1LUL trade ideas
LULU above 100 & 200 dmasLULU shows relative strength, holding above its 100 & 200 day moving averages. Its long-term trend is still intact.
Disclosure: long LULU
LULU watch list Zacks Rank: 1-Strong Buy 1 Style Scores: F Value | A Growth | A Momentum | C VGM Industry Rank: Top 17%(43 out of 255) Industry: Textile - Apparel
LULU too tight trading range up hereLULU sure looks very toppy and versus it's pears quite high PE. I'd be extremely careful pushing the up side. Sure looking like a gab fill candidate.
LULU Bullish Flag formation near completion.LULULEMON is currently in the controlled profit taking stage of the flag for the current bull flag formation. The previous advance since an earnings surprise is used as the length of the flagpole and also the measuring objective of the next advance. If we see some significant volume on the breakout then we could be set up for some nice quick profit. If volume diverges from an increase or does not increase at all this is Bearish and therefore no entry should be taken. Could see some more controlled profit taking before an advance, watch for volume.
LULU seeing lots of call credit sells up hereSure looking like the LULU gap fill is about to start. Whole lot of risk up here especially if you look and see how far it has come up on the weekly chart.
LULU may go downI think, it's a good set up for short play LULU. It's has pulled back a bit but I am expecting that it may come down to ~$100 price range. Please do your own DD. I am just learning about these charts.
HYPED, OVERPRICED, OVER BOUGHT & A HUGE BUBBLE!Over the last week, I finished a 72 hour options course...
and...after researching this disgusting and outrageously named company and its garbage and over priced websites...
On Friday... I had to open a SHORT Position in this Chinese/Canadian KNOCK-OFF Apparel Company.
With apparel a dime a dozen, in all areas of the clothing industries, and especially online, how can anyone continue paying 100% to 300% markup for yoga pants from this hyped KNOCK-OFF company?
I don't care how much money someone has, after a while, you start to look stupid as you continue buying KNOCK-OFF APPAREL from this company while your friends are wearing designer names!
DICK's sells NIKE PRO, with breathable technology, NIKE is a household name and their yoga pants sell for $34. If you have DICK's CASH, you could end up paying nothing.
With me, it's about perception, how I feel and how I want others to perceive me as. Wearing name brand apparel is a must and a no-brainer!
I never want anyone calling me cheap and that's what people think of you when you are seen wearing KNOCK-OFF APPAREL from this outrageously name company called LULU Lemon!
99.9% of my apparel, friends and acquaintances are name brand, NIKE, REEBOK, ADIDAS, UNDER ARMOUR, RALPH LAUREN etc..
Here you go...
"Canadian athletic clothing company Lululemon Athletica, which has suffered embarrassing recalls of overly sheer yoga pants, is fielding what it calls another complaint over the quality of its pants."
After looking at the Weekly Chart, every indicator is turning negative.
Looking at the Monthly Chart, every indicator is OVERBOUGHT and turning downward!
YOU WANT COMPARISONS..?
CLOSING PRICE AS OF 7/20/2018 - $126.45 - LULU Lemon earnings for the last 4 qtrs ($2.83) = The stock is trading around 45 x earnings (A HUGE BUBBLE)
CLOSING PRICE AS OF 7/20/2018 - $35.17 - DICK's, earnings for the last 4 qtrs ($3.07) = The stock is trading around 11 x earnings and DICK's pays a 2.56% dividend.
CLOSING PRICE AS OF 7/20/2018 - $76.96 - NIKE earnings for the last 4 qtrs ($2.40) = The stock is trading around 32 x earnings and NIKE pays a 1.04% dividend.
CLOSING PRICE AS OF 7/20/2018 - $92.94 - V F CORP earnings for the last 4 qtrs ($2.96) = The stock is trading around 31 x earnings and VF CORP pays a 1.98% dividend.
In order for LULU Lemon (The name (LEMON) in LULU speaks for it's KNOCK-OFF apparel) to make any sense for an investor to buy, the stock would need to trade back in the $65 to $75 range.
Right now, the numbers don't lie and therefore, the stock is a BUBBLE!
The company and its products are nothing more than KNOCK-OFFS, that people are getting ripped-off buying, that can be purchased on WISH, GEEK and other NO NAME apparel sites for pennies on the dollar and for this reason, I am SHORT this BUBBLE!
Best of luck to everyone!
Looking Long For LULULULU has been a MONSTER this year! With Squeezes setting up on both a daily and four-hour chart makes me think it will be headed higher towards earnings which looks to be at the end of August. Depending on how it opens tomorrow (looking for a pullback) will ultimately decide how I play it. I'd like to sell an at the money put credit spread, but with the way it's been moving, I'm also looking at the ITM August Call options.
With one of their biggest competitors (Alo Yoga) being under intense scrutiny all year, it appears they have been the benefactor from their misfortune. That aside, the chart looks very bullish and I'll be looking to play it long with options.
Short LULU opportunityLULU seems like it's about to break it's near parabolic or soon to be hyperdermic ascent. The $130 CupnHandle (CnH) target was met recently.
Risk reward looks promising. I could see one more upthrust at most by the composite operator.
Targets shown.
$LULU Short Reasons for taking this trade
127 as served as both support and resistance for $LULU.
Noticing the pinbar on the hourly TF, I am going short.
Take Profit Levels
124$
Stop Loss Level
127.72
Risk to Reward
4.39
LULU:Pre Earning wasn't the right time to short LULU. Post earnings could jolly well be the best time to short LULU Baby. Reached a perfect 4.618 extension and promptly rejected.
POSSIBLE SHORT FOR LULU AROUND 124 HANDLEI'll be shorting LULU around current levels with a stop loss around $127.50
LULU LEMON has had an incredible Q1 and Q2 explained by top line growth, stock returns, and lower production costs due to cheaper materials. While these are certainly factors that can explain growth, I'm skeptical that these factors alone have created the virtually geometric change in ascending base-trend lines since Q4 2018. Even if this is possible and my skepticism is unwarranted, I'm not sure that the most recent jump from 104 to the 125 handle is explainable by such broad terms. Which is why I am shorting as per above.
While I also think that this jump will retrace to one of 3 ascending trend lines as per the chart above. I expect at least a retracement to 104 before we resume our upward price movement. I have also shown a couple of more bearish scenarios where we could lose our most recent uptrend, but I feel 104 is the safe place to exit. I may even stagger my exits around 110, 107, and 104.
