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JimVanMeerten (56.80)

Caterpillar (CAT) is a bargain



September 17, 2011 – Comments (0) | RELATED TICKERS: CAT


There are so many sound world wide stocks that are just waiting in the wings waiting for the economy to take a turn.  In my opinion of the the best among then is Caterpillar (CAT).  No mater where you go in the world you are bound to see the yellow equipment with the big CAT logo on the side. Sales in Europe and China are slightly down but they are still buying in the emerging markets.  One look at this Barchart of the past years trading history will show how far the stock has fallen:

Barchart technical indicators:

1 - Technical sells are based on momentum and can expose great buying opportunities

2 - 56% Barchart technical sell signal

3 - Trend Spotter sell signal

4 - Below its 20, 50 and 100 day moving averages

5 - 25.83% off of its 1 year high

6 - Relative Strength Index is 46.32% but getting stronger

7 - Barchart computes a technical support level at 84.39

8 - Recently priced at 86.05 which is below its 50 day moving average of 93.45

Summary:   I'm not trying to be political but if some form of the Obama Jobs Bill gets passed the economic log jam just might be broken.  Even though you might not be able to tell it from the stock market and the high unemployment numbers The Conference Board's Index of Leading Economic Indicators is getting more positive.  I can't think of any company that deserves to be on your watch list as Caterpillar (CAT).  I would carefully watch this ones 50 day moving average and be prepared to jump back in.

Jim Van Meerten is a Marketocracy Master

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