Caterpillar, John Deere & US Steel (CAT, DE, X)

This article will review the status of some of the "Trump Trades" that I have written about previously. The 3 main trades that fall under the "Trump Trade" umbrella for me are Caterpillar, John Deere & US Steel (CAT, DE & X).

As I have been watching the market the last couple of days, I have noticed an increase in some selling pressure. Some stocks like nVidia (NVDA) experienced sharp pullbacks.

As the market rally continues to advance, the later stages will begin to involve a little more volatility. Keep that in mind when I start to discuss upside price targets in the later stages of this rally.

Caterpillar (CAT)

When I first wrote about Caterpillar (CAT) and John Deere (DE) in a combined article. I preferred John Deere over Caterpillar at the time since Deere was in the process of a breakout and Caterpillar was still in a consolidation pattern.

There was an article out today from Marketwatch.com on Caterpillar that had a concerning title.

"Federal agents probe 3 Caterpillar Illinois offices"

The timing of the article seemed to coincide with the drop in CAT's share price this afternoon. While the article is scant of details and also states no arrests were made, I did want to mention it since this could be an additional, unknown risk for entering into this trade in the near-term.

This is a 3 year weekly candlestick chart for Caterpillar (CAT). I've provided for a general outline of how I think CAT's share price will develop its Bullish Impulse wave pattern over the next couple of months.

With a MACD Histogram that is starting to show an increase in selling momentum, along with a failure to make a higher high in the last 2 weeks, CAT's share price appears to be headed lower. How much lower? Maybe as low as the $….

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