CAT - Caterpillar

Down 20% from its recent top, it will be coming down even more for sure.

I believe it will bounce off the 200 day moving average, and maybe penitrate it.
I have made more money off covering this stock than owning it on the upside.
I was really debating whether to close out or continue covering the stock by selling calls against it. I believe at this point it may continue and I'm running out of options (get it).
Some analyst are giving it a buy today, NEW YORK, Jun 07, 2006 (XFN-ASIA via COMTEX) -- Bank of America said Tuesday it
has initiated coverage of four major heavy equipment manufacturers, a sector of
the market that has seen its share prices edge down in recent days on worries
about a possible industrial slow down and inflation.

The bank initiated coverage of Caterpillar Inc., Manitowoc Co. and Joy Global
Inc. with "Buy" ratings. It initiated coverage of Ingersoll-Rand Co. with a
"Neutral" rating.

Bank of America set a $80 price target for Caterpillar, which manufactures
construction and mining equipment, saying it stands to benefit from mining,
energy and nonresidential construction spending.

Bank of America added that recent drops in the Peoria, Ill.-based company's
share price should be treated as an opportunity to buy.
Note:
The stock dropped in after hours trading.

Here is a technical analyst of CAT


Caterpillar Inc finished the previous session weaker extending the prior days
weaker tone. Trend indicators are indicating a bearish market and the overall
strength of the trend is strong, as indicated by the ADX. Momentum readings are
also in bearish territory. Also, the market just put in a 50-Day new low here,
indicating further weakness. More lows are likely here.

TREND INDICATORS:

Simple Moving Average (10-Day): The closing price finished below this moving
average. Also, the slope of the moving average is in a downward slope from the
previous session indicating further weakness. As a result the 10-Day simple
moving average has a strong bearish bias.

Simple Moving Average (25-Day): The closing price finished below this moving
average. Also, the slope of the moving average is in a downward slope from the
previous session indicating further weakness. As a result the 25-Day simple
moving average has a strong bearish bias.

Simple Moving Average (50-Day): The closing price finished below this moving
average. Also, the slope of the moving average is in a downward slope from the
previous session indicating further weakness. As a result the 50-Day simple
moving average has a strong bearish bias.

ADX: The Average Directional Change (ADX) indicates the strength of a markets
underlying trend. A rising ADX is interpreted as building trend strength, while
a falling ADX indicates weakness in the underlying trend and the potential of a
market reversal. On this market, the 14-Day ADX is rising, while the long term
trend, based on a 50-Day moving average, is down. As the ADX is rising this
indicates that the current trend is strong and should remain intact. Look for
the current trend to continue.

MOMENTUM INDICATORS: MACD: The MACD is in bearish territory. Also, the market
just put in a 50-Day new low here, indicating further weakness. More lows are
likely here.

RSI: The 14-Day RSI is in neutral territory. (RSI is at 27.89). This indicator
issues bullish signals when the RSI line dips below the oversold zone (currently
set at 20.00); a bearish signal is generated when the RSI rises into the
overbought zone (currently set at 80.00). Nevertheless with the RSI at 27.89 the
market is somewhat oversold, but given the 50-Day new low here, greater oversold
levels are likely.

VOLATILITY INDICATORS:

Bollinger Bands (20-Day Average +/-1 Standard Deviation): As prices are closer
to the bottom band than the top band, the Bollinger Bands are indicating
oversold prices. Volatility also appears to be increasing, as evidenced by a
larger distance between the upper and lower bands over the past few sessions.
Despite this oversold condition the market may become more oversold before
turning higher. As a result, the market will look for additional strength in
prices before turning bullish on this indicator.

