We’re seeing follow-through today on yesterday’s selling and it’s decimating many bullish charts. As of lunchtime the SPY has made a clean break through its 33ema. However, the 99ema is right below and I’m hesitant to dismiss the bull case entirely until we see the markets put in a lower high. With that in mind, I want to turn your attention to a relative strength standout today and hot money high flyer, Lululemon Athletica ticker LULU. The stock is up today. I started buying this morning but was shaken out by the broad selloff. Should we see the market stabilize and turn around (which it is yet to do) I could see this name rocketing higher. Keep it on your watch list.
Aside from my quick jaunt in LULU ownership, I liquidated most of my longs. Remaining longs are AWK, ATML, GS, RVBD, and FB and I’m short SKS and M. Cash is hovering near 60%.
UPDATE: sold RVBD tooIf you enjoy the content at iBankCoin, please follow us on Twitter