CAT
Caterpillar Roars Ahead with Strong Profit Surge
Caterpillar Inc., ( NYSE:CAT ) has emerged as a powerhouse, reporting a remarkable double-digit increase in operating profit that surpassed Wall Street expectations. The surge is attributed to robust demand for mining equipment and large construction machinery, fueled by a rebound in the U.S. residential real estate market. This article delves into the factors contributing to Caterpillar's ( NYSE:CAT ) stellar performance and examines the company's strategic positioning in the evolving economic landscape.
Robust Demand Driving Profits:
Caterpillar's latest financial report paints a picture of resilience and growth, as the company capitalizes on a surge in demand for its products. The mining equipment segment, in particular, has thrived, supported by sustained commercial client expenditure and a notable reduction in dealer inventories – a promising sign of resilience in the face of economic uncertainties. The company's profit margins have received a substantial boost from a $28.1 billion order backlog for construction equipment and continued demand from diverse sectors, including oil and gas, power generation, rail, and defense.
Market Expansion and Biden's Infrastructure Push:
One of the key drivers behind Caterpillar's success is the $1 trillion infrastructure law championed by President Joe Biden. The law has provided a substantial tailwind to the company, with spending on roads, bridges, and other transportation infrastructure remaining robust. As evidenced by an 11% year-on-year increase in retail sales in North America, Caterpillar is riding the wave of a revitalized U.S. residential real estate market. The company's strategic positioning in the energy and transportation segment has led to a remarkable 21% increase in margins compared to the previous year.
Global Challenges and Regional Variations:
While Caterpillar ( NYSE:CAT ) continues to shine in North America, challenges persist in the Asia Pacific region. Commercial purchases in this region have dipped by 5%, primarily due to headwinds in China's troubled property market. Despite these challenges, Caterpillar ( NYSE:CAT ) remains a global player with a diversified portfolio, demonstrating resilience even in the face of regional variations.
Financial Resilience and Effective Management:
Caterpillar's ( NYSE:CAT ) success story extends beyond market demand. The company's earnings have been shielded by effective cost controls and strategic price hikes, effectively fending off inflationary pressures. Operating profit margins have surged from 10.1% to an impressive 18.4% in the fourth quarter, showcasing Caterpillar's ( NYSE:CAT ) ability to navigate economic challenges with a deft hand.
Technical Outlook and Investor Sentiment:
Caterpillar maintains a rising trend channel in the long term. The lack of resistance in the price chart suggests further potential for growth, with an approximate support level at $296. The Relative Strength Index (RSI) above 70 indicates strong positive momentum in the short term, signaling investor optimism and a potential continuation of the upward trajectory.
Conclusion:
Caterpillar Inc., ( NYSE:CAT ) emerges as a beacon of success in the heavy machinery and construction equipment sector, reporting robust profits, expanding market share, and navigating global challenges with strategic finesse. As the company continues to capitalize on infrastructure investments and resilient demand, investors are keeping a close eye on Caterpillar's ( NYSE:CAT ) trajectory, eager to ride the wave of growth in the heavy equipment industry. With a compelling mix of financial resilience, global diversification, and strategic management, Caterpillar ( NYSE:CAT ) looks poised for sustained success in the ever-evolving economic landscape.
When long WEN - now!?WEN, clever airdrop clever name!
Over 0.5 million wallets got the airdrop - that's a lot! The foundation of big success is already here - I don't think WEN will fail.
New investors will soon get their eyes on WEN and some of the airdropped wallets will buy back and feel like winners when buying back on a lower price.
All in all, with so much initial holders, it's almost impossible to go to "zero"
It looks like the airdrop sell off is done, maybe some more sideways accumulation, after that I think WEN will start to climb - the sky is the limit.
My idea is to DCA a little bit into the marked area.
CAT, BUT NOT THE MEOW KIND, MORE THE PLANET KILLIN' KIND. At some point climate might matter with this stock, idk.
