Market Extremes Flash Warning Signs: Deere Stock Soars While Dave & Buster’s Circles the Drain

The markets had a bad day on Tuesday. Two of the three main indices lost ground -- the S&P 500 lost 0.71% while the Nasdaq was down 1.03% -- while the Dow Jones Industrial Average managed to finish unchanged on the day.

As a result, the NYSE had 181 securities hitting new 52-week highs compared to 48 new 52-week highs. Meanwhile, on the Nasdaq, new 52-week lows outnumbered the new 52-week highs fivefold, 317 to 65.

The only good news about new 52-week lows is that most of the damage was done to interest-sensitive securities. On the NYSE, about 48% of the new lows were either interest-sensitive preferred shares or debenture issues, while on Nasdaq it was about 20%.

This morning I read a good article from MarketWatch contributor Mark Hulbert. He is one of only a handful of writers that I have followed religiously over the years. He tends to bring reality to the markets.

In Hulbert's Aug. 24 commentary, the veteran investment journalist discussed how overvalued the stock market is, noting that eight of nine valuation indicators with strong long-term track records point to lower returns over the next 10 years.

"The average projected return of all nine indicators is a total real return of negative 3.2% annualized over the next decade," Hulbert stated.

I agree with Hulbert's sentiment. I've spent most of 2026 unexcited about almost all stocks, which is tough when your task is to write about the ones to buy and sell. Occupational hazard, I guess.

Of the stocks hitting new 52-week highs and lows yesterday, I've honed in on four that I believe will either keep rising or falling.

New 52-Week High: Deere Should Keep Moving Higher

Deere (DE) hit a new 52-week high of $677.89 yesterday, the 25th new high in the past 12 months. Its shares are up 43% in the past year.

Not only is the agriculture equipment maker hitting new 52-week highs, but it's also hitting all-time highs. Since hitting a 5-year low of $283.81 in July 2022, its shares have gained 139%. I expect Deere stock to add to that in the final four months of 2026 and into 2027.

Why? Because the world's farmers will continue to need and want Deere's products.