I know that Gio has been all over this for a while now, but $LULU is finally seeing the big breakdown today. Over the past year or so, I had been trading in and out of the stock on the long side, playing the momentum. However, the Yoga apparel maker is now starting to slide down the other side of the mountain. I currently have no position in the name.
Over the course of the next several weeks, and possibly months, I would look to $LULU as a bread and butter short. Momentum cuts both ways, and just as the stock was breathtaking in its rise from $4 to $46 since March 2009, I would not rule out an equally dramatic reversal. In the very short term, I would wait for a bounce before initiating a short position. Also note that if the broad market collapses this fall, high beta stocks that have a lot of hot money in them, like $LULU, will be punished the most.
My first price target for $LULU is $24.
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This is one reason I would like to see more ETFs for sub-sectors. There are times I’d like to go long/short the retail apparel sector, but not necessarily the entire retail index.
XLY has quite a negative September seasonality which would probably help this play.
The chart clearly tells the story but the LT fundamentals are the opposite.
Among women it’s a cult, not a company.
Right, but a run from $4 to $46 prices in quarters of growth ahead. It is a technically driven stock now.
Indeed
DECK looking Uggly … may pull a LULU
I have not seen anyone mention this head and shoulders yet
at first I ignored it as it was not at its usual spot but todays failed rally is suspect
http://img444.imageshack.us/img444/5219/53250260.jpg
gracias, amigo