Hotels for the Wanderers and the City Folk
- Posted by Greg Harmon
- on January 17th, 2012
I will be driving from Cleveland to Chicago Thursday morning passing through Indiana and then back again Friday. There is expected to be some foul weather so I started thinking about what I would do if I get stranded in the middle of no where. The house on one end of the trip and the nice big hotel with a conference center on the other end. Did you ever notice that there are plenty of Choice Hotels, $CHH, brands when you are in the middle of no where. Every interchange on the highway has a Comfort Inn, Quality Inn and Econolodge, some of the Choice brands. But you will not find a Hyatt Hotels, $H, in Lagrange, Indiana. A real distinction between the brands. One for wanderers and one for city folks. Not much wandering going on in January. It plays out in the charts as well. Take a look.
Choice Hotels, $CHH
Choice Hotels, $CHH, had a great run higher through the fall and into the holidays. Since then it has fallen back. It is currently in a bear flag under the 50 day Simple Moving Average (SMA), where it has not been since the breakout in October occurred. It is showing some signs that it may be ready to turn higher. The Relative Strength Index (RSI) is bottoming above 40 remaining in the bullish zone and the Moving Average Convergence Divergence (MACD) indicator is starting to improve. The increased volume on this downward leg is also diminishing and it stalled at support of the gap up and prior resistance. But it remains a downtrend until it can get back over 36.60. Stay away until then.
Hyatt Hotels, $H
Hyatt Hotels, $H, have not exhibited that pullback though and the stock is trading right at resistance at 40 in a bull flag. It has a RSI that is bullish, but a MACD that looks to be ready to cross negative. Perhaps the run is done, but the trend remains higher until it falls below 37.50. This is a good long trade over 40.
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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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