Well, that escalated quickly.
This week has been a sour one and yesterday fell harder than any day we’ve seen in a long time.
Tech is currently under fire.
And rightly so. Tech is looking very Dot-Com-Bubble-ish right now. A retracement is definitely coming.
For some stocks.
Specifically the high-flying ones.
But today’s economic report beat expectations. That means the consumer is still strong.
And if the consumer is doing okay, what does that mean?
More gambling! And other leisure activities.
And that means Churchill Downs might be ready for a run.
Here’s the chart:
CHDN has been going sideways for quite a while. But in 2024, it’s been sprinting toward a breakout level.
A move above $146.65 could mean the stock is off to the races.
We’ll keep an eye on it.
Happy trading,
— Scott Welsh
P.S. As a reminder, these plays are based on my longer-term Weinstein Stage Analysis method. The chart above uses weekly candles and a 30 week simple moving average. For details on this method, see my explanation on this Ask The Pros episode starting at timestamp 20:45.
