Deere & Co (DE) on Wednesday reported a drop in quarterly earnings that was not as steep as Wall Street expected and gave a less dire outlook than analysts had feared, saying it was well-positioned to weather a worsening slump in demand for its farm equipment. Shares of the maker of John Deere tractors closed up 4,79% at $80.00 While Deere has managed to beat analysts' expectations, market fundamentals largely remain weak. The company relies on the United States and Canada for the bulk of its sales and revenue. But industry sales of high-powered two-wheeled drive tractors in those countries fell 34 percent in October, the Association of Equipment Manufacturers said. The U.S. Department of Agriculture expects U.S. net farm income to show a 38 percent drop to $55.9 billion in 2015. In Europe, the agriculture market is also under pressure due to lower farm income. And in South America, Brazil has gone further into a recession. So, I am going to short DE. $DE, Deere & Company / 1440