4 Trade Ideas for Deere: Bonus Idea

Here is your Bonus Idea with links to the full Top Ten:

Deere, $DE, comes into the week at resistance. It has been rising in a trend for six days and pushed the Bollinger Bands® to open higher. It has an RSI on the edge of a move into the bullish zone with the MACD positive and rising. There is resistance at 596 and 605 then 613 and 619 before 632 and 647 followed by 665. Support sits at 585 and 573. Short interest is low at 2%. The stock pays a dividend with an annual yield of 1.10% and will begin trading ex-dividend June 30th.

The company is expected to report next on August 20th. The July options chain shows biggest open interest at the 550 strike. On the call side it is big from 600 to 630. The August chain is just getting going without open interest. The September chain has biggest open interest at the 530 put strike and at the 660 call strike.

Deere, Ticker: $DE

Trade Idea 1: Enter long on a move over 596 with a stop at 573.

Trade Idea 2: Enter long on a move over 596 and add a July 580/560 Put Spread ($8.20) while selling the August 660 Call ($9.20).

Trade Idea 3: Buy the July/August 630 Call Calendar ($13.30) and sell the July 560 Put ($7.00).

Trade Idea 4: Buy the September 540/600/640 Call Spread Risk Reversal ($3.50).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday, which with Kevin Warsh’s first FOMC meeting and June options expiration both in the rearview mirror, noted equity markets appeared to have weathered the uncertainty and at or approaching all-time highs.

Elsewhere, look for Gold to continue a short term downtrend while Crude Oil confirms its own short term downtrend. The US Dollar Index looks to continue higher breaking the 13 month range and morphing into an uptrend while US Treasuries continue to hold over support in consolidation. The Shanghai Composite looks to continue the consolidation in a slow drifting range higher while Emerging Markets look ready to test new highs in their uptrend.

The Volatility Index looks to continue in the normal zone keeping a tailwind behind equities. The charts of the SPY, the QQQ and the IWM continue to look extremely strong on the longer timeframe holding over support at the highs. On the shorter timeframe the SPY and the QQQ still have some work left in the short term bounce to prove the pullback is over. Making a new all-time high with higher momentum readings would solidify that. The IWM, however, is looking strong, consolidating after a new all-time high Monday. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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