Schwab Network on $LULU (Oct 28, 2026)

Okay, now let's move on to Lululemon, where I think we've gone from a stock that performed poorly to one that may be even worse. In fact, I might argue that there has been a similar disappointment we have seen from this name this year, in that we have bounced a bit off these , I mean, recent lows, but the stock is still down 49% this year.

So, Don, as far as evaluating Lululemon's trading methods is concerned , it's a difficult task here, but perhaps we should look forward to seeing the price bottom out.

Yes, I know, I actually take the exact opposite position here. So, Lululemon has risen very slightly from some of its lower levels by about 17%, but that's a fairly good rise. So, at Lulu, I have already experienced , so to speak, that kind of strong and sudden rise.

As you know, I've got a return of purchase orders in the market. However, I think the market will ignore this, which means they will come back and rush to buy it, and they will sell it.

Ah, there will be more pain in the future. Look, Lulu, well, on a basic basis, this will go beyond the chart. On a basic basis, Lulu is facing real headwinds. I mean, look, I just do n't mind saying, I'll never wear Lulu pants, but I will wear "Alo".

And I just know, you know, that Ben is going to lose his mind here. Jenny , am I wrong to say that, am I? Um, once again, "Hello" is coming in strong. This is a really tough market .

Once you start losing market share, you know, how can you eventually regain it ? Ah, once again, a difficult story. However, I am taking a bearish trade. Ah, the expiry date is December 18th, that made me laugh here.

For the expiry date of December 18, I will buy put options at the 100 level. I will sell put options at the 90 level against it. This transaction was completed at a discounted cost of $3.40.

So, it 's a sell option spread slightly outside the price range, looking forward to the return of some sell-off activity and more pain in the future for Lululemon.

Ben, when you look at the technical indicators for "Lululimone" of course, you will find that it has risen again from its lows, as Don pointed out, by nearly 17%. However, we are still seeing a long-term downward trend for Lululemon stock here.

Yes , you are right about that. I mean, this is a long-term downward trend. I do n't own pants from either of those stores, so I can't really comment on that. What I can comment on is that this downtrend may be starting to weaken a little, and to borrow an old idea, we have an inverted head and shoulders pattern starting to form below the 104 level.

This gives the possibility of an upward move, but it lies at that resistance level. It lies precisely at the 50-period and 20-period moving averages. This represents a potential for a downward bounce unless it gains some momentum.

I think there are some obstacles facing Lululemon in general from an economic standpoint, and perhaps a shift towards other brands. On the other hand, they have a very successful partnership with "American Express" regarding some benefits for premium cardholders.

Therefore, it also generates some revenue. But from a technical standpoint, the stock is facing resistance. It has the potential to rise a little here, perhaps by 20 points, but it also has the potential to fall from this resistance level.