Also took a nasty non-recurring impairment. Now look at the charts. Looks like resistance at $100. Mixed to Negative view on 2013 outlook from CEO. From a trading standpoint, do you see CAT trading closer and spending more time at$100 this week, or $95? Durable goods orders were an upside suprise, but didn’t really help the stock really break out upside today. Obviously I have a short position, sold some 95 calls(expire this Friday).
Market overall took a breather today, but definitley didn’t signal a reversal down yet. It just looks like a fundamental long to intermediate term slow down in CAT’s core operations, and maybe no catalyst to ‘sell’ ,but to actually buy after a nice market related run-up this past month, doesn’t seem compelling either. Thoughts?
Well, I’m short CAT, targeting 92.5 for March Expiry. My stop loss if it goes up is 95.5, if it continues to stay below 95 for one more week, I’ll add to the position.
Long at about 82. Got in last year after “i felt” the market was over reacting to CAT’s buildup of inventory in Asia. – not so sure anymore. If it bounces back a bit i’ll definitely take some off the table.