Yes this "recovery" is a great chance to re-short what I covered earlier today. But I'll do it with higher beta stocks. I just used this bounce (which I don't think will last) to dump some stocks at higher prices than I ever expected I'd be able to do. Thus, I'm not long CAT, especially not ahead of earnings and after a rally above 60 that was almost too good to be true. Techs are so overbought that they are the most vulnerable, IMHO, though selected energy stock might be weak since oil may be at the top of it's recent range. Does that help or hurt CAT? I just don't want to be long CAT because this recent rally seems like the most that can be expected now. Tuesday will be interesting.
The stock should make another jump before next Thursday, and late Wednesday should be the best time to short it, IMO. As far as oil goes; Cats oil business has suffered more than any other part of their big margin products. Down big time for a year now. That comes from drilling platforms which land and sea. I have not seen any pick up there yet. As far as tech goes they really aren't so over bought if you look at where they are showing growth; (foreign business and to Corporations who have foreign business). Intel is a great example of this if one would look.