How lululemon Got Her Groove Back

After top and bottoming line earnings beats this morning, shares of lululemon athletica Inc. are up by more than 10% in a soft tape and hitting new all-time highs. 

As you can see on the LULU daily chart, below, the stock has been in a fairly attractive consolidation pattern near those highs for quite some time. And, as usual, it took an event like earnings to apparently break the range in favor of bulls. 

What makes this LULU more even more alluring is that we know the firm is a retail play, which adds credence to the selective retail revival we have seen over the last months, even quarters. 

To follow-up on a working thesis we have posited for a while now, the Amazon-eats-the-retail-world dogma is certainly true on some level, but it is not true on every level of retail.

Hence, the retail survivors could easily gain market share and eventually thrive, especially those firms with management which can easily adapt and make necessary adjustments to an ever-changing payment and retail landscape for consumers. 

Some other notable strength in retail can be seen in the likes of ANF CROX DSW (of all things), even ZUMZ. 

Should the major indices remain rangebound through summer, given the unwind in hot tech we have seen in recent weeks I am still looking at retail as an ideal rotation beneficiary.