Are they doing EV?
I haven't done much fundamental research.
Trends marked. All support. All end up taking the price in a bearish direction.
Meaning we may have seen the top or will be seeing top on earnings.
There is a potential scenario where it breaks out on the underside of a trend and move to 400, but it's the least likely of the possibilities.
More likely, we break down into that 250 range and maybe even 150.
everything is pretty clearly marked.
As trends break, they will likely become a rejection trend.
Sell targets in blue
buy targets in red
Looking at Possible Dead Cat Bounce Levels After TSLA EarningsDepending on investor sentiment, I am expecting 3 possibilities, listed from most positive to least positive investor sentiment:
In Purple (most positive): Bounce to $196-$198 fib levels, decaying to $188-192 range.
In Yellow: Bounce to $192-$194 fib levels, decaying to $184-186 range.
In red (worst): Little to no bounce, very pessimistic view on stock, decaying straight to $180-182.
If we hit red, or maybe even yellow, we are looking at a rough 2024 (See my triple top and dip Idea.)
Stocks at New All-Time Highs Ahead of Earnings: CATThis Dow component attempted a new all-time high and failed. However, it has ample support from the prior sideways trend after the previous all-time high. NYSE:CAT has been over-speculated as it moved out of its bottom low.
The company reports end of January. Watching to see how the stock performs in the next week or so should indicate whether it will be stuck range bound for another couple of quarters or if it will have the fundamentals to support a new high. For now, it has more of the appearance of a range bound sideways pattern developing.
Caterpillar Inc. did well during the years of huge real estate and city development in China. Unfortunately, the great industrial revolution of China is long gone, their population in decline due to fewer births and more deaths reducing their billions. Their consumer-based economy has slammed into Market Saturation as their population continues to age at a faster pace than any nation on earth. CAT needs to find another source for its machinery.
Understanding the "Dead Cat Bounce" in TradingIn the dynamic world of trading, one peculiar phenomenon that often catches investors' attention is the "Dead Cat Bounce." This term, as bizarre as it sounds, is a crucial concept in technical analysis and market psychology. It refers to a temporary recovery in the price of a declining stock, followed by a continuation of the downtrend. This article delves into the nuances of the Dead Cat Bounce, helping traders recognize and navigate this pattern effectively.
What is a Dead Cat Bounce?
Originating from the saying, "even a dead cat will bounce if it falls from a great height," this metaphor is used to describe a brief and false recovery in a bear market. Essentially, it's a short-lived rally in the price of a stock or an index following a substantial decline, misleading some into believing that the downtrend has reversed.
Characteristics of a Dead Cat Bounce
Precipitating Sharp Decline: Typically, a Dead Cat Bounce occurs after a significant and rapid drop in price.
Temporary Rebound: The stock or index experiences a brief period of recovery, which may be mistaken for a trend reversal.
Resumption of Downtrend: The initial downtrend resumes, often eroding the gains made during the bounce.
Identifying a Dead Cat Bounce
The key challenge for traders is differentiating between a true market recovery and a Dead Cat Bounce. Here are some indicators:
Volume Analysis: A genuine recovery often accompanies increasing trade volumes, whereas a Dead Cat Bounce may occur on lower volumes.
Duration: Dead Cat Bounces are usually short-lived, lasting from a few days to a couple of weeks.
Technical Indicators: Tools like moving averages, RSI (Relative Strength Index), and Fibonacci retracements can aid in identifying these patterns.
Trading Strategies for Dead Cat Bounces
Short Selling: Traders might short sell a stock during a Dead Cat Bounce, anticipating the resumption of the downtrend.
Stop-Loss Orders: Setting strict stop-loss orders can mitigate risks if the bounce turns out to be a genuine reversal.
Patient Observation: Sometimes, the best strategy is to wait and observe the price action for clearer trend confirmation.
