Citigroup (C), Caterpillar (CAT), and Copper – Showing Strength
From another perspective (the 3 C’s), we’ve seen leading multinationals like Citi (NYSE:C) and Caterpillar (NYSE:CAT) break long term patterns higher. Paired with ‘Doctor Copper’ it’s clear financials, construction and materials are all in sync as they work higher.
Transports, Industrials, and Banks…
While Caterpillar in particular is extended, some of the biggest tells used to be banks, the baltic dry, and copper. Judging by past market based measures it’s clear the global economy is in full swing. Further if we look at the most relevant analog we have, the 1930’s, interestingly the long term price action for two major banks looks a lot like the indexes coming out of the crisis.
Given the information we have, it appears that the global economic cycle is maturing, but by no means slowing down. It makes sense for investors to prepare for continued global economic strength and thus higher commodity prices in the near to intermediate term.
Thanks for reading.
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