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JC Parets On Caterpillar: Be A Seller Of Strength

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JC Parets On Caterpillar: Be A Seller Of Strength

  • JC Parets is a weekly guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick. Tune in to the daily broadcast live Monday-Friday at 8 a.m. ET here.
  • Eagle Bay Capital's founder went over a few issues and stocks. Among them was Caterpillar Inc. (NYSE: CAT).
  • Caterpillar is down about 1 percent on Thursday trading.
  • When asked about supply, demand and shorts he is looking at ahead of the Fed decision, the market technician JC Parets shared on Benzinga's #PreMarket Prep show that he looks at the overall market. "When you look at something like the S&P 500, for example, there is a lot of overhead supply," he explained.

    "You look at something like Caterpillar, for example [...] Yeah, sure, we’ve had a nice week. Terrific week."

    He continued, "I wouldn’t be surprised to see 80 bucks in Caterpillar."

    Related Link: JC Parets: "It's The Yen, Stupid!"

    Parets continued, "If that’s what you’re trying to do, I think that that’s great. But I think that there is just so much overhead supply in the market that I would rather be a seller of that strength, instead of trying to be cute and trying to buy this bounce, because I think the risk/reward is difficult to manage."

    To conclude, the expert added, "I think the best chart, if you are interested in the S&P 500 and U.S. equities [...] you have to look at dollar–yen. I think that is really the big tell here."

    Disclosure: Javier Hasse holds no stakes in any of the securities mentioned above.

    Image Credit: Public Domain

     

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