Thread: is LULU going to go down?

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  1. #1

    Default is LULU going to go down?

    does anyone think LULU is a good short? does this make any sense:

    -the price is at all time high.
    -the volume is at a year low.
    -this weeks chart is forming "rail road tracks".
    -the 20 DMA has leveled out.
    -there has been a lot of insider selling this month.
    -its 92 percent owned by institutions.
    -in the past year,everytime its in the overbought gray area, it comes down 10 or so dollars.
    -since 2009 its been one of the break out stocks which history tells us, is bound for a big correction.

    and with news starting to increase talking about gas prices, discretionary spending should go down first and this sector of super fancy 100 dollar yoga pants store, just won't make any money when you can get good quality yoga pants at target. that's my thought anyways. (my wife compares them all the time, lol)

    with P/E at 59, it just seems like an expensive stock and i also just don't like the fundamental idea of their store, but that's my personal opinion.

    so what do yall think? i am just throwing ideas that i don't feel too strongly about as i am a newbie
  2. #2

    Default

    In general, the market, IMO, is getting ready for a correction to a certain level. I'm mostly out now and typically trade and get out that day. I'm also short selling some top heavy trades. You can see when shorts are piling on by the action of the stock. It will go up a little bit but get continuously pushed back. People will get sick of that and get out and then it will go down farther. There's allot of bears coming out of the shadows.
  3. #3

    Default

    If youre a newbie I wouldnt look to short sale stocks in the face of a rally.

    There are better short sale opportunities out there than LULU which is a high growth retailer catering to higher income clientele which, despite the recession, are doing just fine (look at COH for a clue how this demographic is doing).

    If youre just itching to short something try and find a firm that is not making money, has deteriorating fundamentals (declining YoY sales, high debt, etc), and where the stock is not in an up-trend.
  4. #4

    Default

    I agree. It seems a bit more unpredictable to me. Keep an eye on it and it might turn out to be a roller coaster of a stock. However, trends suggest otherwise.

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