'This Is Not The Rally To Buy': Here's What You Missed On Tuesday's PreMarket Prep

Too busy to catch PreMarket Prep this morning? Don’t worry about it. Here’s what you missed:

'Nike Is Market-Dependent'

"Create Income With Options Spreads" author Nic Chahine analyzed Nike Inc NKE's technicals, which rebounded off a weak earnings report right back to resistance at $56. Chahine noted the shoe retailer’s correlation to the overall market.

“Just looking from the technicals, it’s bounced back to the $55-$56 area. Every time it fell from grace it bounced to this area here,” he said.

“It’s important to see how it handles it going forward. Sometimes, past support becomes forward resistance, and in this case, I believe it could happen. But, it’s going to be market dependent more than anything else for the immediate future. If the market falls, it’s going to fall with it. And vice versa. If the markets rally to new highs, I don’t see why it should fall all by itself.”

Related Link: Heat Wave: Here's How The S&P Has Performed Every July Since The Financial Crisis

'This Is Not The Rally To Buy'

Chris Versace, portfolio manager at Thematic Growth Portfolio, doesn't like what he sees out of global economies.

“If we look at a variety of economic indicators, we are not going in the direction we want. Then we look outside the U.S. and take a look at what’s happening in China and Japan — when we step back from those reports and piece it together, it says we are not really growing all that fast,” he said.

Versace also doesn't believe we're out of the Brexit woods yet.

“This is not the rally to buy either because of what’s about to come in the next two weeks. I think people are coming back and starting to say, ‘It’s not all over yet.’ Almost nothing has been figured out.”

'Be Careful About Consumer Staples'

Mike Bailey, director of research of FBB Capital Partners, echoed Versace's sentiment and discussed what to look out for in consumer staples.

“I think the market has rebounded a little too quickly. It seems like markets are not really responding. We’re certainly starting to see a bit of fear starting to creep back into markets,” he said.

“I think in general though, if you look at, for example, U.S. trade with the U.K. It's pretty small,” he said, noting that only about 3 percent of S&P 500 sales go to the U.K. “So that seems like it’s pretty reasonable in terms of risk hitting the U.S. companies. But, certainly you could go down a path where things get a little uglier, where there are other countries that want to exit. As you get closer to that, you certainly want to be concerned about holding U.S. multinationals with big European exposure.”

For more trading ideas and insight on the markets check out PreMarket Prep LIVE every morning from 8-9:30 a.m. ET here. You can also listen to complete episodes on Soundcloud, iTunes and Stitcher.