Monday, July 20, 2009

CAT upgraded

I touted the Aug 36 calls last week Wednesday on CAT at .88. I said they were dirt cheap. Today they are already $2.32. That's the price of dirt!

Look at the reaction in the industrial stocks that already reported. Will CAT will have the same reaction when they report? I'm a bit more skeptical of that, but, I think they may be more sanguine on the future. In any event, I took my cost out, and will let the rest ride on the BAC/Merrill upgrade of CAT from neutral today.

Barclay's had a good report this morning. Besides their take on the stimulus being "dribbled" out, they had a realistic read on the dollar and Treasuries. If you haven't read it, you need to.

Those who think our Sovereign debt is on the precipice of a downgrade, are just not being realistic.

Weekly Economic Monitor 0720

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