CAT vs. HHH – An Odd Couple

Caterpillar (CAT) couldn’t be a more different business than those contained in the Internet Holders Trust (HHH).  That’s why I thought it odd when I pulled up the CAT chart and it looked like the HHH from 1999. 

Here’s the current CAT chart –

Cat_040605

Here’s the chart of the HHH from 1999 to 2000 –

Hhh_040605

The really weird thing is that the time periods for the two charts are exactly the same – Sep 6th to Apr 6th.  Freaky!

Everyone know what happened to the HHH –

Hhh_2001

Could we be in an "under-the-radar screen" bubble in cyclical stocks?  CAT’s performance has been driven by increased mining and construction.  If that slows dramatically with a weaker economy, you could definitely see a big down move in the super-cyclicals such as CAT – remember the stock came up from the $30s just two years ago.  Its a relationship worth keeping half an eye on.