Monday, September 27, 2010

Bookkeeping: Starting Home Inns & Hotel Management (HMIN)

The market remains on a tear.  Don't be fooled by the lack of action in the index...after a big move going sideways remains bullish.  All algorithms are set to buy on the inevitable breakout over SP1150 which surely must come if not in the closing flurry of buying premarket tomorrow (recall if the market can't lift past a level during normal hours it is the 'urgent buyer's' job...he is happy to buy SPY futures at any price).  Even on days like today you see some near vertical moves in the SPY as seen about 90 minutes ago...weird.  Oh yes tomorrow is a POMO day...Dow 11,000 hats?

I have not discussed Home Inns (HMIN) on the blog before but it is one of the larger and more stable Chinese names (I am excluding the mega caps like China Life).  Normally when I go China travel it is (CTRP) ..a stock I've had on and off for the better part of a decade.  But the chart turned parabolic.  So instead I have gone with this hotel chain which has been in a bull run since early May.  Friday it pulled back to the 20 day and today has bounced close to I am going in with eyes toward SP 1170.  2.2% allocation for now.

The valuation is extreme but right now nothing matters but more fiat money (Japan apparently was the latest with a 2nd currency intervention) chasing fixed amount of stock certificates.  Speaking of which please go see chart of for parabolic.  I considered retarting that name 2 weeks ago but thought the rally in the indexes was going to reverse soon.  Wrong.

Long Home Inns & Hotel Management in fund; no personal position


Disclaimer: The opinions listed on this blog are for educational purpose only. You should do your own research before making any decisions.
This blog, its affiliates, partners or authors are not responsible or liable for any misstatements and/or losses you might sustain from the content provided.

Copyright @2012