RESISTANCE AND SUPPORT LEVELS:

82.03 - Highest High in last 50-Days 81.44 - 20-Day Simple Moving Average
Plus 2 Standard Deviations 78.10 - 20-Day Simple Moving Average Plus 1
Standard Deviation 75.69 - 50-Day Simple Moving Average 75.58 - 25-Day
Simple Moving Average 75.20 - Highest High in last 10-Days 72.79 -
100-Day Simple Moving Average 72.47 - 10-Day Simple Moving Average 71.42
- 20-Day Simple Moving Average Minus 1 Standard Deviation 70.21 - 3-Day
Simple Moving Average 70.02 - High 68.48 - Last Price 68.10 -
Low 68.10 - Lowest Low in last 50-Days 68.10 - Lowest Low in last
10-Days 68.08 - 20-Day Simple Moving Average Minus 2 Standard Deviations
64.68 - 200-Day Simple Moving Average

Nice call. =D

wow, you called it perfect.

What do you guys think this will do next week?

i don't think it will move much next week.

I think the only reason why this wouldnt move is if the market overall keeps plunging.

The fundamentals look great.

Another buying opportunity will come this week.

Do you mean buying opportunity at current price level or do you mean it will fall low enough to be a good buy?

It's a good buy at any point.
Just add a little at a time, if your uncomfortable.
I'll give you more later just a bit busy here.
Wait till rush hour is over and see whats going on after 12:00

Caterpillar Inc finished the previous session weaker reversing the firmer tone
seen during the prior session. Trend indicators are indicating a bearish market.
However the overall strength of the trend, as indicated by the ADX, is weak and
should be watched as a result. MACD also has issued a bullish signal, suggesting
a reversal in the current trend.

TREND INDICATORS:

Simple Moving Average (10-Day): The closing price finished above this moving
average. However, despite prices trading above the moving average line, the
moving average is in a downward slope from the previous session. If prices trade
below the moving average then the trend will be clearly established as up.
However, this strength in the price will need to be watched. As a result the
10-Day simple moving average has a weak bearish bias.

Simple Moving Average (25-Day): The closing price finished below this moving
average. Also, the slope of the moving average is in a downward slope from the
previous session indicating further weakness. As a result the 25-Day simple
moving average has a strong bearish bias.

Simple Moving Average (50-Day): The closing price finished below this moving
average. Also, the slope of the moving average is in a downward slope from the
previous session indicating further weakness. As a result the 50-Day simple
moving average has a strong bearish bias.

ADX: The Average Directional Change (ADX) indicates the strength of a markets
underlying trend. A rising ADX is interpreted as building trend strength, while
a falling ADX indicates weakness in the underlying trend and the potential of a
market reversal. On this market, the 14-Day ADX is falling, while the long term
trend, based on a 50-Day moving average, is down. However, the weak ADX
indicates that the current trend is deteriorating and may possibly reverse. Look
for a choppiness ahead.

MOMENTUM INDICATORS: MACD:

RSI: The 14-Day RSI is in neutral territory. (RSI is at 46.59). This indicator
issues bullish signals when the RSI line dips below the oversold zone (currently
set at 20.00); a bearish signal is generated when the RSI rises into the
overbought zone (currently set at 80.00). Nevertheless with the RSI at 46.59 the
market is somewhat oversold. However, this by itself isn't a strong enough
indication to signal a trade. Look for additional evidence of strength from this
indicator before getting too bullish here.

VOLATILITY INDICATORS:

Bollinger Bands (20-Day Average +/-1 Standard Deviation): As prices are closer
to the bottom band than the top band, the Bollinger Bands are indicating
oversold prices. Volatility also appears to be decreasing, as evidenced by a
smaller distance between the upper and lower bands over the past few sessions.

RESISTANCE AND SUPPORT LEVELS:

82.03 - Highest High in last 50-Days 76.40 - 20-Day Simple Moving Average
Plus 2 Standard Deviations 74.69 - 50-Day Simple Moving Average 73.53 -
20-Day Simple Moving Average Plus 1 Standard Deviation 73.27 - 100-Day
Simple Moving Average 72.81 - Highest High in last 10-Days 71.85 -
25-Day Simple Moving Average 71.37 - High 70.55 - Last Price
70.35 - Low 69.63 - 3-Day Simple Moving Average 68.05 - 10-Day Simple
Moving Average 67.78 - 20-Day Simple Moving Average Minus 1 Standard
Deviation 65.23 - 200-Day Simple Moving Average 64.91 - 20-Day Simple
Moving Average Minus 2 Standard Deviations 64.41 - Lowest Low in last
10-Days 64.41 - Lowest Low in last 50-Days

CAT has climbed a big hill here with a lot of weight on its shoulders.
I believe it will rest here form a base and move into earnings, this is a strong area of resistance! I expect earnings to go well, with guidance for 08.
If this stock moves back into the 80 range before the year is over. I would expect a split within the next 16 months.
Jan/08 LEAPS would be the choice.

