The reason why some other stocks in the sector such as CAT PCAR CUM etc. are trending very strongly upwards and making 52 wk highs - *I suspect* - is as a possible target in a consolidation sector play with the likes of Daimler Chrysler (DCX), Volvo et al looking them over.
CAT's money inflows over the past 1.5 mths has been the highest for all the DOW stocks. Volume over this time has also doubled...
Maybe there is something that big money already knows about?
Look to an imminent announcement soon from the likes of Daimler-Chrysler, Volvo etc..
It sure as heck isn't because of "fundamentals" - there is a glut of supply in the industry, LOL.
Technicals also very strong.
Let this thread be a lesson for those who short on triple volume breakouts - as on 7/17.
And in addition compound their trading problems by layering short-dated OTM puts and whatnot as well.
Rather than picking tops I'd prefer to follow da big boyz money...
LOL
Quote from iceman1:
with all due respect I can never understand trying to pick a top in an uptrending stock... as if to say...... I refuse to miss any portion of a perceived imminent decline!
Either one enters on TA or on fundamentals. Based upon TA..... from what I can observe.... CAT is not... yet.... a short regardless if it is selling at 150 times earnings! I have no idea of its' fundamentals b.t.w.
Moreover..................... I can never, EVER understand why someone needs to publicly declare (particularly on ET, as opposed to YHOO!) that they are stubbornly going against a trend by continuing to average a loss.... and with front month derivatives no less!!! :eek:
It's kind of like beating one's chest in the caveman days...
....as if to say... I KNOW MORE than the market!
Do you?
I believe all your 65 puts will end up worthless; but wish you bonne chance.
ICe
