One twitter handle I really enjoy following is 50thstr. I believe he is a hedge fund manager, though his handle is locked so you’re lucky to see his tweets. If you happen to receive the follow, you’ll be granted access to his simple, accurate and transparent position plays. Today he tweeted that he is extending his CAT short. While I wouldn’t normally devote an entire blog to one of his calls, I feel it’s worth it on this occurrence for a couple of reasons.
First, another very notable trader in gtotoy also tweeted that he also is shorting CAT. Here is gtotoy’s chart.
The second reason is that CAT has been and is known as a stalwart of American industry and holds a heavy hand in determining the direction of the entire market. iBC’s own Chess has noted this several times. Both of these fantastic traders shorting CAT at the same time lends credence to my expectation that the market pulls back.
Stay frosty.
