Nike stock hits an all-time high

Historically speaking, when the recession of 2001 through 2003 took place

, shares of Nike dropped dramatically to near 33% which is a big downfall for a large capitalization corporation. When the economy got back to a more prosperous state, shares of Nike rose because of increases in margins and earnings, placing Nike almost 100% ahead relative to the end of 2003. Will Nike follow a similar pattern when the next recession occurs? The topic is debatable, but Nike does seem to follow a relatively cyclical pattern determined by the economy and its fundamentals.

It is true that Nike has an excellent PE ratio of nearly 17 and a good dividend payout of 1.24 cents per share, but with the negativity of the economy conspicuously hurting the fundamentals of Nike, and a technical pattern similar to that of a cyclical stock, I would be very wary of buying any shares of Nike at the current time. If you were lucky and have shares of Nike that you purchased earlier, I would advise selling these shares, collecting your capital gains, and buying shares of Nike back when the economy goes through this recession.

Recently reporting their quarterly earnings,many investors look for a fair sized rally for this Nike Shox Shoes making king. However, with the upcoming recession and implications that it might have on Nike (NKE) shares, I would be hesitant to purchase any more shares at such a high price during such a volatile period.

Unusual volume provides reliable clues that the stock is expected to make a move. Investors can use the Put/Call ratio statistics to measure trader sentiment. A high Put/Call ratio suggests that the overall investment sentiment is bearish and that investors expect the underlying stock to decrease in value. Conversely, a low Put/Call ratio implies that the overall investor sentiment is bullish based on the large amount of call options.

Shares of Nike edged up $1.11 (+1.44%) to $78.37. The stock closed at $77.26 in the previous trading session and opened today at $77.30. The price of the stock ranged between a low of $77.29 and $79.04 respectively. The trading volume of 3,775,424 is above the 90 day average volume of 3,014,290 shares. The technical momentum Relative Strengh Index indicator shows overbought conditions. NKE is trading above the 50 day moving average. The stock's 52 week low is $57.66 and 52 week high is $79.04. The stock has a P/E ratio of 20.02 and a dividend yield of 1.40%.

RecentNike Inc. shares hit an all-time high Monday.

The company's stock (NYSE: NKE) hit $79.04 before closing at $78.37. The major indices also climbed, with the Dow Jones Industrial Average closing at 10,754, a gain of more than 1 percent.

Nike stock hits an all-time high

By: anly smith

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