Check into the Hotel Stocks
- Posted by Greg Harmon
- on January 22nd, 2013
Hotel Stocks seem to go through their own rotation. Some are up then others catch up as the leaders rest or pullback. An inter-sector rotation among the market sector rotation. Lately Choice Hotels, $CHH, has been the leader catching up to the previous leaders that have been consolidating. It is starting to look overbought though and Hyatt, $H has just broken out of consolidation higher to take over the leadership. But what is most interesting is that those 3 others consolidating, the previous leaders, are waiting in the wings for you to check in before they break out for their next move. Every one of these has a Relative Strength Index (RSI) that has reached technically overbought levels and then pulled back as it progressed through the flag. Take a look.
Starwood Hotels & Resorts, $HOT
Starwood Hotels & Resorts, $HOT, completely retraced the move lower and has been consolidating there for 2 weeks. Now with the 20 day Simple Moving Average (SMA) closing in it looks ready to break out higher. A move over Tuesday’s close at 6.63 continues the Measured Move higher to 64 and can be traded against a stop within the flag.
Marriott, $MAR, is also consolidating in a bull flag after a big move higher. For this name a move over 39.50 carries a Measured Move higher to 42.50. After two weeks of resting it is time to put this on your radar.
Wyndham Worldwide, $WYN
Wyndham Worldwide, $WYN, is the third name consolidating in a bull flag. This one has a Measured Move higher to 60 on a break over 56.75.
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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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