Earlier this week, JC pointed out that the software sector broke out to new all-time highs. I don't mean to keep harping on this, as you've no doubt read JC making this point over and over, but this sector making highs is simply not something we are likely to see if the overall market is pointing to a bear market.

The third largest component in the software index is Service Now, ticker $NOW. And we see an interesting opportunity developing.

In a recent report to Allstarcharts Premium subscribers, J.C. laid out a case why he's bullish on the Industrials sector and why that's important to the overall market. Not ever one to mince words: "we want to be buying right here right now and very aggressively. The bet is that Industrials are now heading higher and leading the market to new all-time highs." That sounds pretty convincing to me!

Until proven otherwise, it is irresponsible to be positioning for a bear market right now. The talking heads and twitterverse all seem to be rooting for -- cheering for, even -- the S&P 500 to break it's 200-day moving average and crash further from there.

It's ok to root for any scenario you'd like, but it's simply unprofitable to act on opinions (yours or others) until there is a basis of fact to back you up. And the only facts we focus on here are those presented and derived by price and volume.

The weight of the evidence still points to higher prices in equities over the intermediate term, and as such we're hunting for bullish trades. Today's hunt yielded a developing opportunity in Caterpillar $CAT.

It's no secret that JC and I are extremely bullish on stocks. Just like you'd like to see in a bullish environment, we're being led higher by tech stocks. And there's no better barometer of health in the tech sector than seeing old bellweather Microsoft still hanging around new all-time highs and cruising comfortably above it's 200 day moving average.

This opportunity could not be more simple. Here's JC's take:

Silver has been consolidating in an ever tightening range and signs are showing that a big move away from this consolidation is setting up. And this week, the Silver iShares ETF ($SLV) may have tipped it's hand to which direction the next big move will happen.

And that move is up.