I have played the short side of CAT and IR off and on for the past few months, but this way of setting up a trade between these two securities seems to make a lot of sense to me.
The low bounce in IR ought to be confirming the weak rally in IR shares.
Risk: 3% between the two.
Time frame: Estimate 10-15 days
Technical TIm, Tuesday May 29, 2012 4:16PM EST