SHORT Starwood Hotels and Resorts. $HOT

I shorted Starwood Hotels and Resorts at $55.5 today as the stock has been overbought.

I will see whether it can break through the 20 day SMA. If it is still weak at that level, I will short it all the way to $47.

Starwood beat wallstreet with their latest earnings release.

The stock rose 5% as investors start to collect Starwood stocks in their portfolio. However, the stock is trading at an unsustainable P/E level. 60X? That’s too much.

Even US STEEL is being hammered when it could make more than $7 EPS next year.

HOT can only earn at best $2 next year, and the stock is trading as if it is going to earn $10 in 2012. No doubt this is a long term good play. It could reach $80 by year end, but not now. US STEEL is now cheaper than HOT, something is not right.