Nike Inc. (NKE) – bought @110, it went up to $140 in 8 weeks = 27.3% return

We recommended the stock back in September, 2020 as a great long-term value play, and as one of our favorite picks in the Consumer Discretionary sector and in the underlying Shoes-Retail Apparel industry. We noted back then that the price had staged a very powerful upward push throughout August, resulting in a break of the strong resistance around the $105 mark, which indeed presented a great buying opportunity for our followers. We recommended for our clients to wait for the price to start moving up from above the $105 resistance before committing fully to the stock and opening their long positions. The anticipated price development to the upside occurred shortly thereafter and the stock moved 27.3% higher in 8 weeks. The stock is part of the XLY, which tracks a market-cap-weighted index of consumer-discretionary stocks drawn from the S&P 500. XLY is a portfolio of US large-cap consumer-discretionary stocks. XLY’s basket of stocks represents the sector well, despite concentration in the largest names. As a part of the Select Sector SPDR suite, the fund pulls its holdings from the S&P 500, which differs from the broad-market universe used by competing funds in that it excludes small-caps and most midcaps. Through our correlation-confirmation approach we compared XLY’s price performance to the XLK Technology Select Sector SPDR Fund, and used the strong and positive 10-year correlation of 85% between the two indices in order to validate our market recommendations.


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