We have two new long entries for Monday’s open: $GME and $HOT which both closed at new highs on Friday.
Although Friday’s move was a fairly clean one closing at new highs, it was actually a follow-through move as the 52-wk high close had already been achieved by a marginal basis on Thursday. The purist may still want to see the 8/22 intraday highs taken out, but I’m very comfortable with the risk/reward here as we can confidently put a closing stop at the 10/8 level of $49.32, which will also require a break of the 20 and 50-day MA’s just above.
Starwood Hotels ($HOT)
$HOT looks to have finally emerged from a 5 month consolidation pattern, repeatedly crossing either side of its MA’s without ever invalidating its longer-term trend. It’s remained above its 200-day throughout and posted higher lows, the most recent of which coincided with the 10/9 swing low for the market, and which can now act as our stop. It has since accelerated higher, culminating in Friday’s breakout on the highest volume in over 2 weeks.