| Editor's Note: Attention, traders! Want a better mobile Trade of the Day experience? Our new app is live! The real-time trade ideas... the top stocks hitting our watchlist... the market strategies, action plans and chart analysis you've come to know and love... it's all in the palm of your hand. And best of all, it's 100% free! Check it out here. - Ryan Fitzwater, Associate Publisher Bryan Bottarelli, Head Trade Tactician, Monument Traders Alliance Right now, I believe you have a strong opportunity to buy shares of Caterpillar (CAT) at a very attractive support level. Here's the setup... Over the past month, the S&P 500 has gained around 7%. It's had a very strong start to the 2023 investing year. However... During that same time frame, shares of CAT have lost 0.4%. How can you explain this underperformance? In short, the early theme of 2023 is "risk-on." In other words, after a dreadful 2022 performance by "risk-on" assets like Tesla and FAANG stocks, investors and traders are now moving back in. As a result, they're selling safe-haven plays like CAT in order to chase a quick gain in technology. Is this shortsighted? I believe so - and that presents you with a nice opportunity today. |
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