fiboracle
Short

Nike 8 RRR short ahead of earnings

NYSE:NKE   NIKE INC
Trading Methodology:

1. An asymmetric bullish/bearish pennant is drawn using ascending and descending curved trend lines with a minimum of three price action touche points per line. The direction is determined by the previous trend.
2. The angle tool is applied from the earliest two trend touch points, beginning at the earliest touch point.
3. A trend-based Fibonacci retracement triangle is drawn starting from the earliest trend touch point and ending at the earliest touch point of the opposite trend line .
4. Based on the degree, of the earlier defined angle, the appropriate (and secret) levels are selected for the fibonacci retracement ; two levels for stop-loss and two levels for take-profit. The closest stop-loss level to the current price level is the top priority stop-loss. Though the secondary stop-loss level is often chosen for some markets such as FX and some equities in order to account for seldom unexpected resistance breaks. The greater target level is the top priority, and where majority of the shares are sold, though some may choose to close part of the position at the first target level or set it to be the stop-loss once price exceeds it. Entries should be laddered in around the levels closest of the yellow line.

This trading strategy can be applied to any market and time frame, and positions most often garner the greatest risk-to-reward ratio with the highest success rate. What more can you ask for? I will only be posting my unique trading strategy until EOY. I work solely with price action to identify pennants and apply unique trend-based fibonacci retracement levels for SL and TP levels. Reach out to me if you have any questions.
Trade closed: stop reached
Good call...
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Jumped in this morning on some puts with COST profits. You've got some interesting ideas here, keep up the good work.
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fiboracle hungry_hippo
@hungry_hippo, Thanks, look out for a lot more before NYE. I plan to stop posting EOY. As for $NKE there's of course a risk that a positive earning report may make it stock gap up and invalidate my idea, but idea is based on the general trend, which on balance of probability is leaning towards further downside.
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hungry_hippo fiboracle
@fiboracle, I flipped ALL of my puts today including NKE. The market is due for a bounce after 2 huge down days. I might go back into NKE puts later this week. Wish I had held XRT and COST puts until the end of the day, but oh well. Can't lose by taking profits.

I hope you change your mind and keep posting, you have some good ideas.
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fiboracle hungry_hippo
@hungry_hippo, Look out for this if you're looking for a high RRR setup,
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hungry_hippo fiboracle
@fiboracle, nah bro, NKE is more fun ;P
Broke the neckline on the head and shoulders pattern, I posted a chart this morning after I bought puts. (It was still in positive territory when I posted it.)

Funny how it worked out today, bought NKE puts again when it was up, flipped the puts on the tank and rolled the profits into $68.5 weekly puts. Now I'm playing earnings for free. On top of that I made a good chunk with UAA and XRT puts (I figured they'd both go down with NKE, but Powell tanked them first.)

Rolling into XRT puts again tomorrow if they bounce the market back up. Expect the market to tank Friday when everybody pulls out of 401k & mutual funds before Christmas break. (Unless it tanks hard tomorrow of course.)

Good luck, I hope you change your mind about not posting next year.
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fiboracle hungry_hippo
@hungry_hippo, Cool, are you looking at any other shorts, other than the XRT that you mentioned?
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hungry_hippo fiboracle
@fiboracle: MNK (Jan), W (Jan), FB (weekly), and NKE (weekly). I closed everything else out, including XRT (AMZN, NFLX, UAA). I figured they might gap the market up tomorrow (and maybe even pump the market), I can roll back into them cheaper. Thinking both XRT and NKE will back test support tomorrow, will add then. The computers are stupid, they keep pumping futures and the market keeps selling off. No reason to hold too much overnight, not worth the heartburn watching futures.

Had to hold MNK and W because the spread is pretty wide, figured they'd both tank into Jan. FB and NKE were bought with profits, figured they'll both be lower by Friday anyways.
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hungry_hippo hungry_hippo
Lol, futures tanking now, SPX down 20 pts. Of course if I flip my puts the market gaps down the next day.

If it gaps down big, I'll probably flip my NKE puts and double up at a lower strike, flip the FB puts and call it a day. Only other plays I'm interested in are NFLX and JNJ.

I played the market reaction, didn't realize Powell is still calling for 2 rate increases next year. I would've probably held XRT puts or bought XLF puts if I knew.
+1 Reply
fiboracle hungry_hippo
@hungry_hippo, Nice which broker do you use? I use CMC so I don't have access to option, and I don't think futures.
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