Consumer Goods

$LULU . Once a darling.

$LULU was once a darling for the IBD.

It rides on a good wave, targeting the well-heeled and the growing yoga sports culture a couple of years back.

As a retailer, LULU’s growing income hinges on its ability to increase its store first across the nation, second the region and third internationally.

It was the International market that I have been waiting. Most companies expands real quick in the North America easily as they enjoy similarities.

However, the challenge will set in as they try to embrace International business in Europe, Middle East and Asia. All of a sudden, they find themselves lacking the strengths to expand. Or the markets outside of their core region does not embrace their products as easily.

In my opinion, LULU is in such a situation. Its growth will be slowing soon. Margins will soon be eroded. And it will heads towards the $20+.

At this moment, LULU is trading below the kumo since the breakdown of the market a month back. As it rallies back together with the general market, I see opportunities for shorts.


$SPX . Beauty of Ichimoku. Expect a bounce.

This is the beauty of the Ichimoku trading system.

It is highly visual and in this case, does not require one to draw support level to comprehend it.

From the Ichimoku chart, we can clearly see that Chikou Span is hitting right onto the bottom of the kumo support.

We should expect a bounce. Also, we can see that the price has move away so far from the Tenkan sen.

Though, my gut feel tells me that the bounce will be short lived given the issues over in Euro. Neither am I going to hold my short for long.

There will come a time, where they will declare ‘all Euro issues solved’ and the rebound will be fast and furious.

I continue to hold short positions going into short.

Stay focus. Stay nimble.


EUR/USD : Kumo resistance and support

From the above Ichimoku Daily Chart, we can see that EUR/USD fails to breakout of the thick kumo resistance.

This reflected the issues that the Eurozone is facing.

However, we might want to take note that the leading kumo is showing possible signs that the trend may turn.

Do note the support from the Tenkan sen at around 1.305

We can see how it corresponds to the support in the 15min chart from the Chikou Span

My short term bias is bearish on the Euro and believes that the level will be breached.

Vested with short position.