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I don't have the chart for NKE with me right now so This is just
from memory. The long term head and shoulders started to breakdown
between 49 and fifty at which point I bought the april 50 puts.
It had some support in the 46 and 48-49 area and tried to channel
in there. When it broke 46 the last time and went into the 44
area it tried to rally back above 46 but failed. There doesn't
appear to be any major support now until the 30-32 range. Nike's
earnings were just out. Below last year and below street estimates.
Nike gets 36% of it's income from Asis, the bulk of that from
Japan. Not good for Nike as Japan continues to have major problems.
Nike said it is buying back one billion dollars worth of it's
stock. My guess is that it will be in the 30 -32 support area.
Probably a good time to close the long puts and sell the 30 dollar
puts.
Just some thoughts,
Carl
Resent-Date: Fri, 19 Dec 1997 16:51:36 -0700
From: Greatelto <Greatelto@xxxxxxx>
Message-ID: <13b43f81.349b0484@xxxxxxx>
Date: Fri, 19 Dec 1997 18:34:26 EST
To: metastock-list@xxxxxxxxxxxxx
Subject: NKE - Double H & S
Organization: AOL (http://www.aol.com)
Resent-Message-ID: <"hrtcL.0.-M2.7Ymcq"@mail.equis.com>
Resent-From: metastock-list@xxxxxxxxxxxxx
Resent-Sender: metastock-list-request@xxxxxxxxxxxxx
A few months back, we had a discussion on the Head and Shoulder pattern on
NKE. Actually, as it turned out, it was a double pattern, one minor and one
major. For any "pattern watchers" it is interesting to go back and look.
After the first or minor head and shoulders, Nke meet its target and bounced
back to the neckline (an opportunity for those who like to short). The second
or major pattern was completed and had a rally back to its neckline also
(again a short sale). It looks like a downside target in the 30 area.
Completed patterns are pretty reliable when it comes to trading. No apology
necessary with this post, Harley.
Jerry
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