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Caterpillar Inc. Message Board

  • wattacountry wattacountry Sep 8, 2010 8:44 PM Flag

    CAT a perfect short

    ....damn I love the market!!!!! Yiiiihaaawww!!!!!

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    • Yes, indeed. I closed all my positions today as I am watching for the general pullback looming. Looking for at least a 5% across the board for the stocks I am looking to get back into (CAT, MT, EWG, RTP, JPM, GE, DTV, WDC, EWG), with the possibility of getting into others if the pullback continues through 10%. With the 5%, I will re-enter for half my planned position, the other half to be executed if it extends beyond 5% and heads toward 10% for some of these names.

      If the 10% comes through, I will also be adding X, CNI, CSX, DD, possibly a small position in AA/CENX, and will look to see what happens with a few others I am following. I am still waiting for a nice pullback in TNH ahead of the next dividend cycle which usually pays off nicely (the stock price run up with that one can get you a 20-30% return pretty quickly-- earlier over the summer it was trading around $77, but after they announced the increased "special" dividend it took off to over $100. Who cares about "special" dividend when your yielding nearly $25/share with the flurry of demand).

      Good luck all. Hope this pans out as nicely as the last RSI cycle. Target-- DOW 10,100, cat $67 (split the difference for roughly 7.5% down based on Friday's closing price).

    • agree with you but make sure you have money management in control.

    • I agree with the $65 level pullback. The RSI is topping out across the market once again. The recent move up from the bottom out around 20 has been nice but I think we've seen the end of the run and will have a nice "sell the news" week ahead. RSI will correct and consolidate at either 50 or down to 20 again. I am buying back half my position with down 5% (69.52) and the other half at down 10% (65.87). If the move is quick enough I will increase my initial position by 50% at the down 10% for a nice 20% return move through the beginning of October and capped off through earnings, before for the next reversal.

      There is no doubt CAT will perform well with sales and earnings, reaffirm 2012 guidance plans, etc. But, there is no reason not to trade the swings and make twice or even three times the amount you would with buy and hold only.

      Any thoughts?

    • Hi Kristina,

      I love CAT longterm it will be 120 to 150 in couple years but short term I bought the Oct 72.5 put and sold the Oct 70 today. I like to discuss more tech with you Please email me thank you.

    • Tough short, shorts must pay the dividend on the stock...

    • i was in the SEPT. Puts but only briefly.....
      NOW I am Looking to BUY 72.50 PUTS little after the Open.....
      What stocks are YOU playing options on ??
      i like to short RIMM/PCLN also...

    • Wendy, you are talking OCT, right? charlie is saying 65 is support level, so if we are to get a correction in the short term, I'd say that's a possibility. Also DE doesn't announce again until Nov 24th.

    • Sounds like sound perspective to me.

    • short term it is fair to think that the sp,de and cat will close their weekly gaps from fri/mon....but the real support is the breakaway from the island reversal at 65.16......below that is cold.....imo

      ......many perspectives

    • Not really following charlie, I'm not saying it will. Just think IF we have big correction 63 area, it's first major hurdle on way down. I agree I don't see any large correction or major move up within the next 4 weeks, unless sales on the 20th really show a change.

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