 Hi everyone and welcome! This is Melissa with the stockswush.com. I thought I would do an email today about Cree. And a video about Cree here because Cree is actually a really good long-term trade. This has been something that I've been studying actually since I realized that my gap rating system could be used for over nights. I did not create it for that purpose. I created it to day trade. However, I realized that you can actually use my system to take decisions on longer-term trades. And Cree is one of these here. So the day trade in Cree was back here. It could have shorted this. And it actually could have held this through. Why? Because the target did not reach the dream target there on the day of the gap. It closed near the low. This was back in April. And it had a nice follow-through here. Actually four days down. Very unusual, but you could have held it all the way down into that past the day trade. But I just day-traded it here. However it was an overnight. It could have been done for a swing trade. A swing trade is typically a few days, which would have been in here. Or it could have been for a longer-term trade. Now this is late on an entry of Cree. If you decide to do a trade in this now to take it overnight, why? Because the entry was really the day of the gap. The entry was really the day of the gap. And it could have added this position actually yesterday. However, if you're willing to take the risk and put the stop to be for every place, this is still a viable trade with a good risk to warrant a good target. Stop has to be $54 for Cree. Right now at the price today it's trading at currently. Today on July 8th it's around $49.40ish. So with a $54 stop, this is a paper stop because you can't put real hard stops and things overnight. Meaning if the stock would trade over $54, you'd have to take the trade out. But if that's your risk, then your risk is basically $64.60. You could rough it out at like $5. But this is still a good trade with potential in it to do a longer-term position and may properly have a place to even take more. The perfect entry though was back when the day of the gap happened. And actually could have added yesterday. What happened here though is the stock gapped up. This is back last week on the Thursday. Market had a nice bullish day on this day on July 3rd. This is right for the holiday. If you had done this in here, the stock gapped up here. But this is actually a beautiful sign of confirmation that the stock is going to continue lower and break. And when I saw this this morning I saw this this morning that I said in the room that Cree is done now. It's not going to back up. It's going to continue. And it fell again today. Hard today. This is a good short here. This is a good short for a longer-term position. I saw that this morning. The fact is the stock gave the confirmation. Although the gap itself really is all that you need. The gap rating and the move that it had and the follow-through in the initial gap was the one to do. But what it did just three days ago was actually confirmation that this stock is lower and it's continuing down. It's going to break. So the target on this and there's several targets on this. It depends how long you want to be in it. But really 35 is an area that this stock could go to. That would be a big drop for this thing. But it's realistic. It has to break 40 to get down there and then really 34. So the dream target on this is 35 and 34 for the Cree. Stop again would be 54 to take an entry in this today, which should be about four, four and a half bucks or so. Unless you want to give it five for a cushion if you size yourself that way. But you see that the risk to reward is still here. On a swing trade you can still look for good risk to reward. I don't think it makes any sense to take a swing trade or a long-term trade to make one to one. I don't even think it makes a lot of sense to take a trade like that to make two to one. There's no difference. If I did overnight switch and not doing it but I'm working on this myself, I would not do that much different to be honest with you. I would still look for an immediate entry to hold to stick in the position that I took. I would still look to take an entry in something that would have a risk to reward of three or more. I would still rate the gap and do the gap rating system and take the entry in the gap in my 26 point rating system. And I'd still be looking to hold the trade to a target and take some out of the first target and so on and so forth to hold it on down if that's the way that I did these. So I'm working on this for myself here now as far as creating a trading plan for this for the overnight. But I can use the gap rating system that I have created to take them to see them. And it's really the placement of the stop depends on the type of the gap. There's two types of gaps. There are corrective gaps and there are continuation gaps. And that's something that I actually teach in the trends class, which is why I think it's important for people to do overnights to take that course. But you really got to have the gap rating course in order to know what gaps are good and what are qualified gaps. And Cree was one of them. Cree was one of them and so this is a good overnight trade for a longer term position to the downside as a short. The area that it has to hold is 54. So it would be a paper stop there. And this does have risk to reward them. Even as a late trade in here today. Because even if you take a late entry in this today, even if you did not get in this the day of the gap, or when it broke down again with the confirmation yesterday, you still are looking at a target of approximately $35, which is 15 bucks a wet. And so do you see that that's a 3R trade? Okay, you risk 5 to make 15. There it is. So I really wouldn't do anything different than what I'm doing with that. Somebody said something to me earlier in the room we were talking about these overnights and I'd still be looking to trade the same thing I am now where I take the entry and it holds and it sticks and I'm up right away. It's no different. But I did look in extreme quality for overnights. And Cree is one of them. Cree is one of them and so here it is. Good long term short short short. And this is something that I have no idea the timing of when it gets to the number. When you take an overnight position, you have areas that you'll watch for different levels of targets. But you have to be patient with these and that's why you have to have the money behind you actually be able to take these positions overnight and you size yourself correctly when you do it. Okay, so Cree is a beautiful short here. Nice short in this chart. Target for the longer term trade is 35, 34. And so even on a late entry here the risk to your word is there. And if you did it the day of the gap or you did it in the breakdown yesterday, you have a better entry over 50 which could be even a 4R trade depending on where you got it, 52, 51-ish. But a nice trade here and once again I saw the daily chart in this this morning and said this is going to go, this is going to break 50. And it probably does today. And that's exactly what it did. And actually this is probably going to go again now. It's short tomorrow on the intraday trend. It's going to just keep going in here now. This is a nice breakdown this is happening here in the Cree. So again I have a good eye at reading daily charts. And this morning the stock was not gapping. It was not gapping. It wasn't doing anything at all. And I just looked at the daily chart and said this is going to break down today. It's exactly what it did. It actually had an intraday short in it. You could have shorted but it was so low volume that it doesn't meet my requirements. So there's no way that I would have day traded this. But if you don't have any problem taking it, taking something that's thin there it was. This is this morning. This is pure unadulterated selling in the stock. And this is institutional selling that's happening in this stock. It's selling. This is what selling looks like. There's no backup. It doesn't have a rally. There's no rally because nobody's getting out because there's no short covering and there's no buying. So it's pure unadulterated selling that's happening in Cree and that's what happened this morning. Just didn't have any volume. But I saw it was going to happen. I saw it was going to happen. So really, really nice eye. I had on this and I have a good eye on a lot of things and charts when I see them. But I see something before it happens. I'm really good at doing that. So here's the Cree daily chart. And today you got to just lay low on this here now today. I don't know what this does tomorrow exactly but it should make a nice leg down into 48 of that area. I don't know if it happens immediately tomorrow. You have to watch intraday chart to see how it sets up into the open and it fit gaps at all. But this could just go straight down for three more days in here. This is completely 100% in its own a nice long term shorting Cree and a good good gap that it had back there earlier in the year that I did and a nice follow through here. So good luck with the Cree. It's a beautiful beautiful continuation here of a short play. You can watch in the next few days as well. This is Melissa with the stockswush.com if you'd like more information on the upcoming gap class which is this weekend July 12th and 13th. Email me at the stockswush.com to sign up. It is a good month to learn how to trade gaps for date trading and to take positions like Cree because there will be opportunities like this to do overnight in gaps that set up that happen this month in July. So email me if you'd like more information on the upcoming gap class this weekend at Melissa at the stockswush.com. Thanks everybody have a great day.