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To: MARK BARGER who wrote (1821)	2/4/2000 1:49:00 PM
From: JH	Respond to of 10714

I, too, am bullish on CREE's prospects. However, odds are better than 50/50 that a 50% rally in 3 - 4 days (producing three breakout gaps) will be followed by a profit-taking retracement. Today's price action definitely suggests a pause in the uptrend. The longer the price stays stagnant at today's levels, the larger the probability of a profit taking retracement. My guess is that $155 from yesterday and $150 from today will represent a "double top" for the next month or two. Meanwhile, support is very strong down in the $108-110 area. Therefore, shorting high-implied-volatility puts on pullbacks would be a great risk-reward trade.