Monday, May 23, 2011

"Caterpillar Inc. and the end of the commodity boom ?" (CAT)

I hate it when finance/investing writers put the question mark in a headline.
Our preference leans toward this style, from April 28:
"Short 'em All. They Aren't Worth the Paper They're Printed On"
In this case we forgive him, it's Alpha Global Investors.
He has simple charts and pithy commentary, two traits that resonate with our "Low I.Q." approach.
From AGI:

(click to enlarge)


Caterpillar Inc. 

(CAT) chart analysis ;
1) Its called a BEARISH reversal
2) Price/Volume action is quite CLEAR
3) End of the commodity boom ? 
4) As usual, expect the unexpected, but SELL signal is clear
5) Re entry (I doubt it) is right above 107.5