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CAT - Effect of Election Cycles on Caterpillar

Chapter VII: This chapter takes a view somewhat similar to standard analysis of seasonal trends, but it is based on the 4 year or 2 year Political Calendar rather than the 1 year Standard Calendar. Political Seasons work better than Calendar Seasons for predicting prices of many companies.


Election Cycle Trends in CAT Common Stock.



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CAT:  Presidential Election History

The indicators are mixed on the question of which Presidential Party is best for CAT investors. Two theories compete as to the influence of the President's political party on stock prices. One camp holds that the market reacts very to the choice of president, possibly even before election day when the outcome is forseen. Others believe the new president does not begin to materially influence the market until he has been in office for some time.



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Profitability by Presidential Party of Caterpillar

Monthly Appreciation is calculated as the percentage change between the mean price of each month compared to the preceding month. Price Periods are assigned to Political Parties three different ways for this calculation. The indicators are not in total agreement here for CAT investors. But two of the three favor the Democrats.




Best Times in the Election Cycle For Short Term Speculation in Caterpillar Common Stock.







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CAT:  Election Calendar Cycles

You may have seen charts that profile seasonal trends. This is similar, but it is based on the political calendar. The short (Congressional) cycle is 24 months long. CAT shows the typical election cycle pattern, with the worst months shortly before elections, reflecting the uncertainty. We believe that the well known "September Slump" is actually due in large part to the pre-election dip.






More Political Cycles of Caterpillar?

Political Financials with the Influence of Congressional Elections on CAT. Also, roadmap and Summary of most effective indicators:



Companies in the News:

Wednesday, July 01, 2009: We have news on Pitney Bowes Inc., ticker symbol PBI. A significant moving average event has happened. Also, there are breaking events concerning Public Service Enterprise Group Inc. and Pinnacle West Capital Corporation.

From the News Archive: (7/1/2009 ) A favorable event happened at The Travelers Companies, Inc.. Meanwhile, bad news came from Fiserv, Inc., MeadWestvaco Corp., and Nicor Inc..


More CAT Technical Analysis Topics

CAT Price Predictions

Support and Resistance Levels

Japanese Candlestick Analysis

CAT Classical Analysis of Time Series

CAT Historical Volume

CAT Risk-Volatility Analysis

CAT Seasonal Trends

Market Sentiment

Back to CAT Table of Contents


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