Case Studies and Examples
Analyzing past instances of Dead Cat Bounces can be educational. For instance, examining the 2008 financial crisis or the dot-com bubble burst reveals classic examples of this phenomenon.
Conclusion
The Dead Cat Bounce is a fascinating aspect of market behavior, representing the constant battle between optimism and reality in trading. Understanding this concept is not just about recognizing a pattern but also about grasping the underlying market psychology. As always, traders should approach these scenarios with caution, equipped with sound research and a well-thought-out strategy.
A new wave up beginning in CAT World's largest manufacturer of construction equipment - Caterpillar(CAT), is all set to make a leap upwards of 30+% in the first half of 2024.
The stock of this company has been constantly making new ATH's and displays neat waves everywhere.
The move being discussed and anticipated shall be 1-2-i-ii-iii, Meaning the wave iii of 3.(you can imagine it as a smaller third wave inside of a bigger third wave.
The projected target zone for the anticipated wave is placed at 325-350$ zone.
A look at the support/resistance zones also shows the stock attempting to reverse off a major S/R zone.
The construction and manufacturing sectors have slowing started picking up and the US economy is better off than it was in 2022 and 2023. It is therefore expected of these sectors to do better in 2024 than they did in 2023 and increase their operations and output.
This in turn should point towards a good business year for CAT since manufacturing, construction and mining sectors form its major customer base.
Note*- This chart is based on personal observations/opinions. Please be cautious while making any financial decisions.
CAT : Unlocking Upside Potential with a $290 TargetCaterpillar Inc (CAT) has recently demonstrated significant upside potential according to the latest technical analysis. Let's delve into key points supporting this positive outlook:
Recent Developments:
On October 31, 2023, CAT's stock price touched a critical support area at $228.37, marking its lowest level since June 2023. The significance of this level is reinforced by the presence of a long-term upward trendline dating back to March 2021. This underscores strong demand at this level, signaling the continuation of the upward trend.
Positive Reversal:
Following the support touch, CAT shares experienced a positive reversal by successfully breaking through the previous resistance level at $244.24 on November 3, 2023. This indicates an increased buying pressure, suggesting that CAT has the potential to continue its ascent to higher levels.
Target Price Set:
The proposed target price is around $290, reflecting the highest level reached in August 2023. This target selection is based on psychological aspects and the Highest level of all time
Momentum Indicator Support:
Two key momentum indicators, MACD (Moving Average Convergence Divergence) and RSI (Relative Strength Index), provide positive signals:
MACD is above its signal line and the zero level, indicating that upward momentum is increasing, supporting the continuity of the uptrend.
RSI has moved above the 50 level and is approaching 70, suggesting that CAT may be in an overbought condition. This indicates a higher number of buyers than sellers, supporting the prediction of price increases.
Conclusion:
Based on this in-depth technical analysis, Caterpillar Inc (CAT) shows robust potential for upside movement. However, as with any investment decision, it is advisable to conduct further research and consider risk factors before making decisions. Stay informed about the latest news that may impact the overall stock market.
CAT Caterpillar Options Ahead of EarningsAnalyzing the options chain and the chart patterns of CAT Caterpillar prior to the earnings report this week,
I would consider purchasing the 237.5usd strike price Puts with
an expiration date of 2023-11-3,
for a premium of approximately $6.20.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
CAT, Formed EXPLOSIVE BULL-FLAG-BREAKOUT, Extension Prevails!Hello There!
Welcome to my new analysis about CAT Stock Price Action Analysis on the Weekly Timeframe Perspectives. The CAT Price Action recently showed up with a highly important dynamic and in this case a major formation has been formed that caught my attention. The CAT earnings through the recent quarters look pretty damn solid and the equity-to-debt ratio held stable through the recent quarters indicating a substantially fundamental base from where CAT has a strong potential to be backed from a financial market investors open-interest perspective. While other sector stocks showed up with pullbacks CAT moved on to form new highs. Such dynamics are pointing to a interesting stock price-action dynamic that should be considered in the schedule.