Jun 23, 2006 (TradeSignals via COMTEX) -- Caterpillar Inc - CAT

Caterpillar Inc finished the previous session weaker reversing the firmer tone
seen during the prior session. Trend indicators are indicating a bearish market.
However the overall strength of the trend, as indicated by the ADX, is weak and
should be watched as a result.

TREND INDICATORS:

Simple Moving Average (10-Day): The closing price finished above this moving
average. Also, the slope of the moving average is in an upward slope from the
previous session indicating further strength. As a result the 10-Day simple
moving average has a strong bullish bias.

Simple Moving Average (25-Day): The closing price finished above this moving
average. However, despite prices trading above the moving average line, the
moving average is in a downward slope from the previous session. If prices trade
below the moving average then the trend will be clearly established as up.
However, this strength in the price will need to be watched. As a result the
25-Day simple moving average has a weak bearish bias.

Simple Moving Average (50-Day): The closing price finished below this moving
average. Also, the slope of the moving average is in a downward slope from the
previous session indicating further weakness. As a result the 50-Day simple
moving average has a strong bearish bias.

ADX: The Average Directional Change (ADX) indicates the strength of a markets
underlying trend. A rising ADX is interpreted as building trend strength, while
a falling ADX indicates weakness in the underlying trend and the potential of a
market reversal. On this market, the 14-Day ADX is falling, while the long term
trend, based on a 50-Day moving average, is down. However, the weak ADX
indicates that the current trend is deteriorating and may possibly reverse. Look
for a choppiness ahead.

MOMENTUM INDICATORS: MACD: The MACD is in bullish territory.

RSI: The 14-Day RSI is in neutral territory. (RSI is at 53.10). This indicator
issues bullish signals when the RSI line dips below the oversold zone (currently
set at 20.00); a bearish signal is generated when the RSI rises into the
overbought zone (currently set at 80.00). Nevertheless with the RSI at 53.10 the
market is somewhat overbought. However, this by itself isn't a strong enough
indication to signal a trade. Look for additional evidence of weakness from this
indicator before getting too bearish here.

VOLATILITY INDICATORS:

Bollinger Bands (20-Day Average +/-1 Standard Deviation): As prices are closer
to the bottom band than the top band, the Bollinger Bands are indicating
overbought prices. Volatility also appears to be decreasing, as evidenced by a
smaller distance between the upper and lower bands over the past few sessions.
The market is overbought and appears to be encountering resistance near recent
highs. Look for a potential top in this area.

RESISTANCE AND SUPPORT LEVELS:

82.03 - Highest High in last 50-Days 75.61 - 20-Day Simple Moving Average
Plus 2 Standard Deviations 74.35 - 50-Day Simple Moving Average 73.51 -
100-Day Simple Moving Average 73.45 - Highest High in last 10-Days 72.95
- 20-Day Simple Moving Average Plus 1 Standard Deviation 72.66 - High
72.28 - Last Price 71.91 - 3-Day Simple Moving Average 71.36 -
Low 70.93 - 25-Day Simple Moving Average 69.47 - 10-Day Simple Moving
Average 67.63 - 20-Day Simple Moving Average Minus 1 Standard Deviation
65.51 - 200-Day Simple Moving Average 65.41 - Lowest Low in last 10-Days
64.97 - 20-Day Simple Moving Average Minus 2 Standard Deviations 64.41 -
Lowest Low in last 50-Days

Another buying opportunity? Or showing weakness...crossed below 200dMA.