Was it the recent report, erroneous as it was, by Fortune's Suzanne Kapner that propelled lululemon athletica to announce this morning that same-store sales are going through the roof? Interesting timing, but it doesn't really matter when as much as the fact that LULU is kicking arse.
lululemon traded down for a third day in a row yesterday. At 41.13, nearly 20% off its all-time high, LULU was a great buy; the 10-day SMA is 44.90. Currently, though, LULU is trading in pre-market at 46.35, and was as high as 47.85. Quite a move for a stock that had increased short interest recently plus the pan by Kapner.
Pupule says: Wait. Great earnings revision or not, the stock is now trading well above its moving averages. Buy at your own risk, of course. My original entry point was 38, and I added more this morning — against my normal technical discipline — at 47. If LULU can hold its gains in this weak premarket and through the morning, I may hold my new shares. Otherwise, it's probably wiser to trade late in the day and wait out this storm.