Oh, My “Deere”:
Inside the diverse industrial space, there are many recognizable names. BA comes to mind and the name is now on a 6-session losing streak, but just 7% off most recent 52-week highs. FDX is a name that continues to shine and dampen recession fears which we will talk about later in this note. It is higher by 50% YTD, much better than the main rival UPS which has added 7% in 2023 thus far. Other names in machinery stick out like CAT which is now just 1% below a cup base trigger from here in a pattern that began in late January. Below is the chart of DE and it has lagged Caterpillar, essentially UNCH this year as CAT is up 10% but is acting well POST breakout from a bull flag, and we know the best breakouts tend to work right away. On its WEEKLY chart DE is right at the 440 level which pushed the name back in Q2 ’22 and again in late 2022 and early 2023. It would be a break above a WEEKLY ascending triangle which would have a measured move higher of 160 handles perhaps sometime in 2024 to the very round 600 number.