Cat Stock Blog

The Fed decision to cut interest rates to near zero gave everybody a boost. Cat wallowed in the red most of the day and ended up far into the green — 3.7 percent — as the Dow/S&P floated everybody’s boat.

10-day Cat chart.

Cat’s numbers:

• Range: 41.12-43.90
• Open: 42.73
• Close: 43.79
• Volume. 11,253,300

The Indexes

• Dow: 8,924.14, +359.61, +4.20%
• S&P 500: 913.18 +44.61 +5.14%
• Nasdaq: 1,589.89, +81.55, +5.41%

A couple caveats: Huge melt-ups like this are characteristic of bear markets, as short sellers get washed out by temporary bullish sentiment. Also, Cat’s rise didn’t exceed the prices of a few days ago — inability to set new interim highs on a day when interest rates were cut to nearly nil is not an exactly a bullish outcome.

New highs could easily happen tomorrow, though, if no bad news intrudes.