CAT on the move - but am I?
CAT has finally signalled a move, and it is bearish. The setup leads us to use a credit spread according to the system.
By the rules we select the expiry and strike by considering the ''Open Interest'' and ''Bid-Ask'' spreads within the first 21 days of available options.
But ... a special consideration for this particular trade is the pending speech by the USA Federal Reserve that has the US markets tied in knots. Lately CAT has been showing price increasing without any momentum support, and so it is more prone to fall than rise in my view; however, I will be watching the market reaction to the speech and deciding from that outcome.