Below is a note from Hedgeye CEO Keith McCullough on why we're adding Deere (DE) to Investing Ideas today:
"With the SP500 (and Nasdaq) at all-time highs (again) and volatility (VIX) smashed to generational lows, I'm not signaling "buy stocks" up here.
We've done that, however, on every "market correction", for 6 months.
With the squeeze comes overbought signals and I've been waiting on Deere (DE) as it's one way to express our Reflation's Rollover Q2 Macro Theme. Timing matters.
Jay Van Sciver wants Institutional Investors to get out of this name before they issue guidance on their conference call later this month. As he wrote in an Institutional Research note:
"With FY17 guidance likely to be updated in the May earnings report amid deteriorating credit, rising input costs, and ongoing unit declines, we believe investors should position accordingly. DE shares have risen sharply providing an unusually favorable opportunity."
Unusually favorable, indeed. Ostensibly there is no better price to sell into than the all-time high!"
