JC Parets On Caterpillar: Be A Seller Of Strength

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