File this post in your “Trading Is Hard” file folder.
Back on May 29th, I published a bearish trade idea in Nike $NKE.
Here’s what I said about it:
[$NKE] appears to be hanging on the precipice of a potentially large fall. The company will be announcing earnings [in late June] and I think that might be the final nail in the coffin to send this stock lower (if not sooner).
I don’t know about you, but to me, that chart does not look healthy.
We’re going to enter a bearish bet with defined risk that is counting on earnings making us some money.
One for the good guys! My analysis turned out to be spot on! Here’s what happened in the aftermath of earnings:
Pretty awesome right?
Not so fast. [Read more…]