One equity that has been annoyingly robust, so much so that I don’t mess with it anymore, is Caterpillar (symbol CAT). For a LONG-TERM bearish trade, however, I think it could be intriguing. Here is what it is doing recently, which isn’t a heck of a lot, although at least it isn’t blasting higher each day like, oh, let’s say, Elil Lilly.
This ascending channel has been in place for almost HALF A CENTURY. I’m sure you’ll agree that the current price is on the high side relative to this very long-term price channel. The point I’m making is that, over the next few years, it seems far more likely this will ease back to the lower bounds of its channel (or at least the halfway mark) instead of inexplicably bursting above a channel that has been in place since Jimmy Carter lived in the White House.
