Two opportunities to protect against Caterpillar.

Unlike other stocks, falling since the beginning of the year, Caterpillar (CAT) kept its growing trend line till June 2008. As a company gets 60% revenue outside of North America stocks had been profiting from declining US dollar. But the currency turnover and worries about global economies sent Caterpillar shares down by 50% in just two month.

Picture above shows monthly price chart. There are 3 peaks where always new high is higher than previous. At the same time RSI already signals declining trend. This bearish divergence provided two times sell opportunities.