SaxoTV

Serge: Digging for profits from Caterpillar

257 views
October 31, 2014 cat, cat stock, catepillar, caterpillar, caterpillar stock, equities, equities saxo, equities trading, equity, equity analyst, equity index, equity market, equity market 2014, equity markets, equity portfolio, equity rise, equity risk premium, equity strategy, equity trading, equity us, global growth, growth, manufacturers, manufacturing, manufacturing data, manufacturing pmi, manufacturing survey, manufacutring, mining, mining boom, mining companies, mining industry, mining sector, mining shares, mining stocks, saxo, saxo bank, saxo bank saxo tv, saxo bank trading floor, saxo bank tradingfloor.com, saxo tv, saxo tv saxo bank, saxo tv trades, saxo tv trading floor, saxo tv tradingfloor, saxo tv tradingfloor.com, social trading, stock, stock market, stock markets, stock price, stock prices, stock trading, stocks, stocks markets, trade idea, trade view, tradingfloor saxo bank, tradingfloor saxo tv, tradingfloor trades, tradingfloor.com, tradingfloor.com insights, tradingfloor.com saxo tv, tradingfloor.com trade ideas, us demand, us dollar, us economic data, us economic growth, us economy, us economy gdp, us economy improving, us recovery

Returns are limited in the manufacturing industry forcing investors to search for an opportunity to generate profits. But the bullish results from Caterpillar Inc.’s third-quarter earnings report last week have proved to investors that this company is able to deliver solid returns. Serge Berger, better known as The Steady Trader, is leveraging the relative weakness in the industrial manufacturing sector. He is now looking to short Caterpillar’s stock.

Shares of Caterpillar appear to some to be overbought at the moment, trading slightly above USD 100. This has created an opportunity for short-sellers to enter the market from a technical perspective, according to trader, Serge Berger. The company’s stock rose 5% after reporting strong Q3 results, with sales of USD 13.54 billion last week. Growing demand from the United States compensated for flat sales in China, Europe, Africa and the Middle East. Cost cutting measures, including layoffs also helped the company generate USD 1.1 billion in revenue.
Falling commodity prices have caused demand for construction machinery in the mining industry to waver. Using the industry’s relative weakness, Serge is looking to short Caterpillar’s stock on a break below USD 99. He is targeting a move towards USD 94.50. A stop can be placed at USD 102.
 
Join the conversation below to be a part of the social trading experience. 
Disclaimer
Saxo Bank Group provides an execution-only service. All information provided on Tradingfloor.com is solely for general information. Tradingfloor.com does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. Saxo Bank Group will not be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available as part of the Tradingfloor.com or as a result of the use of the Tradingfloor.com.
Please read our notification on