Stocks
Deere and Co. (DE) heads a light holiday week calendar, with Wednesday’s pre-market report expected to show a profit of $3.87 per-share on $10.57 billion in revenue. The farm and construction machinery giant soared between March 2020’s pandemic low and May 2021’s all-time high at 400, underpinned by rapidly escalating agricultural prices and the transition into AI farming equipment, which will feature driverless combines, pickers, strippers, scrapers, seeders, and harvesters.
Zoom Interactive Communications Inc. (ZM) was the hottest stock in 2020’s momentum market, exploding to higher ground as workers were forced to lock down and conduct business remotely. Heightened competition and the end of those restrictions haven’t been kind to the company, which has dropped 57% since October 2020. Even so, it’s posted an impressive 369% return since the start of 2020. The company reports earnings after Monday’s closing bell.
Black Friday marks the start of the 2021 holiday season in the United States, with retailers offering deep discounts to attract floor traffic and eyeballs. Best Buy Co. (BBY) earnings on Tuesday will offer preview of sales expectations, which have been complicated by widespread supply disruptions. However, we learned during third quarter earnings that good companies are powering through these headwinds while bad companies are using them as excuses for poor performance.
Crypto
Bitcoin took a beating last week, dropping nearly 12% to a 5-week low. More importantly, the decline triggered a failed breakout above April’s high at 65,895, stoking fears the crypto king is forming a bearish double top pattern. However, many double tops yield more bullish patterns so let’s pull up a chair and see if the instrument finds support above the September swing high at 53,000, potentially heralding the last leg of a cup and handle breakout.
ETFs
iShares Russell-2000 Index Fund ETF (IWM) broke out above 7-month symmetrical triangle resistance at the start of November, lifting to an all-time high at 244.46 just 8-days later. It’s been pulling back since that time and is now approaching breakout support between 230 and 232. In turn, this predicts the decline will offer a low risk buying opportunity, ahead of higher prices into 2022. The timing couldn’t be better, with positive small cap seasonality in force until the end of March.
For a look at today’s economic events, check out our earnings calendar.
Disclosure: the author held no positions in aforementioned securities at the time of publication.
This article was originally posted on FX Empire
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