Nike – 38% Sales Decline

Posted on | by Leon Hinde

Nike reported a quarterly net loss and a sales decline of 38% year-over-year. 

Business operations were hurt from stores being shut temporarily, and online revenue was not enough to make up for that. 

Nike reported a loss of $790 million, or 51 cents per share during the period ended May 31, compared with net income of $989 million or earnings of 62 cents per share, a year ago. 

Total revenue was down 38% to $6.31 billion from $10.18 billion a year ago.

We remain on the short side of the Nike trade.

South 32

Posted on | by Leon Hinde

South32 is a globally diversified mining and metals company producing bauxite, alumina, aluminium, energy and metallurgical coal, manganese, nickel, silver, lead and zinc in Australia, Southern Africa and South America.

Earlier this week, Citi sent a note to clients suggesting Fortescue may look at a mega deal to buy the $9.7 billion diversified miner.

S32 remains under Algo Engine sell conditions, however, the opportunity is worth keeping an eye on, following the correction in the share price from $4.30 to $2.05 over the past 2 years.

XJO

Posted on | by Leon Hinde

The chart below shows the XJO in after hours trading, which captures the US close on Friday night.

We anticipate the XJO opening Monday below the short-term momentum indicators, which could be the early signs of a large number of short positions within the ASX 200, beginning a corrective move.

S&P500

Posted on | by Leon Hinde

We highlight the lower high formed from Friday’s close and the break below the short-term momentum indicator.

This should be monitored on Monday when the US reopens and investors should also be looking at the same patterns in the NASDAQ.

We’ll cover more on these trends in Monday night’s webinar.