11-30
Getting overbought-looking for short on weakness in market Also a downward wedge is shaping up
which could be bullish after one more pull back to lower trend line and oversold Stoch, then
will watch for channel breakout of the wedge.
2 scenarios:
1. If price breaks trend and closes ABOVE trend line, enter after trendbreak bar
2. Let price retract to the support line and enter there
I think both are good scenarios because of a higher RSI at support, high volume peaks
Cat has been down 8 days in a row.
Looking for 1 more push down to the 84 level
for a perfect entry. However I will consider taking
a small position on any weakness Tuesday morning.
CAT is in a longer term bullish uptrend.
We are watching CAT for one of two scenarios.
Either a channel breakout with confirmation at 95
or a pullback on the stochastics with a ideal entry
below 90. With a slight bias towards the 1st scenario.
I'll be looking for a entry Tuesday morning (9/4/2012) in the 85's.
I'll be running a tight stop @ 84.25
The S&P is at a critical level and will make a decisive move to one direction
or the other. We should find out which way this week.
CAT needs a strong market/economy to make a move into the
upper box.
Heavy equipment maker IR (Ingersoll-Rand) has been outpacing CAT in the past year. The recent setback in CAT wasn't matched by a drop in the shares of IR and a spread has opened up in the performance of these two securities.
I have played the short side of CAT and IR off and on for the past few months, but this way of setting up a trade between these two...
