Lululemon Athletica

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Lululemon Athletica ( LULU) is a designer and retailer of technical athletic apparel operating primarily in North America and Australia. The stock is trading up 4% at $49.14 in recent trading.

Today's Volume: 5,100,000

Average Volume: 3,783,970

Volume % Change: 258%

This stock is ripping today after the company said its third-quarter earnings jumped to $38.8 million, or 27 cents per share, from $25.7 million, or 18 cents per share, last year. Revenue also rose 31%, to $230.2 million, on a 16% increase in same-store sales.

From a technical standpoint, this stock has still failed to stay above both its 200-day and 50-day moving averages, despite the bullish earnings news today. This sets the stock up for a short sale as long as it closes below $50.

I would look to sell this stock short as long as it stays below $50 and its 50-day moving average at $52.12.

Lululemon is the top holding in Columbia Wanger Asset Management's portfolio as well as one of the top holdings at Vinik Asset Management.

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