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Deere green and Cat yellow\?

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I know I used this headline last year at some point when the heavy machinery stocks were on the move and looking bullish. Well, just like the equipment that Deere Company (NYSE:DE) and Caterpillar (NYSE:CAT) manufacture, the stocks haven't surged over the past year but they've been steady stocks that have traded against the broader market trend and bulls have faired better here than in some of the more "fleet footed" technology stocks.

In recent sessions, we've seen both of these stocks give some rather bullish technical buy signals on their point and figure charts and both stocks are trading well today.

On Friday, we discussed the recent triple-top buy signal on the Caterpillar (CAT) chart and today's 5.5% gain to $55.60 has a subscriber's attention that played this one bullish on Friday.

Caterpillar Chart - $1 box

Today's existing home sales number came in strong and that may well be the catalyst for today's move in Caterpillar. The economic calendar I was looking at had existing home sales due out tomorrow and caught me by surprise. However, the chart of CAT and that triple-top from Thursday sure doesn't seem like it did.

According to the same economic calendar, I have "new home sales" due out on Wednesday and a strong number from that segment of the housing market could have shares of CAT adding to further gains. A trade at $57 would be a spread-triple-top buy signal and bulls can round to a full position at that point.

Deere Company Chart - $1 box

Was it clever "paint coordination" that had Deere Company (NYSE:DE) most known for their green farm equipment, changing their industrial heavy equipment machinery to yellow and black like Caterpillar? Who knows what those clever marketing people will do. However, we also note a recent triple-top buy signal in the chart of Deere (DE) and this one looks bullish also. The supply/demand characteristics of DE look very powerful here too. Notice the lack of overhead supply as this stock breaks to new multi-year highs. If you're a bull that believes in supply/demand analysis, then shares of DE should be on your bullish trading list if not in your account.

Just a coupe of "boring" NYSE listed stocks that traders should be considering.

Jeff Bailey
Senior Market Technician
Option Investor

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