DE Short With the crush in
Commodities I think farmers will be hesitant to buy
new implements An ideal entry point would be at
the Kijun line inside the cloud. DE has broken a major
Support level and is
trading below the Kumo Cloud today
DE trade ideas
Deere John is a breakout candidate$DE
If you look at the monthly chart John Deere could test that All-time high it bounced off of in 2011 (and big round number) at $99.80
Zooming in on the weekly also shows a close above $93 is out of the resistance line in the top of the monthly pennant I drew.
Buy the stock now or on a Friday close above $93
or
Delta 40, JAN16 97.5 Call is a cheaper way of getting long it was only at 3.50 this morning. If DE takes longer than 8 months to test the all-time high then that is the only con to buying calls.
The weekly chart has the ATR trail stop strategy indicator** that I like to use on trending stocks. The ATR trail stop is the yellow dot trailing below today's candle (blue dot if trending lower). A close below this level is when I am stopped out. I personally have been trading the ATRPeriod value at 10 with the ATRmultiplier value at 2.
That said, today the stop would be below $89 but know that this value is adjusted at every closing price.
**Big ups to Sylvain Vervoort (or user HPotter on here) for writing this and publicly posting the script to get this strategy on charts.
DELooks like a couple of Sharks. 80 looks particularly interesting - although it's hard to see, there are three Fib retracements there.
DE Deere & Co earnings tomorrow bmoI've been long DE Deere and have added during the recent pull back Nov 17th moving my avg to $83.81 from $81.35. I don't like the "Pro Active" sell paint bar print today. That could very well be defensive positioning ahead of earnings. If DE gaps down severely, I'll most likely be able to reduce a bit with out too much damage. I am very long time bullish on the best farm equipment manufacturer on the planet. We all gotta eat.
Wall Street consensus: EPS $1.58 Rev 7,763
Estimize consensus: EPS $1.67 Rev 7,840
Estimize has a very good track record. Not perfect, but better than most.
www.estimize.com
Scenario #1: the street approves and gaps DE up above s/r. Love it!; Scenario #2: neutral and the street/fund/inst doesn't make a decision right away. Actually I don't like this. I stay put, look for demand/supply signal; Scenario #3: trim a little and look for a good "on sale" situation after the crop dust settles.
DELooks like a Shark could be in play here. The overall formation could be a Wedge, Descending and Broadening.
DE Deere... Nothing runs like a Deere (with a Chinese tailwind oI stuck with DE Deere as it is contained between the two displayed cyclical s/r levels. Pros stepped in on 2014.11.17 and absorbed supply. Earnings is up next. I expect a push to s/r at 88.62 to front run earnings.
$DE Looking for 77.49, then big up move to 89.82(OPPORTUNITY)HUGE Swing Long Opportunity should come around 77.49. Until then, ride 'er short.
