You'll notice that Caterpillar (CAT) is performing today just as expected; it is very prone to headline news. The news is global uncertainty and more significant to CAT the perception that global growth is slowing.
As an income investor, I don't trade, I invest. I have made a lot of money from CAT and will consider adding to my position when the stock is 10% lower than when I profiled it's potential for covered call income. So I have my alert set at $103. At $103 the dividend yield increases to 1.78%. At some point, headline news will change and I will write a call on CAT with the purpose of making ten percent.
If CAT's stock price continues to wane, I will consider additions at 10 percent increments. But let us not wish away this opportunity.
TheMoneyMadam
