Cat Versus Deer in a High Stakes Standoff

On top of a bearish USDA report for corn and beans. John Deere is giving a chunk of recent gains as it tried to break higher from a multi-year level of resistance, seen the first monthly chart, below. 

Overall DE has been rather strong the agricultural machinery space, especially when you consider how weak Caterpillar has been, not to mention MON MOS POT, to boot. 

In essence, if the ags were going to put in meaningful low and trade higher in the coming months, you would think DE would make a logical leader, given how strong it has been of late, both on a relative and absolute basis. 

But CAT appears to be winning for now, as the DE breakout did not hold, yet, and CAT remain a short idea below $77. 

Going forward, I am still watching these two duke it out for direction ing the ags. 

As for the market at-large, we have some upside reversals in AAPL and SUNE today. But I will cover the market in a bit more depth with ideas in real-time in my usual Midday Video for Members, filming now.