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Our order was filled and we are now in the trade with a stop loss at $81.50 and a potential target to $94. As I highlighted yesterday the trade is on the premise that CAT’s earnings report impresses and we take advantage of a potential momentum play. A stellar result from BHP Billiton and guidance today will also go a long way towards boosting optimism for the stock.
Property prices out of China’s capital cities also showed some strong gains and any positive signs out of China are good for CAT. We will keep updating the trade as the week progresses and remain happy to hold for now as we wait for the results.