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

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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Dragonfly Capital Views Performance Through January 2013 Expiry

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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.

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