DE-Deere and Company Earnings Report | Stocks to Trade 5-19-17

DE-Deere Earnings Report

John Deere BR 1936 on steel with extensions

Deere earnings: Equipment sales expected to rise

Deere & Co. is scheduled to release its fiscal second-quarter earnings before the market opens Friday. Here’s what you need to know. EARNINGS FORECAST: Wall Street analysts expect earnings per share of $1.67, up from $1.56 of actual earnings last year, according to Thomson Reuters.

The farm and construction-equipment maker didn’t provide second-quarter profit guidance, but in February predicted profit for year ending Oct. 31 would be $1.5 billion, up 1.5% from 2016. Analysts expect the company to earn $4.92 a share this year, up from $4.81 in 2016.

www.marketwatch.com/deere-earnings

Deere & Company Earnings Preview: The Iconic Tractor Manufacturer Reports Today

Since fiscal 2014, Deere & Company management has cited weakness in the global farm economy as the primary reason for lower sales and earnings. More recently, weakness in the company’s construction equipment markets was cited as an additional reason for softer sales.

Last quarter it said that key agricultural markets showed signs of stabilization, but results were still pressured by the persistence of soft conditions in its farm and construction equipment business. DE-Deere releases fiscal Q2 earnings before market open on Friday, May 19. Earnings are expected to increase 9% year-over-year to $1.70 per share on revenue of $7.2 billion, according to consensus third-party analyst estimates.

www.forbes.com/de

Should You Buy Deere & Company (DE) Ahead of Earnings?

Investors are always looking for stocks that are poised to beat at earnings season and Deere & Company DE may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.

That is because Deere & Company is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat.

www.nasdaq.com/deere-earnings

DE Deere and Co Before Earnings 5-19-17

DE Deere and Co Before Earnings 5-19-17

How Successful Traders Think

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On the Tape Today | 5-19-17

$AET 5-19-17

$AET 5-19-17

AET Aetna Inc showing a clean pause after solid momentum. Profit-taking type price action. Crafting a game plan a $141 buy-stop for a new swing trade. Choosing to wait for my price because volume was a little heavy on the selling, so I want to force the buyers to show up again. If filled looking for a $152 target to sell. Stop loss on a close below $139. Expect the new bullish move higher to move slowly because of the speed of the previous momentum.

$DVN 5-19-17

DVN Devon Energy continues to poke at the $37 support but recently produced consecutive gaps lower. Looking for new bearish momentum that leads to support @ $30. Setting a $36.25 sell-stop to trigger the short sale. Stop loss on a close above $37.50.

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SPY ETF Chart 5-19-17

SPY ETF Chart 5-19-17

Tape Reading the SPY ETF

$SPY price action produced a bullish u-turn on solid volume.

A quick look to the left on the SPY chart shows a trading range since February, a range dominated by melted candlesticks (Indecision). Yesterday unfolded as we expected with $236 as the level to watch. Many traders writing in asking “should I trade aggressive short after the giant, volume backed 372 point move lower in the DJIA?”

It’s a great question and something you must learn to become a successful trader. I will answer it with questions; “How much money was committed by institutions prior to your trading idea? How persistent was the commitment, and for how long?”

One day could begin a longer-term move, but it’s only one day. We remain in cash flow mode. Wednesday’ huge drop gave us a nice day to hold the short sale, but there was no reason to be aggressive with your share size. Why? Because the SPY just made new all-time highs!

How can you justify an aggressive short sale in that situation? Unless you are trading on micro time frames, your edge cannot change dramatically from one day to the next. I started managing traders in 2003, by far the biggest mistake I see is not knowing your edge, and if you do, not trading it.

Always start the same way:

  • Do I see my edge?
  • How long  (duration) and strong has it traded in an obvious direction?
  • How much room-to-go is there?
  • What are the odds of my profit target getting hit versus a stop loss?
  • Does the reward potential justify the risk?

Take a look at that chart of the SPY ETF from yesterday and run that criteria through it. Looks silly now when you ask “Should I be aggressive…?”

The stock market is in cash flow mode. Select NASDAQ stocks show strength, oil stocks and earnings stocks are in play. Trade stock specific until the big picture changes. Wednesday was a nice day to be short, but it was only one day. When the big picture finally picks a direction, let’s plan for it, and get aggressive then. For now, pay your bills and preserve precious capital.

It’s not hard earning money when it’s obvious. Be disciplined until that happens.

Stock Market Today: Heatmap of the S&P 500

SP 500 Heatmap 5-19-17

SP 500 Heatmap 5-19-17

Stocks to Trade 5-19-17 | Friday Edition

Short-Term Momentum

Bullish Momentum: KMX, NVDA, SRPT, MOMO, AVGO, CTRP, BABA

Bearish Momentum: cbi, car

Long-Term Order Flow

Bullish Order Flow: KMX, AAOI, MOMO, AVGO, EXAS, TSLA, ADSK, NFLX, EA, AAPL, AMZN, MCHP, COST, AET, MAR, RH, CC

Bearish Order Flow: car, telo, eog, dvn, clr, akam, dks, esrx, agn, hog, tjx, jwn, tsn, ibm, lulu, amgn, slca, dfs, viab, cof, fast, yelp

2X Normal Volume: BABA, CRM, CBI, KMX, INCY

Inside Days: aapl, mu, fb, amat, snap, ms, tgt, schw, cvs, abbv, tjx, sti, gs, dks, wba, luv, gis, lly, hig, awt, amtd, lulu,

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