Tech crash is making old-school industrials the new safe haven — ride the Caterp
Thesis
Investors are panicking and selling their expensive technology and chip stocks, which is dragging the whole Nasdaq down. But instead of pulling all their money out of the market, many are shifting it into traditional, reliable industrial companies. Caterpillar just became one of the most expensive stocks in the Dow as this industrial boom accelerates. When money rotates from tech to industrials, the companies already showing strength tend to get an extra boost. Riding this wave of money flowing into industrial stocks is a smart way to avoid the tech chaos.
Strategy approach
Build a momentum strategy on CAT daily timeframe. Enter long when price closes above the 20-day EMA and the 20-day EMA is above the 50-day EMA. Exit if price closes below the 20-day EMA or after a 20-trading-day max hold. Use a 5% trailing stop.