Caterpillar (CAT) Offering Possible 45.77% Return Over the Next 14 Calendar Days

Caterpillar’s most recent trend suggests a bullish bias. One trading opportunity on Caterpillar is a Bull Put Spread using a strike $138.00 short put and a strike $133.00 long put offers a potential 45.77% return on risk over the next 14 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $138.00 by expiration. The full premium credit of $1.57 would be kept by the premium seller. The risk of $3.43 would be incurred if the stock dropped below the $133.00 long put strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Caterpillar is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Caterpillar is bullish.

The RSI indicator is at 68.23 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here


LATEST NEWS for Caterpillar

Deere Announces Regular Quarterly Dividend
Wed, 27 Feb 2019 18:56:46 +0000
Deere Announces Regular Quarterly DividendDeere announces regular quarterly dividendIn a press release today, Deere (DE) announced the key dates for the first quarter of 2019’s dividend. To be eligible for this dividend, investors must hold Deere

9 Best Stocks to Buy on U.S.-China Trade Optimism
Wed, 27 Feb 2019 18:10:48 +0000
Is it finally over? Are China and the United States finally going to be able to come to trade terms both parties can live with? Nothing is ever certain in the current political environment. But, both countries seem to have grown weary enough of the tariff war to seriously come up with a solution that takes the brakes of the global economy.The next obvious question: What are the best stocks to buy now that China and the U.S. are starting to look like potential trade partners again, rather than trade foes?The knee-jerk answer is the same companies that suffered the most when the trade war became a reality. But, the list doesn’t necessarily have to end there. The impact of tariffs has shaken things up on a fairly permanent basis, and some new players have slipped into more meaningful roles thanks to some rather serious shakeups in the trade landscape.InvestorPlace – Stock Market News, Stock Advice & Trading Tips * 10 Blue-Chip Stocks to Lead the Market Here’s a rundown of nine of your best bets if China and the U.S. actually look like they’re going to ink a deal. Skyworks Solutions (SWKS)Source: Jeff Nelson Follow via FlickrIt’s a bit off-the-radar, as its wares are found inside the world’s most popular consumer electronics with someone else’s logo on the outside. But, without Skyworks Solutions (NASDAQ:SWKS), your iPhone, Samsung Galaxy and other smartphones may not work quite as well as they do.Although it has been tricky at times to figure out just how subject Skyworks is to the tariff war that may be winding down soon — in that it’s supposed to apply to finished goods and not components — such details haven’t mattered entirely. An estimated 83% of its revenue comes from Chinese customers. One way or another, the expanded trade war has created a problem that an end to the trade war could quell. Caterpillar (CAT)Source: Anthony via FlickrTruth be told, the rising costs of raw materials stemming from increased tariffs has been more bark than bite for Caterpillar (NYSE:CAT). Although the company didn’t comment on their fiscal impact in the fourth quarter, during the third-quarter recently imposed tariffs only added $40 million worth of expenses. That’s roughly one-third of 1% of Q3’s revenue — more than absorbable.That’s not to say the trade war isn’t taking a toll on the heavy equipment maker though. While last quarter’s sales grew everywhere else, revenue driven by the Asia-Pacific market during the fourth quarter were down 4% year-over-year. With some analysts fearing that a continued trade war could take an even bigger bite out of the bottom line this year. * 10 Monthly Dividend Stocks to Buy to Pay the Bills Yet, it’s fear more than anything else that’s holding CAT stock back. Qualcomm (QCOM)Source: Shutterstock We’ll never really know for sure if the endeavor to unite Qualcomm (NASDAQ:QCOM) and NXP Semiconductors (NASDAQ:NXPI) was blocked solely to make a statement at the onset of new tariffs, or if China’s would have barred it under any circumstances. It would be naive, however, to believe the ruling wasn’t at least politically motivated.Since then, surprisingly enough, Qualcomm has largely escaped the brunt of new tariffs. Last quarter’s sales and earnings both fell year-over-year, but both also exceeded expectations as the company and its Chinese partners worked past usually contentious problems to find a royalty arrangement that all parties can accept.The stock has thus far been non-responsive to the company’s success, with most investors likely fearing its relationships with Chinese partners are strained. If the rhetoric changes for the better though, that unmerited doubt could leave, and lift QCOM stock with it. Tyson Foods (TSN)Source: Quinn Dombrowski via FlickrIt has been a largely overlooked victim of the trade war, not being nearly as sexy higher-profile tech names. The relatively few investors that watch or own Tyson Foods (NYSE:TSN), however, know the true depths of the problems the tariff war has created for the company.Chief among those problems is the waning price of meat.Mostly priced out of overseas market thanks to retaliatory tariffs, the United States is suffering from a glut of meat — and chicken in particular — that’s crimping market prices. The end result? Profit margins on chicken sales should roll in at only 6% this year, down from 2018’s 9.4%. * 8 Cheap Stocks That Cost Less Than $10 Tyson Foods has somewhat sidestepped the challenge by looking to acquire more international exposure. But, such dealmaking isn’t always as cheap or as effective as organic, home-grown growth that includes rekindled sales to overseas customers. An end to the trade war would facilitate just that. Ford Motor Company (F)Source: Shutterstock To be clear, Ford Motor Company (NYSE:F) was fighting an uphill battle anyway, even before President Trump was elected. Automobile sales reached a cyclical peak in 