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Trade of the Day: NIKE, Inc. (NKE)

Ken Trester

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The S&P 500 Volatility Index (VIX) is now back below the 13.50 level, and that tells me that the market is not in any danger of a major decline. It attempted to get above its 200-day moving average over the past two weeks, but it was not able to hold there, which is a bullish sign.

Additionally, the U.S. dollar index is now bumping up against resistance at the 94 level, which I identified last week as a potential pivot point. The dollar’s advance will likely stall at this point or even move lower, which may hurt the small-caps while benefitting the larger multi-national corporations.

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On the bearish side, we are getting into the summer months, which are usually dull with light action and a slightly downward bias. The ratio of advancing issues to declining issues is also not as strong as I would like to see, as most of the outperformance is coming from the small-caps and the financials.

However, one stock that has really performed well this year and should continue to move higher is NIKE, Inc. (NYSE:NKE).

Buy to open the NIKE, Inc. (NKE) Jul 75 Calls (NKE180720C00075000) at $1.35 or lower.

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