When looking at my chart now I have marked there this huge bull-flag-formation which CAT has built during the last times. Within this formation CAT moved on to form a new higher high exceeding the previous one into an all time high as well as several higher lows that supported the bull-flag-formation to be completed with the breakout above the upper boundary. CAT also bounced several times within the 65-EMA in blue and the 25-SMA in green building substantial support-structures in combination with the main ascending-trend-line. The wave-count within the bull-flag-formation has been completed appropriately and from there on the final breakout above the upper-boundary has been validated by the bullish volume.
The major formation that CAT recently completed here has now activated the upper target-zones as marked in the chart together with the major wave-C to emerge out of the breakout-origin. The fact that the waves A and B have already completed give the breakout and wave-C extension a fundamental base for the expansion to show up within the next times. The setup and indications that CAT provided here are delicate for an main positioning into the bullish direction and it has to be remarked that not every stock is showing such concrete factors into the appropriate direction this is why CAT is a main considerable stock-pick that we will keep following on the watchlist.
Within the near terms a final setup-determination above the upper-boundary of the formation as seen in my chart is likely and from there on the wave-C expansion-wave will determine to reach out the upper-target-zones. Once the zones have been reached further assumptions need to be made. Especially a continued healthy equity management of the company can support the bullish case massively.
In this manner, thank you everybody for watching the analysis, support from your side is greatly appreciated.
VP
DE falling into undervalued territory / Favorable Earnings LONGDE on the 4H chart is now setup for a long trade. It is now positioned just above a long term
anchored VWAP to which a stop loss can be set just below @ 390. DE was falling before
favorable earnings and has not yet reversed. I see this as an opportunity to trade an
industrial blue chip taking entry well below fair value and so a bargain.
I will get a mixture of a handfulof stock shares and a single option 4 months to expiration. The
target is selected to be 445 at the upper Bollinger bands confluent with the second deviation
line of the anchored VWAP. This is about 13% upside- while the option's profit potential is
substantially higher. If you would like to know the details of the call option leave a comment. (
if this idea is of interest considering liking and following :)
Puts AMDI think is a dead cat bounce off the 107 support. Tomorrow can open with a gap down breaking the support level. I has been doing lows lows since the last top.
CAT, Caterpillar, to re-test support 220, then back to 250CAT (Caterpillar),
On the daily chart, the technical indicators show a high probability for the stock to test the support level 220. Then the stock will rebound to 250, and target 265.
Short-term stop loss to be considered at 200
CAT Caterpillar Options Ahead of EarningsAnalyzing the options chain and the chart patterns of CAT Caterpillar prior to the earnings report this week,
I would consider purchasing the 260usd strike price Puts with
an expiration date of 2023-8-4,
for a premium of approximately $5.40.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
BITCOIN MAKES CLASSIC DEAD CAT BOUNCEAs you can see in the chart, this is a very simple setup:
When we look at the big picture, we have a dead cat bounce breakout retest pattern.
As confirmation, we have a clear RSI bearish divergence and a descending triangle, which can be a good entry point.
As targets we have the clear support levels and we set an stop loss at the last swing high, so in case the price goes against the position, we protect our capital.
Sticking to ideas when proved wrong can be a very expensive mistake. Always be ready to change your mind.
Bitcoin Forecast Sunny🌞 (Clear: 100.0 %)🌤️ Bitcoin Weather Report: Sunny Forecast! 🌤️
According to the latest Bitcoin chart index for the past hour, I'm happy to announce that the weather in the Bitcoin world is expected to be sunny ☀️. With a confidence level of 1.0, I have high certainty in this forecast. Let's take a closer look at the key indicators:
📈 Open: 25019
🔼 High: 25063
🔽 Low: 24890
📊 Volume: 18820
📉 Close: 24918
The recent price movement indicates a potential for a dead cat bounce 🐱 following a sharp drop. This means that after a significant decline, there might be a short-lived upward movement before the downward trend resumes. However, it's important to approach this with caution as dead cat bounces are typically temporary and may not signal a sustained recovery.
