The heart is deceitful above all things,
and desperately wicked:
Jeremiah 17:9
From Neitzsche's twisted mind came forth the roots of the EVIL of 
Nazism. It was Neitzsche's own faculty lounge of academia of his own mind and making that he was trapped in - a godless wasteland of thinking.
Neitzsche believed in the "Superman" ....that without a "god" man should strive for power (and pleasure) and relish in his own success.
This "Superman" is the ultimate on the pinnacle of the Darwinian Evolutionary Chain.
As Neitzche's thoughts gripped Germany in the late 19th and early 20th century, it was believed to be the Aryan German Race, which the Nazi's adopted.
The Volkgeist, this spiritual entity which the Nazis preached, was the culmination of this. Hence, the Racist Eugenics and the drive and striving for creating a perfect race of Hitler.
Hitler referred to the melding of the German people, both in mind and spirit, as a "Block of Steel"---this Aryan Race would be Neitzsche's ultimate "Superman"...
The Nazi economic program was extremely Socialistic. Sounded like the Bolshevik Commies of the Soviet Union.
Q: So why did Nazis and Communists Hate each other?
A: Communists viewed Socialism as a struggle of Class. Nazis
believed it was one of race...for the creation of the "Superman... Block of Steel". In Other Words--in a simplified form, Communists believed anyone, of any race, could join their Socialist Utopia (those opposed would have to be eliminated) whereas Nazis believed this great Socialistic Utopia was only for the privileged few, for the Aryan Germanic Race. All others could go be Capitalist pigs in Democracies or be Communists. Either removed or eradicated. Nazis believed the German Volk formed a living entity in unity.
A: Communists viewed Socialism as a struggle of Class. Nazis
--sidenote-- "Peronism", as it is called, of Juan Peron of Argentina, came up with "Corporate Nationalism". Basically, in a simplified 
form, Juan Peron copied the Socialism of Nazism, which is a blend of Socialism, Populism, Nationalism and Isolationism. It is about Socialism as it relates to key industries so as to make the country more independent on the world stage and less reliant on foreign trade. That's the result of Nazi policy in Germany which in 6 years had greatly reduced German foreign trade and greatly built up internally a mas industrial base to prepare for a war effort to take on the world....as for Peron, he wasn't a Nazi. He borrowed Nazi Socialism while rejecting the spiritualistic and racial views. Irony of Juan Peron is that he welcomed fleeing Nazis after WW2 from the "rat line" while also welcoming Jews and placed Jews in his government.
Back to Neitzsche--- from his warped mind of his own faculty 
lounge of academia, came forth a twisted thought, the sheep and the wolves as it relates to morality in society.
Sheep cannot help but be sheep, and wolves cannot help but be wolves.
What is good to a peaceful sheep is grazing and the trait of meekness. The wolf on the other hand, is a predator and is into risk taking. What is "good" to both is different.
He believed Christianity teaches us to be sheep. Nature teaches us to be wolves. Neitzsche, and Nazis, believed Religion had elevated the sheep as good. But Neitzsche's "Superman", and Hitler's "Block of Steel", required the elevation of the wolf for survival.
from the warped faculty lounge of Neitzsche's mind....in a summarized and more nuanced version of this, the sheep would be those with the heart of God and the wolves would be those who throw off God, or as Neitzsche is most famous for saying "God is Dead"....but of course we can see the piles of the dead from the pages of history due to Neitzsche's "Superman".