Editor's Note:

Additional Trading Ideas:

In addition to tonight's new candidate(s), consider these stocks as possible trading ideas and watch list candidates. Many of these need to see a break past key support or resistance:

(bullish ideas) TCK, VLO, WDC, THOR, MSG, CRZO

(bearish ideas) ROSE, ENDP


Cree, Inc. - CREE - close: 33.52 change: +0.78

Stop Loss: 31.49
Target(s): 39.00
Current Gain/Loss: unopened

Entry on December xx at $ xx.xx
Listed on December 10, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.3 million
New Positions: Yes, see below

Company Description

Why We Like It:
CREE is in the semiconductor equipment industry with a big business in LED lighting products. The stock has been stair stepping higher since its earnings report back in October. Now shares are breaking out to new 2012 highs. If this rally continues CREE could see a short squeeze. The most recent data listed short interest at 17% of the 113 million-share float.

I am suggesting a trigger to open bullish positions at $33.75. If triggered our multi-week target is $39.00. FYI: The Point & Figure chart for CREE is bullish with a $42 target.

Trigger @ 33.75

Suggested Position: buy CREE stock @ (trigger)

Annotated chart: