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Day three: our Caterpillar trade

Caterpillar (CAT) managed to push higher along with most US equities as the risk-on trade rolls on.

As we mentioned yesterday, our order was filled at $87.50 and the stock managed to close at $89.17 in US trade. This move saw Caterpillar trade at its highest level since May and also saw it move through its 200-day moving average. We suspect the gains were also a result of BHP Billiton’s solid report and outlook.

Tonight is the night we’ve been waiting for with CAT’s Q3 earnings due out at 22.30 AEDT. The market is expecting adjusted EPS of $1.67 and revenue of $14.5 billion. We will cover the results in some detail tomorrow and decide whether we want to keep holding the position once we see how the market receives the results.

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