Where Will You Be Staying?

There seem to be so many views on the “reopening” trade. Where should one look within the market to get a good clue as to how the names in the space will act to see if the prior strength will continue or it fades. The JETS is now lower 8 of the last 9 weeks, with the vast majority of those CLOSING in the lower half of the WEEKLY range (22% off most recent 52 week highs too). Gambling stocks for the most part have been soft, with former leader CZR now 24% off its peak made just at the start of June. Hotel names could be looked at to see how they perform if consumers start to book vacations at a rapid clip, or executives begin to travel more. HLT could be considered a leader in the space as it currently rests “just” 7% off all-time highs (decent relative strength compared to peers MTN and IHG off 10 and 12% from their recent highs). There are smaller cap plays like CVEO and CPLG that look promising, but they trade in an illiquid fashion. HLT will offer good insight into how the economy will continue to fare going forward.

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