Lululemon Explodes After Earnings – SPY ETF Breaks Out
SPY weekly chart breaking out of a 4 week consolidation and has new all-time highs in it's sights. So do we go long?
Yes, but for only one more day. The U.S. jobs report is coming out this morning so we need to see how the stock market reacts, but the tape is bullish. The problem is we see very little room to go. Maybe one more day of buying before a pause.
With multiple bullish gaps I'm still looking long, but only on a decline. The market has spent a lot of energy bouncing back and forth the last 7 days so I am not going to be a late buyer of strength.
This week we spoke about the "conservative" play was to make the market prove it could stay above the breakout levels (specifically $294 in the SPY).
Good trading is all about "if-then" scenarios. If the market breaks out and hold, I like the long through new highs. If the market fails and goes back into the trading range, I will be stock specific and be trading less.
Have a great day and a nice weekend.
PS. If you were on our coaching call this week you got a nice example of Saturation Plays in ROKU and getting out before the profit-taking!
What to Expect from the U.S. Jobs Report
U.S. likely added 173,000 jobs in August, but watch out for an end-of-summer surprise. The U.S. is not creating new jobs as fast as it was last year, but it’s still putting enough new hires to work to keep growth afloat even as the economy enters choppier waters.
Lululemon is rallying on earnings, and history points to another 17% surge ahead
Lululemon is doing some heavy lifting after reporting earnings.
The yoga apparel stock was up more than 7% after the bell Thursday following a profit and revenue beat in its recent quarter. Shares have surged more than 50% this year, one of the top performers on the Nasdaq 100.
Miller Tabak equity strategist Matt Maley says history points to another double-digit surge until it hits a wall.