CAT trade ideas
Trading using two pivots #CAT (Caterpillar Inc.), medium termThe price remains into the upside bias (it is situated over the 89.37 pivot level) and will, possibly, continue its initial upside move towards 98.47 (141.4 Fibonacci extension of the upside move of 69.03-89.85). A suitable stop-loss/exit of long position would be on 89.37 pivot level.
CAT 1 Hour Chart Day Trade Breakout or Breakdown Setup Go Long @ 93.75 with a profit target between 95-95.50
Go short @ 91.50 with a profit target between the .38-.50 fib retracement area
Based on the positive futures opening direction sentiment my bias is to the long side
$CAT WeekleyLooking at this rising wedge on $CAT and breakout looks false with over hype of Trump's win. Looking to get long some long term PUTS
Cat /(Carterpillar) , + UPOne of the areas directly benefited by Trump's choice is the Construction sector, // product of its promises of Re-construction and renovation.
Of USA preferentially to the structures in decay and creation of new, this is reflected in the rise of the companies related to the construction and also with the same materials used in the contribution ///
Caterpillar Nov'16 - ShortGoing a little contrarian on this one. Got a solid bump from Trump election on infrastructure plans... however long term is a bear recoil trade set up. and we into selling zome.
CAT starting to look good?Inverse head and shoulder on weekly, bounced off horizontal support and rising trendline support.
Good place to go long with a stop under 80. MACD and RSI are showing bearish signs so ideal to wait out few days for election results to sink in.
CAT is On Its Last LifeCaterpillar is known for being a global economic bellwether, and considering it recent stock performance you'd think economic activity is alive and well.
Unfortunately, this is not the case. In fact, despite CAT "beating" its recent Q3 earnings estimates (which rely heavily on accounting gimmicks), the global mining and construction company reported that all is not well while lowering its forward guidance.
Chairman and C.E.O Doug Oberhelman said "economic weakness throughout much of the world persists and, as a result, most of our end markets remain challenged." He further went on to say, "in North America, the market has an abundance of used construction equipment, rail customers have substantial number of idle locomotives, and around the world there are a significant number of idle mining trucks."
It's important to know that global sales have contracted for nearly three straight years, and trouble with their business began once the massive commodity bubble began to pop in 2011.
CAT v Deutsche Bank Tracked Commodities
The fundamentals prove negative for the stock going forward. At 47.93x trailing 12M earnings, the stock is grossly inflated over its 5-year average of 16.93 - where many of the company's industry peers currently reside.
We currency foresee further weakness throughout the global economy, especially in China. Although, the Chinese government is fight tooth and nail, running deep monthly budget deficits, we do not expect China to regain its previous growth expansion before a financial crisis breaks out - PBoC boots net liquidity to the financial sector by 1.06 trillion CNY, or a 2,022 percent increase YoY.
The People’s Bank of China has increased net liquidity to the financial sector by a staggering +2,022% year-to-date, to 1.06 trillion CNY.
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Caterpillar: Bearish Trend LikelyMost time horizon charts for-CAT are very negative. Here are my top ten reasons why:
1. There has been a sagging in price structure.
2. Sell Fractal (10-21-2016).
3. The top middle indicator is a 13 interval momentum of phase energy, and this is negative, below the zero line.
4. The top indicator is a 34 interval momentum reading of the CAT-price (OHLC /4). This is weak, below zero, heading lower.
5. Chop (under chart) is in the heading lower, indicating a STRONG DOWN MOVE is likely to develop. It is not a sell signal yet, but I think it will be.
6. Chop zone (under chop) is red, indicating a downward trend. This is a sell signal.
7. The red conversion line of the Ichimoku Cloud is heading lower. This is a sell signal.
8. The black baseline line of the Ichimoku Cloud is heading lower. This is a sell signal.
9. Prices are trading below the Ichimoku Cloud conversion line and baseline. This is a sell signal .
10. Prices have sagged into the cloud. This is a signal that the up-trend has stalled.
Caterpillar is set to release its earnings today. The setup is suggesting lower prices.
Note: the daily chart indicates the forward projection (looking out 26 days), as negative.
On a one hour chart the price structure is BELOW the previous 233 interval moving average.
Good luck to you in all your trades. Don.
CAT earnings coming upLots happening and could happen in the yellow circle of life here. Two HS, both liking the next move down. Bottom indicator wanting to start to form yet another bottom. Big resistance here. Some say , don't mess with, and go against the big CAT, you could get clawed.
A NEW KID IN TOWNCAT has a new kid in town, they won't let him burn on his first earnings call, numbers will be pumped up, give us all a break, we know how the game is played. I believe and have put into action my game of puts to get to my entry at which point I will go with those damn calls. Support at 84.32, emergency chute at 80.57
CAT v DXYEvery time CAT reaches the overbought money flow region it declines. Also, noting a funky head and shoulders pattern at each previous low, indicates the thinking of the big money. Dollar up Cat down, see the chart. And IMO world currencies are doing their level best at deflating their own, result, they are ganging up on the dollar, or the dollar, our weak international currency position, just goes up and up, hurting markets. DXY forming a leap out of the range, and trending up short term at least. IF Brexit news keeps up, pound will weaken even further, stressing euro economy and banks. British govt knows it, fears it, and is trying to compromise what the people voted for, could result in unrest of those you voted for it. Blue vertical line is the us election, have this on all my charts. Possible down to lower trend line of channel until nov 8th, and then???
CAT about to get scratchedI'm bearish on the sector in general as well as the company after some interesting research from Hedgeye. I think the recent rally was a gift from the market gods, and am simply looking to fire my shots.
RSI momentum is negative while the share price failed to break above 50% fib retracement level. Possible 50 day ma acting as over head resistance as well.
I'm buying a 12month put now and will add to it if stock breaks below 81.00.
CAT CallCAT Long call, False break by open gap. I will wait for new break of 2 previous high. will entry
Caterpillar technicals point to downside riskCAT reached new annual highs last week but failed to break above an important technical level at $83.90 (50% Fib level in chart). A negative divergence has taken shape in the daily RSI as prices retreat from a trend line resistance tested on 17 August. So long as prices remain below $85.30 (current projected trend line level), we may see CAT correct down towards $80.90 by next week. $77.40/$78.00 is also a possible target if such a correction takes place next month.
