SSS - A nice pair of Shorts: LULU and NTAP
Two short-sale set-ups we see as potentially playable: Lululemon Athletica (LULU) recently violated its 50-dma for the first time since starting its price run in September 2010. On this basis, the stock could be shorted here using the 50-dma as your guide for an upside stop, with the idea that the 50-dma for LULU will hold.
Netapp (NTAP) is in the peak of a possible right shoulder within a head and shoulders topping formation that is also a late-stage failed-based (LSFB) on the failed breakout from a cup-with-handle formation of four weeks ago. This could be shorted here using the 51.19 level at the 50-dma as a quick stop, or the 200-dma at 52.06 as a more reasonable upside stop.
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