CAT, be patient.

7. Aug.

The US construction industry remains robust. CAT earnings showed relative weakness in Asia, which was expected. North American sales are strong, while Latin American sales are growing steadily year-over-year. Chart-wise, we are observing a classic reversal following the apparent crash on Monday, August 6th. Notably, the price is now above the volume shelf dating back to early February consolidation, with this level set at 319.40. Although the price failed to break above this level on Monday, it did so with ease today, indicating increased buyer interest. The stock closed with a 1.59 Rvol, and the current price is extended to the upside, offering limited risk-to-reward, considering we are $6 above the VPOC. The plan is to wait and see if the price can retest 320 before taking a position, or to watch for the development of a 65-minute base around this level before pushing towards $350.