Sunday, August 19, 2012

Is CREE finally changing? 8/18/12

CREE has had a rough going over the last year. Reaching a high of $72.47 in 12/10/2010 it has tumbled all the way down to $20 before recovering and sitting at $28.35 and right at its 200 day exp moving average shown as a black line on my chart below.
Is the worst behind CREE now? Has all the selling ended?

Hard to predict the future very far out but the technical analysis certainly shows a change in character. Why I say that is because CREE has now established a higher low for the first time since it started its dramatic drop in December 2010.. Next step for CREE will be to achieve a higher high above $33.10. Or it may go sideways for a while before it picks up from here. Still, this is encouraging for the stock.

Maybe the world of LEDs is looking up for CREE finally…



Otherwise, SPY is still pointed up. PCP turned in an Up signal and I am long in it now. Same with SCCO. Still long on SNDK and GLD. And still hanging on to my losing Q’s  put options for no reason at all other than the market has to take a breather somewhere! I have been violating my system direction on the Q’s which has been pointed long for a while and have felt the pain for doing so. Fortunately the max loss is a small limited amount based on my holding a small option position but this is exactly why traders lose – having a plan and not following it. Can happen in a hurry… and get out of control... I will need to learn my lesson here and change direction.

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