RIG does a jig.

RIG had a big pop today occurring in concert with the S&P 500 announcement that it will be replacing Dell in that index. The trade is on.  Long term target is 200.

CAT has been on a steady rise since the last post.  I would like to point out that technical analysis can predict social/economic news as I did in my last post.  The markets are more likely to push a news story to the front page than the other way around.  But the ultimate truth is that they occur in concert.  Everything is connected.  There is no coincidence, only synchronicity.

C is for CAT

The overall markets are still in an uptrend despite the government shutdown and debt ceiling debacle.  Chart patterns suggest another month or two of gains.  These gains will be synchronized with positive movements on the political scene.  Expect some kind of deal to be made in Washington this week. Along with this positivity CAT should gain about 12%.  The risk with the appropriate stop  is 3.5%.  See below.

There are many major stocks which have been in a consolidation pattern since May/June.  American Express is one of them and CAT is another.  AXP has likely made an Elliott 4th Wave and CAT probably has made a Elliott B wave.  Expectations after these kinds of consolidations are a strong thrust out of the pattern.  Click on the chart for better viz of a few details.  Buy Range, Stop and Target are listed.  An impulse wave that started on 10/9 is complete from 82.45 to 85.85.  Now look for a retrace into the 83.50 to 85 range over the next day or two. Additional technical factors that support this move up include (1) bounce from 50 month moving average at 81.56, (2) Daily MACD histogram just turned above 0, (3) One hour moving averages with solid up-slope.

No upturn for RIG yet.

Please click on the chart to see details...