HOw's your trading working out for you?
Now we all know why you spend so much time on the LULU board with multiple aliases bashing LULU.
You know what they say...."what goes around, comes around!"
If your premise is that LULU 'can't go any higher", then you are in for a rude awakening. The trend is truly your friend.
For every dip, longs on the sideline want in.
For every dip, shorties want to cover and take whatever losses they incurred.
For every dip, shorties will pile on more shorts.
I've witnesses this on the NFLX board. I was a big time long on that stock. The market can be irrational lot longer than you can remain solvent. (investment 101).
There is always a time and place to short a stock. This is only the first inning for LULU. Sure, you will be able to scrap a few points on the downside. So what?
The economy is strengthening month by month. It's playing into LULU hands. Growth investors, institutionalists, traders want a piece of LULU on the upside.
I will bet you $5K that the large institutional owners have net smaller positions at the 3/31/12 report than the 12/31/11. Institutions don't want a piece of your nonexistent upside.
NFLX got crushed last year. GMCR got crushed last year. LULU took a 33% hit before this massive short squeeze brought it back to the top. Institutional longs have seen how vulnerable all these stocks are. In the two years leading up to August, none showed any real vulnerability. Now, everyone knows they are. The entire run was low volume until the brutal bear market short squeeze this month. But, that is all it is...
You can keep deluding yourself to think that this is headed higher in 2012. It is not. The option writers just simply had to clear out all the puts and force as much covering at as big of a premium as possible.
I'm short as well...my rationale is that in the next month...this stock will see the $50s and I have enough money in my account to sit and wait....RSI @ 77 ... way overbought and at All-time highs...needs to pull back at some time...
Sitting and waiting for $50s to cover...or I have a questions for Longs:
do you think $50s will never come again for this stock?
Short too. This is way too much. It reminds me of Krispy Kreme (KKD) when it was 50 dollars a share . Back then it was hard to find shares to short , but LULU's shares are readily available. Only a matter of days before the big boys start heading for the exit in droves.
Actually and overbought RSI is above 80, A sell signal is initiated with a cross below 80. From a technical standpoint one can expect lulu to test new highs. Above $65 with RSI crossing below 80 would bearish. If we pull back before then I see some support at 57 and 55. 50 on the other hand is highly unlikely, statistically speaking your probability is less then 2% that lulu will touch 50 before OE.
IMO, $150 mil/store is too much. I went to 10 stores, and niether one has any thing more than $10,000 total. This is a scam like COG, and QCOR.