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CAT’s Digging a -9% HoleCaterpillar (CAT – NYSE)Tuesday, July 23, 2013 We’re well into the flood of quarterly announcements, and tomorrow is Caterpillar (CAT – NYSE)’s turn. Three industries fill CAT’s till: Construction, Mining, and Engines/Generators. Wall Street is still arguing about construction. Each day, we read some number that will either boost or kill the business. But, we really have nothing concrete yet. Mining has done badly and doesn’t look to improve, with metals prices down for the previous quarter. Looking forward, a survey by Citi calls for a 16% decline in expected spending on mining equipment. Can CAT beat with at least two questionable legs out of three? Bottarelli Research Tip: CAT’s chart is just as weak as its forecast. Price has hit this same dead zone five times in the past year, and dropped off some 15% three times. So, it is no shock that it’s rolling over again this week. We see strong odds that CAT will drop off to the bottom of its range at $81, and a good chance that the slide will continue to the 38.2% retracement marker at $77.44. And speaking of big earnings moves – you cannot afford to miss what’s coming in GMCR: Prepare Now for GMCR Earnings: Two weeks from tomorrow, on Wednesday August 7th, Green Mountain (GMCR – NASDAQ) is set to report earnings. With an eye-popping 34% short ratio, this means that over 28 million GMCR shares are currently sold shot. Going into their earnings report, this could set GMCR up for a move of epic proportions. Will the move be higher or lower? And more importantly, how should you play it? All the real-time trades will get issued to our Bottarelli Research Options group over the next two weeks — and you need to be a part of the action. If you like big movers, the time to join us is now! | ![]() |
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