CATERPILLAR INC (CAT-NYSE): Technical Viewpoint: From a low of $40 1/8 on Dec 26, 2000 prices rallied, reaching a high of $47 3/4 on Dec 5, 2000. A decline saw prices pull back, reaching a low of $43.56 on Jan 3, 2001. Another rally saw prices penetrate resistance, closing 1/4/01 at $48.69. Technicals: Momentum Index (MTM): A Buy Alert! was given on Dec 22, 2000 when the solid line crossed the dotted line to the upside. Support: Remains at $44 1/4. Resistance: Is at None at current levels. Point & Figure: Reversed to the upside on Jan 4, 2001. A P&F upside reversal takes place at $47 1/4. Summary: Technical indicators have turned bullish. BUY! CATERPILLAR INC (CAT-NYSE) @ $49 3/4 Stop: Use a protective stop of $46 7/8. CATERPILLAR INC is currently trading @ $48.69 plus $2.19 on Jan 4, 2001. Price Objective: $66.00. Risk/Reward: $2 7/8 VS. $16 1/4. Today's Risk Reward Ratio: 6:1