Caterpillar (CAT) – 01-27-2010

January 28, 2010 · Filed Under Bearish, Value · Comments Off on Caterpillar (CAT) – 01-27-2010 

CAT Daily ChartCaterpillar’s outlook basically follows the general economic outlook.  When people think the future looks good and there will be lots of growth, CAT goes up.  When there is a pessimistic view, CAT goes down.  But the reason I’m looking at it today is obvious.  A clean break of support with good volume is always something to keep an eye on.  The hammer (bullish reversal) candlestick pattern isn’t so good for bears though. 

Since CAT seems to be leading the bearish trend of the S&P 500, it looks like a decent short for a general market downturn.  If the market hangs around in distribution, this might be a good range bound play.  And if the market turns bullish, I’d probably ignore this since there are other better options I could consider right now.

Stock Market Analysis – 07-21-2009

July 21, 2009 · Filed Under Broader Market · Comments Off on Stock Market Analysis – 07-21-2009 

S&P 500 Daily Chart

The market showed some strength again after a midday test of support.  CAT’s earnings tanked, but were better than expectations which was enough for the bulls to jump on.  AAPL released after the close and said they did well last quarter, so it will be interesting to see if the positive retail sentiment can carry through tomorrow.  The $950 line remains the line to watch.