0JVT trade ideas
LULU Bullish Flag formation near completion.LULULEMON is currently in the controlled profit taking stage of the flag for the current bull flag formation. The previous advance since an earnings surprise is used as the length of the flagpole and also the measuring objective of the next advance. If we see some significant volume on the breakout then we could be set up for some nice quick profit. If volume diverges from an increase or does not increase at all this is Bearish and therefore no entry should be taken. Could see some more controlled profit taking before an advance, watch for volume.
HYPED, OVERPRICED, OVER BOUGHT & A HUGE BUBBLE!Over the last week, I finished a 72 hour options course...
and...after researching this disgusting and outrageously named company and its garbage and over priced websites...
On Friday... I had to open a SHORT Position in this Chinese/Canadian KNOCK-OFF Apparel Company.
With apparel a dime a dozen, in all areas of the clothing industries, and especially online, how can anyone continue paying 100% to 300% markup for yoga pants from this hyped KNOCK-OFF company?
I don't care how much money someone has, after a while, you start to look stupid as you continue buying KNOCK-OFF APPAREL from this company while your friends are wearing designer names!
DICK's sells NIKE PRO, with breathable technology, NIKE is a household name and their yoga pants sell for $34. If you have DICK's CASH, you could end up paying nothing.
With me, it's about perception, how I feel and how I want others to perceive me as. Wearing name brand apparel is a must and a no-brainer!
I never want anyone calling me cheap and that's what people think of you when you are seen wearing KNOCK-OFF APPAREL from this outrageously name company called LULU Lemon!
99.9% of my apparel, friends and acquaintances are name brand, NIKE, REEBOK, ADIDAS, UNDER ARMOUR, RALPH LAUREN etc..
Here you go...
"Canadian athletic clothing company Lululemon Athletica, which has suffered embarrassing recalls of overly sheer yoga pants, is fielding what it calls another complaint over the quality of its pants."
After looking at the Weekly Chart, every indicator is turning negative.
Looking at the Monthly Chart, every indicator is OVERBOUGHT and turning downward!
YOU WANT COMPARISONS..?
CLOSING PRICE AS OF 7/20/2018 - $126.45 - LULU Lemon earnings for the last 4 qtrs ($2.83) = The stock is trading around 45 x earnings (A HUGE BUBBLE)
CLOSING PRICE AS OF 7/20/2018 - $35.17 - DICK's, earnings for the last 4 qtrs ($3.07) = The stock is trading around 11 x earnings and DICK's pays a 2.56% dividend.
CLOSING PRICE AS OF 7/20/2018 - $76.96 - NIKE earnings for the last 4 qtrs ($2.40) = The stock is trading around 32 x earnings and NIKE pays a 1.04% dividend.
CLOSING PRICE AS OF 7/20/2018 - $92.94 - V F CORP earnings for the last 4 qtrs ($2.96) = The stock is trading around 31 x earnings and VF CORP pays a 1.98% dividend.
In order for LULU Lemon (The name (LEMON) in LULU speaks for it's KNOCK-OFF apparel) to make any sense for an investor to buy, the stock would need to trade back in the $65 to $75 range.
Right now, the numbers don't lie and therefore, the stock is a BUBBLE!
The company and its products are nothing more than KNOCK-OFFS, that people are getting ripped-off buying, that can be purchased on WISH, GEEK and other NO NAME apparel sites for pennies on the dollar and for this reason, I am SHORT this BUBBLE!
Best of luck to everyone!
Looking Long For LULULULU has been a MONSTER this year! With Squeezes setting up on both a daily and four-hour chart makes me think it will be headed higher towards earnings which looks to be at the end of August. Depending on how it opens tomorrow (looking for a pullback) will ultimately decide how I play it. I'd like to sell an at the money put credit spread, but with the way it's been moving, I'm also looking at the ITM August Call options.
With one of their biggest competitors (Alo Yoga) being under intense scrutiny all year, it appears they have been the benefactor from their misfortune. That aside, the chart looks very bullish and I'll be looking to play it long with options.