CAT - powerful underlying strength

Caterpillar (CAT) jumped higher on good earnings and guidance, with a new historic high of $140.44, and settling +5.0% at $138.24. Near term outlook threatens some cooling, but broadly, the $200s are clearly due in 2018.


CAT daily

CAT monthly

Summary

At the start of the year I noted that a break >$100 would offer a straight run to 120/25 by year end. CAT duly broke $100 in late April, and has broadly climbed, breaking >120 in mid September.

Considering we saw the $140s today, its not a stretch to see $150 by year end.

Today's settling black-fail candle does threaten short-term bullish exhaustion, but broadly, $200 is a valid target for the latter half of 2018. Implications for the Dow, and rest of the market.