Caterpillar Inc. (CAT) Chart Study, Paulson & Co. Cuts Gold Stake

Today we present another triangle pattern worth keeping an eye on, this time in CAT.

First the long-term view for perspective:

And the close-up:

Above the green line, especially on continued closes above $100, we'd be bullish.  Below the red line, especially on continued closes below $80, we'd be bearish. 



From the "better late than never" department, we have news that Paulson & Co. cuts SPDR Gold Trust stake. 

Will this prove to be as terrible as Paulson's timing in buying and holding?  We were critical of the buying and holding, but in time the selling will probably prove wise especially since the buying volume during a bounce or rally is what's required to easily reduce such massive stakes as theirs.


Article: Why you should worry about a 1987-style crash

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