You have several things here why imo CAT is a great short. 1) My limited but ever improving T/A skills say the chart says so. 2) Fundamentals. P/E is too high compared to S&P. 3)Interest rate hikes hurt this company. (.25 priced in for now) 4)Trump. I can't see any particularly good news on the China front between now and Jan 20th. If China so much as says "boo", CAT falls off a cliff. Very possible considering The Donald's penchant for spouting off. CAT doesn't break out sales by country, but CAT Asia accounts for just over 20% of revenue. 5) The CEO said it was lol. All that being said, I feel like today the market is a loaded spring, just waiting for the FED's confirmation of what it has priced in. When it hits the wires, unless Yellen's tone is hawkish going forward as a dig at Trump...the markets will spring north. And my short, already ugly here, will get stopped out.
Covered. I'm out. For today. Lost a dime. It seems like too obvious a short today. Should take it long, but I just can't bring myself to do that. Time to go jogging with fido.
Refreshing. I think CAT is gonna rocket. Then I'll short again. I've seen this intraday pattern too many times. Unless Yellen hikes .5% CAT hits new highs.
Albeit I believe this is a big fat pig... you gotta game the gamers... short term at least. 94.52 as I type.... F! Come on Janet... Bad day!
if it hits 93.94 .... I'm gone and it ain't lookin good. 94.27 as I type. Classic double bottom lol. Buy buy buy
OMG.... I know I wrote that... But its a mnemonic stop lol... And I can't pull the trigger(as it falls thru 93.74)... I'm still in. Dumb like a stump I know. There's no way it can keep going down. They can't let shorts make money! Its gonna hit new highs Haj.... don't be greedy. Take your profits. I'm tellin ya... and we are both singing from the same sheet of music here. ITS A PIG. But that doesn't matter.
This is the process that I take when I want to short a stock. Lets say CAT hits 93 from 89 and I believe it is overvalued. I short weekly CALL 94. If It expires, I make money. If the shares get called, I get short. Then I sell PUT 92 (again weekly). If the shares get assigned, I am clear and make money. If it does not go below 92, I doi the same for next week. I never give up. So waiting does not cost me anything. I am making money or reducing loss. FYI, I have PUT 92.5 to cover my short and I will not cover the shares and leave PUTs uncovered. I also have 96 Call to add to my short position. I sold 1.02 a couple of days ago.