Caterpillar Decline: An UpdateSix days ago I published a sell signal for CAT. I went short and covered once.
Yesterday I published the continuation chart for the decline. I went short again.
Today I covered my short position for a second nice profit. If CAT rallies next week, I will establish a new short position. TRADE-MAP suggests further weakness.
Here are the letters and what "TRADE-MAP" means to me (first the letters in TRADE):
1. T : Time and space (Fractals); 2. R : Repeating Cycles; 3. A : Advancing Trend; 4. D : Declining Trend; 5. E : Energy in Phase Forces.
Now the letters in MAP:
6. M : Momentum and Velocity; 7. A : Analysis of Structure; 8. P : Price Performance. There you have it: Don's personal "TRADE-MAP.
Here are "Don's Top Ten Technicals": 1. The Ichimoku Cloud is SINKING, with lower prices now than structure to the left. 2. Prices are falling BELOW the cloud. 3. Prices are falling BELOW the thick red Ichimoku Cloud Conversion line. 4. The thick red conversion line is moving LOWER. 5. The thick black line is the Ki-Jun-Sen baseline of the Ichimoku Cloud and this is HEADING DOWN. 6. The indicator on the top of the page is RSI / Stochastic , and this is FAILING. 7. The top-side middle indicator is vortex and this is NEGATIVE (red over green). 8. The Top (bar-type) indicator measures the "phase energy", and this HAS CONTINUED BELOW THE ZERO LINE. This suggests the selling has more to go. 9. The red fractal arrows (not pictured) are DOWN.
10. Look to the far lower right on the chart, around $71.00. You will notice a yellowish line on the bottom (jaws), with black dots above (teeth), and a blue line (jaw) above the black dots. Now, all three are OPEN, correct? This is where I ask you to use your imagination and envision these three items as the "jaws, lips, and teeth of a NOW AWAKE, FEEDING alligator, and the alligator will continue to feed into the DOWN-TREND.
CAT is a DOW-30 stock , and I feel this will contribute to a general market decline.
One more consideration. The DXY has gone positive. A strong USD hurts CAT. So, "I am no bull-dozing" ! (Bad pun, as CAT makes bulldozers).
I would like to close with this quote from Katherine Hepburn: “If you’re given a choice between money and sex appeal, take the money. As you get older, the money will become your sex appeal.”
I sincerely hope my contributions are helpful to you. I enjoy Trading View and the many fine technical analysis charts that you all submit. May all of your trades go well. Don.