Markets fought off .5% late morning losses to finish somewhat lower with the S&P 500 leading the way lower with a .3% loss, a day before an anticipated Fed meeting. Discussing some economic bellwether stocks this week, a recent look at DE can give the bulls some ammunition. Its chart is taken on a nice tone. It has recorded 3 very solid accumulation weeks in the last four. DE is approaching the round 90 number and we know stocks that historically trade through 90 go on to reach par. A case can even be made for CAT. It is on a 3 week winning streak and seems like it put in a solid floor on the round 80 handle touching that figure in July and November 2012, and again in April and June of this year. With bifurcation within groups as there always is you have AGCO. AGCO was a best of breed name earlier this year within its group DE CAT laggards. They have now flipped the switch, as AGCO slumped today after an analyst meeting. It has been sporting distribution recently and do not overreact here. Most likely headed for a 200 day test, where it found support this year in April and July, at 56. The prudent action would be to plant some bids there, anticipating a fruitful harvest sometime next spring, pun intended.
This article requires a Chartsmarter membership. Please click here to join.