Caterpillar (CAT) Offering Possible 51.52% Return Over the Next 21 Calendar Days

Caterpillar's most recent trend suggests a bearish bias. One trading opportunity on Caterpillar is a Bear Call Spread using a strike $133.00 short call and a strike $138.00 long call offers a potential 51.52% return on risk over the next 21 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $133.00 by expiration. The full premium credit of $1.70 would be kept by the premium seller. The risk of $3.30 would be incurred if the stock rose above the $138.00 long call strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Caterpillar is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Caterpillar is bullish.

The RSI indicator is at 59.29 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Caterpillar

Cramer's lightning round: This sector is the market's 'kiss of death'
Wed, 23 Jan 2019 23:46:00 +0000
Jim Cramer steers investors away from the automotive sector in a response to a caller's stock question in the lightning round.

Caterpillar earnings: Will good numbers finally lift the stock out of its doldrums?
Wed, 23 Jan 2019 20:05:00 +0000
Caterpillar Inc. is scheduled to report fourth-quarter earnings on Monday before the bell and analysts are hoping for news that can prop up its battered stock.

See what the IHS Markit Score report has to say about Caterpillar Inc.
Wed, 23 Jan 2019 13:00:17 +0000
# Caterpillar Inc

### NYSE:CAT

View full report here!

## Summary

* Perception of the company's creditworthiness is negative
* ETFs holding this stock are seeing positive inflows but are weakening
* Bearish sentiment is low
* Economic output for the sector is expanding but at a slower rate

## Bearish sentiment

Short interest | Positive

Short interest is extremely low for CAT with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting CAT.

## Money flow

ETF/Index ownership | Negative

ETF activity is negative and may be weakening. The net inflows of $18 million over the last one-month into ETFs that hold CAT are among the lowest of the last year and appear to be slowing.

## Economic sentiment

PMI by IHS Markit | Negative

According to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Industrials sector is rising. The rate of growth is weak relative to the trend shown over the past year, however, and is easing.

## Credit worthiness

Credit default swap | Negative

The current level displays a negative indicator. Although CAT credit default swap spreads are decreasing, they are near their highest levels for the past 1 year, which indicates the market's more negative perception of the company's credit worthiness.

Please send all inquiries related to the report to score@ihsmarkit.com.

Charts and report PDFs will only be available for 30 days after publishing.

This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.

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5 stocks account for nearly 200-points of Dow's tumble
Tue, 22 Jan 2019 20:03:00 +0000
Of the Dow Jones Industrial Average's 412-point plunge Tuesday, five higher-priced components are accounting for nearly half of the decline. The biggest drag on the Dow's price is Boeing Co. as the stock fell $8.75, or 2.4%, to shave about 59 points off the Dow's price. Among the other biggest drags, shares of Goldman Sachs Group Inc. shed $5.66, or 2.8%; Caterpillar Inc. declined $4.86, or 3.6%; 3M Co. dropped $4.60, or 2.4%; and Apple Inc. gave up $3.72, or 2.4%. Combined, the stocks' price declines cut about 187 points off the Dow's price. The Dow is a price-weighted average, meaning stocks with the highest prices have the most influence, while indexes like the S&P 500 and the Nasdaq Composite are market-capitalization weighted, meaning the most valuable companies carry the most weight.

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