STRL - Strong Fundamentals, Strong Chart, Breakout WatchThis is one of the strongest non-tech growth names in the market, and the chart is starting to line up with the fundamentals in a big way.
Sterling Infrastructure continues to deliver exactly what you want to see from a true market leader: powerful earnings growth, strong margin expansion, rising backlog, and clear exposure to high-demand areas like data centres, advanced manufacturing, warehouses, and other mission-critical infrastructure projects. This is not just a slow industrial name grinding higher. The business has been transforming into a much higher-quality growth story, and the numbers are backing it up.
The latest quarter was outstanding, with 51% revenue growth and 78% adjusted EPS growth, while the company continues to show strong profitability and solid forward visibility. Backlog remains a major strength, and institutional sponsorship has also been improving. That is the kind of combination that can keep momentum names working longer than most expect.
Now the chart is getting interesting.
Price is still holding above the 50 DMA and well above the 200 DMA, so the primary trend remains firmly bullish. More importantly, the current consolidation looks like a bullish flag after a strong move higher. That usually puts the focus on continuation, not breakdown.
What I really like here is the volume action. As price has pulled in and tightened up, volume has been drying up. That often signals seller exhaustion rather than heavy distribution. In other words, weak hands may be getting cleared out while stronger hands absorb shares in the background.
That sets up a very clear trigger:
A breakout above flag resistance with strong volume could be a powerful entry signal.
If buyers step in with conviction, this setup has the look of a stock that could start its next leg higher. The trend is already strong, the fundamentals are already strong, and now the chart may be offering a clean continuation pattern.
Bullish view:
Strong earnings and revenue growth
Expanding margins
Strong backlog and business momentum
Institutional support improving
Bullish flag above key moving averages
Drying volume during consolidation
Breakout with volume could confirm trend continuation
Key levels to watch:
Breakout above the current flag resistance
50 DMA as near-term support
200 DMA as major trend support
Bottom line:
STRL is acting like a leader. If this flag resolves higher with volume, it could be one of the cleaner bullish continuation setups on the board.
Not financial advice. 
Long
LULU, a stock to watch!Lululemon stock (LULU) has traded down into the $230's for the first time since the COVID-19 Crash of 2020. I believe that LULU is a stock to keep your eye on, for a few reasons.
- The stock is trading at a 20x p/e whereas its historical p/e is in the mid 40's.
- Margins for the company have all been steady, and remain an industry leader.
- Lululemon is still set to see 10% CAGR for EPS in the next 5 years. (consensus)
- The stock is seeing a severe correction, on par with its past decade corrections.
Above is bullish sentiment on LULU, and can be considered the "bull/base case"
Personally, I have not turned bullish on LULU yet, but with the levels it is reaching it has most certainly caught my eye and has been added to my watch list. While the stock is seeing oversold levels, I think the midterm outlook can still remain bearish for Lululemon. Below are reasons why the short/midterm outlook for LULU may not be optimal.
- Weaker forward projections compared to last 5 years.
Though LULU is expecting 10% CAGR EPS for the next 5 years, that is just a fraction of its last 5 year CAGR of 38.55%. While projections are still positive, they have certainly dampened compared to recent years' growth.
- Macroeconomic environment.
Though the economy remains hot/fine for now, there have been warning signs flashing of a rising unemployment figure across the country. With suboptimal economic conditions, the average consumer may cut down on expensive Lululemon clothing.
These Macro conditions may also continue to dampen the economy, which can cause an overall market correction, where LULU would likely follow the sentiment.
Overall, I believe that LULU offers significant reward, but the shorter term horizon is still worrisome for Lululemon and the global economy. Lululemon is a leader in the Retail Trade sector and dominates when it comes to profitability. The stock is definitely one to keep an eye on if it continues to get crushed.
Regarding technicals, I am watching this demand zone around the 200 level. The stock could trend down to this area, and reach close to COVID-19 lows if sentiment does not change. This area could also offer significant R/R for an entry point.
Disclosure: I currently hold no position in LULU stock, and have never been a shareholder.
Long
What happened to Amazon today?Today, after the market closed, Amazon released its Q3 earnings and revenue, as well as other financials. It outperformed earnings per share by a significant margin, so why did Amazon drop 14% in after-hours trading? Well, the answer lies in a few things which I will cover today.
1. Amazon Web Services (Includes cloud computing, a major component of Amazon's revenue) only brought in 20.5 Bil, compared to forecast of 21 BIl.
2. Due to the above reason, Amazon's revenue was lower than expectations of 127.63 Bil, only achieving 127.1 Bil, with much, much slower growth compared to the previous quarterly earnings and revenue.
3. Amazons sluggish growth in revenue can only mean one thing -- A weaking Consumer. And as the Fed hikes interest rates quickly, Amazon's revenue may go down along with inflation.
4. Guidance from Amazon shows a weak Holiday quarter (weak sales and revenue)
So, this is just an update on the latest news to keep you updated. If you want me to continue this type of posts, please comment! 
Long
Long
Long
Long
Long
Long
Long
Long
Long
