cjo03 said:
NKE earnings AH today.
no real intel other than PVH, LULU, SFIX and others that face similar supply chain issues all ran double digits on good results recently.
I think NKE might rip.. and I've got two EW scenarios.
1. We bottomed in wave 4 and are about to start wave 5. Earnings are a perfect catalyst for a wave 5 rip.
2. We have only bottomed in "a" of the a-b-c that makes up wave 4. With a huge gap looming below us, and wave 4 usually targeting the 4th wave from one smaller wave degree (notice the subwave 4 on the chart).. AND with wave 4 usually targeting between 50% and 61.8% retracement fibs of wave 3 (the 50% falling just a hair under the gap), AND with wave 4 in a structure like this one usually targeting between 76% and 100% fibs and NKE not even getting to the 123% yet, AND when a 2nd wave is short and quick the 4th wave is almost always longer and deeper.. and NKE's 2nd wave was a short breeze.. I think this is the most likely scenario.
BUT... even if this scenario is correct.. we still have a "b" wave to complete. And that usually targets between the 38% and 61% retracement fibs of the "a" wave. This earnings would be a potential catalyst for that move to happen. And that would take us somewhere between $160 and $166.
$160 Nov calls anyone?