Nike Comes Full Circle, Like LeBron

Not too long ago, Nike signed LeBron James to a lifetime deal rumored to be worth more than $1 billion. 

Ironically, NKE's stock may have played a similar role LeBron did over the last six years or so in Cleveland--From hero, to villain, back to hero. 

Nike was a clear consumer hero for years on end, with an explosive and unstoppable bull trend as it earned itself a place on the Dow Jones Industrial Average back in 2013. 

I argued for a good while, to little avail, that the NKE trend was unsustainably steep. Of course, that was my opinion. And trading-wise, the discipline of "strong opinions, weakly held," enabled me to entertain that opinion without getting hurt in the way of riding up a losing short indefinitely. 

Eventually, NKE corrected hard. And, becoming a villain to bulls and dip-buyers, has been a notable dud on a relative and absolute basis the last few months. 

Lost in the shuffle of the Brexit and the upcoming Fourth of July holiday is that NKE earnings are tonight after the bell. On the weekly chart, below, if Nike is now turn back into a bull hero, I suspect they ought to defend the lower boundary of the highlighted and massive falling channel, of which the correction began to take form. Another move below $50, however, likely pressures the consumer-is-fine thesis on several levels.