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Unlike other stocks, falling since the beginning of the year, Caterpillar (CAT) kept its growing trend line till June 2008. As a company gets 60% revenue outside of North America stocks had been profiting from declining US dollar. But the currency turnover and worries about global economies sent Caterpillar shares down by 50% in just two month.

Picture above shows monthly price chart. There are 3 peaks where always new high is higher than previous. At the same time RSI already signals declining trend. This bearish divergence provided two times sell opportunities.

Two opportunities to protect against Caterpillar.

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