This morning we got a surprise rate cut from China; the first in over two years. This could mean that they are done with the QEs. In addition we had more bullish promises from Draghi about more QE in the Eurozone. As a result, markets are rallying and in the lead are stocks that thrive on global growth. Caterpillar is one of them up over 4%. Just yesterday I was with a few friends after hours and one of them said: 'you gotto help me with CAT. I am stuck in it long and red.' I was ready to do a long study on it today and offer trade ideas.... BUT now that it's up almost 5% all I have to say is "take the gift and get out even or green."

Conclusion: I am not saying short CAT but rather the idea is that IF I've been trapped in it red for a while, I am compelled to get out on this gift that may or may not last. just a few days ago, technically CAT was aiming to reach the crayon circle I drew (rising wedge). Instead it finds itself filling an open gap (now filled) and approaching highs. The downside risk in my opinion from here is greater than the upside potential.