CAT Update: Setting Up For DeclineSix days ago I published a sell signal for CAT. I have gone short and covered once since then.
I have gone short on CAT again.
Here are the letters and what "TRADE-MAP" means to me (first the letters in TRADE):
1. T : Time and space (Fractals); 2. R : Repeating Cycles; 3. A : Advancing Trend; 4. D : Declining Trend; 5. E : Energy in Phase Forces.
Now the letters in MAP:
6. M : Momentum and Velocity; 7. A : Analysis of Structure; 8. P : Price Performance. There you have it: Don's personal "TRADE-MAP.
"Don's Top Ten Technicals": 1. The Ichimoku Cloud is lower than structure to the left. 2. Prices are falling into the cloud. 3. Prices are falling BELOW the thick red Ichimoku Cloud Conversion line. 4. The thick red conversion line is moving LOWER. 5. The thick black line is the Ki jun-Sen baseline of the Ichimoku Cloud and this is HEADING DOWN. 6. The indicator on the top of the page is RSI / Stochastic , and this is FAILING.. 7. The top-side middle indicator is vortex and this is NEGATIVE (red over green). 8. The Top (bar-type) indicator measures the "phase energy", and this HAS JUST COMPLETED A ZERO-LINE CROSS-OVER TO THE DOWN SIDE. This suggests the selling has just begun and has more to go. 9. The red fractal arrows (not pictured) are DOWN. 10. Look to the far middle right on the chart, around $72.43. You will notice a yellowish line on the bottom (jaws), with black dots above (teeth), and a blue line (jaw) above the black dots. Now, all three are OPEN, correct? This is where I ask you to use your imagination and envision these three items as the "jaws, lips, and teeth of a NOW AWAKENING, FEEDING alligator, and the alligator will feed into the DOWN-TREND.
CAT is a DOW-30 stock, and I feel this will contribute to a general market decline.
I would like to close with a quote from Rita Rudner: They usually have two tellers in my local bank, except when it’s very busy, when they have one."
I hope this article has been helpful, entertaining, and informative. May all of your trades go well. Don.