“You have spaghetti on your chart.”


Let’s keep that in mind as we review more data on CAT.  The link to the quote above is here (time stamp 0:44).


That video shows a day trader who is espousing the ancient art of Wyckoff analysis:  Price and volume … that’s it.


His time frame is shorter than what’s presented on this site but the markets are fractal; time-frames are relative to the individual that’s participating.


In the case of CAT, we have a clear up-thrust the past two weeks and now it’s at support in the 139 – 140 area.


The dashed line is an uptrend that goes all the way back to 2016.  If CAT moves lower from here, we’ll see how that line affects price action.


Obviously, we’ll be looking to go short big time if price action dictates. 


The previous chart shows potential downward action (from a Fibonacci projection) all the way to the 45-area.


This is how fortunes are made


'The big money is in the big move' according to Livermore and he was right.  The other part of that statement is big money is made on downside, bearish action and not the upside.


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CAT Reversal


It’s obvious CAT is in trouble.


Last week was an up-thrust and this week was the initial down-leg.  From an Elliott Wave standpoint (see reading list), last week may have been the top of wave 2 counter-trend.


If so, wave three is the main move lower.


CAT retraced nearly 50% of the initial down leg from the high last Thursday, the 18th.  There may be a little blip higher on Monday (to eek out that last bit to 50%) or not.


The attached link describes the current economic and financial situation but the best quote, is actually in the comments: 


3.2 GDP? .....We live in an Orwellian, command-control, centrally planned hallucination.



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