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A Few Thoughts On Nike

Nike just stunned the world with its latest campaign to celebrate its 30-year anniversary in business:

Nike Colin Kapernick campaign

Because of the controversy that surrounds Colin Kaepernick’s stand for the social justice of Black people in America and his blackballing by the NFL, many have forgotten (or overlooked) Nike’s past bold moves. Just last week, after the French Federation of Tennis instituted a dress code against Serena Williams, Nike dropped this ad campaign:

Nike Serena Williams campaign

And anyone remember this bold move with Michael Jordan in the 1980s:

So what has all this boldness done for the stock? Well, $NKE hit all-time highs just  last week at $83.68. The news about the Kaepernick campaign came on a Sunday before U.S. equity markets were open. So, of course, traders on social media immediately became interested in how $NKE would perform on Monday when the stock market opened. And it did not disappoint.

NIKE DAILY CHART

$NKE opened with a huge gap down when markets opened Monday as Wall Street proved to be racist AF.  While price dropped towards the zone given by the Fibonacci retracement levels off the last support level at $75, I’d love to see price move even lower to fill that gap after its latest earnings report.

So if you’re shorting $NKE just because of its latest campaign, you just might be….nevermind. I’ll just say, find a better reason.


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