The Hotel sector has enjoyed an amazing run. Hyatt has gone up more than 60% since its IPO. Starwood is has also been going up as Portfolio managers see a bright future for hotels.
Nevertheless, this stock is overbought. It is trading at a very optimistic multiple which BEARS will want to take advantage of.
There is a strong resistance at this region from $48 to $51. I am shorting HOT at this level.
I would short this at $50 and let it slide to $36 where I will cover my short. This trade has a 40% downside. I will employ a tight stop loss at $53 and a review of the fundamentals.
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