In this video prior to the market open on December 6th Steve discusses how to approach trading LULU following its earnings release:
- LULU is described as “Amazon Junior” by Steve because it has a tendency to be bought on earnings gaps and show great strength after an initial gap down
- LULU is a tough intra-day short when moving higher following an earnings report
- LULU should be bought on a quick dropout on the Open to 67-66.50 for a move back up to 71
Steven Spencer is the co-founder of SMB Capital and SMB University and has traded professionally for 16 years. His email is [email protected].