Could This CAT Bounce? Caterpillar (CAT) stock has had an enormous run and has finished the year right at its 52 week high mainly on the emerging markets and global resources/commodities trade. Third, China, a major market for CAT, is battling an escalating inflation problem, and I expect Beijing to undergo a severe tightening during the first half of 2011, with at least three interest rate raises during 2011.