CREE - ugly earnings, stock smashed

With a lousy Q2 earnings report, Cree (CREE) was smashed lower at the open, settling -14.9% @ $23.38. Next support is the May low of $22.18. If the $22s fail to hold... CREE looks vulnerable to the mid teens.. even if the main equity market remains strong.


CREE, daily

CREE, monthly, 10yr

Summary

Q2 earnings were ugly. The outlook for Q3 isn't exactly inspiring, as CREE only expects to earn something around 10 cents.

From a pure price perspective, if CREE fails to hold the $22s.. next soft support is the psy' level of $20. After that, its empty air to the 2008 low around $15.

Even if the main equity market continues to battle higher into the autumn, CREE 
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Everyone needs lighting, right? Yet... CREE continues to struggle in what is an economy that is 'ticking along'. When the next recession hits... as is inevitable, CREE really does look vulnerable.