CAT pulled back to the bottom of a channel that it has been running in since last fall.
Last friday it started back to the top of that channel. However, if the market has taken a bearnish turn, it will only go back up to the $77 - $79 price area before heading back down with the market. That's worst case.
You'ld make more money shorting SPY if the market really tanks -- CAT was knocked down farther than SPY because it was flying ahead of the pack before the correction.
If the market continues the upswing it is on now, CAT ends up at $85 at the top of the channel.
I'm willing to see what happens between $77 and $79.
On chart TA -- charts show, in graphical form, the battle between supply and demand, fear and greed, growth and competition. Once you learn to "read" the story of the chart, it is like having a map of the history of the equity. History tends to repeat, or at least impact the future of any moving thing. Trading without a good understanding of chart TA is like driving blindfolded while taking directions from the fundamental whispers about the equity, sector, market and economy. To trade well, take off the blindfolds -- do complete fundamental and technical analysis before every trade.
CAT is a strong by by every fundamental standard a company can register. The technicals say there is good money to be made on the upside. Why fight that when there is money to be made?