Another factor to consider is that according to investment seasonality expert Brooke Thackray the period of strength for financials runs from mid January to mid April.
When I look at a chart like this I have to admit that they are not my favorite. The stock isn’t going up, its trading below its 50 and 200 day moving averages and the uptrend is broken.
Zedi Inc. is another case of a fair to good fundamental story failing to create any wealth. The charts have been telling investors to stay away for years.
One advantage of a warrant is that they offer investors leverage. You can own the right to purchase a share at a fraction of the cost of actually buying it.
CAT looks to be in a good place for a trade from these levels to $65 which would generate a double digit return.
If you are going to chase CNR keep in mind that the uptrend is broken and that it is trading below its 50 day moving average.
A stock trading in a high risk environment that is also going down with little in the news stream to drive buying is not a great position for your money.
