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Back in late May, I wrote a piece analyzing the monthly charts of several of the top performers since the March of 2009 bottom. Seeing as the title of my post was, “Month Charts from Hell,” my conclusion was that many of them were in the midst of much needed multi-month corrections. One of the top names, $CREE, has been a favorite of iBC precious metals aficionado Jake Gint. Undoubtedly, $CREE was one of the top names to be in off of the 2009 bottom, and deservedly so given the secular growth of the LED industry. To give you an idea of how much Jake nailed the upside rip in this stock frm March, 2009 until April, 2010, check out this timestamped message in The PPT, months before it was correct to even consider selling the stock:
JakeGint wrote:2/3/2010
11:25 AM
@ $60.45“Picked up a little bit more of this at the close yesterday. Take a look at the long term (weekly) charts on this sucker if you get the chance. I think they must be putting those teeny tiny little lights in Keurigs or something.”
So, a sincere hat tip to Mr. Gint on that one, as well as his other precious metals calls. Since May, however, $CREE has been sentenced to stock market Hell. The shooting star from last April on the monthly chart has seen follow-through to the downside.
However, the issue now is whether $CREE still belongs in Hell. Based on the updated monthly chart, seen below, I believe $CREE should now be allowed to journey up through Purgatory. Unless you are betting on a total collapse, this chart has filled out nicely (albeit painfully for longs) over the past few months, and now looks ready to proceed higher off of its first test with the 20 period monthly moving average.
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Thank you for the analysis.
So are you buying any?
Stalking it here.
Darn, did you see RDWR go ~~~~
You are right… this market is hard !!!
Hahah yup. I sold out of it days ago for a nice profit but it keeps going and going.
thanks for the heads up chess. i like it for a trade up to, or into the august 12th gap… maybe get a gap fill after a pullback from $63ish.
Thanks chess for the analysis. I gave up some, but am thinking of buying it back for a trade. The risk, it seems to me, is the broader market, which seems bizarre and broken.
I like SMH here too… not a full position, but a starter… adding on the next pullback. Doing the same with Cree.
You know, Dante had two other works that were part of Inferno — Purgatorio and Paradiso too.
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Indeed, Sir Jake.
I expect CREE to move up in a Dante-esque journey.