Buy Choice Hotels And Sell Short Apple

The market is likely to be flat in the coming week. On the 28th, the 1.88 year cycle tops adding to the likelihood of the usual September weakness. The selling is likely to be concentrated in the big tech leaders. Improving relative strength in the small-cap stocks and the broad-based and equally-weighted Value Line index of 1600 stocks provides some buying opportunities in lesser known stocks. Here are a pair of recommendations.

Choice Hotels has been rated highly on the Cycles Research screens. In the three-up chart below, we see that there have been price breakouts daily, weekly, and monthly. Weekly, a relative strength downtrend is being reversed. The seasonal trend is improving as can be seen in the monthly histogram.