CAT Caterpillar Weekly Chart; Overbot; Rising Wedge; Negative Divergence; CAT Is About to Get Bulldozed

CAT is about to get bulldozed. Isn't it Ironic, as Alanis would sing, that investors are picking up nickels in front of a bulldozer nowadays and with CAT, they are picking up nickels in front of a Caterpillar dozer?

Price makes the higher high and all the chart indicators are negatively diverged. The RSI and stochastics are overbot agreeable to a pullback. Price has violated the upper band so the middle band at 532 is on the table and lower band at 406, both rising.

It is odd because every construction project, house, swimming pool, parking lot, pond, park, skyscraper, anything, starts with a hole in the ground dug by equipment made by Caterpillar, Deere, Cummins, Case, Ford, Kabuto, etc.... If CAT is topping-out, maybe most of the fun is already priced into the stock? It had a huge run and it is just a basic industrial company.

Okay, this makes sense; look at the monthly. The MACD and perhaps RSI on the monthly chart, and histogram, are squeezing out tiny higher highs, so after the multi-week selloff occurs, she will likely come back up on the monthly basis to match the highs again, say, in February or March. You do not have to guess; simply watch the charts.

Lots of charts have the same sick set-up. CAT should begin the down move now and fall into a multi-week slide lower. CAT is about to get declawed. Never do that to a cat since that is like getting your fingernails ripped out of your fingers. If your cat is scratching your furniture and you do not like that, then find a new good home for the animal, since you are obviously an *sshole.

Keystone has played CAT a lot over the years long and short but has not for the last few years. Obviously, the play is short going forward. The daily chart is in neggie d. Keystone may step in and begin shorting CAT tomorrow going forward for a few days/weeks. Time to go to Katmandu with Seger. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added Monday, 1/19/26: They say nothing runs like a CAT and price pops to the 656 palindrome and finishes last week at the 646 palindrome. Let's see what the charts say. The daily remains in firm neggie d so it is agreeable to a spankdown here forward. On the weekly chart, the MACD line eeks out a tiny hair higher value but it is way up in nosebleed territory with nowhere to go but down. All other chart indicators remain neggie d. S&P futures are down big because of Donnie the drama queen so that may provide the catalyst to begin a big slide lower. The 2-hour chart is also topped out with neggie d. CAT was ready to fall and the Donnie drama will likely exacerbate the drop. Keystone is not in it long or short but obviously, short is the play going forward in the near and short term. Interestingly, Cummins may have another week or two of buoyancy remaining before it tops out. You would think that it would be in lock-step with CAT (the diesel engines go into the CAT machines). Au contraire, Pierre. People used to say that a lot a few decades ago but you never here it anymore. Someone may boast about a subject and profess that his comments are true and correct, but someone else, like Keystone, will step forward with an index finger pointing skyward, and proclaim, "Au contraire, Pierre." Keystone has a friend, he has not seen in a few years, but his name is Pierre, but comically, his family has zero connection to France, they simply liked the name Pierre, but his whole life, to this day probably, people ask him if he is French. Anyhoo, CMI and CAT should move together but are not. That hints that companies need the CAT earth-moving equipment for infrastructure build-out coming in the springtime, sending stocks higher, but in addition, Cummins receives an extra boost because the data centers want the diesel engines. They are selling like hotcakes. Typically, for a plant, especially a critical plant producing a special chemical, or resin, or plastic, anything, it will have back-up generators in case power is lost. Yes, those are typically diesel motors used as back-up. Thus, mathematicians say thus a lot that is why we are not invited to any holiday parties, the data centers likely want the Cummins diesel engines for back-up if the juice is lost at their new fancy schmancy data centers. A lot of money is being spent on that AI garbage and you are the sucker paying the higher electric bills to make the elite class richer.

Note Added Sunday, 1/25/26: CAT ends the week at the 626 palindrome.