CAT Caterpillar Weekly Chart; Overbot; Negative Divergence; Upper Band Violation

CAT is done. Caterpillar tops out with neggie d across all indicators. A neggie d spankdown is about to occur and CAT price should trail lower for several weeks. The upper band is violated so the middle band at 176, and rising, and lower band at 149, and rising, are on the table. The Aroon is at maximum possible euphoric bullishness. Everybody and his bro are in Caterpillar now with triple leverage. The Aroon has no direction to go in except bearishness.

Keystone does not have any position long or short in CAT and would short it tomorrow if not already holding numerous shorts. If you made a bunch on the way up take the money and get out now. Flip the profits to the short side. 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 6:41 PM EST: CAT pops +2.2% to 202.38 and is up another +0.4% in late trading to 203.10. Let's take a look. CAT weekly chart remains cooked with the new price high. The MACD line is flat so the bulls are trying to squeeze out some more life but there isn't anything there. CAT daily chart also neggie d. It spiked this morning and the candlestick dropped to close at halfway point that is bearish. It looks like the diehard supporters of CAT want to keep it propped up; they are trying their best. Analysts think an infrastructure bill is coming, or a stronger economy, so they want to be ready holding the bulldozer company. No engineering project ever begins without the hole in the ground. CNBC commentator Guy Adami tosses his hat into the ring. This is going to be funny. Adami says go long CAT bigtime and Caterpillar has lots of upside ahead. The charts do not say that. Who you gonna believe Adami or Keystone? Time will tell how it works out, sounds like that guy's a dumbie.

Note Added Sunday, 2/21/21: CAT bulldozes +5% higher to 209.91 a record high on DE coattails on Friday. If the Deere earnings were known to be coming out, the chart could have been posted after. The two tickers always move in sympathy to one another. With earnings, it can go either way, that could have been lights out. DE is more ag-related so it makes sense that it pops with the commodity boom but CATis an infrastructure and economy play. Treasury Secretary Yellen is promising big fiscal stimulus spending so stocks recover and rally to end the week. The Queen of the Doves promises money as far as the eye can see. The pop only delays the set up a couple days. The huge move results in the daily chart indicators remaining neggie d. There is some momo there now so price may need a day or two to chop and settle itself down. The big rally results in the weekly chart indicators remaining neggie d except for the MACD line a hair higher. That is a beautiful top to short CAT stock from. A two-week jog move should set that chart up with universal neggie d again. So CAT will top out on the daily chart in the week ahead and drop for several days. Either that will be the top and the multi-week slide begins, or, price comes back up to the highs again about a week or so out, say the first week of March, and that will be the top. If you enjoyed lots of profits on CAT, and were given that Friday blessing, take the money and run. Keystone will probably begin day-trading CAT using the 2-hour chart to time the short entries and exits. But, it likely needs a few days to settle after the Friday party.

Note Added Friday Morning, 2/26/21, at 6:15 AM EST: CAT and DE continue to top out and are only down a smidgeon in the big 2/25/21 selloff.