2015, and the iconic carmaker’s stock actually topped out before that.Nevertheless, tariffs on materials imported from China coupled with tariffs on vehicles exported to China has created a headwind the company just doesn’t need right now. In September of last year, CEO James Hackett suggested steel tariffs had already reduced the company’s profits by a total $1 billion just since going into place in 2018. Meanwhile, Q3 revenue from its China arm was lower by 15% year-over-year thanks to retaliatory tariffs.Already sporting a rock-bottom, forward-looking price-to-earnings ratio of 6.4, even a half-hearted trade agreement could position Ford as one of the market’s best stocks to step into. Ctrip.Com International (CTRP)Source: Thomas Galvez via FlickrCtrip.Com International (NASDAQ:CTRP), for the unfamiliar, is China’s equivalent to Expedia Group (NASDAQ:EXPE) or Tripadvisor (NASDAQ:TRIP).Online travel agents weren’t much of a need in China just a few years ago. But, global economic growth gave rise to a new level of consumerism there, growing paychecks to the point where a huge swath of new entrants into the country’s middle class could afford to travel.No sooner had China’s middle-class consumerism reached full speed before tough tariffs slowed the country’s economic engine down last year. The nation’s consumer confidence, after peaking a year ago, has fallen substantially since then, as workers increasingly realize President Donald Trump wasn’t bluffing. Even with the rebound from December’s low, CTRP is still down 35% from its mid-2018 high when the trade war got started in earnest. * 7 Consumer Stocks to Buy and Hold for Years An end to the trade war, however, could easily relight a fire under Ctrip shares. Deere & Company (DE)Source: Ford8n via Flickr (Modified)While Caterpillar is the machinery company that’s made the most noise in response to new tariffs, farm implement outfit Deere & Company (NYSE:DE) is arguably a bigger victim. It’s also, however, better positioned to recover once the tariff war comes to a close.The company is fighting not one war, but two.On one front, it’s bearing the added cost of materials needed to manufacture tractors and pickers, while struggling to keep its wares affordable enough to China’s farms that need high-throughput farm equipment.The second — and arguably bigger — hurdle Deere faces right now is diminished demand from U.S. farms that suddenly find themselves struggling to sell their goods overseas. The 25% levy China imposed on U.S. grown soybeans, for instance, has all but halted sales of U.S. soybeans there. Farmers aren’t interested in buying equipment that won’t at least pay for itself. Walmart (WMT)Source: Shutterstock Add Walmart (NYSE:WMT) to your list of the best stocks to buy if and when the trade war finally cools off, for the obvious reason.To its credit, the world’s biggest retailer has made a deliberate effort to procure and sell more goods made in the United States. There’s only so much inventory U.S. companies can supply though. For goods like luggage, vacuum cleaners, furniture and electronics accessories, China may be the only viable source. It has been estimated that as much as three-fourths of the merchandise sold in Walmart stores is made in China. * 7 IPOs to Get Excited for in 2019 Thus far, the company has been able to navigate tricky tariff waters, keeping most prices at palatable levels. There’s no getting around the reality, however, that an end to the tariff war would be a huge relief to owners of WMT stock. A. O. Smith (AOS)Source: Nvdongen via Wikimedia (Modified)Finally, A. O. Smith (NYSE:AOS) may end up being one of the biggest winners of an end to the increasingly nagging trade war.It was already noted that the rise of middle-class consumerism in China proved to be a boom for Ctrip, but the nation’s cultural shift didn’t end there. For some of China’s residents, better-paying jobs meant growing demand for water heaters. For some families, it was their first hot water tank.So far the company has managed matters reasonably well. Although its third-quarter report was lackluster, it could have been worse. Last year’s top and bottom lines were still record-breaking.Nevertheless, the company fears a prolonged trade war could increasingly weaken results. CEO Kevin Wheeler added to the organization’s 2018 report “Assuming relatively flat consumer demand in 2019 and without the impact of the previously disclosed channel inventory build we experienced in 2018, which we estimate was at least 5 percent of 2018 China sales, we project China sales will decline by 3 to 6 percent in 2019 in local currency terms and 7 to 10 percent in U.S. dollar terms.”An amicable end to the trade spat, of course, would turn that headwind around.As of this writing, James Brumley held a long position in Ford. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Consumer Stocks to Buy and Hold for Years * 4 China Stocks Soaring on Trade Hopes * 3 Esports Stocks to Benefit From the Boom Compare Brokers The post 9 Best Stocks to Buy on U.S.-China Trade Optimism appeared first on InvestorPlace.

Caterpillar Dip on UBS Downgrade Is a Buying Opportunity
Wed, 27 Feb 2019 18:07:00 +0000
began Tuesday trading lower following a double-downgrade of the stock by UBS who lowered its rating from buy to sell. The daily chart shows that Caterpillar has been on the rise since a “key reversal” day occurred on Dec. 26. In addition, Caterpillar has had a positive weekly chart since last week’s close.

Caterpillar Could Diesel Higher for a Few More Months
Wed, 27 Feb 2019 17:43:00 +0000
was mentioned during Mad Money last night. Jim Cramer said he liked Caterpillar, despite the recent analyst downgrade. In the daily bar chart of CAT, below, we can see some interesting technical developments.

Stocks – Dow Extends Losing Streak as Trade Optimism Cools
Wed, 27 Feb 2019 16:52:00 +0000
Investing.com – The Dow fell for a second-straight day Wednesday as investor optimism on trade cooled and healthcare was led lower by a slump in Mylan.

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