Monday, March 12, 2007

Dummy Trade of the Day - Cree, Inc. (Public, NASDAQ:CREE)

My platform is organized with one page per major tech sector and each morning I check which sectors are moving in pre-market. Today I noticed that some semi stocks were gapping up, most notably, CREE, on news that it was acquiring COTCO. CREE gapped up on high volume and carved out a WOR with a fairly long upper shadow. The next stick was an upper inside bar on much lower volume, followed by a red NRB side by side. I noticed an uptick in volume as the fourth stick took out the OR high and decided to get long. Support from the rising 5 period EMA was in play already because the gap was not that high. After the usual retest of the breakout point, CREE slowly made its way to the 38% Fibonacci extension. Momentum finally kicked in and CREE made its way up to the 100% extension at which point, I took a partial. It eventually tagged the 150% extension and I decided to let it go. $ 0.85 on an inexpensive stock like CREE is a nice run.

4 comments:

Anonymous said...

How do u check pre-market sector moves? By the stocks in the sector or a sector ETF? Thks

Zen

Jamie said...

Hi Zen,

I use the stocks in the sector as opposed to the ETF, that way I can pick my sector leaders for trading purposes.

Anonymous said...

Jamie,
Can you share some of the key stocks that you monitor for each sector pre-market? Thanks ya

Jamie said...

Hi Anon,

I will cover my favorites in each sector in a Q&A post this weekend, but in the meantime if you want to look at various lists of stocks that I monitor in pre-market I recommend that you review CNN MONEY Tech Sector Stock lists