 Welcome, this is Melissa Armell with the stockswish.com and I thought I would review a chart here of Cree. Now Cree was the short, okay over here from the 25th that was Thursday of this week. It was a bearish guy that I shorted and it started with a swoosh. Really really nice play on this but that's not the reason that I'm doing the video today. What I wanted to talk about today, I wanted to talk about today was I wanted to go back because I thought this was really good for people to know and understand. Everyone that was in the room with me last year, okay this was last year 2014, Cree did this gap here in April of 2014 April 23rd and I remember in the room that morning saying no chance of failure and also or whether I said it or thought it, I remember that and I remember seeing in that gap that it was really significant, okay and I remember holding that trade. I remember even holding that trade all day. That is bizarre a world for me, okay. First of all I don't normally trade past the morning, alright but for whatever reason I know that that actually didn't break in the morning. It was weird, okay. Many many gaps break early in the morning and go and make 80% of the move in the morning but for whatever reason, again this is this day here, it took a while to get going and I really felt like it would get going and it did and I held it all day and I got paid because it really had a beautiful move but it happened late. Again that's unusual but you know you can't predict every single solitary thing sometimes things that happen happen that are unusual. They still end up doing what they're supposed to do. This was a short in the day and it worked but it just broke late. Again it's not normal but that's what happened but I remember holding it and I know some people get out of the trade too early because they didn't think it was going to go but I really felt 100% conviction it would and it did. Anyways then it collapsed. I mean it literally collapsed and you could have done this as a swing trade after the gap from the original actually let's go back here. From the previous day of the gap prior to the gap the close was 5805 and then then it gapped. Okay this is a gap I shorted. You could have done it in here as a swing trade then it went down to 45 bucks approximately 4510. So the point I'm trying to make is that the stock dropped within $13 from the day before the gap into within a week. This is 1, 2, 3, 4, 5. So within one week. This is the power of the gap. Now when you it does not always look like this so I just got to point that out. In other words not everything that does this kind of move looks like this or transpires like this but I will tell you that what I saw in the cream okay was a corrective gap. Now this is something that I teach in detail in the trends class. This is not something that I teach in the golden gap class because it's not necessary for day trading but it actually is necessary if you're interested in long-term swing or core trading because the best long-term trades to hold overnight are ones where you can get a continuation. Okay a continuation of the move for a longer term move or when you catch what is called like I said a corrective gap it is the beginning of a new move in a different direction. Okay in the case of Cree this was a corrective gap in April of last year that was a new move for the downward trend of Cree. Okay that meaning that you could have shorted it for a longer term trend or done an option in it for longer term trend or if you were in it long you need to get out of it. I just want to point out where the stock obviously is at now today or as of Friday. You see this here you know $27 so within one year's time the stock has lost 50% of its value from that corrective gap and that not only is the power of the gap but it is the power of really corrective gaps okay which is not something I play every day because you just don't get them and I'm not saying that they're rare although they kind of are rare but they're really really really really good ones they're kind of rare all right but if I looked more for bullish ones I'd probably see more but I do tend to notice the bearish ones but you know that's because I like to short every day. I've been paying more attention to longs because of the market and obviously I'm doing the swing trade letter too but I will tell you that the true power of the gap is when it does a corrective gap but that's not something you get every day. I play gaps that are not corrective gaps all the time because I trade money through Friday you know 12 months out of the year but the one thing that I thought it was very important to point out about Korean was really what happened to this after that corrective gap and that's one of the important things about learning that in the trends class. Again this is really for people that want to do overnight trades or swing trades or option trades but these corrective gaps are so powerful so powerful because they begin a new move in the stock. The new move is changing direction the direction it could change could be up or it could be down. One of the reasons that I'm so good at reading long-term trends is because I understand what a corrective gap is again that something I teach in the trends class I don't do that class every month but it is a very very important class for taking over nights because you don't want to take something overnight that is in the wrong direction. It really you don't want to at all and on top of that it also is something that can add on to your day trading capabilities because if you can see something better in a quality way in any perspective even as a day trader it will improve your day trading because when you're day trading you have to have a high level of conviction to take risk in the market and make decisions quickly. You really have to have all the pieces of the puzzle on your side and I just don't think that you can know too much information to be good. I think one of the reasons why I am such a good trader reading long-term trends and short-term trends and reading the market and reading gaps and day trading and everything I teach and everything I do and call in the market every day like the Cree. It's because I understand that knowledge is extremely important when you want to be good and you just can't have enough of it. There is no such thing as too much knowledge and so it's very important to notice something like this because of the fact that it's significant and for everybody that was in the room that did that trade back with me in April that's still in the room with me now which is a good amount of people. I sure everyone remembers it. I remembers that it took forever to break and it didn't break till the afternoon but look at the stock price today. So all of these things play a part in understanding gaps and really money in the market because what main Cree move like that is selling. You have shorting in it now but really selling action. Selling action to bring in that type of move like that and that gap and then of course the one that we had back from Thursday which started with a swoosh which started with a stock swoosh which gives you confirmation and immediate confirmation and conviction in your bias and what a beautiful play and a beautiful pick in by me. So have a great day everyone. If you have any more questions or are interested in the upcoming July Trends class I am doing the class in July. You can feel free to email me at Melissa at thestockswish.com. The July Trends class is July 28th and 29th. It's an afternoon class which I do from 12 to 4. Have a great day everyone.