been acting pretty feisty lately, reportedly with the help of Steve Wynn himself as a size buyer. Wednesday’s pop through the 70.81 midpoint pivot was encouraging, but the stock will need to close above that Hidden Pivot resistance for two consecutive days to become an odds-on bet to achieve the 83.95 target. The midpoint pivot can be used to fashion a mechanical bid, using 77.38 as a minimum objective.
