Which makes our decisions about stocks are based on what we know about the underlying companies… but the market is so uncertain and crazy that we are listening to chart guys to who use pictagraphs of the action to try to predict the future… why… because it is a fashion show… lots of the big money managers follow the charts… so even though we don’t believe in the stuff… a lot of people who can move stocks do… so that means that we have to pay attention so I say bring on the goat end trails… is the stimulus a total sham… should Jacobs Engineering, Terex and Caterpillar… the ones say that Bert say have the nastiest charts all be sold hand over fist… like people were doing today… that is the question that I am going to answer today in today’s Sell Block… are the charts right… or is there some fundamental reason to like these stocks.

Let’s start with Terex Corp. (TEX)… which I like to think of as the worst of breed version of Caterpillar… that also has a lot of exposure to cranes and aerial work platforms… the chart… as translated by Dohleman, not me… says that there is no buying interest here… and from the fundamental side I can see it… this company stinks… it has got the most exposure to the weakest areas of equipment spending… and even if Obama’s stimulus package had included real infra spending…. instead of being a pastiche… but certainly not a mosaic of hand outs to states… increase food stamps and unemployment benefits, and some tax cuts… that still would not have been enough to spring Terex from the sell block… no… I am with Bert.

How about Jacobs Engineering Group, Inc. (JEC)… another really stinky chart… the rallies in JEC over the last week has been on low volume… here is the… this rally was on very low volume… that is what matters… and while the stocks declines have been on rise in volume… both… that is also another bear sign… remember technicians use volume… we don’t on Mad Money… but technicians use volume to find out if the action is truth telling… high volume means its real… low volume means the stock is lying… I am giving you these terms because I want you to know everything… not just my fundamental outlook… I don’t like Jacobs Engineering either… the stock had a huge run… up 55% from its 52 week low in November of $26... I think it has reached the nose bleed section… JEC too much exposure to oil and gas projects… 43% of the business… oil and gas companies are cutting back furiously… we know that from Aubrey McClelland of Chesapeake… this company doesn’t have enough exposure to stimulus package to offset that… especially since the stimulus package isn’t big enough… you missed the move here… since there is no dividend support… not much reason to like the stock… I am in total agreement with the chartists… this one is a sell… I think it is going lower.

Alright, Caterpillar Inc. (CAT)… controversial… I am having trouble getting my arms around what the chartists are saying on this … according to the pictagraph, the stock was holding at a temporary support level of $43... it broke thru that level today… it was brutal today… okay, it broke thru that level… if you just go by the charts… then this stock is headed… but it has a 5.3% dividend…it’s yield… and the lower it goes the higher the yield gets… I almost wish the chart guys were right… so you could buy more at a lower price with an even higher yield… CAT is one of those stocks that can work… because the company finally told you it abandoned all hope… that was just on Tuesday when it reported its big miss… drastically slashed guidance to $2.50... $2.50 for 2009... I was looking for $5 bucks… some people were looking for $4.32... the company also announced that it was cutting 20,000 jobs… and declared that the infrastructure and commodities boom has collapsed… now I don’t expect this travesty of a mockery of a sham of a stimulus package to rescue CAT.. I want to own the dividend until things get better… after that major guide down CAT still can do $2.50 a share… that covers the $1.72 dividend… when management asked if it was comfortable with such a high pay out ratio… it said that they expect $4B in cash flow in 2010... and hope to actually recommend a small dividend increase.. so I am regarding as bankable… I am going against the charts here… two out of three for the charts ain’t bad.

Bottom line…

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The Bottom Line!:     The infrastructure stocks are saying that the stimulus package is a joke… our chart translator, Bert Dohleman, are saying that the charts are telling you to stay away… I agree with him on Terex Corp. (TEX) and Jacobs Engineering Group, Inc. (JEC)… but I am drawing the line on Caterpillar Inc. (CAT)… based on that juicy accidentally high yield.