Thursday, December 6, 2012
LULU - Chart of the day
LULU announced earnings today. It beat the consensus estimates by 0.02 but guided next quarter revenues lower. It gapped up but faded immediately. I went short in the morning on break of $70 (at 69.70). It sold off all the way to $67 level before bouncing back. I got stopped out of the trade only for 0.70 profits (had more but got greedy). The impressive part about the bounce was that it made passed all three moving averages - 20MA, 50MA and 200SMA. It also took off the highs of the morning and ended at highs of the day. I scalped from 0.50 from when it pass the highs, all the way to $73 level. We have a gap right over the highs of the day. Gap fill will be at 74.50s level. I think the strength in the stock indicates more highs coming soon. LULU also has 22% shorts, so expect them to cover soon, given that BULLs won the battle today taking the stock all they way from $67 level to $73.50.