Caterpillar Incorporated Manipulation on Hope, bears return; target $180.00
Unbelievably $CAT had a new yearly high last week, but has sold off from making a new 52 week high. Probably due to its 9 month cycle peak that is now likely in place.
This stock doesnt respond well cyclically due to its unique position in the market. Its commonality cannot be trusted to gauge overall market direction. However it cant avoid the fact that its most recent 80 week trough was broken by bears in the early part of the year, 2022. The bears have come back.
new 9 month peak
moving into 80 day low soon
probable break of $200 next week on any selling of industrials
The 40 day VTL had a clean downbreak
Expect the next 80 day cycle to fail in a stair stepper of investor disbelief mixed with dip buying
The strength is very strange but it is just manipulation. The market looks to these stocks for guidance and hope. This technical thing will stick in the back of people’s minds, but its a lie.
Its just stubborn, old, lying stock. And its commonality often fools technical and even cyclical traders.
I felt that it wouldnt make a new yearly high, but it could be fundamental interaction. My view is that $CAT goes below $200 and leads the market lower into end of month.