Account
New to ADSS? Open an
account now to get started.
Already have an account?
Add funds to your ADSS account
Account
New to ADSS? Open an
account now to get started.
Add funds to your ADSS account
Asset Watch
Tuesday, October 3 2022
When analysing the Nike/SPDR S&P 500 ETF (SPY) ratio, Nike has underperformed in the S&P 500 for eight of the last 10 months. However, an identical underperformance occurred in 2016, and the streak stretched to nine of 10 months in 1997 (the vertical rectangles).
Yet, in 1997, Nike outperformed the S&P 500 by nearly 7% over the following six months. After the 2016 drawdown, Nike outperformed the S&P 500 by more than 7% over the following seven months. With history on the retailer’s side and S&P 500 seasonality poised to turn bullish in early/mid-October, Nike could offer a solid-risk reward proposition once sentiment shifts.
The Nike/SPY ratio’s monthly RSI is the most oversold since 2000. Therefore, it’s been more than 20 years since Nike has lagged behind the S&P 500 to this extent. Furthermore, since Nike is the global leader in sportswear with a 15% market share, will long-term traders be rewarded for their patience?
ADSS
8th floor, CI Tower
Corniche Road
PO Box 93894
Abu Dhabi
United Arab Emirates
Trading Services
ts@adss.com
+971 2 657 2414
Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.
ADS Securities LLC – S.P.C (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates under First Category: Dealing in Securities and Fifth category: Arrangement and advice (Introduction). ADSS is a Limited Liability Company – Sole Proprietorship Company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.
The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.
ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.
