Caterpillar reported this morning before the bell, subsequently pushing the futures up and CAT up around 4 points. As much as i hate to say this i look at CAT’s numbers as semi bullish because they make the equipment which creates new infrastructure etc etc. The economy may be slowly clawing back as contractors and builders place new orders for the equipment. This directly relates to growth in new development. As Roubini said, its looking more and more like we are going to be in a slow grind upwards on a very shallow slope. IF earnings keep coming out with a positive spin we are not going to see the march lows. Most of you might think i am crazy but, the market has been acting crazy in the last week. So now i am moving into a trading cycle of trade when i see not what i think i see because ill spend most of my time fighting the tape and trend. ONly the smart will win, “smart” in the sense you know when to change trading styles to adapt to what the market throws at you.
My ideas for today are to scalp CAT at the open and find breakouts and or weakness and get into these names from the open and hold. This may or may not work all depends on where the the market opens, if we open flat you must become much more selective if you are trading intra day. HedgeAccordingly