Fairlead Strategies Idea Generator

Monarch Casino & Resort (MCRI) & Updates (HCC, SBAC, USO)

Some updates on existing ideas…

We are removing Warrior Met Coal (HCC) from our short ideas because it is poised to log a second consecutive close above our stop-loss.

We recommend taking profits in SBA Communications (SBAC) as short-term overbought conditions are impacting the stock near resistance at the 200-day MA.

To protect gains, we are tightening our stop-loss in the United States Oil Fund (USO) to $68 from $63.

---

With short-term overbought conditions widespread across the broad market, we are watchful for overbought downturns that could signal near-term weakness. We identified such a downturn in Monarch Casino & Resort (MCRI) as a compelling short:

• MCRI flashed a short-term counter-trend “sell” signal yesterday from the DeMARK Indicators® leading to an outside-down day. A short-term overbought downturn clears the way for a test of the 200-day moving average (MA). Neutral short-term momentum should also deteriorate, providing more fuel for the downmove.

• Intermediate-term momentum gauges support weakness in MCRI within the context of its long-term trading range. The weekly MACD is pinched toward a “sell” signal, and the weekly stochastics point lower with more room to run. Relative strength is weakening versus the S&P 500 Index (SPX).

• Targeted support is the 200-day MA for MCRI, currently near $69. A stop-loss level can be placed above yesterday’s minor high near $82.

---

Monarch Casino & Resort (MCRI, $77.57)

Target: 200-day MA (currently ~$69)

Stop-Loss: $82