Whilst the main market saw moderate gains, there was significant upside in Caterpillar (CAT), which jumped on good earnings, settling +5.9% at $114.54. Short term... the stock is technically over-stretched. The mid term outlook is hyper bullish, not least if commodities can start broadly climbing.
The April close above the $100 threshold was the ultimate technical achievement for the equity bulls. Having seen repeated failures since 2011.
As things are, CAT is set for a fourth consecutive net monthly gain, and is now 14.5% above what used to be multi-year resistance.. and will now act as core support.
The equity hyper bulls should be seeking the 125/130s by year end, with Copper >$3.00. If that occurs, then the 150/160s would be target in 2018.
*its notable the infamous Cramer was babbling about some institution (name unknown) that was touting CAT >$200 within 5 years.
... and if you believe CAT is >$200, then you should go buy a Dow 40k hat.
yours. bullish D10 dozers.