Moving on to the moving averages, we observe the following values:
📈 EMA9: 25101
📈 EMA21: 25355
📈 EMA50: 25621
📈 EMA100: 25781
📈 EMA200: 25909
The exponential moving averages show a gradual increase over time, which indicates a potential upward trend in the Bitcoin market. However, it's crucial to consider other factors and not solely rely on moving averages for investment decisions.
Additional indicators include:
📉 RSI: 27
The relative strength index (RSI) is on the lower side, suggesting that Bitcoin may be oversold. This could potentially lead to a buying opportunity for investors, but it's crucial to assess other factors before making investment decisions.
📉 Fast %K: 9
📉 Slow %K: 16
📉 Slow %D: 20
The stochastic oscillator values indicate a bearish sentiment, as the %K values are lower than the %D value. This suggests that selling pressure may be prevalent in the market.
📉 MACD: -279
The Moving Average Convergence Divergence (MACD) is negative, indicating a bearish trend. However, it's important to note that this is just one piece of the puzzle, and other factors should be considered.
In conclusion, while the Bitcoin weather forecast appears to be sunny, it's crucial to exercise caution and not solely rely on a single hour's data. The potential for a dead cat bounce after a sharp drop introduces some uncertainty to the market. Remember to consider various indicators, market trends, and perform comprehensive analysis before making investment decisions. Happy trading! 💰📈
DE traders buy on favorable earningsDeere Company had favorable earnings in May reporting quarterly earnings of about 3.5 % on
their share's market price. DE is a blue-chip industrial sector stock comparable to CAT. It not
a fast mover but very suitable for options trading or investment. On the 4H chart DE had been
trending down through earnings in a descending parallel channel and relying on a lower VWAP
for support. At the middle of this past week, DE made its reversal move into a trend up. This
was accompanied by a change in the volume to predominantly buying volumes relatively high
compared with the period before the earnings. This surge of volume of sorts is the fuel for
upward price action. The zero-lag MACD indicator shows moving average divergence Price is
breaking out of the channel moving towards the mean VWAP and POC line of the volume profile.
demonstrating bullish momentum. Accordingly, I see DE as well setup for a long trade.
( SL $345 pivot low TP1 $400 ( 1 std above mean VWAP ) TP2 $420 ( 2 std above mean VWAP)
CAT appears to be starting to digCAT as a blue-chip industrial is not a fast mover- it is best suited for options traders or investors.
On the 4 H chart, CAT rose from the lows on a trend up from last November through this
February. It then descended in a retracement about a 50% Fibonacci extent to its present value.
It is now at the POC line of the volume profile for support and is near to the mean anchored
VWAP line. RSI is above 50. I see this as an excellent long trade setup given that other sectors
may be cooling off there may be plenty of money looking for a new home. The volume indicator
shows steadily rising volumes. The stop loss is the line of one standard deviation below the
the mean VWAP while the target is the even dollar immediately below the ceiling of the
supply / resistance zone of the Luxalgo indicator. This seems to be a reasonable position to
diversify from techonolgy which seems to be a bit overextended.
CAT idea long wedge vs breakdownI just posted a CAT long idea. (check my profile for context on that)
I mentioned a breakdown but didn't draw it out so decided to make another post (this one).
I'm looking out for both options.
CAT has strong fundamentals and i can't imagine it getting absolutely wrecked, even in worsening economic conditions.
CAT idea long wedgeWedge formed, looking for some retest of previous levels.
Especially if overall market strength continues to go as it has currently been going.
If it breaks down, I don't see CAT going much lower.
CAT - Descending Wedge BreakoutA large descending wedge or megaphone has been broken out of.
I expect sideways but partial bullish results as shown by the bars pattern in green.
Strongest trend line is the thick green line, price may retest this line.
Channel is speculation.
