Gotta call it like I see it on CAT

The recent action on the DJIA was enough to pull the CAT chart back up into the channel.  That is potentially a near term warning for shorts.  When the fear arrives, CAT will not be going up.  Of course, it could still break back below that lower rail and it would negate the first confirmation but if DJIA makes a higher high next week then this chart suggests that it could take some time to play out.

If this is going to happen, play commodities long instead of volatility.  We will know a lot more next week.