I went back in the chart and circled what I considered to be similar situations to where we're at right now. I think over the next month, there is an extremely high chance CAT has a fakeout rally that could very well reach 225/share. That being said, I don't expect it to breach ATH's, and I expect the rally to be an incredible shorting opportunity before a potentially violent markdown phase. The agriculture sector is still relatively high up, and when you look into it, it is fresh off of distribution and primed for a markdown(made obvious in names like DE, CF, and MOO). I am currently waiting on CAT to rally, hopefully up to $220-230/share before selling my position and flipping entirely short on the stock. I expect this stock to see the low $100's well before year-end.
Disclaimer: I was previously short CAT, and am currently long CAT at 180/share in anticipation of a dead CAT bounce(ha)
I am out, and now this thing FINALLY decides as I anticipated it would now that I'm out. No hard feelings, though. Looking to see if this thing fills gaps above on earnings. If this happens, I'm shorting this thing.
MichaelEugen1
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Flat on my position, looking to get out next week when I believe the market will lose upwards momentum. It's safe to say this didn't quite work as I anticipated.