Lululemon (LULU) – LULU is one of the growth names that have stayed fairly strong relative to other growth stocks in the market as of late. Trending above its 55 day EMA since early October and now testing the 21 EMA on the recent market weakness. During the heavy selloff day in markets on Friday, LULU actually traded green for part of the day and only closed down marginally. Seasonally the stock sets up well into year end with December being up 7 of the last 10 years and an average return near +4%. Going back its full history since 2007 when it went public, LULU has an average December gain of +6.4%. One of the strongest calendar months outside of March-April. The stock is up over +30% year to date and this recent bull wedge forming on top of its 21 EMA can see reversal back up off 450 as a squeeze starts to form. Earnings are due 12/9 so a move higher can target the round number 500 on a breakout. RSI has stayed above 50 on this minor pullback indicating the trend is intact. If the market continues to pullback to start December, keep LULU on watch for relative strength when the market turns back up. Options flows are lighter in LULU but recently on 11/22 saw a buyer of Dec 31st 480/490 call spreads for over 300 contracts. Also on 11/9, a buyer of January 460/480 call spreads for $1.2M net.