Stocks can't just go up without a pullback, and this one is overdue. Valuation is insane. There is no way they can stave off competition to grow into this. Not sure if I will take a quick profit, if available tomorrow, or ride it out. But I do think that there should be quite a few people lined up to take a profit. Just because a company pre-announces a good quarter in advance, the stock shouldn't go up for 2 straight months, that's unusual. Every time a company gets a huge run going lots of people say "don't ever short this stock" but that's just a risk one takes when you get the itch. Too hard to find undervalued companies to go long in when the market is up like this. But if things don't break my way, I could be behind on this one for awhile.
This wasn't just Lulu. Almost every Retail stock went up today and quite a few more than Lulu. If you listen to the talking heads the US is in a full blown country wide growth spree and any stock can be bought and money made. This is a self fulfilling prophecy that runs like a train - don't get in front of a train. In regards to Lulu, since there is no resistance the stock can easily keep going up. If very few people are selling sooner or later all the shorts have to buy back unless they have unlimited amounts of cash. Today 3.4M shares traded and if the same amount trade again tomorrow it could go up another $4.