lululemon in a rising tide of Cool Factor

When the market is confused, the tide brings all down. Well, not all. Not Google after a hot-hot-hot earnings report. But when the downturn in the market reverses, guess what? The stocks that climb up most quickly often have the Cool Factor.

Apple is cool. Now trading at 187 in after hours. I have used only Apple computers in the past 4 years and will never go back to PCs. What else is cool? Research in Motion. The BlackBerry is cool and addictive, apparently. Garmin's GPS is everywhere. But then there's retail cool: lululemon athletica. Cool to average middle-aged men? Nope. Cool to hip, workout women who like to look great even in their down time. LULU is trading at 58.49 in AH. Pretty quick after dipping to 51.41 early in the day. Last week's heavy buying in LULU was met with little selling through the market pullback. Street money entered the stock, and I believe more street cash bought in this afternoon while the stock was at 54. Volume in the final 2 1/2 hours was heavy.

lululemon is a classic 'box' example of a stock that moves up in stages, but the bottom line is that raised guidance (last week), great product and the right demographic will knock the ball out of the park in a bull market. LULU is in front with the fastest growers.