CAT, From Leader To Laggard
In early May 2011, Caterpillar Inc.(NYSE:CAT) was the hottest stock in the entire market. The leading mining equipment stock topped out at $116.55 a share on May 2, 2010. Since that pivot high, the stock has sold off sharply lower trading at $98.74 a share this morning. Traders can watch for some short term intra-day support around the $97.90 area.
Other mining equipment manufacturers that are trading lower this morning include Joy Global Inc.(NASDAQ:JOYG), and Deere & Co.(NYSE:DE). These two stocks will generally trade in tandem with Caterpillar which is the leading stock in the sector.