Deere & Company (DE) – bought @229, it went up to $392 in 3 months = 71% return

We recommended the stock back in November, 2020 as a great long-term cyclical play, and as one of our favorite picks in the Industrial sector and in the underlying Manufacturing – Farm Equipment industry. We noted that the price was re-testing the strong support around the $220 mark and that if the price holds its ground around the support that would serve as a great buying opportunity for our followers. We recommended for our clients to wait for the price to start moving up from the above-mentioned support before committing fully to the stock and opening their long positions. The anticipated price development to the upside occurred shortly thereafter and the stock moved 71% higher in 3 months. The stock is part of the XLI, which tracks a market-cap-weighted index of industrial-sector stocks drawn from the S&P 500. XLI provides investors with broad US industrial exposure. The fund selects from the S&P 500, limiting its small- and midcap exposure and producing a more concentrated portfolio. Because smaller firms make up only a fraction of the industrial sector, the effects of the exclusion are mild. Included companies are those from the industry groups of industrial sector, such as capital goods, commercial & professional services, and transportation. Through our correlation-confirmation approach we compared XLI’s price performance to the SPY SPDR S&P 500 ETF Trust, and used the strong and positive 10-year correlation of 93% between the two indices in order to validate our market recommendations.


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