Friday, August 26, 2011

LULU Second Move Down

Looks like we are getting our second move down on LULU. I have been bearish on LULU and think they still have a long way to go down. You can read my write up, Lululemon look out below. What I don't like about this setup is you might run into the 200ma which may become a support so if it can't break that  moving average, take the position off. You could use $53.52 as your stop if you want to try a short. I think I would take some off if I could get 2X my risk and as usual I will trail with a breakeven stop once I'm up $3 on this stock.

LULU was once a high flyer on wall street and any time the market realizes that growth will slow down the stock is usually severely punished. I think that same thing will happen to LULU.