September 24 - LULU Post Trade Analysis

Well that was a fast trade!!!! LULU trade reached its planned goal of about $1 downside within 3 days. This is following the Trade Watch setup on September 14, which put LULU on my radar for a possible short position. In the September 22 post, I mentioned that the trade had been taken at $24.40 with a stop-loss at $25.22.

Today the trade was fully closed out today at $23.05 leading to a $1.35 profit / share.


The move down was also aided by the fact that the markets have been over-bought for days and needed to pull back. The S&P500 closed at 1050 today, down 1% from yesterday and down about 2% since the short position on LULU was initiated.

Although the trade closed at $23.05, LULU continued the decline to end the day at $22.57. It is possible that the stock will trade lower tomorrow as today's action was weak and bearish. However, the trade was executed within the planned range. There should be no regrets even if it moves lower tomorrow.