At 3:00 pm the market was testing the highs again and I felt it might be a good time to look for a short play. CREE had been selling off nicely all day and started to break down as the market was rolling over just after 3 pm. My entry came as a nice base break down with a nice 11 cent stop and what looked like a huge risk to reward of about .50 cents. Price moved down nicely allowing me to move my stop down to break even, since I was already down 2 R for the day, there is no since to add to my misery today. Price continued lower then CREE decided to attempt to break higher as the market decided to take out the morning high and threaten to go higher. Price came to within .01 cent of stopping my play out and finally putting in a lower pivot just .02 cents from my break even stop. Then price sold off hard and I started to feel like CREE might make it to my target in the .50 cent area. Finally, I had hooked the elephant going lower, I took all of my profits at the .55 area with a little over 5 R trade which made my day. I was finally able to squeeze out a profitable day with price finally doing what I expected it to do! Here is the chart for my short play in CREE.
