I'm overweight in lululemon, and was underweight in Crocs, so getting more CROX — even as it trades above its moving averages — was my next move. Particularly with earnings for Q3 out after the bell. But LULU was down to a low of 48.51 yesterday. It is a stock that was in a freefall since hitting an insanely beautiful high of 60 recently. Before the run to 60, LULU had begun a drastic fall from 48 to 41 in a span of just two days. Then came the news of great same-store sales for Q3, and thus, guidance to the street that estimates could be doubled from teenish growth to 30ish percent growth. The fall resumed, and yesterday was an ideal buy point for the courageous. The stock was well below its 10-day simple and exponential moving averages. Today? The Fed's rate cut aids retailers as much as any stock, and LULU is up to 51.70, still below its 10-day SMA (53.59), but I don't think that will be much of a barrier for long. Thirty minutes ago, before the Fed rate cut announcement, LULU was at 50.
No comments:
Post a Comment