Speaker refuses to trade NKE due to independent price action risk and messy post-earnings technicals.

Nike is getting crushed today.

Oh man, Nike, can you believe it is not doing it? As they just said on CNBC, down 8% literally just continues to get crushed. Uh, one of my good friends who writes about trade setups put on an amazing options trade in Nike where you risk 37 cents and it's probably going to make around $2.

Imagine risking 37 cents to make $200 or $370 to make more 2,000. That would be that would be nice.

but it's crazy what a fall from grace, right? Nike. And people say it's still overvalued here, but it had like a Lululemonlike setup.

I am not going to trade Nike today. I am not going to trade Nike.

Stocks in focus for today are Nike plunged over 10.2% 2% in pre-market trading on Friday after reporting mixed first quarter financial results.

Nike needs Nelson Peltz 100.

I refuse to buy Nike products. But that doesn't mean I wouldn't make money off off their stock if I could. Um, so what do we got going on here? Yeah, this thing has been like getting pummeled for a long time.

So, let's just take a look to see if we're getting close to an important level. I see I got this line here drawn out. This is about 3340. So, we're pretty much kind of like right there.

And that probably goes back to Oh, yeah. Look at that. This goes back a long time, right?

Nike obviously down 8% on earnings.

if we were talking about Nike um you know, Nike whooshed or something like that, right?

There you go, Nancy. Nike is a shoein. But yeah, that that's what I'm looking for. Nike is a shoe in good one.

Nike just uh I mean I I will say this. So let's talk about Nike for a second as we get ready for the open. Um from a trader perspective, you're coming into the day and there's a lot of things going on and and you want to make money today.

Here's the danger of Nike. Here's the danger of Nike. It is going to be um in its own world.

So let's talk about Nike for a second as we get ready for the open. Um from a trader perspective, you're coming into the day and there's a lot of things going on and and you want to make money today.

Here's the danger of Nike. Here's the danger of Nike. It is going to be it is going to be um in its own world.

Any stock post earnings on the day after earnings is going to be in its own world. Right? So if we know that Nike is in its own world and we have a market that's flying up and we don't want this is the risk of trading Nike today.

If you try to buy a dip and maybe it rallies to positive. There's a lot of people short. It could rally. I still might trade it. But you could have a day where the market's up 2%.

People are literally talking about what a great day it was in the market and you sat there all day trading Nike, which went lower. And there's nothing that feels worse in trading than being long a stock and having it go down while the whole market is going up.

So when you trade Nike, if you are going to look to be longer today, not only are you risking just not participating in the rally, you are also risking the psychology of finding the one loser in a sea of winners.

You know, lots of shorts in Nike. Maybe it gets hit on the close on the open. it comes down to 31 and then makes a power move up to 34 and that was the play.

by the way, Nike's new plan is called Pace. So, they're doing the pun thing, too. I just want you to know.

Um, Nike 32, Q752.

I mean, things we're going to watch on the open are Nike because it's interesting. Um, but like Nike I don't really want to watch, but I'll put it in my scanner for the day.

Let's see. Nike check in. What's Nike doing? 3240. I'm not going to get involved with it. I'm not going to get involved with it.

I got Nike in one hand, not moving. 3250. If anything, I think the first move would be down. Do I want to do anything there? I kind of do. Oh, did I just miss it? Oh my god. I just missed it.

Oh my god. I said I didn't want to buy Nike long, but I will buy it short. Oh my god. Did you see that move? Oh my god. I bought the wrong amount. Let's Can't get anything. Let's see.

Here goes. Nike totally missed it these options.

Nike is interesting. What do you think about Nike? What what what's your take on Nike? All right. So, it's gonna be a big story of the day. Um, by the way, I told everyone not to trade Nike.

This is the one stock you don't want to trade in this market, and I'm down $700 in Nike. Um,

Earnings. Earnings. But they're they're at a 52- week low. Um, heavily shorted stock. And just kind of interesting to see how it plays out for the day. The story is interesting for the day.

Like I'm getting the feel already that it's going to be one of those things that just makes head fakes back and forth and goes nowhere all day. And if you're buying options premium like I did, like I I tried to buy it, I missed the puts, missed them, and by the time I got them, they literally came down right away. So,

yeah, you know, my my thought in in something like this post earnings, the the first thing I'm going to look at is, have I broken my pre-market low? And 5:00 a.m. gave us the pre-market low, the the 5 a.m. candlestick.

And so far, we're holding that pre-market low. If I come in to my opening candle formation, let's go back to that one minute. We'll stare it down, right? I come into my one minute candlestick.

I look at that pre-market. Uh why do I have 3197 there? I thought that that number Oh, no. I see what I did. Okay. So, what I did was instead of the pre-market low, I said, "All right, where did we build a base from the earnings event?

I'm going to use that as my low." And then here it opens up. I'll go to the one minute. Now take a look at where that one minute low is. It's right in the middle, but then it breaks down, hits that ledge, and now it's trying to move up.

But the problem is it's essentially still inside of that one minute candle. So it's no no trade. You don't want to trade there. And it it's the momentum. I think it's exactly what you said.

It's going to whip back and forth, move all the way around. Now, if you are contrary to that and you go, hey, I don't believe you, lady. It's moving up because it's got a squeeze action event.

It's going to go. This break right here gives you, all right, I'm taking it long. Let's say you buy a call, zero DT call. Um, and I mean me, I would sell a a put, but that's just because I'm a serial option seller.

And so, you could take the break right here. The first spot would be at 3370 and the next one is going to walk up the noise that happened in that pre-market event. So your stop would be the body, the open body of the one minute candle, which is 3264.

So you got 90 cents of a stop. But if you're staring down this motion, you're going to see it's going to go into the next shelf, which is right here where it's sitting 334 and then it's just going to be super messy.

This is the kind of chart I can't stand to trade. And the reason being is it's sitting inside of the postmarket range and the value event for what happened in the overnight. So what the traders have said is, hey, we got all this slash in between.

Uh we try to break below it right down here. We can't seem to break above it right up here. So it's no man's land. And the last thing that I hate, the thing I hate doing most is babysitting any kind of trade.

It drives me insane. My patients cannot take it. I either look at something and go, "Okay, it's going to break down. Let's move out. If it stops and it recovers, I'm out." But if it's sitting inside of this big pocket, no thanks.

And then plus I have to tell you I think Nike I've mentioned this on the stream. I think Nike's been tonedeaf for a dozen years and you know what now all of a sudden they're going to go oh yes let's fix things and and that's going to take a hot minute because there's so much competition now.

Nike when Nike came aboard there's really they were the only game in town literally and now that that's just not the case that it's just not the case so if you want to trade it it is opening up upside pressure the question is upside pressure to what