Analysis: DE

There is nothing like one of your favorite names outperforming the rest of the market.

Deere & Co (DE) was one of the first new names we added to the AAP portfolio a year ago, a name we were quite familiar with.

Since the recent bottom in September the stock is up a stunning 26% in just under two months. That is impressive for a big cap company, the stock having rocketed higher during good and bad times for the rest of the market.

That shows great relative strength, which we see from the second pane. The rate of change is moderate now, the SAR (dots, top pane) are on a buy signal. Volume trends are bullish but tend to be slowing down a bit, and we could see a tight consolidation first before another run higher towards the all time highs, less than 10% away.