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The Cat’s Out of the Bag

This is a syndicated repost published with the permission of Slope of Hope – Technical Tools for Traders. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

My endlessly-cited idea to short Caterpillar and John Deere seems to be panning out nicely, in spite of yet another trillion-dollar boondoggle from the Feds (this in the form of an “infrastructure” bill). Caterpillar has already lost a lot of ground, although latecomers may get a second change if something like this happens:

Here is the longer-term chart, showing the failed wedge.

Deere has likewise topped out. I strongly suspect both of these stocks will be vastly lower by the end of the year as well as the next.

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