Although two major indices have reached record highs, Serge Berger, the Steady Trader, notes that some company’s stocks have failed to capitalise on this momentum.

Caterpillar Inc., IBM, and ExxonMobil all posted declines on the Dow Jones Industrial average despite the all-time highs achieved last Friday. The biggest loss was posted by Caterpillar which dropped 1.7 percent. Contributing to the stock’s steep decline was the announcement from Randy Krotowski, Chief Information Officer, that he would resign on June the first.

The company’s stock is currently trading at an important high, which although positive, is lower than the all-time high achieved in 2012. Serge notes that this distinction demonstrates that “the stock has showed relative strength and failed to follow through in the near-term.”

Serge is looking to short the stock at or below USD 102 level. His target price is USD 98 with a stop at USD 104.25.

Disclaimer

Saxo Bank Group provides an execution-only service. All information provided on Tradingfloor.com is solely for general information. Tradingfloor.com does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. Saxo Bank Group will not be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available as part of the Tradingfloor.com or as a result of the use of the Tradingfloor.com.

Please read our notification on

Non-independent investment research disclaimer

Full disclaimer