CMI , Cummings, Diesel engines.

 cmi sep 20 2010 cmi sept 20 2010

Who would have thought that the diesel engine, first invented by Rudolph Diesel back in 1892, would become the subject of the “new normal” stock market poster child stocks like CMI, but also CAT, which is a few dollars away from double topping.

From here anything can , of course , happen but, applying the “buy low, sell high” philosophy it is patently obvious that this is not the time to buy, ergo it must be time to sell. A few other reasons to do this are that the stocks is at a lofty 22, the MACD and RSI have turned down and are not conforming and , last but not least, CAT is close to a double top. Afew dollars to the upside is still possible so you may just want to wait a few days (the upper trend-line is around $93) but you do risk missing the proverbial boat.