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Requiem for a Bull Market

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I apologize everybody, I should be wearing all black today. Dearly beloved, we are gathered here today to celebrate the life and legacy of our friend, the Bull market. It rose from the ashes of a fractured market on March 9, 2009. From there, it began its life-long dependency on Quantitative Easing and Zero Interest Rate Policy. After a long fight with earnings and valuations it ultimately succumbed to a combination of Chinese equity cancer and oil tumbling-too-low-sis. A moment of silence for our friend, the Bull Market.

Since peaking at 2,134 in May, the market has been rough. Fierce dips in August and September were defended at the 1,867 level but today we’re just a few points away at 1,873 when I came to the studio to make the magic happen. Here we thought the bear market was just a cubby cuddly little teddy bear type. Turns out this same cubby cuddly little teddy bear is actually a ferocious beast that with will pick you up, pin you down and pound you until you’re screaming out loud for mercy. Do you like Leo in The Revenant.

But surprisingly it’s not all gloom and doom. Wynn Resorts (WYNN - Free Report) is up seven percent today on a great earnings report. In fact, the gaming industry is in the Top 11% of our Zacks Industry Rank. A big reason for that is we’ve got Boyd Gaming (BYD - Free Report) , Caesars Entertainment (CZR - Free Report) , and Churchill Downs (CHDN - Free Report)  as Zacks Rank #1 Strong Buys. What’s a better roll of the dice than buying stocks that make money on people literally rolling the dice? Of course Churchill Downs is all ponies but you know what I mean. Still I think Isle of Capri is the best stock in this industry right now. It’s a Zacks Rank #1 (Strong Buy) as well but it’s also got Value and Growth Style Scores of “A.” Two analysts have increased their earnings estimates for the current year and next year, pushing up our Zacks Consensus Estimate from $1.25 to $1.42 for the current year and from $1.31 to $1.56 for the next year.