LULU trade ideas
Turning point for Lululemon nowlululemon
Why it was founded?
Founder Chip Wilson heard people talking about yoga 3 times at 3 different places, that thing will become a trend. #principleofthree
Why it will become success?
a. unique, low cost and sticky marketing technique - community marketing (Yoga teacher=brand ambassador)
b. good quality cloth technique - seamless sewing machine from Japan
c. Combine of two unique items - Athlete + style; healthy lifestyle that is getting trendy nowadays, and people needs style when doing exercise.
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Technically, it broke out from range 40-80, climbing up on the uptrend channel, and it is forming a reversal (look like M shape reversal?).
However, Mar 2020, it fell sharply due to pandemic, Mar 2021, it has rebounded strongly within a month.
Will it
A) continue to renounce and reject the M reversal?, or
B) unable to break resistance and trend down?
LULU#LULU The accumulation triangle has been formed and broken (see the yellow circle). Since the ABCDE wave in the triangle is not fully formed, a retest is quite possible (shown by blue lines). The paper holds patterns and moving averages well. There are 3 growth targets - they are shown on the screen, the total growth goal is + 30%.
LULU at key resistance levelLULU needs to break above ~350 to show momentum and break of resistance (prior support in wedge) before we can call bullish. Even then, we will need to test the all-time high of 400 before going fully bullish. Until these points, anticipate downside or further horizontal movement...
An Efficient Way to Make ALL Your Money Work For You!For options traders, there is a way to make ALL your capital work for you! Yes, you heard that right. Not sure what I mean? Keep reading...
You see, most options traders don't position size larger than 5% risk of capital...and most options traders don't put on more than 10 trades at a time. Making these assumptions, we can therefore conclude that you'll never use more than 50% of your capital towards buying power reduction.
This is a very inefficient use of your capital because that means half of it is just "sitting" capital (capital that doesn't go towards making money for you!). Solution you ask? Well, the solution is simple...just redeploy that capital elsewhere besides your trading account. For example, you can take that useless 50% capital lying around in your trading account, and put it into a savings account that say has a 2% annual interest rate...and voila!, now all your capital is being put to use! and you just gained an extra 1% return on capital annually!
I almost forgot to add...remember to position size as if trading capital were equal to the sum of the 2 accounts' values (trading & savings accs).
So for example, #units = 5% ( e1 + e2 ) / max loss per unit ....
e1 - represents trading account's value
e2 - represents savings account value
Hope this helps, enjoy! and please hit the like button.