Macau has been pressuring BJK since last year. In 2014, gamblers stayed home to bet on the World Cup. Limited access to smaller smaller junket operators, who extend credit to gamblers, is also weighing on the market.
U.S.-focused gambling stocks have not been anything to write home about, either. Las Vegas Sands (NYSE: LVS), Wynn Resorts (NasdaqGS: WYNN) and MGM Resorts International (NYSE: MGM) have posted year-to-date losses of 5.6%, 30.2% and 12.6%, respectively. That trio combines for 18.4% of BJK’s weight. Technical hope has arrived.
“Most big gaming stocks mirror the pattern of the ETF, with bullish divergences between price action and momentum readings such as relative strength index (RSI). Even as price made lower lows, the indicator started to rise, and it is usually price that turns to follow its indicator. Trading is still well below the 200-day moving average, signifying a lingering downside bias, but the average looks to be a good target for a bounce,” according to Barron’s.
Market Vectors Gaming ETF