It was another red day in the US Market, with tech stocks facing huge selling pressure, which just did not stop the whole day. Today’s red day was coming after a nice greed day on Wednesday, Sep 9th, which would have seen creation of new long positions, and all of them would have got burnt today.
Stock LTP Chg % Volume
AAPL 113.49 -3.26% 182.27M
TSLA 371.34 +1.38% 84.93M
MSFT 205.37 -2.80% 35.46M
FB 268.09 -2.06% 24.81M
NVDA 492.47 -3.17% 17.47M
ZM 384.48 -1.33% 11.93M
AMZN 3175.11 -2.86% 5.33M
The correction at Apple (AAPL) is the at the core of the recent sharp correction across US Market indices. Apple stock had run up vertically before its split, and the parabolic upmove had to break down at some point, but its also causing big selling pressure across the US market.
S&P500 vs Caterpillar (CAT) Stock Performance from 01Apr2014 to 22Nov2019
Caterpillar (CAT) is a global corporation, and its stock has been facing the full impact of the uncertainty and slowdown created by US-China trade war. The stock is currently breaking out from a double bottom pattern and moving up for target $165-170 level, from the current price of $143 per share. The early buy signals came at $120 level.
Stock Trading Strategy: The right time to buy Caterpillar (CAT) stock is when the market is badly down along with this stock price beaten down for global recession fears. Mining industry has been down for many years, so Caterpillar may get some positive growth from the recovery in global mining industry. Caterpillar is truly a long term investor’s stock, and it has created big gains for investors buying the stock on deep corrections.