CAT_SPY_IWM Correlation

BATS:CAT   Caterpillar, Inc
Correlation between CAT and SPY , and CAT and IWM , has dropped to an all time low since the crisis began. With the correlation between CAT and SPY negative and the correlation between CAT and IWM seriously down since the past five or so months, this could be an indication of slowing momentum in the global economy and especially slowing momentum in the Chinese economy as Caterpillar is closely linked to the world economy. I would be cautious on taking long position in cyclical stocks and would look toward some defensive stocks instead.