Investors have had a rough go of it over the past 16 months or so. Most sectors have traded lower, with occasional strength in energy, precious metals, and solar, and minor bear rallies in others.
In short, it’s been a market where active investors need to be extremely discerning and choose stocks that have differentiated themselves from their sector or broader market.
Today, we take a look at one of these stocks. And, as usual, we take a “macro” technical approach to highlight a potential breakout in the simplest of terms. Today’s stock is Caterpillar (CAT), and it’s out-performance is finally being met with a nice breakout… just as China re-opens its economy.
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$CAT Caterpillar “weekly” Stock Chart
The chart below takes a long-term “weekly” look at one of the global industrial leaders, Caterpillar (CAT). Over the past several months, CAT has turned higher, signifying that the global economy may not be as bad off as many think. (Now this doesn’t mean inflation isn’t alive and well and torturing the financial lives of everyday citizens).
But from an industrial standpoint, CAT began out-performing 3-4 months ago. As well, CAT appears to be breaking out to new highs… just as China re-opens its economy (post-COVID). So inflation may be here, but CAT looks like a strong stock.
Twitter: @andrewnyquist
The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
