Public trading strategy
Tech is tanking but industrials are ripping — ride the rotation into Caterpillar
Thesis
When tech stocks fall hard, investors often move their money into companies that make physical products and have steady demand. Caterpillar just crossed $1,000 a share — one of only two Dow stocks to hit that milestone — because construction and mining equipment demand keeps roaring. If the tech selloff continues, this rotation into industrials could accelerate. Buying Caterpillar on a day when Nasdaq futures are down big is a way to profit from money flowing out of tech and into heavy industry.
Strategy approach
Build a rule-based strategy that enters long CAT on H4 when price is within 2% of a 20-day high and the broader Nasdaq 100 (QQQ) is down more than 1% on the day, with a 5-day max hold and a 3% stop loss.
Markets and timeframes
CATH4