While the rest of the market tanked, how did lululemon athletica hang on to most of its gain today? LULU opened at 43.60, soared to 48.50, and even after the Fed announced that it would cut only a quarter-point, closed up 7.8% at 47.00. Was the rate cut enough to help all retail stocks? Not really. Crocs took a fall, though it had rallied big recently. My guess is that some of the big boys held on to their shares. Period. The LULU earnings report of Nov. 29 was powerful, and the big boys think the Fed will cut the rate again sooner rather than later.
Whatever the case, volume in LULU was huge today. The stock is expensive now, well above its moving averages. I got out of LULU weeks ago, but the Co is still compelling, growing and young. Watching from a distance here.
LULU vs. NASDAQ
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