Today’s stock, Hilton Worldwide Holdings Inc. (HLT) is a great example of finding a stock that has relative weakness in a strong market. This is almost always a clear sign of a possible short play.

As you can see in the video, while the market has pressed higher and higher over these past several weeks, HLT has remained somewhat weak and in the best case, has just kind of consolidated. You may see higher highs on the chart as well, so this could lend some credence to the fact that the trend is still moving upward. However, this 135-140 area is worth a watch.

Any failure to hold this area should imply lower prices, at the very least, in the short term. Investors could use this area to gauge whether or not a larger sell off is in play. Now, to make things a bit more interesting, you’d want to see what this stock does compared to the overall market.

A relatively weak stock is highly susceptible to a reversal in the market. More importantly, is to see what this stock does if the rally continues. If the divergence continues, I would keep this stock on your watchlist for a possible short play.

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