Public trading strategy
Strong dollar and weak China sales crush Nike — fade the bounce
Thesis
Nike's core business is deteriorating, evidenced by a deepening sales slump in China that overshadowed their recent profit report. This fundamental weakness is amplified by a macro environment featuring a 40-year low in the Japanese Yen and a broadly surging US Dollar driven by rising Treasury yields. A stronger dollar directly hurts multinational companies like Nike by making their products more expensive—and less competitive—in international markets, crushing their foreign revenue.
Strategy approach
Build a bearish macro strategy on NKE using D1 timeframe. Enter short when DXY closes at a 20-day high and NKE closes down 1.5% on the day. Exit if NKE closes above its 10-day moving average or after a 21-day max hold.
Markets and timeframes
NKED1