Friday, June 19, 2015

Modern day stockphoria [NKE]

I stumbled upon a bit of stock worshiping in this article so I had to check it out for myself.   These kinds of articles are clear signs that a mania is peaking.  So now a tennis shoe company has a market cap of $91.13 billion (as of today according to Yahoo) and you know this crap "asset" is rammed into every insurance company annuity portfolio, every pension fund, etc.  It's all been foisted off on the sheeple.

Folks I don't know what is going to cause this all to come tumbling down but after all these years I know unsustainable when I see it and the NKE chart is unsustainable.  Within a year they will probably be uncovered to the Lance Armstrong of tennis shoe manufacturing.  In other words, they are probably cheating somehow, perhaps laundering drug money, etc.  I don't have any proof of it but that chart is not normal and now it is going straight up.   This is happening at a time when retail sales are falling.  How are NKE's sales driving this share price?

Ridiculous can go on for longer than many would imagine but I think this one is in the final stages of a rising wedge so we should see some kind of pretty good pullback here soon.  Still, that could just be w3 of 3.  So I'm not calling for collapse here yet but some kind of pullback -perhaps 5-10% at least is due.  But it could turn into a full on meltdown too so I'm not counting it out either.


 

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