1DE trade ideas
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.
John Deere BearishBased on some fundamental information as well as a clear trading range, DE may soon be entering a danger zone.
Look for it to see some significant losses if it breaks the $81 support line.
