Stocks to Trade 3-29-17 | LULU Lululemon Earnings Report

LULU Lululemon Earnings 3-29-17

Lululemon (LULU) to Post Q4 Earnings: What’s in the Cards?

Lululemon Athletica Inc. LULU is slated to report fourth-quarter fiscal 2016 results on Mar 29, after the closing bell. The big question facing investors is, whether this yoga-inspired athletic apparel company will be able to deliver a positive earnings surprise in the quarter to be reported.

How to Trade Lululemon Athletica inc. (LULU) Stock After Earnings

It’s easy to underestimate the company’s growth prospects, and Lululemon stock traders would do well to keep a close watch on the shares heading into this month’s quarterly earnings report.

It’s no secret that the “athleisure” trend in sports apparel is dead. Denim is the new black, apparently, and the transition away from the company’s sweet spot left Lululemon in the lurch. But while it took the company a couple quarters to transition, Lululemon is back on a solid growth track.

LULU Stock: Wall Street Remains Neutral ahead of Q4 Earnings

In this last part of this series, we’ll look at Wall Street’s recommendation for Lululemon Athletica (LULU).

Wall Street has a neutral view on the company and has rated the stock a 2.4 on a scale of 1 (strong buy) to 5 (sell). In comparison, sportswear peers Foot Locker (FL), Nike (NKE), and Columbia Sportswear (COLM) have received better ratings of 1.9, 2.1, and 2.2, respectively. Under Armour (UAA), however, is among the worst-rated at 2.8.

$LULU 3-29-17 Before Earnings

$LULU 3-29-17 Before Earnings

Thrive Leads Shortcode could not be rendered, please check it in Thrive Leads Section!

On the Tape Today | 3-29-17

$AAPL 3-29-17

$AAPL 3-29-17

AAPL | Apple Inc well-bid and a clean energy candlestick. Game planning a $144.15 buy-stop and a fresh leg of new order flow. $150 target to sell and a stop loss on a close below $142.

NEM | Newmont Mining showing relative weakness and solid volume. Looking for one day of bearish momentum on a $32.75 sell-stop and a target to cover @ $31.15.  Stop loss @ $33.25


$SPY 3-29-17 Hourly Chart

$SPY 3-29-17 Hourly Chart

Tape Reading the SPY ETF

$SPY price action shows “well-bid” candlesticks on the daily chart.

An impressive two days of momentum. Buyers stood firm at the 50 sma, but today the 236 level provides a solid resistance. Should the $SPY trade above this level with the same fury of the previous two days, $239 looks like a solid target.

It’s funny how we look for reasons why as short-term traders. The rally yesterday caught many people off guard who planned to sell short. Plenty of messages and emails asking “why are we rallying today?”

Who cares?!

We aren’t fundamental traders. Tape readers focus on price and volume. The key to make this work comes from your edge.

What is your edge? What time frame “matters” to you? What chart do you scan and say “that’s my edge…”

For me it’s the daily chart. Within the daily chart we must then make a distinction between order flow and momentum, and then finally what I call Saturation Points-areas where I believe the current momentum should slow or stop.

Thus reducing profit potential, thus reducing the reason to make the trade.

The previous two weeks offered momentum trades in the context of long-term bullish momentum. Momentum with order flow, versus momentum without order flow are different trades–different conviction levels.

These concepts, no matter your time frame, must be set in stone for you to succeed.

Stock Market Today: Heatmap of the S&P 500

$SP 500 3-29-17

$SP 500 3-29-17

Stocks to Trade 3-29-17 | Wednesday Edition

Short-Term Momentum

Bullish Momentum: CC, RH, LYB, WDC, BIIV, AAPL

Bearish Momentum:

Long-Term Order Flow


Bearish Order Flow: dg, prgo, alxn, tsn, mnk, lb, fslr, esrx, hal, tgt, panw, dks, slb, kss, jwn, hes

2X Normal Volume: UNH, ACN, HCA

Inside Days: mu, pfe, hal, mrk, mdt, kr, mo, amgn, abbv, tgt, celg, urbn, yelp, fslr, cern, 

Become a Better Trader. Get Notified.

About the Author

Leave a Reply 0 comments

Leave a Reply: