A 'short' trade idea...

If we get any more bad housing and construction economic data this week then Caterpillar (CAT) is on the brink of failure. It recently printed a head & shoulders pattern which is typically a strong technical indication of the shifting greed/fear of a stock. I have identified on the chart the entry point to grab some shorts.

I see the potential for a 10 to 15% drop in the making.