Market Trends and Stock Analysis
Recently, we’ve been focusing on identifying key stocks that show strong trends and potential for growth. This summer has produced some solid picks, but not every stock is performing in harmony. Today, we’re examining two particular stocks that are still under consideration but face some challenges. Let’s first take a look at the current state of our stock list. As of July 21, 2025, there are 142 stocks that are among the best in the market.
Market breadth is crucial; it reflects how many individual stocks are participating in market movements. A strong breadth indicates that numerous stocks are making upward strides, which is a positive sign for overall market health. When many stocks are moving together, it suggests a sense of trust from a wide range of investors, indicating robust market conditions. This kind of participation lessens the risk of sudden drops and hints at sustainable momentum. Typically, strong breadth aligns with bullish market trends, which is something investors look for to gauge ongoing strength.
It’s worth noting that a healthy market doesn’t necessarily mean every stock is performing optimally. Sometimes, identifying underperformers amidst a general upward trend can be revealing. By keeping an eye on stocks that are lingering on your watchlist, but aren’t hitting ideal technical indicators, you can gain insights into where momentum may be slowing down or risks may be building.
Let’s discuss two specific names that, while still on the list, aren’t showing strong technical setups. These stocks were previously mentioned and are currently below the 50-day moving average.
Excand Energy Corp (EXE)
Excand Energy has been highlighted before, particularly because it’s one of the biggest natural gas producers in the U.S. Recently, it briefly crossed above the 50-day moving average at the start of July, edging closer to the 200-day average for the first time since the recent elections. However, being below this 200-day line suggests possible support levels around the $100 mark, introducing an additional risk to the stock.
The correlation between EXE and natural gas prices has been pronounced; while natural gas surged over 12% last month, crude experienced an 8% drop. This shift in commodity prices has had a noticeable impact on stocks like EXE. If energy prices rise, it might help sustain support levels slightly above $100. Both Mizuho and UBS have reaffirmed their price targets in the mid-140s. For investors, it’s wise to monitor this stock weekly. Short-term traders might consider stepping out until a better setup materializes. Currently, the momentum seems weak, but risks aren’t entirely off the table.
Deere & Co (DE)
Moving on to Deere, which was highlighted back on June 5. This stock is one of my favorites, though recent movements have seen it dip below the 50-day moving average. The support level established this spring is now under threat.
Looking ahead, Deere is set to report its earnings on Wednesday, August 13, prior to market opening. After the last report, the stock surged to an all-time high before retreating from that peak of $528, even with relatively conservative guidance. Tariff concerns persist, and if the rhetoric from the White House intensifies, it could lead to more selling pressure on this stock. Short-term traders might do well to take a step back for now.
The technical breakdowns we’re seeing in stocks like EXE and DE serve as important reminders that not all stocks are benefitting from the market’s overall positive momentum. It’s a good opportunity for cautious optimism; spotting potential support levels here could offer buying opportunities, but such decisions should be dictated by price movements. Watching for these minor breakdowns alongside leading market stocks can help investors distinguish between genuine strength and fleeting momentum.
