In our last post on CREE we said that we considered that the stock had topped (at 64). Now is the time to assign a target of where we think its next intermediate bottom will be. First the chart:
CREE 02/07
Our Target is now 24.65 (with some bumps along the way). Why 24 bucks I hear you ask. CREE is a momentum stock. If momentum stocks stop going up then they are sold. Momentum traders also bought a lot of gold, oil, AIG, C, BAC, AAPL, AMZN – these have started to down causing Margin calls. Selling begets selling. The two major support lines are 39.45 and 24.65. I think both need testing.
