CAT Follow Up

Here's the original CAT trade idea posted yesterday

 Here's the daily for CAT, remember in the original idea, it was, "let the trade come to you". Now CAT has regained the lost ground which was the expectation, however it was starting an up cycle that had been interrupted on Friday by the S&P rating debacle.

 On the 30 min chart we can see the accumulation of shares for the up move that would be distributed at higher prices, we can also see the negative divergence on the S&P leak last Friday, thus far CAT is moving up under confirmation here.

 On the 15 min chart, we have the short term positive divergence that re-established the move to the upside, it's currently leading.

There are some negatives forming on the 10 min and the 5 min is a bit negative in not confirming as well as it should so the process of distribution could be underway. In the original idea, I laid out several scenarios of how this could play out. Personally, I'd lik to give CAT a chance and see if we can get a higher price point to short into. If you look at the first chart, CAT is at resistance, I'd like to see that resistance broken to the upside and look for strong signs of distribution and get short in that area.