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Back in January I wrote a piece titled “Stocks Meet Sports: Under Armour” (NYSE:UA) in which I made a very bullish call around $55 into its earnings report. Because I’m not a ridiculous pundit who tells you to go out and buy stocks like a drunken sailor and never makes a call on when to sell them, I’m doing just that. It’s time to take your profits in Under Armour, about 20% since that entry in late January.

Under Armour is still trading above a rising 50 day moving average this morning, holding up far better than the overall market. But with the market in a short term downtrend now, and the reaction that Nike (NYSE:NKE) received from its earnings report today, it makes sense to manage risk and book gains. I don’t like the market’s reaction to the Nike report, and I don’t like the earnings report itself. Nike reported EPS 4 cents worse than expected, with only a 7.3% YOY increase in revenue. That’s some pretty tepid growth. Does that bleed over to UA? Not sure, but the market is telling you early this morning that it might. Nike is currently down more than 8.5% while Under Armour is red by 2% and about to break an important short term support level.

If UA were able to climb back above $70 on high volume and the market were to stabilize over the next few weeks, take the opportunity to reestablish your position. Until then, it’s time to sit on the sidelines of this name, which longer term will be going much higher.

Source: Take Off Your Under Armour ... For Now