Stocks at New All-Time Highs Ahead of Earnings: CAT

This Dow component attempted a new all-time high and failed. However, it has ample support from the prior sideways trend after the previous all-time high. CAT has been over-speculated as it moved out of its bottom low.

The company reports end of January. Watching to see how the stock performs in the next week or so should indicate whether it will be stuck range bound for another couple of quarters or if it will have the fundamentals to support a new high. For now, it has more of the appearance of a range bound sideways pattern developing.

Caterpillar Inc. did well during the years of huge real estate and city development in China. Unfortunately, the great industrial revolution of China is long gone, their population in decline due to fewer births and more deaths reducing their billions. Their consumer-based economy has slammed into Market Saturation as their population continues to age at a faster pace than any nation on earth. CAT needs to find another source for its machinery.