LULU week of June 4th
Like many stocks, the more they Gap up the more there is profit taking when the market opens.
LULU is no exception.
If we go all the way back to Dec 2016 earnings LULU was Gapping beyond what a bag holder could resist selling. I suppose this brought the bears in.
But if you look at LULU's latest earnings the Gaps have been below the 10% level and therefore had room to move on an intraday giving some nice
trades on the long side. Friday was an up day for the market and as the SPY rose on strength so did this ticker that has a privileged earnings date, (when the storm has mostly passed).
Volume was super strong ( Look at that volume bar) and Lulu marked one of it's strongest days period.
Folks wanting to short this high riser should be extremely cautious. The fundamentals on this company are very favourable and a lot of institutionals who weren't already holding may take a look in the next 2-3 days and see if LULU can hold it's gains as it has recently.
Some profit taking is likely at the Monday open and at resistance levels but I would wait and see. I think the first dip gets bought and we're off to a higher close tomorrow setting the tone for the week and the quarter as the seasonality plays into LULU favour as well.
I'm sure Buffet already bought a bunch last quarter.
LULU is no exception.
If we go all the way back to Dec 2016 earnings LULU was Gapping beyond what a bag holder could resist selling. I suppose this brought the bears in.
But if you look at LULU's latest earnings the Gaps have been below the 10% level and therefore had room to move on an intraday giving some nice
trades on the long side. Friday was an up day for the market and as the SPY rose on strength so did this ticker that has a privileged earnings date, (when the storm has mostly passed).
Volume was super strong ( Look at that volume bar) and Lulu marked one of it's strongest days period.
Folks wanting to short this high riser should be extremely cautious. The fundamentals on this company are very favourable and a lot of institutionals who weren't already holding may take a look in the next 2-3 days and see if LULU can hold it's gains as it has recently.
Some profit taking is likely at the Monday open and at resistance levels but I would wait and see. I think the first dip gets bought and we're off to a higher close tomorrow setting the tone for the week and the quarter as the seasonality plays into LULU favour as well.
I'm sure Buffet already bought a bunch last quarter.
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