HOTEL STOCKS ARE ALSO XLY LEADERS -- HILTON, HYATT, AND MARRIOTT HIT NEW RECORDS

DOW JONES HOTELS INDEX HITS NEW RECORD... Yesterday's message showed gambling stocks helping lead the Consumer Discretionary SPDR (XLY) into record territory this week.  It also mentioned leadership from autos, footwear, and hotels.  We're going to focus on hotels today.   Chart 1 shows the Dow Jones US Hotels Index having recently cleared its early 2018 high to reach new record territory.   The relative strength ratio in the upper box compares hotels to the XLY; and shows it recently breaking out to the highest level in eighteen months.  That rising ratio shows that hotels have become one of the strongest parts of the XLY; and have been helping lead it higher over the last two months.

HILTON WORLDWIDE IS HOTEL LEADER... One way to rank stocks for relative strength is to look at their SCTR ranking.  That's the StockCharts Technical Rank (SCTR) which is derived from six different technical indicators over different time spans.   Stocks with the higher SCTR ranking show better relative strength.  I used that to help choose Hilton Worldwide Holdings (HLT) as one of the strongest hotel stocks.   Chart 2 shows that hotel leader's stock trading well into record territory.  That stock has been in an uptrend all year.  The line in the upper box gives the stock a SCTR rank of 90.  Our second hotel stock has the same high SCTR rank.   But a more recent technical breakout.

HYATT HOTELS ACHIEVES BULLISH BREAKOUT... Chart 3 shows Hyatt Hotels (H) also trading in record territory.  Its chart, however, shows a more recent bullish breakout taking place this month with the stock exceeding its 2018 high.  Its SCTR line in the upper box also has a high reading of 90; and has achieved an upside breakout of its own.

MARRIOTT HITS NEW RECORD... Chart 4 shows Marriott (MAR) having also recently achieved a bullish breakout into record territory.  Its SCTR line in the upper box has a slightly lower rank of 85.  But that's still pretty high.

There are a couple of ways of using the SCTR lines.  If you're a believer in buying the strongest stock in a strong group, then the stock with the highest SCTR rank may be a better bet.  If you're looking for a slightly cheaper stock in the same strong group, a slightly lower SCTR rank may be a better choice.  But only as long as it still has a strong chart pattern.  All three stocks shown herein qualify on both counts.  High SCTR rankings and strong charts.  Along with new records.