Welcome back to the Rude Awakening for Monday, March 22, 2021.

We have an interesting setup for you to look at today, but first

Looking at the markets this morning, it is noteworthy that ALL of our technical indicators (that means 12 indicators and two lengths of moving averages) are implying a VERY bearish stance in the marketplace.

But, the major indices are fighting back this morning, especially the Nasdaq.

The Nasdaq is up over 100 points starting the trading day.

So well see how this juxtaposition plays out today.

And now, for todays setup

New Approach for Trading on a Fitness Giant

For this approach, well use Lululemon Athletica Inc. (NASDAQ: LULU).

LULU has an interesting scenario coming up quickly. Theyre reporting earnings after the bell on March 30.

If you look at the April 1 options, youll see a vertical brown bar, which is the expected trading range of this stock over the next ten days.

The numbers right now from the options pricing give us a price of about an 8% implied move. And, in regards to volatility, we are seeing a 60% implied move on the options.

So, today, well show you how to set up a volrush trade.

Our risk on this trade would be $500, for a profit potential anywhere from $1,000 to $1,500 -- in just 10 days.

Have a great trading day, folks.

Well see you back here tomorrow morning!

Regards,

Scott Stewart

Editor, Rude Awakening