Will the rally continue?

JOIN OUR LIVE SESSIONS! Our LIVE session starts when the big institutions and elite traders do before the opening bell. We'll look at real-time dark pool data as the market movers position themselves for the trading day in secret off-market exchanges. [JOIN OUR LIVE TRADING SESSION @ 6am PT / 9am ET](~/AASl5QA~/RgRmYDcpP0SLaHR0cHM6Ly9iaXQubHkvVEFMaXZlRFM4P3V0bV9zb3VyY2U9S2xhdml5byZ1dG1fbWVkaXVtPWNhbXBhaWduJl9reD1USkZ4LTA2cmJ4eDZVYUpjX0xnX2p2LUk5Y2FsZG1SNVQ1T2NERUhiMnZNR1c2VzVaWVFrWkw4SU9aWk9mQVRvLlc1cEFaV1cDc3BjQgpkdCmyfWThtXDKUht0cmlzdHJhbWJhbGR3aW45MUBnbWFpbC5jb21YBAAEC1Y~) [Shadow] Hello investor, Last week was the best week for the S&P 500 since March, pushing the index to its highest level since last August. Will the rally continue this week? President Joe Biden signed the debt ceiling bill into law, so the worry about a potential default is averted. Last Friday’s blowout jobs report added the hope that the central bank could pull off a soft landing. Meaning? Modest economic growth while bringing inflation down to 2%. People were waiting for a recession that simply refused to come. - “Despite the rising number of leading indicators that indicate a recession coming soon, continued strength in the labor market and stubborn levels of personal consumption are pushing the onset further down the road,” said Mace McCain, chief investment officer at Frost Investment Advisors. Mace McCain, chief investment officer at Frost Investment Advisors What’s more, McCain pointed out that the unemployment rate must go up if a recession were to happen but that hasn’t happened yet. - “We don’t think the economy can tip into recession until employment weakens materially,” he added. “The unemployment rate has spiked with every decline in job openings going back to the 1950′s but [has] yet to happen this cycle. This trend could continue, hence delaying the recession.” The question for the stock market is whether other sectors can rally to catch up Big Tech stocks. Either other sectors have to catch up, or there will be a correction for Big Tech. - “The big question is whether breadth can continue to improve, which could breathe new life into what had been a very narrow rally,” said Yung-Yu Ma, chief investment strategist at BMO. As for the earnings season, the week will be light. Big food companies will report, including J.M Smucker, Campbell Soup, and United Natural Foods. Stitch Fix, Signet Jewelers and DocuSign will also report earnings. This Stock Is About To Turn Into The Next Great Software Stock Today’s Stock Pick: Deere & Company ([DE](~/AASl5QA~/RgRmYDcpP0SdaHR0cHM6Ly9kYXNoYm9hcmQudHJhZGVhbGdvLmNvbS9jb21wYW55L0RFP3V0bV9zb3VyY2U9S2xhdml5byZ1dG1fbWVkaXVtPWNhbXBhaWduJl9reD1USkZ4LTA2cmJ4eDZVYUpjX0xnX2p2LUk5Y2FsZG1SNVQ1T2NERUhiMnZNR1c2VzVaWVFrWkw4SU9aWk9mQVRvLlc1cEFaV1cDc3BjQgpkdCmyfWThtXDKUht0cmlzdHJhbWJhbGR3aW45MUBnbWFpbC5jb21YBAAEC1Y~)) The single most important fundamental of smashing the benchmark in investing is being ahead of the herd. As a result, you can purchase shares at a cheap valuation before the crowd jacks it up. Precisely, that is what you have here with John Deere. For many decades, Deere is known as the hardware company that manufactures agricultural machinery. Naturally, the company is pigeonholed into that category. However, Deere has quietly transformed itself into a technology company. In fact, it is heading in the direction of becoming the “Tesla of farming.” It has mastered the hardware side of the business. Now, its new software is turning heads for its ability to leverage artificial intelligence and machine learning to boost crop performance dramatically. (Technology is NOT a new game for Deere – it partnered with NASA to develop the world’s first internet-based GPS tracking system.) Deere’s VP of autonomy and automation, Jorge Heraud, said its AI-powered systems could identify and kill weeds in real-time. (Source: Deere) And farmers could operate Deere’s self-driving tractors from a mobile app: - “This is super exciting. It’s not just driver assistance … the farmer can go and do something else. They can leave the cab and operate everything from an app,” said Heraud. When a reporter asked Heraud if the “fully-automated farm of the future” would become reality within the next decade or so, Heraud said: “It’ll be here before the end of the decade.” What does this mean? Deere’s cutting-edge technology is slowly delivering a software margin that hasn’t been reflected in its stock valuation. (Source: Deere) Software margins: Back in 2016, Deere enjoyed a measly OROA of about 15%. Over the years, the metric climbed quietly until it reached a new high of about 40% in 2022. (Source: Deere) With an incredible ROI, the stock is trading far too cheap at a P/E of 14.48. Wall Steet hasn’t fully caught on to Deere’s tech transformation, but that certainly will change when Deere maintains its superior financial performance. Owning to its desire to become the innovator in its sector, it allocates a huge percent of its sales to the R&D investment at around 7%: (Source: Deere) Do you love dividends? Then you’ll love this! Even though Deere is an innovative company, it pays out generous dividends to shareholders. Its dividend per share grew by more than ten-fold since 2004. (Source: Deere) Bottom line: John Deere is developing a software business that could be massively profitable. Its A.I. already proved to turbocharge crop production, and it is going to be a no-brainer for farmers to employ its technology. However, its P/E doesn’t reflect its software potential despite the increased margins. Now is the time to get in before Wall Street analysts reset the valuation for the company. FREE LIVE TRADING SESSIONS & TRAINING USING THE MOST COMPREHENSIVE DARK POOL MONITOR AVAILABLE TO THE RETAIL INVESTOR Join our LIVE Trading Sessions throughout the day where we will focus on how you can learn to master the markets through the use of advanced algorithms and AI to trade like the institutions. BEFORE THE BELL Starts 6am PT / 9am ET Our newest LIVE session starts when the big institutions and elite traders do, well before the market opens. We'll look at realtime dark pool data as the market movers position themselves for the tra ding day in the secret off market exchanges. LIVE TRADING SESSION Starts 8am PT / 11am ET Take advantage of Trade Algo's proprietary advanced algorithms for anticipating big market swings in our daily LIVE trading session. Trade Algo's Senior Analyst Luke Russell will walk you through the key tools and strategies that the institutional investors and top traders use to profit from high volatility in the market. THE FINAL HOUR Starts Noon PT / 3pm ET According to Wall Street Journal approximately 20% of the trading volume happens at the last 30 minutes of the day. Institutions make the majority of these trades in private dark pool exchanges -- away from the public’s eyes. The timing happens for two reasons: 1) Index funds make their trades to mimic the closing price of a stock. 2) Billionaires trade near the end of the day because they anticipate major news that will be released during after-hours. Because they trade in dark pools, the public doesn’t know about these trades until one day later. We’ve consistently spotted the correlation between a spike in dark pool volume at the end of the day and the next day’s price movement. In the Golden Hour we will identify and analyze these movements so you can trade with confidence. CATCH THE SPARK Starts 4pm PT / 7pm ET Catch The Spark is led by trading expert Luke Russell, starting at 4pm PT / 7pm ET. Open to all this session is a recap of the day and a prep for the next trading day with an emphasis on identifying and examining "spark" orders, those large institutional trades taking place behind closed doors in off-market exchanges, that drive stock movement. 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